Tourism and the Economy Research Paper Example | Topics and Well Written Essays - 1500 words

Tourism and the Economy - Research Paper Example What are the strategies important for the development of tourism industry? What are the factors that may influence the growth tourism industry? Literature review Economic importance of tourism industry According to UNWTO (1) â€Å"In 2011, international tourism receipts exceeded US$ 1 trillion for the first time, up from US$ 928 billion in 2010.† Tourism industry as a growing service sector is diversified and includes hotels, airlines and other transportation, resorts, parks, shopping malls, motels and entertainment venues. It could be observed from the World Tourism Barometer furnished by UNWTO (2), that the growth of tourism industry in BRIC countries has been phenomenal during the year 2011 with Brazil at 29.5% (Rank from 18 to 12), Russia at 22.1% (9 to 7), India at 32.9% (24 to 22) and China at 32.2% (no change) with US and Euro zone though positive with less than 10% growth. Growth of tourism is largely linked to recent economic growth in these economies. For some small countries like Singapore, Dubai and Fiji, tourism industry is the major source of foreign exchange. Tourism sector plays an important role in employment generation. UNWTO (3) stated â€Å"Participants at a major United Nations Conference on Trade and Development (UNCTAD XIII) have underscored the role of tourism as a vital service sector, contributing to GDP and employment in developed and developing countries alike.† Stability and growth in earnings in this sector would lend flexibility in management of balance of payments position of a country, if the potential of this industry is recognized and necessary initiatives taken by the government for its growth. Development of tourism industry The growth in international trade and businesses due to globalization is closely linked to the development of tourism industry. The tourism industries of emerging economies like China and India have been benefited greatly by industrial developments. However, marketing in respect of individu al companies in the industry should be backed up with effective planning and establishment of standards and communication facilities for sustainable future growth. The standards adopted in the industry and the categorization of customers or services offered underwent significant changes over time. Sharpley and Telfer (2008, p. 27) stated â€Å"Approaches to tourism development, then, have evolved over time from traditional, modernist economic growth models through to sustainable approaches that attempt to balance tourism as a profit-driven, resource-hungry activity with the developmental needs of destination environments and communities.† Diversity in workplace is very important for meeting the demands of the customers with different cultural and social backgrounds. The unique feature of this industry is that the languages spoken and customs, habits and behaviors of the customers vary significantly. Also, the types of services offered are multifarious from catering and lodgin g to recreation, health, sports, travelling and event management. Therefore, role of HRD in recruitment, placement and training is very important. Retaining and attracting talents to businesses is a challenge to the industry. The tourism industry has successfully weathered the European financial crisis. Economic growth in the developing countries is expected to help industry’s growth. Convergence of technology and emergence of social networks have acted as a catalyst for the business growth