Importance of tourism

1.
Sources of foreign exchange earnings
Tourism industry is the main influential type of industry in the world. Nepal has
also taken tourism industry as its major sector of income in the fiscal year
2009/11.
2.
Employment Opportunities
Tourism industry is also one of the influential sectors. It generates employment
opportunities. It provides employment to unskilled, semi-skilled and skilled
manpower. Guide, load man etc are the personal or labour required in Tourism
industry.
3.
Sources of public as well as private income
Tourism industry is the source of income for both public also well as private
sector government charges tax, sales tax, service tax etc. which is known as
government revenue is the income of public. And handicraft, arts etc are the
things that attract tourist and most of them buy them and the seller makers
some profit which is called private income.
4.
Cultural Exchange
Tourism industry facilities cultural exchange tourist carry over various cultural
concepts of other countries where they visit. Local people can learn their
language, art, skill, culture etc and vice versa.
5.
Publicity of nation
Nepal is a small country, difficult to be located in the world map. Tourism helps
to publicize the country in different parts in the world. It helps to publicize.
Nepalese art, skills tradition, cultural beauty and hospitality to the world.

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Despite wars, political turmoil, natural disasters, medical

scares, terrorist attacks, and economic and energy crises
in various parts of the world, international trade in tourism
services has grown spectacularly since the 1970s. In

2012, international tourist arrivals worldwide reached

1.035 billion. Slightly over half of them were on leisure
trips. By comparison, there were just 166 million
international tourist arrivals worldwide in 1970. The 2012
visitors spent $1 trillion on travel (excluding international
passenger transportation expenses valued at $213
billion). Directly and indirectly, their spending accounted
for nine percent of the worlds GDP and six percent of its
exports.
For tourism-dependent countries and destinations,
tourisms share of GDP can exceed twice the world
average. Today, international tourism receipts exceed $1
billion per year in some 90 nations. Worldwide, domestic
tourism is typically several times larger. Tourism truly has
become a global economic and social force.
It used to be that only developing countries actively
pursued tourism exports as a key development strategy.
Japan and the United States, for example, have
historically paid little attention to luring tourists to their
shores. This is no longer the case. Recently, both
countries have implemented policy changes and relaxed

visa regulations to promote inbound foreign travel, create

jobs, and stimulate their sluggish economies. In 2013,
Japan hosted 10 million foreign visitorsan all-time high.
It hopes to double that number by the Tokyo Summer
Olympics in 2020, and reach 30 million by 2030. The
United States, widely perceived as a nation unfriendly to
foreign visitors due to its strict entry regulations, is trying
hard to improve its international image. It achieved a
record 67 million international visitor arrivals in 2012, and
President Obama has set a goal of attracting 100 million
by 2021.
Travel is costly. Historically, only wealthy individuals
could afford to travel abroad, and they tended to travel to
affluent countries with quality tourism infrastructure and
services. Not surprisingly, Europe and North America
have been the largest sources and recipients of
international tourists. But this, too, is changing. In recent
decades, tourist arrivals in emerging countries have
grown much faster than in developed ones. The AsiaPacific region has seenand will continue to seethe
fastest growth. The United Nations World Tourism
Organization (UNWTO) predicts that international tourism

arrivals will grow by 3.3 percent per year between 2010

and 2030 and reach 1.8 billion total arrivals by 2030.
Growth in emerging countries is expected to be twice as
fast as in advanced ones. Tourisms market share in
emerging countries is predicted to rise to 57 percent by
2030, compared to 47 percent in 2012. The challenge of
how to direct the economic benefits of tourism to the
worlds poorest areas and populations, however,
remains.
While growing affluence and falling real travel costs have
been primary reasons for the surge in post-1970s
international travel, changes in government travel
policies have also played an important role. Japan is one
example of this phenomenon. Japanese citizens were
prohibited from traveling abroad for pleasure until after
the Tokyo Olympics in 1964, and currency restrictions on
foreign travel remained in effect until the late 1970s. For
many developing countries, including Japan, banning
foreign leisure travel was intended to conserve scarce
foreign exchange needed to finance industrialization.
Eventually, with large and growing trade surpluses, the
liberalization of outbound travel helped to defuse

international political tensions stemming from trade

imbalances. In the late 1980s, the Japanese government
actively encouraged travel abroad and, by 1989, Japan
led the world in international tourism spending. It
currently sits in eighth place.
China also illustrates this trend. The country was
essentially closed to the outside world during the Cultural
Revolution (1966-1976). Its subsequent opening led to a
spike in foreign arrivals that have made China the worlds
third most-visited country, receiving almost 60 million
tourists in 2013. Outbound travel came much later. In the
late 1980s, China began to formalize an outbound travel
liberalization policy that allowed its citizens to travel
abroad in tightly controlled, escorted group tours to
countries that had been granted Approved Destination
Status (ADS). Whyand whensome countries are
awarded ADS remains something of a mystery. But
China has not hesitated to use ADS awards as soft
power tactics to gain political advantage in international
affairs. No country that politically recognizes Taiwan has
received ADS, even though China granted ADS to
Taiwan itself in 2008. Several political disputes between

Canada and China apparently delayed Canadas ADS

designation until 2010. Nonetheless, even with only
partial liberalization, China has overtaken Germany and
the United States to become the worlds number one
source of international tourists (83.2 million trips in 2013).
Its tourists are also the worlds largest spenders,
lavishing $102 billion abroad in 2012.
As travel barriers have gradually lowered, international
tourism has flourishedbut not without its criticisms.
Public awareness of tourisms potential negative
spillovers has increased. In recent years, the aviation
industrys contribution to global climate change has
become a highly publicized and contentious global issue.
According to the David Suzuki Foundation, the aviation
industry accounts for four to nine percent of the total
climate change impact of human activity. The European
Union estimates that aviation greenhouse gas emissions
in the EU have doubled since 1990. Today, 52 percent of
international tourist travel is by air, and that number is
rising. International travel has become a convenient
target for those who want to moderate adverse impacts
on climate change. Efforts by the EU to unilaterally

impose carbon taxes on airlines using its airspace,

however, have met with fierce resistance from the United
States, China, Russia, and emerging countries. It is
unclear how this contentious issue will play out. What is
clear is that tourism has ascended to a more prominent
position in international affairs in recent years.
chinaGDPJapansoft powertourismUnited States

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Carl Bonham and James Mak

Carl Bonham is the Executive Director of the University of
Hawaii Economic Research Organization (UHERO) and a
professor of economics at the University of Hawaii at Manoa. His
research interests include macroeconomics, applied
econometrics and forecasting, tourism economics, and the
Hawaii economy. His recent publications include Forecasting
with Mixed Frequency Factor Models in the Presence of
Common Trends (2013) with Peter Fuleky in Macroeconomic
Dynamics, and Estimating demand elasticities in non-stationary

panels: The case of Hawaii tourism (2014) with Peter Fuleky

and Qianxue Zhao in the Annals of Tourism Research. James
Mak is a fellow with the University of Hawaii Economic Research
Organization. His research interests focus on tourism policy
analysis from an economics perspective. He is the author
of Tourism and the Economy: Understanding the Economics of
Tourism (2004) and Developing a Dream Destination, Tourism
and Tourism Policy Planning in Hawaii (2008), both published by
the University of Hawaii Press.