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Tourism and Economic Development

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28.02.2007

Advantages:
Generates money, regeneration, jobs

Disadvantages:
Exploitation, environmental

Recommendable Yes:

13 Ciao members have rated this review on average: very helpful See ratings
very helpful by (88%):
  1. liz1102
  2. Julieshobs
  3. denella
and 12 other members
somewhat helpful by (12%):
  1. Averilla
  2. koshkha

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EXAMINE THE RELATIONSHIP BETWEEN THE GROWTH OF TOURISM AND ECONOMIC DEVELOPMENT

As one of the world fastest growing Industries tourism offers much benefit to both the local and global community. Not only does the industry generate an average of over $4,000 Billion of economic activity a year but it employs one out of every five employees in the global workforce. Growing at an immense speed the tourism industry continues to have a mounting impact on the economic development of many areas; acting as a stimulus for economic growth in many LEDC's and a rejuvenating force for many countries in the more economically developed world.

A continually fluctuating industry, tourism perhaps has the most significant economic effect on the less economically developed world. Tourism can offer many benefits to LEDC's, first and foremost it has the ability to generate excessive amounts of money and so provide jobs for countless people giving them the chance to escape poverty and attain a higher standard of living. Increased revenue through Tourism also means that the country's GDP increases therefore allowing more money to be spent on essential public services such as hospitals and schools. Tourism also demands more infrastructure such as roads, hotels and leisure facilities creating a multiplier effect; more infrastructure means more tourists and therefore more jobs and ultimately more money.

When considering the impact of tourism on economic development it is clear that many problems are incurred. In terms of LEDC's one of the most significant of these problems is leakage; large multinational corporations build various hotels, airports etc… ruining the environment and destroying local culture only to take the majority of the profit back to their own economy and whilst it can be argued that the country gets more money than it was before the growth of tourism the fact remains that whilst this attitude is maintained unscrupulous multinational companies will continue to exploit LEDC's therefore limiting the impact which tourism could have upon the economic development of some LEDC's. Another issue when considering the economic costs which tourism has is that of original costs, in order to attract tourists an area must have the appropriate infrastructure thus presenting the problem of the cost of such secondary resources. In addition to this there is a general trend in which money must be diverted from other sectors for such costs, for instance health care and education provision. A concern also arises in that whilst it can be argued that tourism offers many benefits these are usually concentrated in a single area and in regards to the main on: jobs, the higher paid jobs are given to people brought in from other countries thus restricting the local population's movement in terms of promotion.

Less economically developed countries are becoming ever more at the mercy of Tourism as the industry expands. With mass tourism offering an alternative route to manufacturing in the 'take-off' stage of Rostow's model of economic development it becomes obvious that such countries may have an almost 'mono-economic dependence on tourism' therefore meaning they are subject to fluctuation in the tourist industry which are not uncommon with it being so dependant on the cohesion of numerous factors, for instance demand can be affected by fashion or safety: put simply the tourist industry can be affected by the mere whims of society.

Generally the growth of tourism can have quite significant effects on economic development in the less economically developed world. For some small countries it is their only industry and so the means to their survival whilst for others it offers the only route to development. In Goa, for instance, tourism arguably has a poor influence on the city however economically it is a positive force in India and government ministers have pointed out that it has greatly improved the economy without the environmental consequences of traditional heavy industry. The jobs which are provided by tourism in less economically developed countries not only offer the country an improved GDP at present but the chance for a more economically efficient country in the future; with more of the population having access to training the country is left with good prospects for the future and its population intact as people no longer need to migrate to find work.. However the cots of such growth must not be overlooked, tourism can have serious detrimental effects to both the society and environment of any area, but particularly in LEDC's where the legislation to protect such things does not exist. Further to this tourism may offer a great deal to a county in terms of economic growth but cannot offer to maintain such growth, being an extremely fickle and changeable industry absolute economic reliance on it could be very damaging and LEDC's would be served far better to develop other industries alongside tourism in order to ensure that the growth which tourism has facilitated is sustained.

In the more economically developed world tourism offers different opportunities for economic growth whilst the fundamental aspects of its influence also persist. Tourism in MEDC's has become more specialised and offers numerous types of tourism from adventure holidays to nature tourism. Tourism has become incredibly marketable in the more economically developed world and so can generate huge amounts of money, this contributes considerably to the economic growth of an area especially when considering the tax revenue this generates and the knock-on effects which it creates. Like in LEDC's tourism can create a multiplier effect in which tourism creates jobs and infrastructure and thus helps to regenerate an area making it even more appealing to tourists, for instance the Bristol Harbour Side regeneration which aimed at regenerating areas of the city in order to attract tourists created over 3000 new jobs and a host of new facilities.

The tourist industry contributes significantly to the economy of many countries thus ensuring that its growth is a noteworthy force in any such countries economy. The decline of the tourist industry although less hard felt than in LEDC's would be problematic, it would mean the loss of tens of thousands of jobs and the payment of unemployment befits to those suffering because of thus having a sever adverse effect on any economy. However this has not been the case and the tourist industry has been growing significantly over recent years, with diverse industry and an intricate network of agencies and legislation it has also been managed well; a significant influence on MEDC countries economies it does not dictate a countries economic situation.

Mydral's model of Cumulative Causation particularly indicates the significance of the relationship between the growth of tourism and economic growth. It illustrates that when jobs (for instance by the tourist industry) are created knock on effects culminate in further growth income whilst areas of growth will spread and create advantages for development especially as new investment and technology materialise.

The growth of tourism is generally very promising for both MEDC and LEDC economies, perhaps more so in MEDC's which are less reliant upon the industry. Provided that its influence upon any economy is managed well tourism can prove an immensely important and positive factor in economic devolvement. As countries seek to develop further tourism offers the perfect opportunity to do so, for LEDC's it offers the chance to build the same sort of economy as MEDC countries using tourism as a substitute for heavy industry whilst in the more economically developed world it allows exploration and the chance to indulge new interests and fashion, prizing an ever growing disposable income from the hands of the public and pouring it into an industry which is becoming increasingly influential in the development of many economies. Perhaps the key to maintaining both economic development and tourist growth is sustainability, there is little doubt that what currently lies at the outreaches of the pleasure periphery will soon be gracing its inner stages and that the rapid growth of tourism will slow down either because the resources have been depleted or because people simply cannot afford it. Ensuring that the first does not happen should result in its positive effect on economic growth continuing and the latter will never occur.

In conclusion it is clear that the relationship between the growth of tourism and economic development is a complex one, whilst most countries in the more economically developed world are simply taking advantage of this growth in tourism other countries in the less economically developed world are totally reliant on it. This is unwise, without the diversity which an MEDC has these countries are left at the mercy of an extremely fickle not to mention seasonal industry this means every year they are prey to the off season in which their economically will almost certainly slump and that ultimately they may also fall victim to one of the many other factors which affect the tourist industry. This constantly obscures the positive effect which the growth of tourism has had on economic development; allowing many countries to develop at great pace and with much success without the need for heavy industry. The case seems far more optimistic in the more economically developed world in which tourism is a multimillionaire dollar industry which contributes extensively too many economies and the regeneration of many areas in order that the tourism industry can continue to grow and stimulate economic growth.


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Comments about this review »

Averilla 06.03.2007 19:31

I have to agree with comment below I'm afraid. Av

koshkha 02.03.2007 15:36

Interesting stuff but this is posted in the creative writing section and I don't consider that what you have posted is creative - it's very good analysis but it's in the wrong place. If you can find somewhere more appropriate and get it moved, I'd be happy to re-rate.

lynz_1981 01.03.2007 17:55

Wow, that was really good. i havent got a clue when it comes to this sort of thing. Lynz x

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This review of Essays has been rated:

"very helpful" by (88%):

  1. liz1102
  2. Julieshobs
  3. denella

and 12 other members

"somewhat helpful" by (12%):

  1. Averilla
  2. koshkha

The overall rating of a review is different from a simple average of all individual ratings.