Travel Reference
In-Depth Information
a bright future as an sector, so there will always be
people willing to invest and take on the competition.
governments, e.g. via taxes and passenger levies - the
UK's Air Passenger Duty is an example. The money that
is generated contributes to a country's overall output
of goods and services, known as its gross domestic
product (GDP) or gross national product (GNP). The
level of contribution that tourism makes to a country's
GDP varies greatly. Tourism directly contributes 4 per
cent to the UK's GDP, but as much as 90 per cent to
many island states in the Caribbean. Revenue from
tourism in Majorca is valued at 70 per cent of total GDP,
while the fi gure for Malta is 40 per cent.
Number employed in travel and
tourism
Worldwide employment in travel and tourism is
estimated at 230 million (World Travel and Tourism
Council data), while tourism employs some 2 million
people in the United Kingdom, according to fi gures
from the Department for Culture, Media and Sport
(DCMS). Employment in travel and tourism is either
direct or indirect. Direct employment includes jobs in
hotels, tourist boards, travel agencies, tour operators,
airlines, etc. Indirect employment is also important, in
jobs such as hotel construction, tourism administration,
insurance, passport control, food supply, etc. Many
jobs in travel and tourism are seasonal, but factors
such as the growth in activity holidays (which are not
so dependent on good weather) and the ageing of the
population (meaning larger numbers of travellers who
are fl exible about when they can travel), are leading to
longer seasons for companies operating in the travel
and tourism sector.
The different fi gures for contribution to GDP are related
to a country's dependence on tourism - destinations
such as the Bahamas, Majorca and Malta rely very
heavily on tourism to create jobs and generate revenue.
However, an over-reliance on tourism can sometimes
lead to problems. Bali, for example, relies heavily on
tourism, but has suffered very badly in recent years as
a result of terrorism. Natural disasters can also have
catastrophic effects on a country's tourism sector
overnight.
The revenue a country receives from tourism is included
in its 'balance of payments', which is an account of
all the money coming into and leaving a country for
whatever reason. In the UK our travel and tourism
balance is negative, meaning that more money is spent
by British people going on holidays abroad than is paid
by overseas visitors coming to the UK. The opposite
is true of countries such as Spain and Greece, both of
which have positive travel and tourism balances.
Contribution to gross domestic
product (GDP)
As well as creating jobs, the travel and tourism sector
generates revenue for individual companies and
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