Developing regions face challenges for the development of international tourism. These include poor road networks, weak purchasing power of local populations, and slow land transport. As a result, most visitors to these regions prefer to travel by air rather than by land. International tourism, however, is a significant contributor to economic development. Increasing regional purchasing power is one way to improve the competitiveness of these regions. The future of international tourism depends on the policies and infrastructure aimed at developing international destinations.
Economic impact of international tourism
In this report, we study the direct and indirect impacts of international tourism on national economies. The direct effect of international tourism is measured in the per-capita expenditure of inbound tourists and domestic tourists. We also estimate the economic value of additional visitors, including those who stay overnight. The direct and indirect effect of international tourism on national economies is relatively small, both for inbound tourism and for domestic tourism. The direct and indirect effects are shown in Table 7.
The percentage of international tourism receipts retained in national economies is known as the tourism income ratio. However, this ratio is unlikely to be an accurate reflection of actual tourism consumption. The real economic impact of tourism depends on the country’s degree of development and diversification, the quality of its tourist supply, and other factors. This article aims to identify the economic impact of international tourism on national economies and the global economy. But in the end, there is no single definition of the economic impact of international tourism.
Historical perspectives on international tourism
The growth of tourism has had global and regional impact. It has impacted many aspects of global society, including economics, culture, and politics. According to the World Tourism Organization (UNWTO), more than nine hundred million people visited countries and regions in 2007. In the past decade, international tourism has exceeded US$1 trillion, supporting a global economy that employs more than 100 million people. Tourism is an important part of globalization, but its history is not yet complete.
As air travel became deregulated and decoupled from national carriers, package tours expanded to a wide variety of long-haul destinations. Many post-communist Europeans and Russians migrated to the Mediterranean, and the United States tapped into the emerging market for Mexican and Caribbean travel. These packages built on older rail, road, and sea travel patterns. Although airborne package tours were the dominant method of transportation, some of the earliest package tours were conducted by motor coach.
Future prospects of international tourism
The World Travel and Tourism Council estimates that the value of tourism to the world’s economy will rise to US$11 trillion by 2027, or about US$5 trillion if the rate of inflation is not included. That amount is nominal and represents the total contribution of travel and tourism to GDP around the world. However, that figure may increase or decrease, depending on country and region. The World Travel and Tourism Council (WTTC) estimates that tourism can grow by another 18 percent by 2020, or even more.
The international tourism industry has evolved a great deal since its conception in the 1950s. From a relatively exclusive domain of advanced societies, the sector has grown to include emerging markets. While G7 and other advanced economies have traditionally dominated the industry, emerging markets are now actively participating. This is an encouraging development for tourism worldwide, and is a positive sign for the future. Despite the current stalemate, international tourism has the potential to reach new heights.
