Tourism is important – more important than most people realise. According to the World Travel & Tourism Council (WTTC), travel and tourism contributed a record $10.9 trillion to the global economy in 2024 – around 10% of global GDP – and supported around 357 million jobs.
The importance of tourism is demonstrated throughout the world. From the economic advantages that tourism brings to host communities to the enjoyment that tourism brings to the tourists themselves, there is no disputing the value of this industry.
The importance of tourism can be viewed from two perspectives: the tourism industry and the tourist. This article explains how both the industry and the tourist benefit from tourism, and why it is so important on a global scale.
- What is the importance of tourism?
- Why tourism is important to the tourist
- Why tourism is important to stakeholders
- The importance of tourism: Economic gains
- The importance of tourism: Social gains
- The importance of tourism: Environmental gains
- The importance of tourism: Political gains
- Why tourism is important: To conclude
- The importance of tourism: Further reading
What is the importance of tourism?
When many people think about the tourism industry they visualise only the front-line workers- the Holiday Representative, the Waiter, the Diving Instructor. But in reality, the tourism industry stretches much, much further than this.
As demonstrated in the infographic below, tourism is important in many different ways. The tourism industry is closely interconnected with a number of global industries and sectors ranging from trade to ecological conservation.
Why tourism is important to the tourist
Discussions about the importance of tourism are often somewhat one-sided, taking into consideration predominantly those working in the industry and their connections.
However, the tourist is just as important, as without them there would be no tourism!
Below are just a few examples of the importance of tourism to the tourist:
Enhanced quality of life
Taking a holiday can greatly benefit a person’s quality of life. While different people have very different ideas of what makes a good holiday (there are more than 150 types of tourism after all!), a holiday does have the potential to enhance quality of life.
Ability to broaden way of thinking
Travel is known to help broaden a person’s way of thinking. Travel introduces people to new experiences, new cultures and new ways of life.
Many people say that they ‘find themselves’ while travelling.
Educational value
One reason why tourism is important is the educational value that it provides. Travellers and tourists can learn many things while undertaking a tourist experience, from tasting authentic local dishes to learning about the exotic animals that they may encounter.
Ability to ‘escape’
Tourism provides the opportunity for escapism. Escapism can be good for the mind. It can help people to relax, which in turn often helps them to be more productive in the workplace and in every day life.
This is another way that the importance of tourism is demonstrated.
Rest and relaxation
Rest and relaxation is very important. Taking time out helps people to be happier and healthier.
Enhanced wellbeing
Having the opportunity for rest and relaxation in turn helps to enhance wellbeing.
Why tourism is important to stakeholders
Who are tourism industry stakeholders?
There are many reasons why tourism is important to the people involved. There are many people who work either directly or indirectly with the tourism industry and who are therefore described as stakeholders. You can read more about tourism stakeholders and why they are important in this post- Stakeholders in tourism: Who are they and why do they matter?
The benefits of tourism are largely related to said stakeholders in some way or another. Below are some examples of how stakeholders benefit from tourism, organised by economic, social, environmental and political gains; demonstrating the importance of tourism.
The importance of tourism: Economic gains
Perhaps the most cited reason in reference to the importance of tourism is its economic value. Tourism can help economies to bring in money in a number of different ways. Some examples of the positive economic impacts of tourism are outlined below.
Foreign exchange earnings
The importance of tourism is demonstrated through foreign exchange earnings.
Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy. How a destination manages their finances differs around the world; some destinations may spend this money on growing their tourism industry further, some may spend this money on public services such as education or healthcare and and in some destinations, corruption means that it is unclear where the money ends up.
Some currencies are worth more than others and so some countries will target tourists from particular areas. Currencies that are strong are generally the most desirable currencies. This typically includes the British Pound, American, Australian and Singapore Dollar and the Euro.
According to UN Tourism, international tourism receipts reached around $1.6 trillion in 2024, and total export revenues from tourism (including international passenger transport) were estimated at around $1.9 trillion. Before the pandemic, tourism was the world’s third-largest export category, after fuels and chemicals, and for many developing countries it is one of the main sources of foreign exchange.
Contribution to government revenues
The importance of tourism is also demonstrated through the money that is raised and contributed to government revenues. Tourism can help to raise money that is then invested elsewhere by the government. There are two main ways that this money is accumulated.
Direct contributions are generated by taxes on incomes from tourism employment and tourism businesses and things such as departure taxes.
According to the World Travel & Tourism Council, the total contribution of travel and tourism to global GDP (including direct, indirect and induced impacts) reached around $10.9 trillion in 2024 – roughly 10% of the global economy.
Indirect contributions come from goods and services supplied to tourists which are not directly related to the tourism industry.
There is also the income that is generated through induced contributions. This accounts for money spent by the people who are employed in the tourism industry. This might include costs for housing, food, clothing and leisure activities amongst others. This will all contribute to an increase in economic activity in the area where tourism is being developed.
Employment generation
The importance of tourism can be demonstrated through employment generation.
The rapid expansion of international tourism has led to significant employment creation. From hotel managers to theme park operatives to cleaners, tourism creates many employment opportunities. According to the WTTC, travel and tourism supported around 357 million jobs worldwide in 2024 – roughly one in every ten jobs.
There are two types of employment in the tourism industry: direct and indirect.
Direct employment includes jobs that are immediately associated with the tourism industry. This might include hotel staff, restaurant staff or taxi drivers, to name a few.
Indirect employment includes jobs which are not technically based in the tourism industry, but are related to the tourism industry.
It is because of these indirect relationships, that it is very difficult to accurately measure the precise economic value of tourism, and some suggest that the actual economic benefits of tourism may be much higher than the recorded figures.
Contribution to local economies
The importance of tourism can be further seen through the contributions to local economies.
All of the money raised, whether through formal or informal means, has the potential to contribute to the local economy.
If sustainable tourism is demonstrated, money will be directed to areas that will benefit the local community most. There may be pro-poor tourism initiatives (tourism which is intended to help the poor) or volunteer tourism projects. The government may reinvest money towards public services and money earned by tourism employees will be spent in the local community. This is known as the multiplier effect.
Overall economy boost
Tourism provides a significant boost to the economy. This is partly because of the jobs that tourism creates, but also because of the temporary addition to the consumer population that occurs when people travel to a new place. Tourists spend money on accommodation, local restaurants, public transport, attractions and souvenirs, all of which contributes to the local and national economy.
For some towns, cities and even whole countries, tourism is more important than for others. In some cases, it is the main source of income. Small island destinations such as the Maldives, the Seychelles and many Caribbean islands are particularly dependent on tourism, which accounts for a very large share of their GDP – in some cases more than half when indirect impacts are included. By contrast, in larger and more diversified economies such as the UK and the USA, tourism’s total contribution is closer to 10% of GDP.
Video: The economic impacts of tourism
The importance of tourism: Social gains
The importance of tourism is not only recognised through economic factors, but there are also many positive social impacts of tourism that play an important part. Some of the social gains from tourism are outlined below.
Preserving Local Culture
It is the local culture that the tourists are often coming to visit and this is another way to demonstrate the importance of tourism.
Tourists visit Beijing to learn more about the Chinese Dynasties. Tourists visit Thailand to taste authentic Thai food. Tourists travel to Brazil to go to the Rio Carnival, to mention a few…
Many destinations will make a concerted effort to preserve and protect the local culture. This often contributes to the conservation and sustainable management of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts.
Strengthening Communities
The importance of tourism can also be demonstrated through the strengthening of communities.
Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest.
The jobs created by tourism can also be a great boost for the local community. Aside from the economic impacts created by enhanced employment prospects, employment and income can improve wellbeing and social inclusion.
Local people can also increase their influence on tourism development, as well as improve their job and earnings prospects, through tourism-related professional training and development of business and organisational skills.
Provision of Social Services
The importance of tourism is shown through the provision of social services in the host community.
The tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. This often means that many developments in an area as a result of tourism will be available for use by the locals also.
Local people often gain new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism.
Commercialisation of Culture and Art
Tourism can give rise to many commercial businesses, which can be a positive social impact, as local people may have more disposable income as a result.
These businesses may also promote the local cultures and arts. Museums, shows and galleries are a fantastic way to showcase the local customs and traditions of a destination. This can help to promote/ preserve local traditions.
Revitalisation of Culture and Art
Some destinations will encourage local cultures and arts to be revitalised. This may be in the form of museum exhibitions, in the way that restaurants and shops are decorated and in the entertainment on offer, for example.
This may help promote traditions that may have become distant.
Preservation of Heritage
Another reason for the importance of tourism is the preservation of heritage. Many tourists will visit the destination especially to see its local heritage. It is for this reason that many destinations will make every effort to preserve its heritage.
This could include putting restrictions in place or limiting tourist numbers, if necessary. This is often an example of careful tourism planning and sustainable tourism management.
Empowering communities
Tourism can, if managed well, empower communities. While it is important to consider the authenticity in tourism tourism can empower communities.
Small communities are able to profit from selling their handmade goods. This, in turn, puts food on the table. This leads to healthier families and more productivity and a happier population.
The importance of tourism: Environmental gains
Whilst most media coverage involving tourism and the environment tends to be negative, there are some positives that can come from it: demonstrating the importance of tourism once again.
Protecting nature
Tourism is often blamed for damaging nature, and it can certainly do so. However, the tourism industry can also be a strong voice for conservation and the protection of wildlife and natural landscapes. Entrance fees to national parks and marine reserves help to fund conservation, wildlife tourism gives local communities an economic reason to protect animals rather than hunt them, and many tourism organisations run or donate to conservation projects.
As well as this, visitors to certain areas can take part in activities that aim to sustain the local scenery. Tourists can, for example, join a beach clean up walk in Spain or do something similar in the UAE. There are many ways in which tourism can help the environment, rather than harming it.
The importance of tourism: Political gains
Lastly, there is something to be said for the political gains that can be achieved through tourism.
The tourism industry can yield promising opportunities for international collaborations, partnerships and agreements, for example within the EU. This can have positive political impacts on the host country as well as the countries who choose to work with them.
Why tourism is important: To conclude
Tourism is a remarkably important industry. As this article has shown, the tourism industry does not stand alone- it is closely interrelated with many other parts of society. Not only do entire countries often rely on the importance of tourism, but so do individual members of host communities and tourists.
Importance of tourism: FAQs
Below are answers to some of the most common questions about the importance of tourism.
Why is tourism important?
Tourism is important because it generates income, jobs and foreign exchange, supports local businesses and public services, helps to preserve culture and heritage, can fund conservation, and benefits tourists through rest, education and wellbeing.
How much does tourism contribute to the global economy?
According to the World Travel & Tourism Council, travel and tourism contributed around $10.9 trillion to global GDP in 2024 – roughly 10% of the world economy.
How many jobs does tourism create?
The WTTC estimates that travel and tourism supported around 357 million jobs worldwide in 2024, or roughly one in every ten jobs.
Which countries depend most on tourism?
Small island nations such as the Maldives, the Seychelles and many Caribbean islands depend most heavily on tourism, which makes up a very large share of their economies.
Why is tourism important to the tourist?
Tourism benefits tourists by providing rest and relaxation, escape from everyday life, education, new experiences and cultures, and improved wellbeing and quality of life.
The importance of tourism: Further reading
Recommended books on this topic:
If you found this article on the importance of tourism useful, these articles may also be of interest:
- Economic impacts of tourism
- Social impacts of tourism
- Environmental impacts of tourism
- Components of tourism: Structure of the tourism industry
- Stakeholders in tourism
- Where to find a job in travel and tourism
