How does tourism increase the economic status of a country (details pls)?

Question

How does tourism increase the economic status of a country (details pls)

Answer 1

Tourism is often described as the sale of an experience to a visitor. It is an unusual export in that the visitor (consumer) must visit the country in order to enjoy the product that is being sold. Being an export, the country earns important foreign exchange from tourism. Tourism is multi-faceted and many sectors of the economy are involved. Firstly, the visitor must travel to the destination. Travel can be by air, road, or sea. Businesses that benefit in this sector include aviation, catering (to provide meals on a plane or ship) car rentals, cruise ships. Secondly, the long-stay visitor will need accommodation, thus providing opportunities for hotels, bed & breakfast rooms, guesthouses, inns etc. The businesses will employ front desk clerks, cleaners and other workers. Thirdly, visitors will want food and drink creating employment for waiters, bartenders etc. The visitors will want to travel locally at the destination to visit places of interests. They will want to purchase souvenirs or visit theaters and museums or go horseback riding for which they will have to pay a price. Altogether a part of their expenditure will not only increase spending (aggregate demand) and therefore production and employment in the country, but it will also add to the foreign exchange currency that a country earns and this is good for many developing countries. These countries can then use the foreign exchange earned to pay their international loans and purchase imports from other countries.

Answer 2

Really depends on the structure of the tourism and the connections to the real economy. Tourism in many ways is similar to an export good. If a foreign company comes into a countries hires a few local workers and brings the profits elsewhere, you won't have much in the way of economic effect. If the tourism or export is connected to the economic base, you'll have growth similar to that of an export economy.

With a good source of foreign currency, the resulting growth really depends on how the money is spent. Exports or tourism can start the ball rolling, but the economy won't grow without structural reforms and capital investment.

Answer 3

When tourists come, so does the money! Of course having all that money dumped into the country is going to raise the economic status. Businesses will have more money, and that raises the cash flow throughout the country. With more money, there's more construction. With more construction, there's more jobs. And the rest is history!!

Answer 4

It would not *unavoidably* improve status according to se (as status is a extremely subjective term), regardless of the shown fact that it does serve to deliver poorer international places lots-mandatory earnings. This facilitates strengthen the regular of existence in those international places and could supply the governments with further sales to finance useful social classes. it somewhat is greater useful by using microeconomic thought of diminishing marginal application - it somewhat is, poorer international places receive greater suitable earnings according to greenback than a u . s . it somewhat is already quite nicely-off.