Tourism And Economic Growth

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Certainly there exists a significant literature on the relationship between tourism and general economic growth, and the terminology of ‘tourism growth led hypothesis’ has become accepted within both the tourism and economic literatures. Among those studies Shan and Sun (1997) and Shan and Wilson (2001) have used econometric techniques within a Chinese context, the latter finding evidence of a re-iterative effect between tourism and trade (imports and exports) as both feed into each other. While their main concern relates to the quality of forecasting techniques and the deficiencies of single equation approaches in tourism forecasting they specifically state that the null hypothesis of no linkages between tourism and economic growth in China…show more content…
According to the China National Tourism Administration (2009-3-25) are sufficient data to explain the academic and policy interest in tourism. Additionally, as noted by several commentators, the central government, specifically uses tourism as a means of developing an infrastructure to complement other rural economic development policies to address issues of income disparities between rural and urban zones, and between east and western China (Ryan & Gu, 2009; Wu, 2004). Developing countries seek to expand the size of their economies and achieve convergence with the developing world, and as long as that is a policy, governments will seek to create more economic opportunities for its citizens. Economic development programs sponsored by the government attempt to increase wealth while also increasing social inclusion, private initiatives make less of an effort to do so. Therefore, the responsibility of economic development falls on the state, if it wishes to guarantee that economic gains resulting from the project are enjoyed by the greatest number of people. Social and cultural…show more content…
Tourism can be both a source of international unity, peace and understanding and a destroyer and corrupter of indigenous cultures, a source of ecological destruction, an assault on people’s privacy, dignity, and authenticity. Here are possible positive effects of tourism, such as developing positive attitudes towards each other; learning about each other’s culture and customs; reducing negative perceptions and stereotypes; developing pride, appreciation, understanding, respect, and tolerance for each other’s culture and increasing self-esteem of hosts and tourists. The improvements to infrastructure and new leisure amenities that result of tourism also benefit the local community. Tourism encourages the preservation of traditional customs, handicrafts and festivals that might otherwise have been allowed to wane, and it creates civic pride. Interchanges between hosts and guests create a better cultural understanding and can also help raise global awareness of issues such as poverty and human rights

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