Malaysia's exports to the United States exceeded its American imports by $14 billion. For Korea, the surplus relative to the United States is $13 billion; for Brazil, $3 billion. It may be surprising, but high technology is now the largest export sector for developing countries. Information and communications technology accounted for $450 billion worth of exports by developing nations -- compared with $235 billion for resource-based goods and $405 billion for low-tech goods. Not only does the United States buy hundreds of billions of dollars worth of goods produced by developing nations, it also invests heavily in those countries.
These are international tourism, where a tourist travels abroad or overseas and internal tourism, where a tourist’s travel and spending are confined to their country of residence. Although internal tourism accounts for as much as four times the amount of international tourism, the reasons for their overall growth are very similar. As countries become industrialised and urbanised, standards of living increase. The world-wide phenomenon of tourism therefore began in MEDCs, in Europe and North America and later in Japan. To this day, 80% of all tourists come from MEDCs and Europe alone accounts for 48% of expenditure in the tourism industry.
A common equation for GDP is: GDP = consumption + investment + government expenditures + exports - imports. [IMAGE] I got this table from: http://www.culture.gov.uk · This table shows how tourism both domestic and overseas contributes to GDP. · It is estimated that tourism directly employs about 8 million people in the European Union, representing roughly 5% of total employment and of GDP, and 30% of total external trade in services. Together with employment and GDP indicated in other sectors, such as transport or distributive trade, these figures rise up 20 million jobs and to roughly 12% of GDP. [IMAGE]In the UK, residents made more than five times as many holiday visits abroad than overseas residents made to the UK.
In many countries, particularly developing and emerging economies, domestic tourism accounts for a significant share of the sector’s income, representing close to 50% or more of the total in many advanced economies. Tourism, the third largest foreign exchange earner for India, contributed nearly 6.88% in the countries’ Gross Domestic Product (GDP) during 2012-13 and is ranked 12th globally in terms of its tourism and trade’s contribution to GDP. The World Travel and Tourism Council (WTTC) predicts this ranking to come down to 4th by the year 2025. For a country with 30 world heritage sites, 10 bio-geographical zones and 26 biotic provinces, the tourism industry has an immense potential to enhance tourist flow and accelerate economic growth while creating multifold job opportunities. The country witnessed USD 21.07 billion in Foreign Exchange Earnings (FEEs) through the tourism sector during
Expressing remittances as a share of GDP, it exceeds 10% of GDP in 22 developing countries; the top recipients of officially recorded remittances in 2012 were: India ($69 billion), China ($60 billion), the Philippines ($24 billion), and Mexico ($23 billion). Other large recipients included Nigeria, Egypt, Pakistan, Bangladesh, Vietnam, and Lebanon (World Bank, 2013). Globally, migrants pay an average cost of 9% to send money to their home countries. Reducing the average remittance price to 5 per cent, in line with the G8 and G20 targets, could save migrants up to $16 billion a year. Reportedly, 50% of remittances are sent through informal channels, doubling the official estimate (Cecilia, 2010).
The impact of tourism on the economic growth is constantly rising due to increasingly growing size of the tourist market. Domestic tourism also play an important role in achieving the country’s objectives like promoting cultural, Social and national integration. d) Cultural integration: Culture is the most important lifeblood of tourism. Culture and tourism both have a significant relationship. Cultural tourism refers the person’s movement to cultural attractions that is away from their normal place of
1.1 BACKGROUND OF THE STUDY Kandampully (2000) define tourism as a unique product composite with tangible and intangible services by tourist’s experience. Travel and tourism is the second largest global industry with daily international revenues of approximately US$2 billion, and investment of 12 percents of world GDP (Balakrishnan, 2009). That is why travel and tourism considered as one of the fastest growing industries based on WWTC, 1995. Tourism is the second most important money spinner for Kelantan besides agricultural sector. It contributes about 30 percent(%) of the Kelantan’s GDP in the year of 2015 and USD 3.25 million was generated by the state from the tourism industry (Zuhaimy Ismail, 2016).
Tourism plays a big part of the economy for many countries in the world. Tourism is also said to be the world’s largest service sector industry . According to a research by the World Travel and Tourism Council (WTTC), the travel and tourism industry was twice the size of the automotive manufacturing industry in terms of the world’s combined gross domestic product (GDP) in 2011. In terms of employment, the travel and tourism industry is only second to education, employing around 98 million in 2011. This would only mean that tourism is a major contributor to global economic development, helps in creating jobs and also generates wealth.
Thus, stabilising influence to the extent of welfare benefits. Second, tourism has significant backward linkage, meaning that an increase in the tourism expansion has great potential to expand output which correlated to the tourism industry. (Rupa, 2009, p. 128-129). Tourism is an important economic activity in Singapore. The Singapore’s government is thus must give an obligation to its tourism in order to facilitate development, international tourism and a sustainable economic growth.
Brazil’s Slow Development Brazil, consisting of about 188 million people, has the ninth largest economy in the world at purchasing power parity as of 2006. Its GDP outweighs that of any other Latin American country. Because of their rapidly developing economy, Goldman Sachs, one of the world’s largest global investment banks, selected Brazil as one of the nations that will outshine most of the current richest countries of the world. The BRIC thesis argues that these developing countries (Brazil, Russia, India and China) will share world economic dominance by the year 2050. It is predicted that these countries combined will make up over 40% of the worlds population and hold a combined GDP (PPP) of nearly $15 trillion.