Economic Impact on Tourism in Asia - Example

Economic impact to tourism in Asia Name: Tutor: Course: Date Economic impact to tourism in Asia Introduction In the new millennium, the Asia Pacific region is most probably going to be identified as the leading region worldwide that is getting the greatest revenue from the tourist industry. In the past few years the tourist arrivals and receipts have been rising so rapidly in Asia than in any other place. In the period between 1980 and 1995, the tourists flow to the country was estimated to be around 15% which was higher than any other place in the world. Statistics reported by the World Tourism Organization (WTO) as at the year 1996 as compared to other countries worldwide. The Asia pacific has been experiencing a lot of revenue and gaining market share in comparison to the Americans and the European regions which made them have a lower share hence making America a number two tourist region with approximately 229 million arrivals. Clearly this is a great observation that the tourism industry of Asia in the next few years will be extremely spectacular. Back in 1950’s, mass travel was very common among the Americans and the Europeans as they traveled allover the world but lately the interest has shifted to the Asian. The region is now the most rich in the number of tourist (Cooper 2005). The middle class in Asia is coming out more and more in large numbers to join the Europeans and Americans in the skies to travel around the world and this has made the country to blossom even more. Most of the Asians travel for pleasure and to explore places they have never been as well as to carry out business across the borders. The growth of the tourism industry in the country has been made a success by some very noticeable factors in the country. Asia is known to be having a very positive economic growth, and this increases its income hence making it even more enjoyable for the citizens because even the employment opportunities will rise with better payment. The leisure time is more enjoyable and greately entertaining because there are several sites where the people can visit and actually not even exhaust. There is also ease to travel around the country since there are very few restrictions that are put in place unless in very special occasions which is an advantage over other countries and this gives the tourists the freedom they so deserve. The country has also established very clear and achievable strategies of promoting the industry all over the world hence attracting more tourists to visit the country and experience the benefits of tourism as advertised. Another strong factor that has led to the development of the industry is the recognition of the country’s government and it has received a lot of support from the body through the provision of the necessary facilities to make the tourism benefits to rise since they know it would bring back great revenue and growth to the country as well an increase in the foreign exchange earnings. Economic contribution of Tourism in Asia S we have earlier seen that tourism is the most important sector among all the Asian Pacific countries that is in Thailand, Australia, and in Newzeland.In Hong Kong, Malysia, and Philistine has been ranked second. Again in Singapore and Indonesia it ha been ranked third when the profits annually are compared. The comparison of the economic contributions in the countries is as shown in the table below as per the year 2000 :( Holder 2009) country employees Annual growth in % in the economy New Zeeland 200,000 14 Hong Kong 100,000 7 Thailand 1.5 million 5 Tourism recognition is also catching up in China. At around the same year, the country was expecting to receive 14$ billion from the 55 million visitors in the country hence contributing to the overall general national economy. Singapore had experienced the same kind of economic growth and it was possible to make all their balance payment all because of their achievements in tourism which about 10% profit to the economy. Singapore was known to have an open economy and this led to several shocks and import leakages. Tourism in the country had evidently created a lot of output, numerous employment chances and great income. In 1988, Singapore got a gross income of around 11.9% from the tourism input and from the labor force accounted for around 13.4%.The was a great effect on the employment and this led to at least 25 new jobs. The expenditure from the tourism industry was able to produce at least S$1.97 in the output and S1.05 in the income. The income was greater when compared to the one of Hong Kong and that of Indonesia and Malaysia economy. There were also some secondary effects and they also greatly affected the economy .the findings also showed that the tourism sector was also promoted as a great export industry. The main reason behind the success of the tourism industry in Asia was connected to the recognition of the business by the host governments and they acknowledged that there was a major role that tourism played to bring up the economic growth and development of the country. Tourism was considered to be a major factor that contributed to the overall growth of the country; it increased the employment opportunities as well as improves the quality of life of the citizens. To the finance factor in the country, the country was effectively able to offset the payments that had earlier been hard in other sectors of the goverment.The Asian countries were able to get a surplus in their tourism balance payments. Most of the Asian countries are committed to providing great manpower and resources that were found in the coutnry.This helped them to achieve better and greater national income from the foreign exchange earnings. One such example was seen in Singapore. Another strategy that the Asian counties have taken is to come up with very unique blueprints that would make the business boom and the fame to travel far and wide. Singapore adapted the new name “Tourism 21” and their main intention was to turn the nation to become a world class tourism business area especially in the capital of the east. The same strategies were applied by the other countries in Asia to be able to develop the tourism sector. Indonesia had had set their goal and were determined to make the country’s tourism centre to be the number one foreign exchange earner most probably by the year 2004.If this was successful then they would have arrivals ranging from 11 million and receipts reaching $15 billion from the current lows of 4.3 million. To ensure that the planned strategies did indeed work well, the government was planning to allocate at least 12.5 million for the infrastructure in order to make an effort to increase the tourism arrivals and receipts. The competition that was ongoing between the countries, Hong Kong, New Zealand, Thailand and Australia has enabled the countries have been made to upgrade their national tourism organization as well as their tourism funding in order to make it greater and attract more tourists from all over the world. The major reason was to tap the tourist market hence increasing the government new income and more employment opportunities in the countries. Economic Growth There has been rapid growth in the tourism industry as a way of reforming the region’s booming and making the economies even better. In the last decades the country has only been able to realize profits of 6% to 9 % which when compared to other competitors in the market who receive only 3% an 4%.Most of the industrialized countries show a great growth except for Australia, Japan and Newzeland since they have generally being showing very minimal rates of growth. The economic rise in China is tremendous because it has been able to double up in the last 5 years and very soon it will be labeled as the world’s largest economies in comparison to Japan. This will be possible if t he rates are maintained between 6-8% in the next decades. The main attributes to the economic growth in Asia is due to the focus in reforming the market which is an element that is lacking in most of the other countries where they do not exploit the chances that present themselves like the growing desire in tourists to explore the world (Wilkerson 2003). There has also been diversions in the economy to the tourism sector so that later they will be able to realize great profits from this sacrifice. The foreign capital was introduced and put to good use in the sector and this helped to yield much better services and infrastructure, the country was also known to have very stable currencies so even when the tourists visited the country, they did not have any problem running errands around the country or even assessing goods and services in the Asian countries. The Asian infrastructure is being remade to ensure that the tourists do not regret and that they will not have any difficulty travelling around. This was made possible by pouring billions of dollars for the reconstruction of new roads connecting all the tourists’ sites. The government of Asia has also resolved to avoid extreme inflations in the country since it would discourage the tourists to settle or even visit the country. The unemployment cases were also reduced to make the citizens lead better lives and even increase the domestic tourism from its own citizens. Most of the underlying factors that also led to this great growth were the connection between the international trade and especially the regional trade with tourism. This led to a great increase in the demand for travelling around and in this way tourists were able to bring in revenue in their line of business (Quinon 2005). There were also a great number of the people who had risen from the low middle class to the middle class through the better wages they were earning from the tourism industry and this way they were able to also create growth in the industry. Another factor was associated with the ease to acquire the travel visa hence very few travel restrictions in the country. The last but very major factor was contribute by World Tourism Organization(WTO) who organized for the high level photographers and media personnel to tour the countries and market the photos so as to attract more people. This also led to a great increase in the tourist rise hence the economic growth in Asia. Future tourism challenges in Asia In the growing tourism industry in Asia, there is bound to be a few problems that will accompany the high numbers of tourists flowing in the country. During the later r half of the year, the visitors increase and sometimes it becomes very difficult to offer them all satisfactory accommodation.However, the government of Asia has considered this problem critically and has analyzed the losses they would undergo by losing the tourists and to avoid all this from happening, they have strategized to build another 400 to 500 rooms in the city hotels to cub this problem. Another crisis that has been encountered is that despite the increasing revenue, the capital per tourist are still seen to be at their low and only the high paying tourists get the promotional clutches. Most of the tourists enter the country through the package deal and they encounter very little expenses to the contributers.The dissemination income is also very limited and due to this the real benefits of tourism are no t being spread out well in all the levels. The have also been numerous attempts that have been made in order to increase the domestic tourism in Asia, and also the regional tourism which was not going on well as expected. There were efforts to sustain the tourist’s attraction sites so as to increase the number of tourists flowing in (Christine 2000). In Singapore, the highest number was realized since they targeted the regional tourism and they received the highest number of visitors from the Indonesia rather than from countries from the west. The other problem that was encountered as the difficulty of coming up with a very distinct and attractive tag line that would be used to market the tourism products to the world and even beat their competitor’s .They realized that there was need to tie some experiences together so as to that h tourists would return. Conclusion Tourism is a major source of revenue in a country that leads to great economic developments in a country like Asia and this also leads to a better life to the citizens at large. References Christine L; Michael M., (2000), a seasonal analysis of Asian tourist arrivals to Australia, Applied Economics, vol 34, issue 4 Cooper, Chris; et al (2005). Tourism: Principles and Practice (3rd Ed.). Harlow: Pearson Education. Holder IV, Floyd William (2009). An Empirical Analysis of the State’s Monopolization of the Legitimate Means of Movement: Evaluating the Effects of Required Passport use on International Travel (M.P.A. thesis). Texas State University-San Marcos... Docket Applied Research Projects. Paper 308 Quinion, Michael (26 November 2005). "Dark Tourism". World Wide Words. Retrieved 9 April 2010 Wilkerson, Chad (2003). "Travel and Tourism: An Overlooked Industry in the U.S. and Tenth District". Economic Review 88 (Third Quarter): 45–72. ISSN 0161-2387. OCLC 295437935 Read More