Tourism

Global Economic Significance

According to the United Nations World Tourism Organization (UNWTO) in 2012, international tourist arrivals reached over 1 billion for the first time, up from 25 million in 1950, 277 million in 1980, and 528 million in 1995. Given that an international trip can generate arrivals in more than one destination country, the number of trips is lower than the number of arrivals. Although international inbound tourism is usually the primary national policy focus because of its role in international trade and business, at a global scale over 80 percent of tourism is domestic.

The role of domestic tourism in regional economic development policy therefore means that it is usually the focus of state, provincial, or regional governments. National governments tend to focus on attracting international tourist arrivals and, in some cases, seek to limit outbound tourism growth because of the economic loss it represents to a country's economy. However, some national governments do support domestic tourism initiatives as part of regional development strategies.

Even though the relative proportion of tourism's contribution to international trade in services has declined since the 1980s, tourism remains an extremely significant contributor to the global economy. According to the UNWTO, tourism ranks as the fourth-largest economic sector in the world after fuels, chemicals, and food, and contributes an estimated 5 percent of global gross domestic product (GDP), and 6 to 7 percent of employment (direct and indirect).

International tourism's export value, including international passenger transport, was estimated at $1.2 trillion in 2011, accounting for 30 percent of the world's commercial service exports or 6 percent of total exports. Tourism is one of five top export earners in over 150 countries, while in 60 countries it is the number one export sector. It is also the main source of foreign exchange for one-third of developing countries and one-half of least developed countries (LDCs).

...