“Why
is it important to study tourism? The immediate and obvious answer to this
question is that it is a global activity of major proportions and huge economic
significance” (Wyllie, 2011, p. 2). Tourism is an exciting and growing
industry that plays a major role in the economic impacts of globalization including
the multiplier effect and the stimulation of local business.
When people travel, they are bringing and spending money
that was not originally part of the destination economy. This causes the
economy to expand rather than maintain at a steady level of circulation. The
resulting economic growth can be largely attributed to the multiplier effect (Kotler,
Bowen, & Makens, 2010, p. 504). When tourists spend
money, it directly helps the employees of the industry (hotels, restaurants,
rental cars, etc.). These employees turn around and spend the money in other
industries (grocery stores, hospitals, schools, etc.). Thus tourist dollars
touch every part of a destination community, making them an influential part of
the economy.
Tourists travel to
a destination with the intent of spending money. Especially in terms of
souvenirs and food, the demand for local products is high. “Many tourist
destinations provide government-supported market areas for the sale of locally
produced handicrafts” (Kotler, Bowen, & Makens, 2010, p. 505). Accordingly, tourism
can encourage and stimulate local small businesses.
Tourism has
incredible scope in terms of economics. “The travel industry is the world’s
largest industry and the most international in nature” (Kotler, Bowen, & Makens, 2010, p. 5). The global
character of the tourism results in greater circulation of money and increased
incentive for local producers to sell to an international market.
References
Kotler,
P., Bowen, J. T., & Makens, J. C. (2010). Marketing for Hospitality
and Tourism (5th ed.). Upper Saddle River, NJ: Prentice Hall.
Wyllie, R. W. (2011). An Introduction to Tourism. State College,
PA: Venture Publishing, Inc.
