Wednesday, March 20, 2013

Tourism Economics

            It is no doubt that tourism industry is one of the supporting arms of our country’s economy. This is the reason why our government is putting an effort in marketing our country all over the world. One of the Department of Tourism’s tactic that already caught the attention of many in the global market is “It’s more fun in the Philippines”. This tourism advertising campaign helped the industry gain over 4 million tourist arrivals last 2012. 

             As of January this year, our country already welcomed 436,079 visitors. It is a 6.09% growth from last year’s 411,064 number of tourists for the same month. Our country’s top ten visitor markets are from Korea, USA, Japan, China, Australia, Taiwan, Canada, Singapore, Malaysia and United Kingdom. How did this over 4 million tourist arrivals help our economy?       


More tourist arrivals mean more money and jobs that will follow. Tourism helps the economy by generating money from tourists’ expenditures like staying in a hotel, eating at restaurants, paying entrance fees, buying souvenirs, renting cars and so many other things. Moreover, tourism leads to opportunities for business. It helps build new products and services that would not be possible if the market is just the local residents alone. This development will thus lead to more employment opportunities for the local people.
                  
       Tourism can also strengthen the local economy by making it rely on other new ideas for progress not just on the usual source of income like agriculture or fishing which are subject to price fluctuation. Furthermore, tourism can create a multiplier effect. It means that the impact of tourism on tertiary sector like hotels and restaurants will also have a good effect on secondary and primary sectors like suppliers and farmers or producers respectively. In other words, the increase in tourist expenditure produces an increase in national income and consumption greater than the initial amount spent.
          
      In conclusion, tourism is starting to do its job to support our country and it presents a very good potential for more economic growth in the Philippines.



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