BHT 1113

First Year First Semester

Professor: Madam P. Gayathri

SUMMARY

05. Benefits of Tourism

The Economic and social significance of Tourism

● Socio-cultural benefits • Technological benefits

● Environmental benefits
● Political benefits
● Economic benefits

Socio-cultural benefits

➤ Tourism as a force of peace - The education element in tourism brings communities

together as it fosters understanding, knowledge, and mutual empathy. An increase in
understanding reduces tension between people and creates peace.

➤ Strengthening the communities - peace between the local community and tourist
community. It also creates peace between the cultures of hosts and guests. Culture is also
used to promote tourism.

➤ Benefits for residents - Tourism would result in higher living standards in destinations
with many facilities like upgraded infrastructure, health, transport, better-quality
commodities, etc.

➤ Revaluation of culture and traditions - Tourism boosts the preservation and

transmission of heritage and historical traditions. Contributed to sustainable maintenance
of natural resources and cultural art and crafts.

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➤ Civic involvement and pride - creates a local awareness of natural resources and
awakens a sense of pride which would result in a local contribution to tourism
development.

➤ Revitalization of poor

➤ Rebirth of local architectural values

Environmental Benefits

➤ Financial contributions - certain fees paid at the entrance of the destination are
contributed to environmental conservation

➤ Improved environmental mng - hotel env mng done for tourists also benefits our nature.
Planning environmental mng can prevent damages and avoid deterioration of natural
assets (ex: green building - energy-efficient raw materials used, sewage system )

➤ Environmental awareness raising - increases public appreciation of the environment.

Tourism consumes a large number of goods and services that encourages local businesses
which produce goods and services in a sustainable way.

➤ Protection and preservation - because of the beauty of nature it's very well protected as
it attracts tourists. Because of this preservation strict rules has be imposed and as a result,
many endangered species of animals have started to thrive again.

Economic Benefits

➤ direct, indirect, and induced effects - the direct effect is the changes in the economic
activity during the first round of spending (ex: the hotel owner gets the direct effects from
tourists when he stays at the hostel)

The indirect effect is the changes in income in the region in backward-lined industries
such as suppliers (ex: supplier and the employee gets the indirect effects from tourists)

The induced effect is the changes within the region from household spending to the
income earned. (ex: supplier spends his earning for his family)

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➤ Balance of payments - income earned from tourism industry can assist on national
payments for the rest of the world

➤ Income generations and distribution - the income price elasticity has a huge impact on
the tourist income generation on the country. Government earn revenue by taxing the
tourists

➤ GDP Contributions - tourism industry incomes contributed directly or indirectly to a

country’s GDP. In 2021, industry contributed over 143 million US dollars to Southasian GDP.

➤ Employment - tourisms also creates new job opportunities. In 2021, 1 in 11 of all jobs are
of tourisms related employment (direct, indirect and induced employment)

➤ Entrepreneural activities - relationship between local entrepreneurs are strengthened

because of tourism. Local entrepreneurial activities has a positive impact on tourism

➤ Opportunity cost - when certain destination areas are invested for a certain purpose it is
rarely considered for another activity then creates opportunity cost

Political benefits

➤ Tourism as a rights - UNWTO defines tourism and travelling as a right and also supports
the liberty of tourists movements. Travelling is a basic human rights that augments quality
of life.

➤ As a political phenomenon - first and second world countries ensures safety in order to
develop their tourism industry

➤ Political stability - good law and order encourages tourists for their arrival. Good stability
of the system creates a good environment for developing tourism. Beautification of site ans
destination as a result of stability of government has a great impact on tourist inflow.

Technological benefits

➤ Facilitated globalization - through internet and social media people are well connected
and also information exchange rate and speed has become higher with the development of
technology which has a greater impact on a country’s tourism

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