Growth and importance of tourism (AQA GCSE Geography): Revision Notes
Growth and importance of tourism
Growth of tourism
Tourism has become one of the world's largest industries, experiencing tremendous growth over the past 50 years. Understanding this expansion helps explain tourism's current global significance.
Tourism is when a person travels to another destination for more than 24 hours but less than one year.
Types of tourism
Tourism can be categorised into two main types:
- Domestic tourism - staying within your own country for holidays
- International tourism - travelling to another country as a visitor
Factors driving tourism growth
Mass tourism has expanded into a major global industry that continues growing. An estimated 900 million people become international tourists annually (pre-pandemic figures).
Economic factors:
- Improved wages and disposable income - most households now have both partners working less than 40 hours weekly with paid annual leave
- Cheaper and faster transport compared to previous decades
- Easier booking systems through internet-based travel agents
Social and cultural developments:
- Growth in attractions such as music festivals, sporting events, theme parks and water parks
- Government investment in tourism promotion, including backing international events like the Olympics
- Easier border crossing as governments encourage tourism
Primary purposes:
- Most tourism is for leisure (holidays)
- Visiting friends and relatives ranks second
Importance of tourism
Tourism creates significant economic, social and environmental benefits worldwide, supporting millions of jobs and contributing substantially to global GDP.
Economic impact
Employment creation:
- Travel and tourism is the largest employer globally, representing 7% of world exports in goods and services
- Creates jobs for local people whilst helping regenerate areas and improve living standards
Financial benefits:
- Foreign exchange earnings improve a country's balance of trade
- Government revenue generation supports public spending
- Infrastructure development leads to better water supplies and transport links
Social and environmental benefits
Community development:
- Social interaction develops foreign language skills and cultural appreciation
- Environmental enhancement - tourism revenue funds conservation and environmental protection projects
- Promotes cultural exchange and understanding between different communities
Direct and indirect impacts
Tourism affects economies through the multiplier effect - as tourism grows, demand increases across other industries.
The Multiplier Effect Explained: As interest and demand increases in tourism, this creates a ripple effect across other industries, generating additional economic activity beyond the initial tourism spending.
Indirect impacts (multiplier effect):
- Primary sector - agriculture providing food, mining materials for hotel construction
- Secondary sector - manufacturing furniture, beds, towels, gifts and other tourism-related goods
- Creates opportunities for small businesses and informal sector employment
Direct impacts:
- Tourism as a service industry requires staff for hotels, transport, restaurants, lifeguards and entertainment
- Quaternary sector - research and development to improve tourist facilities and management
- Provides employment opportunities in poorer regions of countries
Global tourism statistics
The economic scale of tourism becomes clear through global data:
Global Tourism Economic Impact:
| Time Period | Global GDP Impact | Employment | International Visitor Spending |
|---|---|---|---|
| 2019 (Pre-Covid) | 13.6% (US$9.6 trillion) | 9.9% of all jobs (333 million) | US$1.8 trillion |
| 2020 (Mid-Covid) | 5.3% (US$4.9 trillion) | 62 million jobs lost (18.6% drop) | Decreased 69.7% (US$0.55 trillion) |
| 2021 (Post-Covid) | 6.1% (US$5.9 trillion) | 18.2 million jobs recovered | Increased 3.8% (US$0.57 trillion) |
These figures demonstrate tourism's massive economic importance and vulnerability to global disruptions.
Regional patterns and tourism dependence
Global tourism trends
International tourist arrivals have grown dramatically since 1950, reaching 1.4 billion visitors by 2018:
- Europe remains the dominant destination region
- Asia shows the fastest growth rates in recent decades
- Americas maintain steady tourist numbers
- Africa and Middle East show smaller but growing shares
Caribbean islands case study
Island nations, particularly in the Caribbean, often depend heavily on tourism for economic survival. This creates both opportunities and vulnerabilities.
Tourism Dependence in Caribbean Nations:
The following examples show how heavily some Caribbean islands rely on tourism:
- British Virgin Islands: 35.4% of income from tourism
- Aruba: 28.1% tourism reliance
- Curaçao: 23.4% tourism dependence
- Bahamas: 19% of economy from tourism
- Jamaica: 18.6% tourism reliance
Economic vulnerability: Tourism in the Maldives employs 25,000 people (total population 521,457) and accounted for 21.4% of GDP in 2021 - a significant decrease of 18.2% from its pre-COVID level of 39.6%.
This heavy reliance makes these economies extremely vulnerable to external shocks, as demonstrated during the COVID-19 pandemic.
Cruise tourism
Cruise tourism represents one of the fastest-growing sectors within the tourism industry, combining transport, accommodation and entertainment.
Characteristics of cruise holidays
Types of cruise experiences:
- Entirely on-board holidays where passengers spend their whole time on the ship
- Multi-centre holidays where people spend time on land and return to the ship for transport to the next destination
Appeal factors:
- Cost savings by not paying extra for food, drink, entertainment and transport
- Family appeal through multigenerational packages and children's entertainment options
- Themed experiences attract specific interests (Disney Cruise Line, mystery themes)
Global cruise industry impact
Market leadership:
- The Caribbean continues as the most popular cruise destination, capturing over one-third of market share
- Over 1000 ports worldwide can accommodate cruise liners
- Port of Nassau (Bahamas) ranks as the fifth largest cruise port globally
Economic contribution (2019 peak):
- 29.7 million passengers globally
- Created 1.3 million jobs worldwide
- Generated US$50 billion in wages
- Contributed US$154 billion to the global economy
Future expansion: The industry has commissioned 50 new ships for completion by 2025, with 19 new ocean-going cruise ships launching in 2023, providing over 38,000 additional berths.
Key Points to Remember:
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Tourism is defined as travel to another destination for more than 24 hours but less than one year, categorised as either domestic or international
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Growth factors include improved incomes, cheaper transport, easier booking systems, and increased government investment in tourism infrastructure and promotion
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Tourism creates both direct employment in hotels, transport and restaurants, and indirect benefits through the multiplier effect across primary, secondary and quaternary sectors
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Global tourism contributes over 13% to world GDP and employs nearly 10% of the global workforce, making it one of the world's largest industries
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Some regions, particularly Caribbean islands, depend on tourism for up to 35% of their income, creating vulnerability to external disruptions like pandemics