Tourism is a powerful engine for job creation, driving economic growth and development in many regions around the world.
The multifaceted nature of the tourism industry means that its impact on employment extends beyond direct jobs in hotels and restaurants to a wide array of supporting industries. This article delves into the various ways tourism fosters job creation and highlights key research findings on the subject.
Direct Employment Opportunities
Tourism directly creates jobs in sectors such as hospitality, transportation, entertainment, and retail. Hotels, resorts, restaurants, and tour operators are some of the primary employers in the tourism industry. According to a study published in the Journal of Economics and Development, investment and consumption in the tourism sector have positive benefits for employment across 148 economies. The study emphasizes that tourism’s contribution to employment is significant, particularly in low-income economies where institutional reforms can further enhance these positive gains.
In New Zealand, the tourism sector is a major contributor to employment. The country’s unique landscapes and cultural heritage attract millions of visitors each year, providing job opportunities across various regions. From tour guides in Fiordland to hospitality workers in Queenstown, tourism supports thousands of jobs and stimulates local economies.
Indirect Employment and the Multiplier Effect
The impact of tourism on employment is not limited to direct jobs. The industry also generates indirect employment through its supply chain. For instance, hotels and restaurants require goods and services from local suppliers, such as food producers, laundry services, and maintenance companies. This creates additional jobs in these supporting industries. A comparative analysis of job creation in the tourism sector highlights the multiplier effect, where every job in the core tourism sector creates approximately 1.5 additional jobs in the broader economy.
Seasonal and Part-Time Employment
Tourism often leads to the creation of seasonal and part-time jobs, which can be particularly beneficial in regions with limited employment opportunities. Seasonal tourism peaks, such as summer vacations or winter sports seasons, require additional staff to cater to the influx of tourists. This provides temporary employment opportunities for students, part-time workers, and individuals seeking supplementary income. The African Journal of Hospitality, Tourism and Leisure notes that tourism growth has a significant positive correlation with employment creation, particularly in regions with high seasonal tourist activity.
Entrepreneurship and Small Business Growth
Tourism encourages entrepreneurship and the growth of small businesses. Local artisans, tour guides, and small-scale accommodation providers often benefit from the influx of tourists. These small businesses contribute to the local economy by creating jobs and retaining revenue within the community. The development of new-age tourism techniques post-COVID-19 has further spurred entrepreneurial opportunities, as highlighted in a phenomenological study on job creation and tourism development.
Skills Development and Training
The tourism industry necessitates a diverse skill set, from customer service and hospitality management to language proficiency and cultural knowledge. As a result, tourism drives the demand for education and training programs, which in turn create jobs for educators and trainers. The study on tourism’s contribution to employment underscores the importance of improving education and training infrastructure to maximize the benefits of tourism growth.
Source of Information
- Tourism and contribution to employment: global evidence. Journal of Economics and Development.
- The Effect of Tourism Growth on Job Creation and its Determinants in Tigray Region.
How Does Tourism Boost an Economy? Unveiling the Multiplier Effect