My Idea on Tourism Concept
There is no denying the fact that the Pilot Tourism Satellite Account (TSA) for Bangladesh in the form of various tables suggested by the World Tourism Organization (WTO) is presented in this report. Dis aggregated figures of various components of tourism as well as method of arriving at estimates of tourism sector’s role in the economy are accessible. Following standard TSA methodology, we have estimated that for Bangladesh Economy tourism value added to be 1.26 percent of GDP in terms of direct impact, and 1.33 percent of GDP when indirect effects are also included. Tourism’s share in total number of jobs is 4.13 percent, rising to 4.39 percent when indirect effects are also included.
Since the TSA framework is new and not much familiar, we
provide a brief introduction to the concepts and issues. Next, the methodology
and the basic findings of the TSA for are presented in the report.
In this chapter we provide a snapshot idea about tourism and its
contributions to economic upliftment in an economy in an economy.
Tourism Industry is flourishing very rapidly and posthumously all over
the world. The scenario of the world tourism industry is always in a state of
flux, ever changing. It is reckoned that end of 21st century will see the world
tourism industry generating nearly 500 million job opportunities for the
people. It is also assumed that the contribution towards the GDP by the World
tourism industry will be approximately above 15%. However, in order to meet the
requirements, constant changes in the travel and tourism policies need to be
re-framed and restructured. Tourism is a vital source of income for many
countries and it generates income through the consumption of goods and services
by tourists, the taxes levied on business in the tourism industry, and the
opportunity for employment in the service industries associated with tourism.
Some of the services offered by these industries include transportation
services such as cruise ships and taxis, accommodation services such as hotels,
restaurants, bars and entertainment venues and other hospitalizes.
International tourism is now predicted to increase in the 3-5 % range
next year, according to IPK’s World Travel Monitor and UNWTO forecasts. IPK’s
Global Travel Confidence Indicator lies at 103 points for 2011, including 3% to
5% growth in world outbound travel. The main drivers will be the improving
world economy and low fares from budget airlines while safety and environment
concerns are not expected to impact significantly. Similarly, the UNWTO now
forecasts growth of 4-5% in international arrivals for 2011, which would put
the sector back at the long-term growth rate of 4% recorded between 2000 and
2009. Air passenger volumes, according to Boeing, are likely to rise about 5%
in 2011.
Key figures on global overnight travel (2010 changes compared to 2009
changes):
All domestic and outbound trips: 9.8 billion (+5% vs. -1% - new all-time
high)
- Outbound trips:
0.935 billion (+7% vs. -4% - new all-time high)
- Outbound nights: 5
billion (+5% vs. -7% - new all-time high expected for 2011)
- Outbound
spending: € 781 billion (+7% vs. -9% - new all-time high expected for 2011)
Travel and tourism is the lifeblood of many countries. Clear
understanding about tourism, its role in the economy and steps needed to be
taken for promotion of tourism are very important.
Tourism is a social, cultural and
economic phenomenon related to the movement of people to places outside their
usual place of residence pleasure being the usual motivation.
The activities carried out by a visitor
may or may not involve a market transaction, and may be different from or
similar to those normally carried out in his/her regular routine of life. If
they are similar, their frequency or intensity is different when traveling.
These activities represent the actions and behaviors of people in preparation
for and during a trip in their capacity as consumers.
Tourism has an impact for the economy,
for the natural and built environment, for the local population at the places
visited, and for the visitors themselves.
Due to this range of impacts, and the
wide spectrum of stakeholders involved, there is a need for a holistic approach
to tourism development, management and monitoring. This approach is supported
by UN WTO in order to formulate and implement national and local tourism
policies.
Having more and reliable statistics is
essential for policymakers to make effective decisions. Only with sufficient
and adequate data that generate credible statistics is it possible to undertake
different types of analysis of tourism. This is essential in order to evaluate
the different aspects of tourism and to support and improve policy and decision
making.
Tourism statistics are necessary for
designing marketing strategies, strengthening interinstitutional relations,
evaluating the efficiency and effectiveness of management decisions, and
measuring tourism throughout the national economy.
Travel & Tourism is an important economic activity in most countries
around the world as well as its direct economic impact, the industry has
significant indirect and induced impacts. The UN Statistics Division-approved
Tourism Satellite Accounting methodology (TSA: RMF 2008) quantifies only the
direct contribution of Travel & Tourism. But WTTC recognizes that Travel
& Tourism's total contribution is much greater, and aims to capture its
indirect and induced impacts through its annual research.
Tourism remains the fastest growing service industry in the economies of
most of developing countries; hence more research has gone into the operations
of the sector in order to examine its economic significance and potential. (Armstrong,
1974) It is known that the industry provides an important impetus to growth in
other sectors such as agriculture, transportation, retailing and manufacturing
and is therefore seen as a key component of economic development. It plays a
major role for the generation of foreign exchange which directly facilities the
improvement of foreign reserves of said economics. Similarly, the sector has
shown greater improvements in employment generation (direct and indirect),
revenue accruing to tourist sites, and increase in number of hotels and similar
establishments and other tourism supply establishments.
Tourism is a fast growing economic
activity in many countries around the word, and plays an important role in the
economic and technological development of nations. As Edge points out, tourism
serves to stimulate the development of basic infrastructure, contributes to the
growth of domestic industries, attracts foreign investment, and facilitates the
transfer of technology and information.
The direct contribution of Travel & Tourism to GDP refers to the
‘internal’ spending on Travel & Tourism (total spending within a particular
country on Travel & Tourism by residents and non-residents for business and
leisure purposes) as well as government 'individual' spending - spending by
government on Travel & Tourism services directly linked to visitors, such as
cultural (e.g. museums) or recreational (e.g. national parks).
The direct contribution of Travel & Tourism to GDP is calculated to
be consistent with the output, as expressed in National Accounting, of
tourism-characteristic sectors such as hotels, airlines, airports, travel
agents and leisure and recreation services that deal directly with tourists.
The direct contribution of Travel & Tourism to GDP is calculated from total
internal spending by ‘netting out’ the purchases made by the different tourism
sectors. This measure is consistent with the definition of Tourism GDP,
specified in the 2008. Tourism Satellite Account: Recommended Methodological
Framework (TSA: RMF 2008).
The total contribution of Travel & Tourism includes its ‘wider
impacts’ (i.e. the indirect and induced impacts) on the economy. The ‘indirect’
contribution includes the GDP and jobs supported by: Government 'collective'
spending, which helps Travel & Tourism activity in many different ways as
it is made on behalf of the ‘community at large’ – e.g. tourism marketing and
promotion, aviation, administration, security services, resort area security
services, resort area sanitation services, etc; Domestic purchases of goods and
services by the sectors dealing directly with tourists - including, for
example, purchases of food and cleaning services by hotels, of fuel and
catering services by airlines, and IT services by travel agents.
Travel & Tourism investment spending – an important aspect of both
current and future activity that includes investment activity such as the
purchase of new aircraft and construction of new hotels; The ‘induced’
contribution measures the GDP and jobs supported by the spending of those who
are directly or indirectly employed by the Travel & Tourism industry.
Tourism is one of the major foreign
exchange earners and main growth sector for many countries especially the small
islands which are with required natural and cultural resources. The world
tourism market has grown at an average of 3.7 percent over the past five years
and is projected to grow by an average of 4.9 percent over the next five years,
with Asia and the Pacific regions recording the fastest growth rate. According
to WTTC (World Travel and Tourism Council 2010) Travel & tourism actively
was hit hard by the global slump, Even so, the sector worldwide still provided
over 235 million jobs last year.
Tourism expenditures generate income to
the host economy and can stimulate the investment necessary to finance growth
in other economic sectors. Some countries seek to accelerate this growth by
requiring visitors to bring in certain a certain amount of foreign currency for
each day of their stay. An important indicator of the role of international
tourism is its generation of foreign exchange earnings. Tourism is one of the
top five export categories for as many as 83% of countries and is a main source
of foreign exchange earnings for at least 38% of countries.
Australia’s tourism
industry performed well during 2011–12 with an 8.0 per cent growth in total
visitor expenditure over the previous year. Most of this growth was in the
domestic market which demonstrated a substantial increase from its lows of
recent years.
In relation to inbound
tourism, strong performance from Asia, in particular China, more than offset
falls from some of Australia’s more traditional markets in Europe that led to a
small overall increase in inbound tourism during 2011–12 over the previous year.
This year’s State of the
Industry Report shows that overall; the industry’s performance was much
improved over the previous year on most indicators. This was achieved despite
the continuing high value of the Australian dollar and a range of challenges in
the macroeconomic environment.
Four years on from the
onset of the Global Financial Crisis (GFC), the global economy is still reeling
and recovery in the world’s largest economy, the United States, remains muted.
The ongoing sovereign risk crisis and return to recessionary conditions in key
Australia, the relatively solid performance of the Australian economy
underpinned by the mining boom is a positive force for tourism. However, this
is offset by the fact that the Australian dollar remains at or near record
cross-rates with most of Australia’s main tourism partners including the United
States (US dollar) and Europe (Euro).
Australia’s international
visitor arrivals in 2011–12 increased by 1.2 per cent (to a record 6.0 million;
Figure ES2) and revenues in this sector increased by 1.5 per cent to $26.6
billion.
There was substantial
growth in the China market, both in terms of arrivals (up 16.7 per cent) and
expenditure (up 9.1 per cent to $3.8 billion). There was also solid growth in
expenditure from the United States and New Zealand (up 7.5 and 3.8 per cent
respectively). However, this growth was largely offset by declines from
Australia’s more traditional markets, particularly from the United Kingdom
(down 6.6 per cent).
§
Travel & Tourism activity was hit hard by the global slump, with
Travel & Tourism economy GDP contracting by 4.8% in 2009. Even so, the
sector worldwide still provided over 235 million jobs last year.
§
Travel & Tourism’s recovery - like that of the world economy - is
expected to be a gradual one. After growth of just 0.5% in 2010, Travel &
Tourism economy GDP is likely to grow by 3.2% in 2011, with momentum building
from the second half of 2010 and into next
The overall objective of the study is
to capture reliable data from secondary sources and through conducting sample
surveys as a part of developing a pilot tourism satellite accounts for
Bangladesh. The reference period is the financial year 2011-12. The specific
and detailed objectives of the study include the followings:
v To
provide a coherent and credible set of tourism accounts that can be compared
across countries
v To
develop quantitative estimates of tourism value added, thus analyze the
importance of tourism in economy
v To
provide detailed information on employment in tourism industries and the role
of tourism played in job creation for different type of workers
To estimate
other variables necessary for the set of accounts
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