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Institution of Local Self Governance and its Linkages with Tourism

Institution of Local Self Governance and its Linkages with Tourism

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SECTION IRole <strong>of</strong> <strong>Tourism</strong> in Economic Development<strong>Tourism</strong> being heterogeneous, it is seen te have many direct <strong>and</strong>indirect benef<strong>its</strong> for the wider sector <strong>of</strong> the economy. Employment isgenerated not only in the wide range <strong>of</strong> service sectors directly linkedto tourism but also in retail, construction, manufacturing, <strong>and</strong>telecommunications . High percentage <strong>of</strong> women <strong>and</strong> young peopleare employed by the small <strong>and</strong> medium sized enterprises thatcomprise much <strong>of</strong> the industry. Technological advances are ma kingtravel easier than ever before <strong>and</strong> increasing numbers <strong>of</strong> people aretraveling annually to consume ever more varied tourism 'products' inever more far-flung destinations.<strong>Tourism</strong> has been one <strong>of</strong> the fastest growing economic sectors sincethe 1960s. In recent decades, the share <strong>of</strong> international tourism inglobal economic activity has risen steadily. It is one <strong>of</strong> the top fiveexport categories for 83 per cent <strong>of</strong> countries in the world The<strong>Tourism</strong> Satellite Account (TSA), a strategic project for the World<strong>Tourism</strong> Organisation has analysed that world over, travel <strong>and</strong>tourism economy has generated 10.4% <strong>of</strong> the GOP, 8. 1 % <strong>of</strong>employment <strong>and</strong> 12.2% <strong>of</strong> the exports in the year 20(14 . In SouthAsian countries, travel <strong>and</strong> tourism economy directly <strong>and</strong> indirectlyaccounts for 5% <strong>of</strong> the GOP <strong>and</strong> 5.2% <strong>of</strong> the total employment .Forecasts indicate that the number <strong>of</strong> people traveling internationallyis likely to increase from 457 million in 1990 to about 1 ,<strong>of</strong> 4 million by2020, <strong>and</strong> that earnings from international tourism is li kely II) risefrom $476 billion (year 2000) to more than $2 trillion by 2020. Inworld over, the projected growth rate per annum (from 2C'Oe,- 2014) is4.5%, while South Asia will experience growth rate <strong>of</strong> 8.3% perannum in the same period . The prejected growth rates reflect t:,at inSouth Asia the tourism will grow twice to the growth in oHter purts <strong>of</strong>world .3

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