Importance of Tourism

Importance of Tourism

It is obvious that the tourism industry is considered as the world’s fastest growing industry. Moreover, tourism is an activity which exists from the economic activities of a tourist related with the entry, stay and the movement within or outside the certain country, region and city. The tourism industry has significant contribution for the overall development of the nation as it is the major source of foreign currency.

The income from tourism has a higher rate of increment which merchandise. The main economic significance of tourism is that the earning generated at the origin is spent at the places of visit or destination. Hence, tourism in every aspect has a wide dimension and the in the importance are listed as below:

 Foreign exchange earning

Tourism has the unique ability to earn foreign exchange.  Tourism is an invisible export. Tourism is the only export based trade that earns large foreign exchange, without depleting national resources and without actually exporting any material goods. Therefore as an export industry, tourism ranks above all other traditional export industries and carves for itself a unique place.

It is fact that almost all the developing countries use tourism–as a factor for economic development and for correcting their adverse balance of payments position. The income from tourism has tended to increase at a higher rate than merchandise export in a number of countries. Now, tourism is an almost an assured channel for financial flows from the development countries to the developing countries raising the latter’s export earnings and the rate of economic growth. In Nepal the foreign exchange revenue from tourism is…………

 Employment opportunity

Tourism is a service industry and also it is labour intensive. The tourism industry employs large number on people and provides – a wide range of jobs which extend from the unskilled to the highly specialized. Employment generated by tourism is categorized into three divisions; direct, indirect and induced. Direct employment results from the jobs created specifically by the need to serve the tourists.

Indirect employment is found in the tourist supply sector but does not result directly from the tourist expenditure. Tourism development creates jobs indirectly in sectors which do not directly save the tourists (e.g) Hotel furniture, Poultry, effects of tourism multiplier as local residents respond to the additional income which they have earned from tourists Construction industry is another very big source of employment. The basic infrastructures – roads, airports, water supply and other public utilities and also construction of hotels and other accommodation units create jobs for thousands of workers, both unskilled and skilled.

Tourism provides an appropriate channel to reduce the large unemployment that cripples the economy. In tourism, jobs are rapidly generated at relatively low costs. They are concentrated in small business and local communities helping to equalize economic opportunities throughout a nation and provide an incentive for the residents neither in rural areas nor to more to overcrowded cities. They provide significant opportunities for women also. Tourism as a source of employment such as non-industrial areas having rich natural resources other than scenic attraction and climate.

 Promotion of National Integration

Tourism can serve as an effective instrument for national integration. Religious fundamentalism, caste and communal forces, linguistic chauvinism and the like are the Villiams of peace and harmony among people. Nepal is country of diverse languages and religions. So the diverse among people are many. Tourism promotes unity in diversity. As tourists people forget their caste, creed, community and religion and mix with all and enjoy seeing admiring and cherishing our great cultural diversity and heritage. The exposure to the diversities of our culture unites the people to stand together.

Contribution to Government Revenue

Tourism generates revenue to the Government from within this country. This revenue is mainly in the form of tax. Tourism contributes directly and indirectly. Direct taxes are taxes on the income generated by tourism employment and business. Indirect taxes are duties levied on goods and services supplied to primary tourism industries like groceries, furniture, medical shops, bakers, textile etc. Possible sources of revenue from tourism include: Room tax – Tax on meals – License fees for tourism facilities Entrance fees – Excise tax – Import tax-Sales tax-Property tax on visitor property-Profit tax- Income tax on Tourism Industry

• Employment Corporation tax on tourism industry companies.
• Airport use fees, boat fee.

Improvement of rural economy

An important domestic effect of tourism is the rural economy. There are under developed rural places of the country which are isolated having problems of unemployment andpoverty and the lands may not be very fertile. These areas may not be suitable for any economic venture. But these areas may have tourist attractions by nature or gifted by forefathers. In these areas, if tourism is promoted, it can bring in a lot of prosperity to the local people. Tourism development in these regions may become a significant factor in redressing rural inbalances in employment and income.

Developed as well as developing countries have realized this aspect of tourism development and are creating and developingtourist facilities in under developed regions with a view to bringing prosperity there. Bandipur, Ghandruk, sirubari which is now an internationally and nationally famous tourist spot, is an example of one such rural area. Once, it was a remote and unknown small village. Now thousands of tourists visit this place to see the natural beauty. The area around is now pulsating with life. The place has provided employment to hundreds of local people in hotels and shops.

Infrastructure development

Development and improvement of    infrastructure is another, important benefit of tourism. The benefits from infrastructure investments meant primarily for tourism, such as investment in airports, roads, water supply and other public abilities, may be widely shared by other sectors of the economy. In addition to development of new infrastructure, the improvements and up gradation in the existing infrastructure, which are undertaken in order to attract tourist is also of crucial importance.

These improvements would also confer benefits upon the resident population by providing them with amenities which, hitherto, they had not enjoyed. Further, the provision of infrastructure may provide the basis or serve as an encouragement for the promotion of a variety of secondary industries, which may not serve the needs of tourism.

Protection of Flora and Fauna

The flora and fauna are the biological gifts of the nature. Their diversity, freshness, harmonious patterns and uniqueness are a pleasure for the senses and the heart. But for tourism, the flora and fauna of a place may become extinct for want of due protection. By making them as tourism resources, the flora and fauna can be given protection by the tourism agencies. Apart from this a tourist gains knowledge, when he sees new places, new society, new culture, new people etc. From the foregoing discussion, it may be presumed that:

1. Tourism is industry without smoke.
2. Tourism is education without class rooms.
3. Tourism is integration without legislation.
4. Tourism is diplomacy without formality

Redistribution of National Income

One of the greatest problems facing the development of on economy is hoarding of national income by a few privileged ones. In the middle ages, savings were converted into Gold, Silver, Jewels and precious metals. In the later stage, savings were invested in hug he purchases of land and building. Tourism prevented national income being saved by a few. It created new opportunities of investment. It allows savings to be spent on travel, cruises, art visit or in health resorts, visit to international sports events, conventions, festivals, exhibitions, etc. It all leads to redistribution of money which increases employment opportunities and a reduction in employment in other sectors; it all results in the development of neglected areas.

Tourism Income Multiplier

Tourism as a source of income is not easy to measure, at least with any degree of accuracy. This is because of the multiplier effect. The flow of money generated by tourist spending multiplies as it passes through various sections of the economy through the operation of the multiplier effect. The nature of tourism multiplier and its effect may be described as follows:

The money paid by a tourist in paying his hotel bill will be used by the hotel management to provide for the costs which it had incurred in meeting the demand of the tourist, e.g., such goods and services as food, drink, furnishing, electricity, laundering and entertainment. The recipients, in turn, use the money they have thus received to meet their financial commitments and so on. In other words, tourist expenditure not only supports the tourist industry directly, but helps indirectly to support many other industries which supply goods and services to the tourist industry.

In the way, money spent by the tourist may be said to be used several times and to spread into various sectors of the economy. In sum, the money paid by the tourist, after a long series of transfers over a given period of time, passes through all sectors of the national economy, stimulating each in turn throughout the process.

International Understanding and World Peace

Through tourism, people can understand and appreciate the culture, history, geography, social, educational, political and economic systems of other countries.   This   radiation   willlead to greater understanding between people of various countries. “We must welcome the friendly visitor from abroad not only for economic reasons, but even more because this leads to greater understanding and mutual appreciation. There is nothing that the world needs to day than this mutual understanding”.

Tourism protects arts and folk arts

Earlier the Kings and Rulers used to patronize traditional arts and folk arts. Later on they slowly died. But now tourism has taken over traditional arts and folk arts. Tourist’s interest in seeing arts and folk arts help in preserving and keeping the arts forms which are still in demand. Department of Tourism also conducts fairs and festivals all over the country as a part of art promotion. So in way tourism is responsible for the survival of our traditional art forms.

Tourism Preserves Historical Monuments

Historical monuments are major attractions in tourism. Monuments are the symbol of our past, Tourism helps to protect and preserve the monuments. The money collected as entrance fee supplement funds for maintenance.

Spiritual Significance of Tourism

Pilgrimage is an important form of tourism. The major aim of all religions is spiritual welfare of people.  Tourism foster respect for the dignity, individually and moral virtues of people.

Exchange of Ideas

When conventions and conferences are held with international participation, it facilities the exchange of ideas and other new developments in the respective fields. This would be beneficial especially to the local professionals and experts.

Preservation of Local Culture

The major elements of local culture which attract tourists are: Handicrafts, language, tradition, art and music, architecture, religion, education, dress and leisure activities. Now tourism helps in the development of some of these basic elements of the local culture.

Develop friendship and understanding

The guest and host encounters in tourism, helps in understanding the view point of others and make us realize that we have to live with differences, which is the essence of tolerance and Co- existence. Tourists imbibe these values through tourism. Tourism helps to create better citizens and human beings and improve human relations.

Build peace among the nation

In tourism, there are two tracks of diplomacy. Track one is the official channel of government relations. In tourism, treat signed between countries maintain mutual relations between the government and their people.

Track-two diplomacy is the unofficial people to people relation. Due to this relation, conflict of both the countries can be solved. Tourism is an excellent vehicle for implementing track-two diplomacy. Tourism can be used as a diplomatic barometer of closeness and affinity.  The flow of tourism between two nations can be used as a sign of the level of good relations between two nations and their people. Tourism has been identified as a means of building political bridge among nations

 Provide education

Modern tourism is an instrument of education. Tourism gives a direct knowledge and contact with great achievement of human mind. It is becoming a more powerful tool of education. Education can be provided with the help of direct contact and other medium such as electronic media, printed media.

Regional Development

Tourism is one of the major sources of income for many individuals and the nations too. It however leads to the regional development. There will be a flow of economy or money from one region to another due to the tourist activities.

The expenditure made by tourists in various activities has a great significance in those marginal areas which are relatively isolated, economically depressed, and having an excess problem of an UN-employment. The income from the tourism will be the source of prosperity to the local community. Basic infrastructures like- Road linkage, Drinking water, Electricity etc. and superstructures like Hotels, resorts, restaurants etc. along with the gradual establishment of other superstructures will however lead the regional development.

Importance of Tourism

Importance of Tourism

Types of Tourism and Tourist