Tourism policy Essay Example | Topics and Well Written Essays - 3000 words

Tourism policy - Essay Example Tourism is a valuable industry for every nation. It not only creates new businesses but also can create jobs, income and can enhance quality of life. For years, tourism industry developed almost fluently and now it has become a chief economic segment. For many countries in the developing world, tourism is a significant basis of income creation and therefore, a key element of economic improvement. A good positive state related to tourism can improve the relationship and it rewards nations. But the consequences of negative conditions such as terrorism are massive on a countries’ financial system. Tourism contributes about 10 percent of global GDP. Tourism industry needs to predict customer requirements, recreate its business strategy, and relocate on providing good services because in recent years customers have become more demanding and a good tourism system can improve the image of the nation. Therefore, the terrorist attacks can play a massively derogatory role in a countryâ €™s economy and thus, the tourism sector similar to other sectors can bear the brunt of such scenario (Wharton University of Pennsylvania, 2010). Importance of Tourism Tourism has become a key economic activity in the 20th Century. The World Travel & Tourism Council had generated income of US $ 655 billion from tourism industry in the year 1995 and had created 212 million jobs. Global employment growth was estimated at 21 percent in the year 2007. This increase was primarily due to increase in capital investment and it contributed to 610,000 people globally being engaged to the tourism industry. The employment increase was from complimentary services such as entertainment and restaurants. The result of amplified travelling has led to rise in government income and gross output; it has multiplier consequence on global economies (Dunn, 1999). The following table shows the growth of tourism till 1992: Figure 1: Growth of tourism till 1992 (Thompson, 2008). Effect on Tourism Industry due to Terrorist Attacks Terrorist attack has an adverse affect on the tourism industry. It can lead to joblessness, homelessness, deflation, crime and other economic crisis. Several factors associated with tourism such as airlines, hotels, restaurants and catering sectors that are used by any firm or industry and their employees are all affected to a greater or lesser extent. Terrorism can unravel a country’s tourism industry. It affects directly to the tourists’ decision making. The role of tourism in emerging countries is currently so enormous that some downturn in the tourism sector is a serious concern. In general, tourism is one of the best performing economic sectors in the developing countries and can have various dimensional effects (Essner, 2003). Several such instances of the affect of terrorist attacks on the tourism industry will be evaluated in the following sections. Terrorism in Maldives Tourism Industry Maldives is a developing nation and is depended on their tourism industry as a source of income. Maldives is a holiday destination for the tourists due to its famous heavenly as well as