Using economics to develop Sri Lanka Tourism

Tourism direct GDP (TDGDP)

The proportion of Travel & Tourism expenditure or employment in the corresponding economy-wide concept as reported in the published national income accounts or labor market data, respectively. The exports of visitors are compared to the total exports of all products and services. GDP is used to compare domestic travel and tourism expenditures. Individual travel and tourism expenditures are used to compare overall government expenditures on tourism.

The consumption of travel and tourism inside the company is compared to the overall internal consumption (i.e. total domestic spending plus total export) When the contribution of leisure travel and tourism to GDP is compared to the overall GDP, the result is positive. The contribution of business travel and tourism to GDP is compared to the overall GDP. The capital investment expenditure on travel and tourism is compared to the total amount of fixed investment spending.

Direct employment in tourism

Tourism contributes significantly to the creation of job prospects for individuals in tourist-dependent areas. As a result, the tourist sector offers enormous potential for direct and indirect job creation. It offers direct employment to a variety of individuals, including tour operators, hotels, tourist offices, tourist guides, and transportation providers.

Those who provide hotels with vegetables, meat, fish, poultry, cereals, and other foods, as well as electricians and others who offer supplementary services to hotel clients, such as taxi drivers. get indirect employment as a result of tourism

Another source of employment is stores and emporiums that sell handicrafts and hand-looms, providing marketing avenues for hundreds of craftsmen, artisans, weavers, and others. In tourism-related businesses, the ratio of investment to employment generation is substantially larger than in manufacturing.

Tourism is responsible for the creation of many jobs in locations where there are few work prospects. Many households in hill regions, for example, rely on tourism for a living. Local hotels, transportation, and stores all give direct employment options for residents.

People working in the tourist business and their families demand their own commodities, services, education, and health care, among other things, which indirectly creates jobs in stores, schools, and hospitals. With tourism’s rapid expansion, a wide range of jobs is available, from highly skilled managers and chefs at five-star hotels to room carriers, transport workers, craftsmen, and so on. Unemployed and educated young men and women are seeing new opportunities.

International tourism flows

Tourism flow is the phenomenon of travelers moving through a tourist attraction in three dimensions: time, quantity, and direction. In tourism, the emphasis is on flow quality, flow potential, flow direction, flow impact, flow force, and flow quantity.

Governments that depend on tourism for a significant portion of their earnings spend heavily on the country’s infrastructure. They desire an increasing number of visitors to visit their nation, which necessitates the provision of secure and sophisticated amenities. As a result, new roads and highways are built, parks are created, public places are upgraded, new airports are built, and maybe better schools and hospitals are built. Infrastructures that are both safe and creative allow for a seamless movement of products and services. Furthermore, local residents benefit from opportunities for economic and educational advancement.

Tourists and locals engage in cultural exchanges as a result of tourism. Foreigners are generally attracted to exhibitions, conferences, and events. Registration fees, gift sales, exhibition space sales, and media copyright sales are all common sources of profit for organizing bodies. Furthermore, international visitors contribute to the cultural variety and richness of the host country.

Inbound/ outbound expenditure over GDP

An inbound tourist is someone who goes from one nation to another for the purpose of tourism. Ali, for example, is on summer vacation from university and wants to go overseas. As a result, he chooses to go to France for tourism and spend his summer vacation there.

The entire consumer expenditure made by a tourist, or on behalf of a visitor, for goods and services during his or her travel and stay at the destination site is referred to as tourism expenditure (country). Payments made in before or after the trip for services obtained during the trip are also included.

Outbound tourism is a significant part of the tourist industry. Many nations depend greatly on tourists who leave their native country in quest of an international vacation. The act of traveling ‘outside’ of your native country for the purpose of tourism is known as outbound tourism. The purchase of goods or services before or after a vacation inside the tourist-generating nation is not included in outbound tourism.