Tourism: trends and benefits of tourism to the state economy

Tourism: trends and benefits of tourism to the state economy

Review Article

Makhmud Kurbonov

Research and Consultancy Centre, MBA in Supply Chain Management,

Management Development Institute of Singapore in Tashkent

Tourism has become one of the key features of many nations: both developed and developing ones. This sector is a part of Macroeconomic Policy in many countries by which governments are benefiting from its contribution to the State Economy. According to statistics, more than 150 countries around the world prioritize tourism industry as one of the top 5 export earner sectors. Over the past six decades, Tourism sector has showed off itself as the fastest growing and highly diversified industry in the world (UNWTO Tourism Highlights, 2017) Additionally, tourism sector is one of the largest employment opportunity fields for females where their roles are separately evaluated and is mistakenly considered that their contribution to the state economy is relatively lower than the opposite gender. In most countries, where tourism is a primary economy booster, 70% of females are employed in this sector (Baum, 2013), which defines the countries’ social development degree and the contribution of women in the development of the State Economy. The concepts and practices of tourism has been developed and innovativeness is highly welcomed by many nations. The recent study by Jack Soifer shows that, tourism is no longer a destination or historical buildings and caves, but it is “Emotions” earned by tourists during their visit to destinations (Soifer, 2010). If their expectations meet the reality while they are visiting various touristic destinations, they, for sure, feel excited and delighted and the probability of revisiting the same places the next time or positive word-of-mouth would increase. Thus, tourism experts in developed countries are working on building strong relationship with customers through satisfying their emotional needs and cooperating with psychoanalysts in order to increase their brand awareness and positive word-of-mouth as mentioned above.

 Dr. Ian Yeomen, the tourism futurologist, states that tourism will be vastly developed and innovated as never before (Yeomen, 2013). He clearly states that tourism will no longer be the same as it is now, but the travel culture, touristic habits and perceptions will change. He gives an example of Germans who are tourism-addicted are now demanding the unusual touristic trips rather than practicing the same touristic habits repeatedly. These habits are formed by the existing touristic cultures in different countries; however, they should be upgraded in the means of services and technology. Specialists and scientists in the field of tourism are more than ever involved in learning tourists behavior and their psychology of happiness in order to meet their expectations effectively and not only satisfy them, but make them delighted from consumed services.

 When it comes to discuss the advantages of tourism, we first consider its role in generating foreign exchange earnings. Firstly, the exchange of foreign currency in the tourism destination lets the host country to increase its international currency reserve. Secondly, the taxation revenue of the state increases by the increased number of outbound and inbound tourists. The tax costs are commonly added to the tour packages, which are not attributed as separate costs, and usually they are low cost additions to the tour packages. Although, each tourist is charged with lower tax rates, the total sum after each visit will be high enough. Thirdly, the employment opportunities will increase as the tourism sector in the country expands. The World Travel and Tourism Council (WTTC) estimated statistics of 255 million jobs worldwide in tourism in 2012 (WTTC 2012). In 2010-2011, in Australia, there were 289,000 full-time and 224,000 part-time jobs directly associated with tourism (ABS 2011).

 To continue, tourism directly contributes to the regional development of architectural infrastructure of the country. Investors and government officials invest on constructing new buildings and reconstruct cultural and historical treasure of the country to attract more outbound tourists. Return on investments will be covered in shortest possible periods if the number of outbound and inbound visitors increase. However, the seasonality of tourism measures should also be considered by the host country. The main reasons of touristic visits are both for sun, sea or sand, and for some other people – culture, history and education play a vital role for visiting other countries. As some country’s economy heavily rely on tourism, it is already time to upgrade the services unit to a more technology-based services which can save time and cost. In hotels, for examples, rather than booking or ordering a room by contacting receptionists, it is faster and more friendly usable to use automated machines with sensor displays right in the main hall of hotels, or in the crowded areas including shopping malls. In order to be secured from false bookings and orderings, the personal identification details could be requested from consumers to fill in.    

 In general, current trends in tourism and hospitality show that the role of innovative technology and communication is highly important to provide better services and to build long-term customer relationships. In addition, the state economy benefits much from the development of tourism infrastructure, however, rather than focusing on the physical attractions only, the emotional and psychological measures of tourists should be learned in developing countries as well where tourism sector is a young industry. Innovative approaches and the integration of new technologies in tourism and hospitality sectors would help to ease the serving process. Undoubtedly, it generates more income to the state as more tourists are attracted because of the modern technologies integrated to services.    



List of references


Baum, T., 2013. International Perspectives on Women and Work in Hotels, Catering and Tourism, Geneva: International Labour Office.

Soifer, J., 2010. Innovation and Sustainable Tourism: Jack Soifer at TEDxEdges.
Available at:
[visited: 26 February 2018].

UNWTO Tourism Highlights, 2017. Tourism - key to development, prosperity and well-being, EU: UNWTO - World Tourism Organization.

Yeomen, D. I., 2013. The Future of Tourism: Ian Yeoman at TEDxGroningen.
Available at:
[visited: 1 March 2018].