The Decoupling of World Tourism and the Global Economic Status

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CHAPTER 2: LITERATURE REVIEW1

Global Tourism Industry1

Tourism- A Socio-Economic Phenomenon3

Impact of Recession on the Tourism Industry4

Global Competition in the Tourism Industry8

Role of Technology in Promotion of Tourism Industry9

Theories Related to Tourism Industry10

Dependency and Life-Cycle Theory10

Theory of Community Approach11

Regulation Theory and New Tourism12

REFERENCES14

CHAPTER 2: LITERATURE REVIEW

Global Tourism Industry

The travelling and tourism industry is among the largest growing industries worldwide, with contributing considerably to the economic development of the world. According to an estimate, it involves around 8.1 percent of the world's population with providing 235 million jobs. The global tourism industry is considered to account for 9.2 percent of the GDP and 9.2 percent of the global investment annually (Progress & Priorities, 2010, 10; Deloitte, 2010, 3).

According to Petruccelli (2007), tourism is the only sector in which all the countries across the globe are involved. This is because, the need of travelling and leisure is increasing day by day among consumers, and the more they travel, the more they get to understand other cultures. The most essential reason of this want is the increased level of globalisation which has led the firms to expand their businesses in other countries worldwide, hence, resulting in an increase in business travels (Kent, 2007, 5). This industry is considered to contain extensive level of potential to grow, involving a large number of stakeholders and many other industries, such as transport, airline, etc. the importing in the tourism industry is equivalent to exporting in other major manufacturing industries. The industry imports tourists trough other products of the country are also exported, which again helps in improving the condition of the industry. According to United Nations World Tourism Organisation (UNWTO), tourism is referred to the activities performed by the person travelling outside his or her usual setting for a certain time period, whose major purpose is to travel (WTO Database, 2011).

Another significant institute active globally is the World Travel and Tourism Council (WTTC). The WTTC highly believes in the impact of tourism on the global community and also highlights the need to develop this industry. According to the President of WTTC (2007), the flourishing tourism industry is potentially capable of generating jobs and can increase prosperity across the globe. Nevertheless, this potentiality can be fully realised with long-term and full support of the government. Matters like education, infrastructure, and the sustainable development of travelling and tourism industry can only be effectively catered with private and public sector by creating a synergy among the partners.

Furthermore, UNWTO (2011) reported that the income generated form exports by international tourism is the fourth largest after automotive, fuels, and chemical products. The report pointed out that, in a number of developing countries, tourism industry accounts as one of the major sources of income of foreign exchange, and tends to create a number of opportunities and jobs for developing the economy. In addition, the industry has been enjoying astounding growth since the past few ...