What is the impact of tourism on the economy according to a draft policy formulated by the government
A draft policy has been formulated by the Union Minister to enhance tourism's contribution to the economy.
According to the draft policy formulated by the government, tourism has a significant impact on the economy. The following points highlight the various aspects of this impact:
- Tourism contributes to the generation of foreign exchange earnings. It attracts international tourists who spend money on accommodation, food, transportation, shopping, and other local goods and services.
- The tourism sector creates job opportunities, both directly and indirectly. It provides employment in areas such as hospitality, transportation, tour operators, guides, and handicrafts, thus reducing unemployment and boosting the economy.
- Tourism promotes rural development by encouraging the conservation of natural and cultural heritage. This leads to the development of infrastructure, services, and facilities in rural areas, resulting in improved living standards for the local population.
- The growth of tourism drives investments, particularly in areas of accommodation, transportation, and tourist attractions. This stimulates economic development and improves the overall quality of infrastructure and services available to residents and tourists alike.
- Tourism also has a positive multiplier effect on related industries such as agriculture, handicrafts, entertainment, and transportation. The increased demand for these sectors supports their growth and contributes to overall economic diversification.
Answered
a year ago