benefits of e tourism

What Is E Tourism?

By Robert Palmer

In today’s digital age, tourism has taken a new shape with the emergence of e-tourism. This refers to the use of technology and the internet to plan, book, and experience travel. The rise of e-tourism has transformed the travel industry by making it more accessible, convenient, and personalized for travelers.

What is E-Tourism?

E-tourism can be defined as the digitization of all tourism processes and services. It encompasses all aspects of travel including planning, booking, and experiencing tourism activities through digital channels. E-tourism leverages technology to provide tourists with a seamless experience from start to finish.

Benefits of E-Tourism

E-tourism offers several benefits to both tourists and tourism service providers. Here are some of them:

1. Accessibility: With e-tourism, travelers can easily access information about their destination from anywhere in the world using their smartphones or computers. They can also book flights, hotels, and activities online without having to physically visit a travel agency.

2. Personalization: E-tourism allows for customized travel experiences based on individual preferences and interests. Tourists can choose their preferred mode of transportation, accommodation type, and activities tailored to their interests.

3. Cost-effective: E-tourism provides a cost-effective way for travelers to plan their trips as they can compare prices for flights, hotels, and activities from different providers online.

4. Efficiency: The use of technology in e-tourism makes it easier for service providers to manage bookings and reservations efficiently resulting in fewer errors or double bookings.

E-Tourism Examples

Some examples of e-tourism include:

1. Online Booking Platforms : Websites like Expedia.com or Booking.com allow travelers to book flights, hotels, and activities online.

2. Tourism Apps : Apps like TripAdvisor or Airbnb provide travelers with information about destinations, accommodation options, and activities.

3. Virtual Reality Tours : Tourists can take virtual tours of destinations and attractions before deciding where to go.

4. Social Media Influencers : Social media influencers who showcase their travel experiences on platforms like Instagram or YouTube have become an important part of e-tourism marketing.

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What are the Advantages of E-tourism in the Hospitality Industry Worldwide?

Hospitality has been a booming industry with steady growth in arrivals and revenues. However, the success of the industry is due to many factors. But one thing worth highlighting is that tourism has been a pioneer in the use of the new digital technologies that have emerged and in the digitalisation of the industry, thus creating what we call “e-tourism”.

The digital transformation, partly due to the pandemic, is rapidly sweeping the sector, and hospitality businesses are scrambling to keep up with these changes in digitalization. What are some of the digital technologies affecting the hospitality industry in 2022, and what are their advantages to e-tourism?

The contribution of international tourism to the Greek Economy

The tourism industry has a special place both in the international economy and individual economies such as Greece’s, which relies heavily on it.

Specifically, in 2019, a year before the pandemic hit, the contribution of tourism to the Greek economy amounted to 12.5% of the country’s GDP and 17.1% of employment.

Let’s define tourism

In short, tourism is defined as any short-term movement of people from one place to another. There is, however, a basic condition. This movement must be to a place other than where they live.

Usually, tourism takes the form of a leisure trip where one goes to see and experience a new (or even familiar) place. Of course, tourism also takes other forms.

For example, a tourist could be someone visiting our country for medical reasons. That is, to see a clinic that specialises in the problem they are facing or to take advantage of the potentially lower cost of a particular treatment. Another example could be a business trip to the United Arab Emirates. In general, almost anything we want to do in a new country or city for less than a year falls under the scope of tourism.

But one thing is sure. The e-tourism has brought many advantages making travel, especially to international destinations, easier than ever before. So not only are we travelling more, but because of the internet, we are constantly discovering corners of the world that didn’t get the recognition they deserved. In short, whereas decades ago leisure travel was only for a few, mainly because of the increased costs, nowadays tourism is for everyone.

Tourism in numbers

Since this is the case, it is understood that we are talking about a tremendous number of tourists every year. This number has been steadily growing every year, reaching 1,464.3 million tourists in 2019 until the pandemic hit in 2020.

During the pandemic, international tourist arrivals went back thirty years, reaching the levels of the early 1990s with about 400 million travellers. In summary, travel and tourism contributed 9,17 trillion US dollars to GDP worldwide in 2019. Respectively, this number fell to 4,6 trillion US dollars in 2020.

The sectors benefiting from e-tourism

There are many businesses that are part of the tourism industry and benefit significantly from international travellers every year.

For example, when someone plans to travel, he or she can consult a travel agency to book travel tickets or find a hotel. Of course, this was done to a greater extent in the past when the digitalization of the industry had not yet reached the proportions it has today. The digital transformation of businesses has now created many digital travel agencies.

Of course, one of the sectors that work very closely with tourism and benefit from it is the travel sector, such as airlines, bus or train companies. Of course, the above mainly concerns the part of the preparation of a trip, which is a relatively small part. Tourists must pay for their accommodation, food, daily transport, entertainment and possible visits to local attractions during their journey. Thus, it is evident that we are talking about a diverse industry with a significant economic contribution to many sectors.

Of course, for all of the above to become a reality, the digitisation of the sector and the integration of new technologies is required. E-tourism acts as both a facilitator and an enabler of many of the above aspects of tourism, helping it to grow continuously. As in many other sectors, the importance of digitalisation became particularly evident during the pandemic.

What is e- tourism ?

The broader integration of digital technologies in the tourism industry has created e-tourism. Specifically, according to researchers , e-tourism is the application of ICTs in the tourism industry. They digital transform all processes and value chains in the tourism, travel, hospitality and catering industries.

Essentially, E-tourism is the digitalisation process of the whole tourist sector and infrastructure. The elimination of seasonality, more effective connection with clients, and increased bookings and revenues, in general, are some of the advantages of e-tourism.

The tourism industry’s structure and principles have been irreversibly altered by using the Internet. Consumers-tourists may now effortlessly choose their location, compare pricing, and manage their financial transactions.

In the hands of tourist entrepreneurs, information and communication technology and the Internet can prove to be very inventive strategic instruments that can assist them in enhancing the position of their facilities.

E-tourism technologies and their advantages

Various digital technologies have been shaping the hospitality industry for decades. However, the sector’s digitalisation has acquired a new meaning recently, especially during the pandemic.

In a survey, 93% of hospitality businesses answered that they plan to increase their digital investments in the coming years. Thus, highlighting the need for increased digital adoption to survive the digital era combined with an unprecedented health crisis.

Hospitality businesses seem to understand the advantages that further investments in e-tourism may bring.

Three types of digital technologies in hospitality

Mobile technology.

The proliferation of smartphone usage in the last decade is driving changes in the hospitality and tourism industry.

Tourists can now book tickets from the comfort of their homes, thus how in which travel agents operate. With the evolution of mobile technology and the use of smartphones, someone can now easily do the work of a travel agent on their own and essentially replace them.

For instance, many platforms tourists can find and book accommodation, like Booking and Airbnb . Lastly, with the advancements in mobile technology, smartphones have also become travel agents. With sites like Tripadvisor with so much information online about everything from local restaurants, hotels, attractions and things to do, travellers can rely on their smartphones to go on memorable vacations at more affordable prices.

With just the use of a smartphone, travellers can find the best local restaurants, hotels, attractions and activities worth doing. Thus, technology allows us to plan memorable vacations based on our interests and at more affordable prices than ever before.

Mobile technologies are shaping the way we travel and the way tourism businesses operate. So it is essential that industry operators are aware of where technology is going in their sector to make the changes needed to make the most of the advantages of digitisation.

AR and VR in travel and tourism

These are two new technologies becoming more and more accessible to consumers. Many businesses have begun incorporating Augmented Reality (AR) and Virtual Reality (VR) into their daily operations since they provide numerous e-tourism advantages. In such a competitive and booming industry, cutting-edge technology is employed to attract more clients.

New digital innovation trends such as augmented reality (AR) and virtual reality (VR) offer travellers an unforgettable experience. Hotels have started to embrace virtual reality (VR) technology to show their rooms to potential customers, as it is a more attractive medium than a photo or video.

In addition, virtual reality allows people to “travel” the globe from their living room using special VR glasses that will enable them to visit any place they want. One can have all the above travel experiences from home without paying a fortune.

Contactless payment technology (Fintech)

Contactless technology merges simple, everyday financial services with technology. It is the current trend in the financial sector, which, in turn, brings significant advantages to e-tourism.

As an e-tourism technology, fintech facilitates payments when travelling abroad. Tourists can quickly exchange their money for local currencies in their digital wallets at market rates anywhere and anytime. Importantly, Fintech also allows money to be moved instantly from one account to another, often without fees.

Contactless payments are not something new, but they gained popularity in recent years. Especially during the pandemic, contactless payments helped travellers avoid cash transactions and pay safely.

The tourism sector is known for its innovative approach to digitising the industry to serve the growing number of international travellers better.

Advancements in technology and the new needs created by the pandemic are swiftly changing the way businesses in hospitality operate and how tourists travel.

Therefore, boosting investment in technologies that not only enable but also enhance e-tourism in the day-to-day business activities of businesses in the sector is their ticket to survive the digital transformation and better respond to the increasing demands of modern tourism.

If you are also looking for ways to use the new technologies to digitize your business, contact us or join the JOIST Innovation Park community.

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E- Tourism and Tourism Technology Trends- Full Guide

Table of Contents

What is E-tourism?

E-tourism is the digitalization of the whole tourism industry, infrastructure and ecosystem.

eTourism has made life easier for the tourists as well as companies connected with the tourism industry. In last few years, eTourism has helped in great extent to promote tourism though the use of internet and various online e-applications. eTourism includes networking and competitive collaboration in the tourism sector. eTourism includes making online bookings for flights, hotels, transport at destination and even help planning the whole trip.

In this article, we will cover the primary benefits of eTourism followed by the description of some electronic applications and systems which are part of eTourism. Secondly, we will also cover how eTourism helps companies to develop network and communications followed by how they can be useful to companies as well as customers. Finally, it concludes with some examples of Airlines that are gaining huge profits through eTourism like Qantas and Emirates.

Today, in internet age, everyone would like to have all the facilities on their desk via internet and eTourism is no exception. eTourism provide that extra facility to tourists to book their hotel, flights or even plan the whole trip online. In fact even tourism companies are making use of eTourism for their promotions through websites, emails or various electronic applications.

88 % of consumers who went to travel or planned holidays in summer of 2005 used the internet to search, purchase holiday packages or plan their trips. Online hotel accommodation sales were also increased up to 52 percent, more than before in 2005. It is estimated that, around one third of all hotel bookings will be done online this year, and another one third will be directly affected by online research and planning, but booked offline.

Companies are using electronic applications like Customer portfolio analysis (CPA) systems which is a process that analyzes the value of potential customers, regarding the costs and incomes that each customer generates in organizations in order to optimize profits and offer value to different segments of customers.

Segmenting customers in different scenarios requires a selection of a target customer. For example, customer segmentation in the travel industry could be business travellers who use corporate travel agents to get special discounts when they need to buy a big amount of tickets. Another could be different situations and variables of each customer as demographic attributes, age or needs. For instance, change of itineraries in the middle of the trip are customer needs that help organizations to determinate what customers consider important to be satisfied in order to achieve customer loyalty and invest in a most efficient and effective way.

So, using electronic applications as part of e-Tourism eco system, companies can conclude which customer group generates the most revenue for organisations. These e-applications help organisations to identify existing customers who are difficult to satisfy and to identify the best customers to invest in. Organisations require less cost to maintain key customers than to attract new ones.

The role of the organization is development of this concept in order to help existing and potential customers, and to help them understand the value of the service and products regarding safety, quality, use, reliability, business attractiveness and ethical issues that organisations offer, which influences customers purchase decision.

Moreover, eTourism help organizations to develop network in the process of creating and delivering value to their customers.  Major parts of organisations’ network are supplier, owners/investors, partners and employees. By working with all of them effectively, organisations can establish excellent customer relationship. 

In addition, Partners play an important role in eTourism value creation. There are a number of different types of partners; joint venture or alliance partners, category teams, benchmarking groups, regulators, customer advocacy groups and sponsors. In the airline industry, alliance partners have been very popular. For instance, British Airways and American Airlines agreed to co-ordinate routes, schedules and reservation systems. This is regarded as a strategic alliance. The STAR alliance is another example of alliance, aimed at a diversification feature cross-industry agreement between non-competing firms. With 15 airlines that fly complementary routes, the alliance offers several benefits for both customers and partners. 

Cassab and MacLachlan in 2008 proposed the concept of multi-channel service defined as the use of alternative modes of contact by customers to interact with and obtain service from Tourism companies as part of e-Tourism eco system. They illustrate an example of this concept in the airline industry; customer contact with an airline may be face-to-face through frontline employees who use technology to assist the customer (e.g. an airline representative at the check-in counter); it may also be remote either through back-office representatives (e.g. the airlines’ call centre) or without the presence of a human representative (e.g. websites -service kiosks).

Further, Customers can take advantages of the eTourism through easy information on lot of  destinations, booking flights online, convenient booking, time saved in transit, and joint frequent flyer programmes while alliance members (partners) can also take benefits such as purchasing power, shared costs, joint IT and shared airport positions.  Though always great to follow travel tips before you plan holidays.

Partners are also crucial constituents in eTourism value delivery. Agent, brokers, management contractors, consortia, franchisees and licensees are a type of partner in value delivery. Airlines, for example, have a strong connection with travel agents.

Furthermore, eTourism made communication easy which further promote Tourism industry. Nowadays, customers can communicate with companies through e-mail, websites, telephone, fax, chat rooms, and contact centres, help-desks and complaints lines as well as through traditional face-to-face channel. Buttle in 2004 suggests three processes to enhance power of communication to create value for customers are disintermediation, personalization and interactivity. The new technologies such as email, direct mail and cell-phones enable companies to pass its messages directly to customers (disintermediation). High quality databases and direct channels to consumers can offer tailored services to individual customers (personalization).  In addition, interactive technologies such as world-wide web allow companies to communicate globally (interactivity). 

Finally, Examples of Airline industries which are making high use of eTourism are Qantas and Emirates. According to its 2006 annual report, 44 percent of all domestic flight bookings are made online and 70 percent of frequent flyer redemptions are handled via Qantas.com. Qantas’s network of Web sites attracts two million page views a day and more than five million unique visitors a month. Another example is Emirates airline which is growing with a rapid pace. In 2002 Emirates Airline has shown the revenue growth of 11% where as passenger growth of 18.3% to cope up with this kind heavy growth Emirates Airline assured development goal of operating 100 aircraft by 2010.

e-Tourism is, on the whole, useful in promoting tourism and providing an extra facility to tourists for planning their trip. eTourism has also given major benefits to various companies mainly airline industries as mentioned in the essay. There were few e-applications discussed in this essay which helps companies in managing their customers and hence generate more profit by providing more value to them.  Qantas and Emirates both airlines focus mainly on their websites and e communication channels through various e applications embedded in their websites which are giving huge profits to these companies. Hence, eTourism has helped promote overall tourism in the world in current times.

Tourism Technology Trends

1. ai (artificial intelligence):.

The tourism and hospitality industry, as part of e-tourism, has delved into technology such as Chatbots, IoT, clouds, and biometrics. The speeding up has been particularly noticeable in the uptake of AI. From personalization and marketing to profit management and pricing, AI has become an important player.

Just a few years ago, ‘Big Data’ was an inescapable phrase but with the developments in data dealing and information storage, computers can now consume and evaluate record amounts of facts and figures―giving rise to smart applications for everyday use.

Modern society is witnessing an association with a different level of interaction through machines and software analogous to the progressions in mobile application developments and cloud technologies a decade ago.

2. Internet of Things (IoT)

Internet of Things (IoT) involves internet-based inter-connectivity between everyday devices, allowing them to both send and receive data. Already, we are seeing examples of its role within the travel and tourism industry and this is only going to increase.

For instance, IoT technology can be used in hotel rooms to provide customers with a device that connects to everything from the lights, to the heaters and air conditioning, allowing all to be controlled from one place. In airports, meanwhile, luggage cases can be installed with sensors that will alert passengers when they pass by.

Example: Smart technology smarter airports

IoT Parking Technology services:  In order to mitigate the hassle of searching for vacant parking places, and IoT-powered method allows the advance booking of parking spots. Likewise, parking lot managers get parking service metrics from IoT sensors, which records the peak usage of vehicles per hour.

The use of IoT in the traveling industry has been instrumental in converting a regular traveler into a connected passenger who enjoys a smoother journey. The use of provides infinite options and increases the possibility of investments in connected technologies.

3. Recognition Technology

You may all have seen facial recognition in the movies, now even in your latest iPhones. The technology itself includes finger print recognition, facial recognition, retina scanning and various other biometric identifiers.

Such technology is already being used in some hotels to allow access to rooms via finger prints, or to allow for semi-contactless check-outs. However, in the future, it is hoped that this technology may be able to allow for customers to pay for meals in the hotel restaurant simply by walking through the exit.

Example: Facial Recognition Check-in in Marriott China

4. Virtual Reality (VR)

Virtual reality is the future of tourism, gaming and who knows what else. While much of the excitement has focused on video games, businesses and marketers have also made use of the technology, especially in terms of interactive 360 degree images and videos.

It is one of the most promising tech trends for tourism-related companies, because it allows them to digitally transport customers to a virtual recreation of a specific place. This affords hotels the opportunity to showcase their rooms, reception areas and even local tourist hotspots on their website, in order to encourage bookings. Other examples might include interactive virtual maps or VR hotel tours/ 360 video tours to present your hotel upfront.

Example: The world’s first Virtual Reality travel search and booking experience

Find more detailed information and examples about how virtual reality can benefit your business in the article “How Virtual Reality is Transforming the Travel Industry”.

5. Augmented Reality (AR)

Augmented reality is similar to virtual reality, but involves augmenting a person’s real surroundings, rather than replacing them. One of the major plus points of this particular technological trend is that it is cheaper than VR, with users requiring only a smartphone or tablet device which has access to the internet.

Through graphical overlays, those in the tourism industry can greatly enhance the customer experience, providing customers with valuable information or even pure entertainment. For instance, apps can allow for photographs to be augmented through filters and effects. Details about local destinations can also be displayed as a customer points their smartphone at them, providing information at the exact time that it is most relevant.

Example: Augmented reality within the travel industry

6. Robotics

Robotics is the future of industrialisation and will become part of our households in future. It’s just a matter of time.

Robots are also utilised for a variety of other reasons. For example, in airports, they can be used to detect concealed weapons, while some manufacturers are also using robotics to create luggage cases that intelligently follow you. Moreover, travel agents are using robots for pre-screening, making waiting times more productive for customers.

Example: Autonomous Security Robots

7. Artificial Intelligence (AI)

AI is becoming better and better every day though we are yet to reach the peak of it. Perhaps the most obvious use within the travel and tourism industry is for customer service purposes, with chatbots possessing the ability to deliver rapid response times to problems or queries. It is also able to continuously learn from interactions with customers.

In addition, hotels and other companies operating in the tourism industry can make use of artificial intelligence to accurately and continuously sort through data. It will be able to draw conclusions about business performance or trends associated with customer satisfaction, and even intelligently manage inventories.

Example: Create Your Bot Booking Travel

8. Big Data

Big data works based on centralisation of all systems and collecting large data from all systems so it is easy to analyse. Almost all large tourism companies that are successful employ their own data collection techniques. One of the biggest uses for this data is to improve personalisation, with travel companies using the information they gather to make specific adjustments to their offerings.

Another valuable use for data is to analyse current business performance. In particular, hotel owners can use big data for revenue management purposes, using historic occupancy rates and other past trends to better anticipate levels of demand. When demand is predictable, pricing and promotional strategies can also be optimised.

Example: Big Data and predictive analysis

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UN Tourism | Bringing the world closer

Tourism – an economic and social phenomenon, share this content.

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Why Tourism?

Over the decades, tourism has experienced continued growth and deepening ‎diversification to become one of the fastest growing economic sectors in the world. ‎Modern tourism is closely linked to development and encompasses a growing number ‎of new destinations. These dynamics have turned tourism into a key driver for socio-‎economic progress.‎

Today, the business volume of tourism equals or even surpasses that of oil exports, ‎food products or automobiles. Tourism has become one of the major players in ‎international commerce, and represents at the same time one of the main income ‎sources for many developing countries. This growth goes hand in hand with an ‎increasing diversification and competition among destinations.‎

International tourist arrivals (overnight visitors) grew 4% in January-March 2019 compared to the same period last year, below the 6% average growth of the past two years.

This global spread of tourism in industrialised and developed states has produced ‎economic and employment benefits in many related sectors - from construction to ‎agriculture or telecommunications.‎

The contribution of tourism to economic well-being depends on the quality and the ‎revenues of the tourism offer. UN Tourism assists destinations in their sustainable ‎positioning in ever more complex national and international markets. As the UN agency ‎dedicated to tourism, UN Tourism points out that particularly developing countries stand to ‎benefit from sustainable tourism and acts to help make this a reality.‎

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Drivers of e-Tourism

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• Dimitrios Buhalis 5 , 6  

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e-Tourism takes advantage of ICT innovations to improve internal efficiency, establish efficient communication and distribution links with various intermediaries, and engage in conversation and service cocreation with customers. Technology-empowered tourism experiences have been supporting travellers to cocreate value throughout all stages of travel, before –during–after travel. The first proprietary information systems supported tourism and hospitality organizations to centralize and manage their inventory as well as manage their internal processes. The rapid development of the Internet since 1995 revolutionized technological solutions and information provision. Organizations developed their Web 1.0 presence as a window to the world and their websites as e-commerce shops. The Web 2.0 and the social media revolutionized interactivity between users and also between users and organizations. Smart tourism, Web 3.0, or the semantic web bring a range of opportunities that optimize the entire network and support the tourism ecosystem. The development of smart mobile devices rapidly emerged as a new agile flexible network and challenged desktop computing. Finally, ambient intelligence (AmI) tourism takes advantage of smart systems and brings ambient intelligence across tourism ecosystems. The Internet of Everything supports the development of sensitive, flexible, and adaptive ecosystems. Ambient intelligence connects all stakeholders and supports the constant formation of networks to bring value to all stakeholders.

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21 reasons why tourism is important – the importance of tourism

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Tourism is important, more important than most people realise in fact!

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. In this article I will explain how both the industry and the tourist benefit from the tourism industry and why it is so important on a global scale.

What is the importance of tourism?

Enhanced quality of life, ability to broaden way of thinking, educational value, ability to ‘escape’, rest and relaxation, enhanced wellbeing, who are tourism industry stakeholders, foreign exchange earnings, contribution to government revenues, employment generation, contribution to local economies, overall economy boost, preserving local culture, strengthening communities, provision of social services, commercialisation of culture and art, revitalisation of culture and art, preservation of heritage, empowering communities, protecting nature, the importance of tourism: political gains, why tourism is important: to conclude, the importance of tourism: further reading.

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

When we discuss the importance of tourism it is 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:

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.

Travel is known to help broaden a person’s way of thinking. Travel introduces you to new experiences, new cultures and new ways of life.

Many people claim thatchy ‘find themselves’ while travelling.

One reason why tourism is important is education.The importance of tourism can be attributed to 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.

Tourism provides the opportunity for escapism. Escapism can be good for the mind. It can help you to relax, which in turn often helps you 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 is very important. Taking time out for yourself helps you to be a happier, healthier person.

Having the opportunity for rest and relaxation in turn helps to enhance wellbeing.

Why tourism is important to 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. Below I have provided some examples of the positive economic impacts of tourism .

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 some destinations suffer extreme corruption so nobody really knows 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 . 

Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.

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 it 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 Tourism Organisation , the direct contribution of Travel & Tourism to GDP in 2018 was $2,750.7billion (3.2% of GDP). This is forecast to rise by 3.6% to $2,849.2billion in 2019.

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. 

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. Tourism supports some 7% of the world’s workers. 

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 as high as double that of the recorded figures!

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. 

Tourism boosts the economy exponentially. This is partly because of the aforementioned jobs that tourism creates, but also because of the temporary addition to the consumer population that occurs when someone travels to a new place. Just think: when you travel, you’re spending money. You’re paying to stay in a hotel or hostel in a certain area – then you’re eating in local restaurants, using local public transport, buying souvenirs and ice cream and new flip flops. As a tourist, you are contributing to the global economy every time you book and take a trip.

For some towns, cities and even whole countries, the importance of tourism is greater than for other. In some cases, it is the main source of income. For example, according to the World Travel and Tourism Council, tourism accounts for almost 40% of the Maldives’ total GDP. In comparison, it’s less than 4% in the UK and even lower in the US! In the Seychelles the number is just over 26% while in the British Virgin Islands it is over 35% – so tourism is vastly important in these nations.

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. Below I will outline some of the social gains from tourism.

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 conserved 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. 

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, people with jobs are happier and more social than those without a disposable income. 

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.

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 gained 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. 

Tourism can see rise to many commercial business, which can be a positive social impact of tourism. This helps to enhance the community spirit as people tend to have more disposable income as a result. 

These businesses may also promote the local cultures and arts. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. This can help to promote/ preserve local traditions.

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. 

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. 

Tourism can, if managed well, empower communities. While it is important to consider the authenticity in tourism and take some things with a pinch of salt, know that tourism can empower communities.

Small villages in far off lands 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.

Some people think that tourism is what kills nature. And while this could so easily be true, it is important to note that the tourism industry is and always has been a big voice when it comes to conservation and the protection of animals and nature. Tourism organisations and travel operators often run (and donate to) fundraisers. 

As well as this, visitors to certain areas can take part in activities that aim to sustain the local scenery. It’s something a bit different, too! You and your family can go on a beach clean up walk in Spain or do something similar in the UAE . There are a lot of ways in which tourism actually helps the environment, rather than hindering it!

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.

Tourism is a remarkably important industry. As you can see, 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.

If you are studying travel and tourism and are interested in learning more about the importance of tourism, I recommend you take a look at the following texts:

• An Introduction to Tourism : a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
• The Business of Tourism Management : an introduction to key aspects of tourism, and to the practice of managing a tourism business.
• Tourism Management: An Introduction : gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.

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What Are The Advantages Of Ecotourism?

By: Author Leoni

Posted on Last updated: April 7, 2021

Ecotourism is on the rise. The movement has been gaining popularity since the 1980’s and is today also referred to as nature travel, responsible travel, mindful travel or conscious travel. Many different terms for more or less the same principles – but what exactly does this mean and what are the advantages of ecotourism?

The advantages of ecotourism include

• sustainable rural development based on environmental protection
• the creation of jobs
• education and awareness about endangered animals and climate change
• the improvement of life quality for locals
• understanding of and sensitivity towards other cultures

Let’s dig a bit deeper to understand how this is achieved.

Table of Contents

What is Ecotourism and what are its Advantages?

Ecotourism  means responsible travel to natural areas that conserve the environment, while improving the welfare of local people.

Principles of Ecotourism

According to the International Ecotourism society , those who implement, participate in, and market ecotourism activities should adopt the following principles:

• Minimize physical, social, behavioral, and psychological impacts.
• Build environmental and cultural awareness and respect.
• Provide positive experiences for both visitors and hosts.
• Provide direct financial benefits for conservation.
• Generate financial benefits for both local people and private industry.
• Deliver memorable interpretative experiences to visitors that help raise sensitivity to host countries’ political, environmental, and social climates.
• Design, construct and operate low-impact facilities.
• Recognize the rights and spiritual beliefs of the Indigenous People in your community and work in partnership with them to create empowerment.

Advantages of Ecotourism

So, how does this work and what are the main advantages of ecotourism? Let’s take a look at the economy , our environment , and your experience .

Economic Advantages of Ecotourism

The tourism industry means rapid development and rapid development can lead to huge disadvantages for local communities.

Ecotourism on the other hand aims to promote sustainable rural development, with the goal to generate revenue based upon the conservation of the environment, rather than through its transformation. That basically means that the communities are reaping the financial rewards from protecting the local land.

Local jobs for example are advantages of ecotourism. According to a study by the Collaborative Partnership on Forests, ecotourism can return as much as 95% of revenues to the local economy, compared to only about 20% for “standard all-inclusive package tours”.

Money Well Spent

In the mainstream tourism industry, sometimes you can’t be sure that your money doesn’t go to corrupt governments or organizations that use it for purposes you don’t support. In the ecotourism industry however, the opposite is the case.

With access to business training and employment opportunities, ecotourism may result in an improved quality of life – You basically pay the locals directly for whatever service they offer.

Environmental Benefits

Commercializing tourist destinations poses a huge threat to natural environments throughout the world. Deforestation, air pollution and habitat loss of wild animals are only a few of the devastating results.

Ecotourists however pay to see a country’s natural beauty, not the destruction caused by short-run exploitation. That makes ecotourism a leading way for developing countries to generate revenue by preserving their  rainforests , and protecting their wildlife .

Education Goals

It’s one thing to watch Netflix documentaries on the most beautiful places on earth and how they are being destroyed by climate change and overtourism: It’s sad. You are shocked. You want to make a difference. But you don’t really know where to begin. And a few days later, you have already forgotten about it again.

Experiencing an issue firsthand is a whole different story. Imagine standing in the middle of a rainforest. Listen to the diverse sounds of wildlife in the background, feel the fresh air on your skin.

Or picture diving through crystal clear warm waters, surrounded by colorful corals, playful dolphins and exotic fish.

While this is not supposed to imply that you can only make a difference if you have seen the place, ecotourism allows travelers to become aware of an area’s fragile biodiversity and its community’s needs. The impact such an experience can have on you is a powerful one.

Responsible tourists will also increase their understanding of and sensitivity toward other cultures.

And when back home, the newly gained knowledge and passion can educate and inspire others.

Are There Disadvantages of Ecotourism?

This all sounds a little bit too good to be true, don’t you think? Well, as always, there is a flip side – ecotourism can have disadvantages as well.

Threats to indigenous people : A significant amount of the world’s indigenous communities reside in remote areas, often the most marketable of destinations. Sometimes, local communities are forcefully relocated in order to make space for accommodation and ecotourism expansions.

TIP : Make sure you are not supporting the displacement of indigenous people with your money. It is important that the ecotourism industry works closely together with indigenous groups through effective business partnerships that support their cultural survival.

Travel impacts: This is a very obvious one: Even as the most conscious and careful ecotourist, you still produce emissions. You have to get to your destination somehow and in the worst case, that includes flying.

TIP: It doesn’t always have to be that remote island on the other side of the globe. Why don’t you rather explore what’s right in front of you? There is fascinating wildlife and natural beauty all over the world.

And if you are already there, use low-impact transport, buy local and try to eat vegan .

Greenwashing: The advantages of ecotourism can have a positive impact, however, that only works if all persons and organizations involved actually follow the ecotourism principles mentioned above.

Unfortunately, greenwashing has become a real problem. Companies can call their products and experiences ‘eco-friendly’ or ‘green’ without actually having such practices in place, which sometimes makes it hard for tourists to find the real eco-conscious and responsible operators.

TIP: Always do a proper background check before you book accommodation or tours. Ask questions – a good, eco-friendly organization will be happy to help you understand their methods and goals.

Embrace the Advantages of Ecotourism

Before you plan your next adventure, make sure to follow the ecotourism principles and do your research.

The following resources can help:

The International Ecotourism Society :

The membership site TIES offers certificates as well as master classes related to ecotourism.

Planeta.com :

Planeta.com provides free access to more than 10,000 pages for travelers, students, and policy-makers. It features news, articles, an eco-travel directory, and recommended reads.

Ecoclub.com :

This global cooperative network promoting ecotourism is one of the most popular websites spotlighting eco-lodges and activists around the globe.

Sustainable Travel International :

The non-profit organization’s mission is to promote sustainable development and responsible travel by providing programs that help travelers as well as organizations in the tourism industry to protect wildlife, environment and locals.

Greenloons :

Greenloons helps you find the perfect eco adventure anywhere in the world.

What is your favorite ecotourism initiative that everyone should experience? Let us know in the comment section below!

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April 16, 2024

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility:

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Emojis make tourism advertising on social media more effective and appealing, finds study

by University of Granada

A study by the University of Granada (UGR) shows that users understand advertisements better and with less effort when congruent emojis and messages are used. The findings also suggest a shift in the preferences of potential consumers towards more nature-based tourism.

UGR researchers from the Department of Marketing and Market Research have carried out a pioneering study showing how the use of congruent messages and emojis when promoting tourist destinations on social media leads to greater user attention. This strategy helps users to process the information effectively and reduces their cognitive effort.

More specifically, the use of emojis in online messages about tourism destinations facilitates processing and reduces ambiguity, especially when the recipients encounter content with low levels of congruence.

The main objective of the research, recently published in the Journal of Destination Marketing & Management , was to understand how messages posted on social media by destination management organizations (DMOs) and subsequent comments from other users (electronic word-of-mouth or eWOM) influence the perception and behavior of potential tourists.

The study was carried out at the UGR's Mind, Brain and Behavior Research Centre (CIMCYC). It consisted of an experiment using eye-tracking techniques on 60 users of the social network Facebook. These individuals underwent a series of experimental procedures in which the researchers manipulated the level of congruence between the messages of those posting and the users, the use or omission of emojis in the content, and the way in which the tourist destination was positioned in the media (natural environment, gastronomy, hotels, sun and beach).

The UGR research team, which includes Beatriz García Carrión, Francisco Muñoz Leiva, Salvador del Barrio García and Lucia Porcu, point out that the study "clearly illustrates the benefits in terms of the effectiveness of using congruent messages in marketing communications in general, and especially in digital communications via social media, as well as how the use of emojis contributes to improving users' information processing, increasing their attention and reducing the cognitive effort involved.

"Moreover, congruent messages not only facilitate users' information processing, but also improve their affective evaluation—a crucial aspect when it comes to making a decision on a tourist destination."

The UGR study yields several key findings for tourism management in relation to communication approaches aimed at social media users. To begin with, the research shows how important it is for tourism managers to maintain a high level of congruence in the information they convey through social media.

As the researchers explain, "This involves systematically reviewing and managing comments across all communication channels to identify any comments that do not align with the destination's desired positioning, with a view to mitigating potential negative effects."

Pictorial representations (emojis) significantly enhance the overall comprehension of the information. However, the study did not find a significant impact of emojis on the formation of affective evaluations. The UGR study emphasizes that tourism managers should focus on information related to the destination's gastronomy and natural environment, rather than more conventional aspects such as sun and beach facilities or hotel offerings, as the former attract more attention and are perceived more favorably, even under low levels of congruence.

The research findings suggest a shift in the preferences of potential consumers towards more nature-based tourism. Therefore, tourism managers should place greater emphasis on communicating aspects related to the environment and sustainability of the tourist destination in their social media posts, thereby reaping benefits in terms of visual attention and affective evaluations.

Provided by University of Granada

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