With reference to two contrasting countries, describe and explain the difference in the importance of tourism in their economic development Since the approximated establishment of tourism in the seventeen hundreds, its growth has been both rapid and widespread. Due to advancements In technology, different areas becoming more accessible and people being generally more able to travel, tourism has developed drastically from the early days of the package tours by Thomas Cook In the sass’s.
Tourism nowadays comes in many forms; sport, recreation and business are Just a ewe examples of tourism, all of which attracting different people to deferent environments along the way. Tourism has also created varied levels of national economic development across the globe; however the significance of Its contribution varies from county to country and between regions wealth countries. Tourism can bare great economic value to a country, due to a number of factors which can very from country to country.
Firstly, tourism provides foreign exchange without exporting anything out of the country and it provides a more stable source of income for the entry than any other industry. Secondly, the amount of visitor’s expenditure that remains in an area provides a source of income for local businesses and residents, as well as the increased development of the area and the possibility of new jobs being created. An example of an MEDIC being widely involved in the tourist industry is Iceland- a large volcanic island in the North Atlantic with a small population of 321 , 875 people.
Iceland is volcanically and geographically active. The interior consists of mainly sand and lava fields, and mountains and glaciers, while through the lowlands any glacial rivers flow out to sea. The majority of Iceland’s tourist interest is generated from its rugged coastline and glaciers, and also large sites of interest such as The Blue Lagoon and Thiensville rift valley. There is also a large market for Customize and sustainability in Iceland, with many wealthier people investing in holidays involved in wildlife and exploring the natural landscapes.
Tourism in Iceland is mainly concentrated in the South West and around the capital, Reykjavik, and has accounted for a great economic boost around these areas. Visitors to Iceland end to be wealthier, as flights are very expensive and living standards are very high, meaning that tourism mainly attracts a ‘niche’ market of people. In 2006 210,350 people visited Iceland from the I-J, making It the country with the most outward visitors to Iceland.
Overall, tourism accounts for 5% of Iceland’s total GAP, and In the period between 1 995 and 2005, Industry growth averaged a 7. 2% annual growth. Also, the travel and tourism Industry supports 69,000 Jobs directly and also Indirectly through services such as plumbing and healthcare. However, some Jobs are seasonal ND don’t support workers effectively all year round. An example of this Is In the Whale watching Industry, which attracts over 72, 000 people per year.
However, only a few decades ago Iceland’s tourism Infrastructure was virtually non-existent. Means of transport were limited, access to sights was often difficult, the food was uniform, activities were scarce and accommodation options were few and far between. The wide improvement of facilities and accessibility present today mainly originates from The Icelandic Tourism Association, which has diligently been expanding and altitudes of different parties involved in the industry.
Also, the increasing number of tourists has persisted to put pressure on the country’s infrastructure and services- however in certain cases this has resulted in a positive multiplier effect. For example, a report from The Boston Consulting Group, a company involved in sustainable tourism in Iceland, claimed We estimate that around 5,700 new rooms will need to be built, half as much again as exist today, of which around 60% will be needed in the Capital and Southwest. This will therefore lead to an increasing number of Jobs Ewing made available to the public, and will not only generate revenue in the local area but will also open up opportunities for development and investment in the surrounding area also; attractions such as restaurants will be required to cater for the increasing number of visitors. A second example of tourism having a positive economic multiplier effect is the proposed building of a 60 bedroom upscale resort hotel and spa, on a 445 hectare site adjacent to Thiensville National Park.
The popularity of Thiensville National Park not only attracts a wide variety of tourists, but as also attracted international investors and developers to create a new attraction that will create Jobs and boost the local and national economies. Thirdly, tourism has had an evident effect on the social development of Iceland due to the economic growth that the booming industry has provided the country with. The government of Iceland is proposing an increase to its VAT from its current 7% to 25. 5%, as of May next year.
This tax will apply to accommodation, restaurant meals, and attractions – are all services most tourists utilize, and use the most. Much of this tax will cover the costs of soft infrastructure, such as transport, education and healthcare. For example, Iceland has a universal public health system paid largely from taxation with local municipalities delivering health care services in the same way as other Scandinavian countries. Iceland’s entire population has equal access to health care services, therefore demonstrating how tourism can ultimately aid the growth of the healthcare system via taxation.
However, there are regional imbalances of tourism present in Iceland. Recent visitor surveys show that, while around 95% of visitors to Iceland spend time in Reykjavik, less than half visit the North, and only around a third make it to the East. This is largely driven by the presence of Kafuffle International airport in the region and the concentration of accessible, high-quality attractions in the “Golden Circle” of the South-West, the home to world-famous Geyser, Glassfuls and Thiensville National Park. Secondly, China is an example of an NICE being involved in the tourist industry, and is located in Eastern Asia with a population of 1. – making it the world’s largest populated country. Beijing, the capital is located on the North East coast and China on a whole has 3 main geographic regions; The mountainous West, the deserts and basins to the North West, and the low lying plains and valleys to the East. The type of tourism occurring in China is mainly cultural, historical and scenic, with the Great Wall of China and the Yanking River being popular sites of attraction. In terms of the economic importance of tourism, the sector contributed to 12. 2% of total GAP of
China, and the industry economic activity generated over IIS$439 billion in 2007. China’s travel and tourism economy is the 4th largest in the world, after the United tourist industry of 8. 7% from 2007-2016. Also, tourism is said to be responsible for 12. 2% of China’s economy, with the WATCH estimating that 16. 6 million people are employed directly and indirectly and indirectly through tourism, accounting for 2. 1% of the country’s total employment, however employment in the wider travel and tourism economy is estimated at over 72 million.
However, seasonality can bare an sue as guide books suggest that March-April and September-October are the best times of year to visit China, and tourist numbers bear this out. Furthermore, the 2008 Olympic Games in Beijing is a strong example of a major tourist event, and was an important economic boost to china on a whole, and also had its social benefits too. Firstly Asana, the second largest city on Hanna Island is a leading destination in domestic tourism and is fast becoming one for international tourism too.
The island has been heavily promoted by the Chinese government as a tourism hotshot, and tit its tropical climate and beaches it has gained the name of ‘China’s Hawaii’. Its many points of cultural and historical interest, rainforest’s and mountainous landscapes, great weather and many opportunities for recreational activity, the destination has received a huge investment in infrastructure on the island, which has bought about significant changes to the environment and local people.
Firstly, this development has caused heightened levels of pollution of many kinds, predominantly air which is damaging the local wildlife, and sound and light which persist to crease the quality of life for locals. However, the new development of the area has bought about much opportunity for investment of businesses, such as restaurants and hotels, which lead to an example of positive economic and social multiplier effects taking place. The creation of Jobs can provide local families with enough to support their own families and businesses, whilst also funding their way for services such as education and healthcare.
It is evident that from these two different examples of countries involved in tourism, that as the industry continues to grow and advancements in transport, interest and technology occur, its significance and contribution to its national economy will differ in different ways. I think that from looking at this evidence, Iceland will benefit more from tourism in the future, as when looking at external factors, it has less sources of income and fewer industries of export compared to China, so will therefore be more reliant on its natural landscape and niche market, (that is constantly growing) to aid the growth of the economy.
China on the other hand, are giants in the technology and production industries- meaning that firstly, they won’t be required to invest as much money into tourism and concentrating their efforts to their largest sources of revenue, and secondly; with global warming on the rise and the fact that China alone produced 23% of Global carbon dioxide emissions(from fossil fuel combustion related to industrial processes) in 2008, the country may slowly appear to become less attractive to foreign visitors traveling for leisure and instead only attract those traveling for business purposes- which will in turn show a decrease in tourism’s contribution to the economy.