MANIFESTO

World Tourism Forum Institute Manifesto:
Reshaping Economies Through Tourism

The main economic advantage of tourism-related activities is that they contribute to developing countries ' three high priority goals: income generation, jobs, and foreign exchange earnings. The tourism sector will play an important role in this regard as a driving force for economic development. The effect this industry can have depends on the specific characteristics of each country in the various stages of economic development. Given the complexity of tourism consumption, its economic impact is widely felt in other manufacturing sectors, leading to the accelerated development goals in each case.

A major challenge in defining the tourism sector’s boundaries is to decide what investment costs should be related to tourism growth. Although international agencies have not historically regarded tourism as an “industry” in terms of national accounting, it includes a range of goods and services that are directly offered to tourists and would not otherwise have been given.

It is difficult to analyze and prepare for tourism because of its interdependence with other economic sectors. The lack of reliable statistical data hinders both the recognition of the processes by which tourism generates growth and its development potential. Nonetheless, the role of tourism in competing for limited investment funds has been identified in those cases where study has been carried out and work has preceded planning. Long-term tourism development programs have been designed in these situations.

Investment needs in the development of nature and heritage tourism are in some respects different than the traditional development of hotels. There may be more need for improved access to and mode of development that does not interfere with a sensitive habitat or historical area.

The Institute will provide new perspectives on the relative significance of Travel & Tourism as well as some of its unique advantages in driving global economic growth:

Travel & Tourism ranks high among sectors, in terms of its contribution to GDP, employment, and exports

Travel & Tourism growth trends and prospects exceed that of other key sectors

Travel & Tourism generates substantial indirect benefits through its linkages to other sectors

Travel & Tourism is highly dispersed within national economies and its benefits are widely distributed

Travel & Tourism drives infrastructure investment that benefits other industries

Investments in well-designed destination marketing consistently produce strong economic returns

Elements of Supply and Demand

There are primary factors affecting the level of demand for nature and heritage tourism, namely; overall growth in tourism, growth in specialty travel, and increasing environmental awareness and concern. Each of these influences has a number of elements affected. In terms of tourism as a whole, for example, factors such as population growth, rising income and employment, shorter working weeks in various parts of the world and the ever-growing convergence of world economies and societies are expected to continue to rise more quickly than global economic production.

Decreasing Travel Costs

There are primary factors affecting the level of demand for nature and heritage tourism, namely; overall growth in tourism, growth in specialty travel, and increasing environmental awareness and concern. Each of these influences has a number of elements affected. In terms of tourism as a whole, for example, factors such as population growth, rising income and employment, shorter working weeks in various parts of the world and the ever-growing convergence of world economies and societies are expected to continue to rise more quickly than global economic production.

Public and Private Sector Involvement

Tourism is mostly a private sector activity, but timely provision of hotel and other visitor amenities, such as entertainment, food and sports facilities, requires public sector participation in the form of infrastructure, promotional support, as well as fiscal and financial opportunities to draw private investment to the sector.

Availability of Credit

Another important factor directly related to tourism facilities is the availability of appropriate terms of credit, which is an integral catalyst for sound investment in tourism. In some countries, where this credit availability is not provided by the private financial system, the public sector has credit lines for investment in tourism.

Tourist Destination Attributes

The tourism industry offers a multi-dimensional asset that, if actively promoted, is likely to lead to market trend changes and general new demand for services. However, as in any other area of economic activity, a minimum set of conditions must be in place to make an investment feasible. In this sense, it is important to identify the characteristics of a destination area needed to attract tourism projects and make it viable. At least six separate categories are associated with these attributes: climate, natural resources, facilities, utilities, culture, and socio-economic and political factors.

Tourism and GDP

Travel & Tourism created $8.8 trillion in 2019 and funded 319 million worldwide jobs. Again, this illustrates Travel & Tourism’s power as a vehicle for governments to create wealth while creating jobs that support women, youth and other, often disadvantaged groups in society in particular. In reality, Travel & Tourism now represents one in five of all new jobs created worldwide and is expected to contribute 100 million new jobs worldwide over the next ten years, creating 421 million jobs by 2029.

Tourism the Most Important Economic Activity

Tourism has become the most important economic activity for many countries, particularly as the biggest foreign exchange earner. It also illustrates the growing importance provided to recreation and leisure as a result of rising income levels around the world. However, unlike many goods and services, tourism has no exact alternatives, which means that the market for holidays should grow rather than be searched for something else. It may also be an issue to have political boundaries that separate states, metropolitan areas or other natural market areas. Tourism has become a major sector that has an impact on the country economy’s growth. Tourism’s main benefits are revenue production and job creation. This is the most important source of healthcare for many regions and countries. The national economy’s ability to benefit from tourism depends on the availability of investment to build the necessary infrastructure and its capacity to provide tourist needs.

 
 
 
 
 
 
 
 
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