Foreign exchange earnings
Tourism expenditures, the export and import
of related goods and services generate income to the
host economy. Tourism is a main source of foreign exchange
earnings for at least 38 % of all countries (World
Tourism Organisation).
Contribution to government revenues
Government revenues from the tourism sector
can be categorised as direct and indirect contributions.
Direct contributions are generated by taxes on incomes
from tourism employment, tourism businesses and by direct
charges on tourists such as ecotax or departure taxes.
Indirect contributions derive from taxes and duties
on goods and services supplied to tourists. As an example
we can take the taxes on souvenirs, alcohol, restaurants,
etc.
Employment generation
The rapid expansion of international tourism
has led to significant employment creation. For example,
the hotel accommodation sector alone provided around
11.3 million jobs worldwide in 1995. Tourism can generate
jobs directly through hotels, restaurants, taxis, souvenir
sales and indirectly through the supply of goods and
services needed by tourism-related businesses. According
to the World
Tourism Organisation tourism supports some 7 % of
the world’s employees.
Stimulation of infrastructure investment
Tourism can induce the local government
to improve the infrastructure by creating better water
and sewage systems, roads, electricity, telephone and
public transport networks. All of this can improve the
quality of life for residents as well as facilitate
tourism.
See
Slovenian coast case study
Contribution to local economies
Tourism can be a significant, even essential
part of the local economy. Because the environment is
a basic component of the tourism industry’s assets,
tourism revenues are often used to measure the economic
value of protected areas. There are other local revenues
that are not easily quantified, as not all tourist expenditures
are formally registered in the macro-economic statistics.
Money from tourism is earned through informal employment,
such as street vendors and informal guides. The positive
side of informal or unreported employment is that the
money is returned to the local economy and has a great
multiplier effect as it is spent over and over again.
The World Travel and Tourism Council estimates that
tourism generates an indirect contribution equal to
100 % of direct tourism expenditures.
Direct financial contributions to
nature protection
Tourism can contribute directly to the
conservation of sensitive areas and habitat. Revenue
from park-entrance fees and similar sources can be allocated
specifically to pay for the protection and management
of environmentally sensitive areas. Some governments
collect money in more far-reaching and indirect ways
that are not linked to specific parks or conservation
areas. User fees, income taxes, taxes on sales or renal
of recreation equipment and license fees for activities
such as hunting and fishing can provide governments
with the funds needed to manage natural resources.
Competitive advantage
More and more tour operators take an active
approach towards sustainability. Not only, because consumers
expect them to do so but also because they are aware
that intact destinations are essential for the long
term survival of the tourism industry. More and more
tour operators prefer to work with suppliers who act
in a sustainable manner, e.g. saving water and energy,
respecting the local culture and supporting the well
being of local communities. In 2000 the international
Tour
Operators initiative for Sustainable Tourism was
founded with the support of UNEP.
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