Tourism

The growth of tourism in recent years has provided both many benefits and drawbacks to those countries that have experienced significant changes in the number of tourists visiting their country each year. And here, I will discuss the impact of tourism on national economies. There are many reasons for such a growth in global tourism, for example; increases in the disposable incomes of millions of people, the expansion of budget airlines, such as easyJet, the greater cultural and social awareness of foreign entities. However, how beneficial is tourism to an economy? Before we look at a case study, I should specify the difference between the tourism economy and the tourism industry. The tourism economy includes all payments and those employed indirectly from tourism. For instance, those who make the carpet for a new hotel that has been built specifically for tourism. Whereas the tourism industry includes only the payments directly attributed to tourism and those directly employed in tourism, for instance, holiday reps.

Taking Spain as an example, over the past 40 years, Spain's tourism economy has grown to be the second largest in the world worth approximately $US237,898 million which was about 15.3% of Spain’s GDP (gross domestic product) in 2010. The tourism industry employed around 1,280,000 people in 2010 compared to the nation’s whole tourism economy which employed around 3,205,000 people. Now, these figures are vast and show just how important tourism is to the Spanish economy, with 14% of the total population employed in the tourism economy. The multiplier effect of this figure should not be underestimated, the growth of tourism certainly helped Spain to develop its economy into one of Europe's biggest.

Despite this, recent trends of tourism have led to Spain to become second choice for many as they search for a greater cultural experience. The ideology of crowded Spanish beaches in Benidorm has become a horror for many, although still attracting many of those wanting a home-from-home experience in the sun, with the likes of Tesco's and McDonald's along the beach front.

So what next for Spain? As we all know, Spain's economy has been suffering recently with a 57% unemployment rate for those under 25, so in order to help kick-start the economy again, it is necessary that Spain attempts to diversify into different market segments of tourism, whilst maintaining its utilisation of the main attraction factor for many - the Sun. Perhaps more emphasis on the budding ski resort of Sierra Nevada near Granada in Southern Spain, or maybe even promoting more of its cultural festivals such as the 'Running of the bulls' in Pamplona. Whatever the Spanish government resorts to, it is important Spain maintains its tourism economy, and sustains (or preferably increases) the current levels of income it brings into the economy.

Spanish Unemployment Rate

References:
http://www.ft.com/cms/s/0/83fc03d8-c919-11e2-bb56-00144feab7de.html#axzz2XX1oQnnr