Effects of tourism on global markets

Effects of tourism on global markets

Introduction

Tourism is the act of touring and traveling all over the world for pleasure or in the business of attraction. It is also defined as moving out of people’s usual environment to other new places for leisure and adventures for not less than a day. Tourism can be within one’s country of origin that is domestic or traveling from own country to another which is referred to as international tourism. Tourism is now seen as the pillar to the world economy since it’s rising spontaneously having been branded as the fastest growing economic sector. In terms of figure, it has produced employment to 292 million people around the globe, which is narrowed down to at least 1 person in every 10 people on the planet. Interestingly communities have bold support for tourism since it has a big impact on the whole community. In a way or another, the sector of tourism is associated with the local community due to their direct or indirect involvement in improving lives and rising standards of living. Through tourism, other platforms have grown directly like the creation of creative attractions cites, entertainment places, restaurants, and other services in the community. In 21st-century tourism has been having a great impact compared to the last century. The impact has been brought along by the way tourism has impressed technology in operation. This leads to the growth of creative and innovative business oriented activities that are all aiming to uplift and market the brand of tourism. Whereas tourism industry is the composition of all companies that directly or indirectly are used in the provision of products and services that are meant and will be used by tourists in tourism stages. The tourism industry is defined by demand and supply side. The demand side accumulates all the products and services consumed by the tourists. The supply side involves all industries that are engaged in products and services that have direct or indirect aid to the tourist easing their travel possible and carrying out tourism activities. Generally, this is referred to as the travel industry. Tourism is a wide, broad, and dynamic and growth-oriented industry that is venturing into the economy so well.

Sectors within the tourism industry and how they are affected by the outbreak of covid-19

1. Transportation

Is the pillar of tourism since it provides the means of movement visitors from one place to another? This sector helps in ensuring there are minimal cases of tourists getting lost and monitoring their stay. Tourism with no transport can never be engaging and for a matter of fact, these sectors depend on each other. Employment of personnel such as tour guide and tour car drivers mainly rely on the number of tourist flocking. By this pandemic transport sector has been doomed to fail.

This sector covers a wide range of air, sea, rail, and road.

• Airline industry- is the vital means of all, it provides a link of both domestic and overseas travels through flights. Tourist has enjoyed swift and quick travel all over the world within a short period. Companies have been formed specifically for traveling of tourists from their origin countries to intended destinations across the globe. Since the outbreak of covid-19 international travels have been banned indefinitely causing a lot of uncertainties to the business airline transporter owner. These businesses are continuously making losses due to this issue of banning flight travels. Consequently, a lot of hired flight workers have been surprisingly ordered not to report to their workplaces. By this personnel have been rendered and consistently losing their jobs.
• Water transport-consists of cruise liners and ferry transport. On this sector ferry transport has been largely distracted since, there is minimal transportation of passengers as the recommended ferry capacity is optimally being used.
• Taxis and car renting- largely this form significance experiences of tourist. Every tourist will by all means will ensure he/she gets the most of freedom and exploring adventures freely. This sector work closely with airports to enhance movement of tourist and their luggage’s is maintained to the highest levels.

1. Accommodation

It is the center in tourism industry, because whenever a person leaves his/her home place definitely they will need a new place to stay, rest and sleep? The network around accommodation services revolves around long-time stay or even a short- time stay determined by the plans of the tourist. Analytically many companies tirelessly aim at customer satisfaction by consolidating the right measures and best practices to remain vital. Competence and honestly has been exercised by accommodation owners ensuring that the right personnel are employed to protect companies reputation. These sectors makes strategic plans by forecasting how the visitors will check in. for this reason accommodation services has been heavily invested to cater for visitors need. In case there is no demand for this services many will for fact be left jobless and owners will be counting shocking losses. Accommodation is sub-divided into;

• Hotels- obviously it forms the basis of accommodation for visitors. Hotels widely rely on tourist since most of them are situated along tourist centers. Services provided by hotels vary often depending on the nature of visitors. These hotels are buildup of employees and other workers who direct or indirectly are involved. Arguably most of them had anticipated a big flow of money because times of tourist visitation was nearing. They employ a lot of inputs and massive preparation for the tourism especially when the government is politically stable and there is conducive environment.
• Camping- In tourism it entails the act of choosing to stay outdoors in tents or things of such kind related shelter plan. Tenting has been practiced commercially as businesses are offering this services.

1. Food and beverage

These sector plays an engaging role in tourism industry providing tourist with necessary needs from all of travelling experiences. Generally, refreshments form part of journey to any one on travel, at any location there are hundreds of local suppliers effortless working to quench and meet demands of travelers. Development of social lives is clearly emphasized as there is meeting of new people and creating of social links.

Tourism in Africa

Africa is the second largest continent in the tourist industry in the world, traveling in the continent has been made cheaper and easier by strongly being supported by the respective governments.

As per 2018, travel and tourism stand as a vital driver of the African economy. Accounting to 8.1% of GDP and contributing $194.4 billion to the region’s economy. In that same year, it was estimated to have grown at 5.6%, second only to Asia pacific. In 2018 also roughly up to 67 million tourists flocked to Africa, recording a 7% increase from 63 million from the previous year 2017. The top visited were Souks of Marrakech in Morocco and quaint vineyards of the Cape in South Africa. Many of these foreign visitors were specifically traveling for holidays and other related leisure activities. New itinerary attributes expanded tourism numbers that by far aimed at improving government initiatives. Tourism in Africa is rising but not yet nearing to its full potential. There is thrive and hunger for growth as governments are working tirelessly closely with relevant authorities to expound and exploit resources that are available to be put in proper use. Tourism will remain to take advantage of other sectors since it has a steady and constant flow throughout the year. This ensures that it serves as the backbone of the economy through employment creation. If tourism is managed sustainably, it serves as an economic development tool. The tourism industry firstly opens the demand for telecommunications, transport, and financial services. In the transport sector, it creates the urge to developing better roads and railways that will stimulate and speed up the flow of tourists. Secondly, it widens up the consumption of local products in restaurants and accommodation areas since the incoming tourist is introduced to African foods and end up developing a market for them. Moreover, there is stimulated the growth of agriculture and other local production areas like fisheries and processing of food. Besides small businesses are catalyzed to grow since most of the daily encounters and routes to tourist attraction revolve around residents. The tourism industry serves as a backbone and with a lot of impact on Africa countries. Ultimately tourism affects the growth and sustainability of countries’ economies in one way or the other. So when it is negatively affected by outbreaks of a pandemic like “Coronavirus” eventually the economy will be on a slow move and for a matter of fact, it will be doomed for a long time if such pandemic still hits the society. By this misfortunes, there will rise a lot of complexities to even losing millions of jobs worldwide. For sure as for now everything is at standstill and stagnant as there is no movement of counterparts who largely supports the big industry. Consequently not only international tourism has been affected as domestic tourism is also being dragged by the imposition of lockdown and curfews that are restricting movements. Whenever the tourism industry is affected the effects are not only felt in that sector. In most cases, the other numerous actor that works hand in hand with it are dragged behind. Collectively all these players all together contribute directly or indirectly in the growth of the economy, so when one is not at is best and optimal levels likely the GDP of the content will decline. In summary, we should argue that tourism is an economic sector for most countries in Africa. Notably, many Africa countries have benefited from it like Egypt, Kenya, South Africa, Morocco, Uganda, Tanzania, Tunisia, and others. Africa, in particular, is the reach of natural heritage, culture practices, diversities, multitudes of landscapes, and other variety of interesting points.

Particularly we are going to use Kenya as an example in the Africa continent to focus on how its tourism industry affects the economy.

Tourism in Kenya

Kenya is a country located in East Africa along Indian Ocean shores. Tourism in Kenya by merits stands as the second largest foreign exchange revenue. It’s one of the great tourism destinations, majorly known for wildlife, culture, and diversity of landscapes. It is rich in savannahs, tropical beaches and coral reef, dense equatorial forests to snowcapped mountains, and more. Kenya is home of up to 55- 65 national parks and reserves, reach with eye-catching culture and historical attractions, and over 500km of sunny coastline. According to the World Travel and Tourism Council (WTTC) “Economic Impact 2017 Kenya” report, the tourism and travel sector’s direct contribution to GDP WAS $2.5BILLION, or 3.7%, in 2016, and the forecast to grow to 6% in 2017. Tourism and travel were also responsible for the employment of 399,000 Kenyans, which is 3.4% of the total workforce that year. This clearly shows how tourism contributes to the growth of Kenya’s economy. In 2018, the national earnings were boosted to up to 37.33 percent as per international tourist arrivals crossed the two-million mark for the first time in Kenya’s history. In the year 2019 Kenya tourism earnings grew by 3.9 percent to $1.6 billion this marked a very high rise with the annual report reporting the best revenue ever. Also current statistics show there were 2,048,834 compared to 2, 2025,206 international arrivals in 2018. The United States recorded the highest arrivals to the Kenya market with a 245,437 mark. This earning put Kenya on the mark as the third-largest tourism in the sub-Saharan region. For this matter, it reflects how crucial tourism is to Kenya’s economy thus if any external threat like an outbreak of pandemic “coronavirus” automatically it is going and will continue to affect the economy.

Here are tourist attraction cites in Kenya:

• Maasai Mara national reserve- the “maasai Mara” as commonly referred to remains to be a standout game reserve in world. It border Tanzania to the south as an extension of Serengeti forming interchanging of wild animals between the two countries. The naming of the game reserve originated from the local community “Maasai” who are mostly known for their grazing and animal keeping around the origin over a long period. An interesting feature for many tourist is the immigration of wildebeest, gazelle’s and zebra in flocks across the Mara River. Also it is a center of a large population of wild cats i.e. lions, leopard and cheetahs. Annually it records a bog percentage of visitors both domestically and international. These feature attracts tourist to travel to Kenya but amid this outbreak of corona pandemics the travels are relatively low. Surely, the existence of this national reserve has been beneficial to the local residents. It acts as backbone of their economy as it is direct involved in much of societal growth. Restaurants have been built providing jobs to locals. Many of residents has majorly relying on tourism day in day out to boost their economies. A lot of personnel will typically be affected if there is minimal or no constant flow of tourist .
• Tsavo national park- Tsavo is the largest park in Kenya. And it is divided into two: Tsavo East and Tsavo West. Altogether the Tsavo Park encompasses four percent of country’s total area. It is widely comprised of natural resources like waterfalls, savannah, rivers, volcanic mountains, lava-rock plateau and massive diverse of wildlife. Tourists flock in number to eye-witness a big number of elephant’s herds moving around and how impressively they do bath in red dust. Additionally the presence of a large flat surface i.e. Yatta plateau serves as a point of interest for visitor to come and visit. The Mzima springs entices visitors with large number of crocodiles and hippos.
• Lake Nakuru Park- this lake is made of beautiful and amazing features. Here there are thousands of flocks of flamingos. Often visitors pay their visit to come and have adventures with families as well an experience of meeting up to 450 different birds’ species that exist in the park.
• The Lamu island- it is located at northeast of Mombasa. It is the home of “Lamu Old Town” one of oldest inhabited settlement. It traces back the histories of trading across the Indian Ocean shores as many of old buildings and settlement from Arab’s communities and Europe are evidently seen. Histories are archived in Lamu museum in which creates anxiety all over the world for visitors to travel and have their memories there. Interestingly you will not have travelled to Lamu if for sure you missed to have time to bask on one of island’s white-sand beaches. Local residents have hence, been employed locally acting as tour guides since they have all-around knowledge of the place. Consequently some have opted to be” beach boy’s” which a career is in way as residents are able to boost their living and have daily breads from that kind of jobs.
• Mount Kenya National- this park encompasses second largest mountain in Africa-Mount Kenya acting as sight of equatorial snow. The mountain consists amazing sceneries like lakes, glaciers and a home of famous bamboo forest. Also the forest around the mountain nest bulky of wild animals such as the rare white colobus monkeys, elephant, hyenas, buffalo and leopard. This all great aspects cumulative attracts interest from human races all over the world. The areas has provided employment to a lot of Kenyans through creation of accommodation services where hundreds of residents work in. besides that it has broaden the trade and exchange of culture opening a big scene of growth along the area. People are permanently and partially employed around the regions as most of them engage in tourism related activities hence depending on it for their daily incomes.

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