Tourism helps the economy of many countries around the world. The growth of tourism in one country translates to flourishing local businesses, services and employment opportunities. The onset of the global economic recession has affected the tourism industry of almost all nations who thrive from it. Tourism problem has truly brought a major concern not only to the economy of first world countries but similarly to other countries following behind.
When tourism peaked during the last few decades, it opened the doors to many business owners to put up key businesses that will sustain the increasing tourism growth of their country. The tourism industry caters to different sets of tourists. First are tourists who travel for business purposes. These are members of multi-national companies and other private entrepreneurs who visit neighboring countries to secure deals, implement and invest on projects or maintain current business ventures in that country.
Then there are tourists who travel for leisure. This comprises of families, friends, companies or organizations (private or public) who seek recreational activities that are uniquely offered by different countries. These are world class beach and spa resorts, casinos, ski resorts, parks and other forms of tourist attractions in various sectors of the society.
Both types of tourists secure many local and international services of the country being visited. This includes airline ticket sales, accommodations (hotels, inns, resorts), transportation (car or coaster rentals) and even shopping malls and restaurants among many others. Definitely, tourism brings in huge volume of foreign currencies which helps strengthen a country’s economy.
Today, tourism has dropped significantly with many foreign tourists cutting back on their spending. For businesses, they implement cost cutting policies and have reduced corporate travels in lieu of internet video conferencing and telephone conferences. On the other hand, people who usually take vacations abroad have resorted to local tourists spots instead. As a result, countries who rely a lot on tourism suffered because of this downturn of tourists. Then the chain reaction of problems begins.
Those small companies which offer tour services have felt the decline in reservations and bookings. They are at risk of having to retrench jobs, if they haven’t done so, or worse have to file for bankruptcy protection if they cannot pay for the debts they have. Same goes to the hotels with low occupancies employing fewer people or offering them lesser hours of work. Suppliers for these companies now only receive minimum job orders when raw materials have already been bought ahead of time. They now have to find ways on how to convert their stocks to cash. Shopping malls and its tenants are also affected with tourism problems. When people no longer go to the mall, establishments lose potential customers. Sometimes, people who do visit the mall have very limited money to spend. This still doesn’t provide any solution to low sales.
Tourism plays a major role in the development of a country’s economic. Surely, the effects of global economic crisis reaches far more countries than one can ever imagine. Only when the global economy gains strength and gets financially stable will one see a better future for the tourism industry.
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