Tourism is now one of the world's largest industries and one of the fastest growing sectors of the economy. For many countries, tourism is seen as the main instrument of regional development as it stimulates new economic activities.
Tourism can have a positive economic impact on the balance of payments, employment, gross income and production, but it can also have negative impacts, especially on the environment.
The unplanned and uncontrolled growth of tourism can lead to such degradation of the environment that the growth of tourism can be compromised. Therefore, environmental protection, which is the main source of the tourism product, must be protected for the further growth of tourism and economic development in the future. This is especially true for tourism based on the natural environment as well as on historical and cultural heritage.
Sustainable tourism has three interrelated aspects: ecological, socio-cultural and economic. Sustainability implies persistence, therefore sustainable tourism includes the optimal use of resources, including biodiversity; Minimizing environmental, cultural and social impacts; And maximizing benefits for conservation and local communities. This also applies to the governance structures that are needed to achieve this goal.
Tourism also allows wealth to be infused into the community in a variety of ways. The big advantage of this industry is that it is extremely labor intensive and many of the businesses that operate in it are only small businesses and micro-operators. This means that every hryvnia that enters the industry is quickly felt by business owners and staff and is directly linked to increased local costs. There are a number of benefits to a community that can become a tourist destination. It is also great for individual tourists because there are many things to do in the booming tourism industry, many places to stay, and as a result, more and more tourists are attracted.
One of the simplest benefits of tourism is getting work. This industry requires guides, hotel staff, coach services and restaurants. What is very important is that tourists not only pay salaries to employees of the tourism industry, but also consume goods and products locally, which gives a boost to the local industry. What's interesting about tourism is that ancillary industries such as retail and food production also experience a leap forward, although this is not so obvious to the untrained eye as it happens mostly behind the scenes.
This happens twice. First, you have money that is spent directly by tourists in the economy. Not only in tourism, but also in the huge range of basic human needs that need to be purchased, such as food, clothing, hairdressing, medical services and transportation needs that need to be filled, as well as souvenirs and entertainment. Tourism supports global trade in its own way.
In addition to spending dollars, tourists are often reintroduced into the local economy. Thus, the country has more money earned locally from tourism, which is then used in the local economy. This is why tourism revenues are often referred to as the multiplier effect, because a large percentage of every tourism dollar earned returns to the economy over and over again. This is a multiplier effect. Ultimately, the more tourist dollars come in, the greater the economic benefit for everyone.
In addition to making the economy prosperous, it also allows the economy to develop a new form of income. For example, an insurance policy in the event of a difficult period because the additional dollars coming in could help bolster traditional industries in case they come under financial pressure. This is especially important for communities that rely on one industry or industries that are damaging to the environment, such as mining or manufacturing. It is also important for rural communities where there is significant risk based on agricultural conditions and world commodity prices. Tourism allows the community to diversify its sources of income and rely less on one industry.
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