Tourism power in action

We all know that tourism drives job creation and increases prosperity in local economies. Tourism also has a direct affect on poverty reduction and an indirect affect on increasing health and human services; i.e people prosper they can afford a better diet and health care.

The United Nations World Tourism Organization ranks tourism in the top three categories for economic development, “demonstrating that travel can play a vital role in helping developing economies mature.”

Indeed, already more people are traveling to developing countries. Last year, the 48 least-developed countries saw the number of tourists rise from 6 million to 17 million, and tourism revenue rise from $3 billion to $10 billion.

That’s a massive increase while still a small percentage of international travel as a whole. (124 million people travelled internationally in just the first two months of this year).

The UNWTO predicts the total number of international travellers this year will rise 5%, with Chinese travellers spending more than ever. The American, French, and now the Chinese spend the most while travelling, according to the UNWTO. Nearly $1 trillion per year is spent by international travellers, the UNWTO says.

Imagine if more of that money went to developing countries.

Travelling to developing countries is the same as investing in the developing world. The returns instead come in the forms of local products, services, and lifetime experience.

Egypt is seeking tourism dollars again and sees visitors as key to its economic recovery. “As the leading foreign exchange earner and representing one in every seven jobs, tourism is a crucial factor in Egypt’s economic recovery,” Egyptian Prime Minister Essam Sharaf said at a recent U.N. meeting on tourism.

Tourism power is an untapped resource in the world economy. Choosing where to travel and how to spend money when we are there is often considered fun. But looked at another way, from a business and economic perspective, those choices can have major consequences.

In the developing world, tourism accounts for almost half of total service exports. Increase those dollars and place them in sustainable development programs, which the U.N. is encouraging, and soon improvements can be seen in education, the environment and disease reduction.

“Responsible and sustainable tourism allows destinations and companies to minimize the negative impacts of tourism on the environment and on cultural heritage while maximizing its economic and social benefits,” the UNWTO says.

Moreover, it creates empathy. When people travel and see conditions in disrepair or people living in poverty, there is a desire to help and lend assistance. Of course there are charitable institution throughout the developing world and there are financial investments to be made in companies that operate or trade with developing world partners, thereby increasing economic recovery. But there is something special about taking money out of your own wallet and handing them to a person in need while getting a local product or service in return.