Wednesday 21 November 2012

Does Tourism Affect Economic Growth?



      
        Today, the tourism industry represents one of the most dynamic economic sectors and a determinant of growth in the world economy. Malaysia was one of the world's top 10 tourist destinations last year and it is the only South-East Asian country to make the list in the United Nations World Trade Organisation Tourism Highlights 2012.       

        Our country enjoys a relatively standard of living and an atmosphere of social harmony in a society. Results confirm the importance of tourist arrival on the economic growth by the long term trend of output. The tourism sector and general travel not only represent to the country GDP, but exports of tourism services are also account about exports of goods and services.
       
       
         A positive effects tourism can increases and determines the employment and business opportunities for local people or society. Therefore, many tourist come visit to Malaysia is a source increasing the income of country. The growing flows of tourism, in fact can determine both considerable positive and negative consequences on local economic growth. It helps to diversify the economy, since represents a good alternative to more traditional sectors in developing economic , such as agriculture and manufacturing .
     
        

         Tourism also contributes to government revenues through taxes on incomes from tourism business and taxes on goods and services that provided to tourists, such as room taxes, departure taxes, value added taxes and other. If economic growth increase in the society , currency and living standard in our country also will rise. This is because our salary or income will become higher when economic change goods.       

          

          In conclusion, the relationship between tourism and economic growth is closely related. Tourism sector can represent a determinant factor for growth, mainly in developing countries which recently have faced an increase number of incoming tourism flows. . Since the increasing tourism flows can have determined both positive economic consequences and negative economic consequences to receiving areas, this sector has aimed to contribute our economic growth.

3 comments:

  1. will currency rate affect the tourism industry?

    ReplyDelete
  2. currency exchange rate*

    ReplyDelete
  3. What are the factors which cause Malaysia became top 10 tourist destination in the world?

    ReplyDelete