Impact of Tourism on Economy

Before globalization , the value of a country’s’ economy, GDP and even its currency value primarily depended on their import/export businesses ,production capacity of raw materials, availability of skilled labour, their subsequent employment & purchasing power of their citizens.
This model however posed a serious threat to nations which didn’t have much of anything to produce. This was primarily because of non-availability of raw materials, geographic disadvantages and additionally weather conditions that didn’t quite suit the soil or fertilization. Whatever they could manage to produce, it was sufficient to feed  internally and not export anywhere
Middle Eastern countries and certain South East Asian developing countries like Singapore , Malaysia began to face this crisis. This was when they discovered the true potential and impact of tourism.
Much earlier ,tourism was largely restricted to within the country. People in India living in the southern parts went up north and west in India while people up north came to visit the southern borders. Similar patterns emerged from other countries as well. With massive reduction of airfares, increase in budget airlines that flew at 1/10 th of the price of premium carriers, people began considering to visit neighboring countries too. Countries like Dubai, Singapore and even Thailand gained massive through this move.

They opened the doors wide open for tourism while they relaxed international procedures and visa applications. Many countries allowed on arrival visa especially Dubai & Thailand for people to travel for a vacation any time they want.

Dubai  built an entire city out of nothing. Having only 5% of the oil resources of the entire Arab nations, their source of income and develop the economy was to focus on tourism. They built massive skyscrapers, invited the whole world for their famous shopping festivals, gave tax free zones for international companies to setup shop there. They built the world’s biggest malls and even bigger hotels making it the perfect spot for a vacation. Their influx in tourism saw phenomenal growths as they became the hottest spots for tourism in the world only next to Singapore.

Singapore, a country smaller than most cities in India remains till date the most ideal place for a tourism destination in the world. With a population of Indian and Chinese, Singapore built global tourism spots like a world famous Zoo, Bird Parks, the Singapore Flyer , Sentosa islands, Universal Studios and many such places. Their economy went from almost being worthless to almost equaling the US Dollar. From 20rs a Singaporean Dollar, it has risen up to 55rs a SGD. Such phenomenal rise in the value of their currency and economy is primarily because of the impact in tourism.

India is striving hard to promote their tourism spots boasting of the Seven Wonders in the World, The Taj Mahal, Huge palaces & forts, temples and beautiful beaches but hasn’t seen the tourism impact to the level they have desired.

This blog post is inspired by the blogging marathon hosted on IndiBlogger for the launch of the #Fantastico Zica from Tata Motors. You can  apply for a test drive of the hatchback Zica today.

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