The available data shows that from 2000 to 2013 there has been an obvious increase in the number of tourists visiting Malaysia with a temporary decline during 2003 due to the effect of global crisis. Since 2000 the number of tourists visiting Malaysia was approximately 10.22 million tourists while the figure in 2013 has increased approximately 25.72 million tourists, these figures show that the number of tourists visiting Malaysia has increased by more than half. However, those tourists which come from the ASEAN countries is always higher that other countries. This may possibly due to easy and cheap access to Malaysia from those countries.
Introduction The United Nations World Tourism Organization (UNWTO) has published that the tourism industry has experienced continued growth and diversification to become one of the largest and fastest growing economic sectors in the world for the past six decades. For many economies, tourism has become a key driver for socio-economic progress. It has generated an estimated gross output of US $3.5 trillion and the figure is expected to increase to US $7.0 trillion by 2011 (World Travel and Tourism Council, 2009). The future of the tourism industry is bright as the World Tourism Organization (WTO) forecasts that an estimated one billions tourists will be traveling around the world by the year 2010. The expansion and growth of tourism has contributed to the development of the developed countries as well as less developed counties.
The Department of Tourism’s resolve in promoting Indian tourism has strengthened as it recognises its potential. Tourism in India is the third largest foreign exchange earner, accounting for 2.5% of GDP. It also makes a direct contribution to economy with significant linkages with agriculture, horticulture, handicrafts and construction. The outlay on tourism development rose to Rs7,860 million in 2005/2006, from Rs3,500 million in 2003/2004, and continued to focus on the “Atithi Devo Bhavah” campaign, targeted at the inbound foreign tourists in the country. Translated literally this means “Guest is God”.
Nonetheless, in terms of returns, the developed economies are the prime beneficiaries of tourism. US Major Industry: Economic Impact and Tax Revenue The United States tourism industry is very essential to the American economy as it is the largest service export and a source of employment (income) to millions of its citizens. As the world economy gradually recovers from the financial crisis, tourism is predicted to grow considerably in the next five years. Given the significant role played by the industry, the US economy will reap optimum benefits. Tourism also encompasses international travels to the US whether for business, educational, medical, leisure or even visiting friends and families staying in the federal republic.
Tourism has boosted GDP growth in Malaysia with both direct contribution and total contribution. The direct contribution of tourism to GDP reflects the “internal” spending on tourism as well as government “individual” spending on tourism services directly linked to visitors; while the total contribution includes the indirect and induced impacts on the economy (World Travel and Tourism Council, 2015). The direct contribution of tourism to GDP in Malaysia was MYR61.0 billion, which is 1.5 times as much as that of ten years ago and is expected to grow to MYR95.9 billion by 2025 (World Travel and Tourism Council, 2015). While, the total contribution of tourism to GDP was
Tourism is of major economic and social significance. More than 720 million tourists spend $480 billion annually in places outside their own country (WTO, 2004). This is one of the largest items in the world’s foreign trade. The significance of tourism has been recognized in both developing and developed countries. This can be seen in the establishment of sophisticated and well resourced government departments of tourism , widespread encouragement and sponsorship of tourism developments, and the proliferation of small business and multinational corporations contributing to and deriving benefits from the tourism industry.
Further positive effect of tourism is additional investment to country. Most developing and least developed countries use tourism to attract foreign investments and to develop the country. According to WTO, total investment for tourism was USD754,6 billion or 4,4 percent of total investment in 2013. Good example is Australia, which is one of the best places that attract more investors rather than other countries because of its area, climate and other superiorities. According to M.Haque(2015) that ‘In 1993–1994 total foreign investment in tourism increased by more than 180 percent to around $4.2 billion, compared to $1.5 billion in 1992–1993 in Australia and this increase continued until 2000’.
(Vanegas and Croes, 2003:14). In this essay I am going to elaborate more on the importance of the tourism as a factor and contributor to the economic growth. The travel and tourism is one of the leading job creators in the world recently. The tourism industry hires about 98 million people directly, signifying over 3% of all employment. If indirect and induced impacts are included in the tourism industry, it contributes to around one in eleven jobs worldwide.
The Tourism Industry Tourism is regarded as one of the most efficient, organised and marketed commodities in the world. Accounting for more than $655 billion of global income per year and 70 million jobs worldwide, the tourism industry has become the largest in the world; exceeding the oil and car industries.The World Trade Organisation definition of tourism is activities that require travel from home and staying away from home for at least 24 hours. It not only includes holidays (although they do account for 70% of all journeys), but business trips or visiting friends or relatives. The tourism industry can be separated into two different categories. 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.
However, these increases give some impacts on economy and it is reported that in 2010, 52 million Chinese people travelled abroad” (Lixia, 2011). For another thing, tourism industry either can increase people's income and the rate of employment. “As David Cameron says in Barnett (2010), if the UK tourism industry can attract 0.5% more international tourists, this could generate 50,000 new jobs for local citizens”. “Thus, it is obvious that tourism directly increase the employment rate because those industries like accommodation, tour, travel operations and factories manufacturing can provide large numbers of employment opportunities for the local people” (Nworisara, 2011). These business operations invisibly generate large revenue to the government.