From the November 2013 IBDP Geography Paper 2
Exam
Examine
the view that tourism offers a guaranteed route towards economic development
for low-income countries. [10]
Throughout history, tourism and travel were difficult, expensive, uncomfortable
and dangerous, which meant that the desire to travel had to be very strong. In
the modern era, visiting other places is to be considered a natural part of
life wealthy people expect to travel at least on an annual basis, if not more
often. This is due to more affordable and better public transport systems and
hotels. However, it raises the question as to whether or not tourism is able to
benefit LEDC’s such as Vietnam and Nepal with their economic development. This
essay will compare and contrast the two case studies and determine whether or
not tourism should be encouraged by poorer countries due to the economic
opportunities presented by tourism.
The biggest tourist attraction in Nepal is the Himalayas and more specifically,
mount Everest. Mount Everest is the single biggest mountain in the world with a
height of 8,800m. This will attract mountain climbers from all over the world
which opens up an economic opportunity for Nepal. Nepal is a very small country
located north of India and is not very accessible with the country only having
two airports. The immediate economic benefit that tourists will bring to Nepal
will be their direct spending, contributing to the country’s GDP. In 2012, a
study found that the total contribution from travel and tourism to the GDP had
risen from 82 billion Nepalese rupees in 2002 to 119.1 billion Nepalese rupees
in 2011. This means that tourism contributes to 8.8% of the country’s GDP. This
gives the government the capability of investing in infrastructure development
such as roads, water, electricity, hotels, airports, etc. The new foreign
exchange will allow the country to have imported goods such as food, consumer
goods, technology and pharmaceuticals. However, tourists visiting Nepal have
also contributed to the destruction of the environment and preservation of the
culture. The biggest issues being deforestation, water pollution and rubbish.
Tourists use wood to cook and have warm showers. The litter has led to erosion
of the soil and loss of wildlife habitats. Thus, tourism in Nepal does benefit
the economic development of the country with the expense of ruining the
environment and wildlife habitats.
Vietnam on the other hand already has a rapidly growing
economy with experts predicting Vietnam to have the 17th largest
economy in the world by 2025. The rapid expansion of the tourism sector in
Vietnam has fueled the development of the country’s industries including
agriculture, handicrafts, hotels, airports and creating a substantial number of
new jobs. This is proven due to the demand for house keepers, taxi drivers,
receptionists, tour guides and restaurant staff growing by 1.2 million in 2012.
If this growth were to continue, Vietnam would need to train 19,000 people in
tourist management and hospitality skills each year. Vietnam is also home to
over fifty distinct ethnic minority groups which counts for roughly 14% of the
general population. They live in remote mountainous areas which have been
preserved for centuries. Tourists like to visit these places to experience the
new wildlife and traditional Vietnamese culture which generates income for the
communities. However, this does have a very negative impact on these
communities because it encourages the introduction of illicit drugs,
prostitution practices and communicable diseases. This is due to the culture
being exposed to western ideas which negatively influence to the tourist
industry. Therefore, although tourism helps the development of the work force
and infrastructure of a country, it also encourages niche tourist attractions
that ruin the cultural identity of the Vietnamese people.
Based upon the data found in these two case studies, once finds a repeating
pattern amongst both countries. In both Vietnam and Nepal, the exposure to
tourism means that they have their environments and cultural identities ruined
by western culture and ritual. Although there is evident benefits that tourism
has on the development of the economy of both countries, plenty of money is
being invested in order to help preserve the wildlife. However, it is evident
that LEDC’s should encourage tourism because tourism brings extreme economic
opportunity with the building of new airports, schools, hotels and
transpiration systems.
EXAMPLE 2
The fact that tourism is beneficial for the economic
development for low income countries is true most of the time. Tourism itself
is the organization of holidays and visits to a place of interest. An example
of a country where tourism has helped the economic development hugely, is in
Vietnam. The country was introduced to tourism in 1986. An example of a LIC
where tourism has had a negative impact on the economy, is Nepal.
The tourist industry in Vietnam has benefited the
country’s economic development highly. This industry now contributes to 6.6% of
the country’s GDP. The tourist industry has increased massively in size since
1990 until now. In 1990 around 500,000 people visited Vietnam annually, whereas
now that number has increased by a factor of 10, to around 5,000,000 people a
year. The tourist industry has also opened the opportunity for many new jobs,
which has decreased the unemployment rate in the economy. In 2014 it offered
1.96 million jobs, which is said to increase to 2.4 million by 2025. This has
shift the Vietnamese workforce from agriculture to the service industry, which
is much more likely to develop in the coming years. This service industry
requires higher education than agricultural activities. The government can now
provide more education with the increase in GDP from the tourist industry,
which will benefit the economy, because it will lift the low income population
out of the poverty zone. All of this suggests that the tourist industry in
Vietnam offers a guaranteed route towards economic development in this LIC.
The LIC of Nepal however, has suffered under the effects
that tourism has had on the country. More than 600,000 people visited Nepal in
2010, and this number keeps increasing. Even though 4% of the country’s GDP
comes from tourism, this is becoming a huge problem for Nepal. This is because
the countries carrying capacity is being exceeded. Tourists are using a lot of
the fresh water that is available to Nepal. When heating up water for tourists,
five times as many trees are used up in the process than for locals. These
factors are a problem, because the agricultural industry is being affected
negatively by this. About 40% the country’s GDP comes from the agricultural
sector, and eight out of ten people work in this industry. If tourism keeps
increasing at the rate it is at the moment, this is going to destroy the
topography of the country, making agriculture difficult, which will cause
unemployment and poverty. Tourists are also increasing the consumption of cars
within the country highly. This is a big problem, as the air pressure is very
low in this area due to the high altitude, which causes pollution to stay in
the atmosphere. Many cities are also surrounded by mountains, which also makes
it extremely difficult for pollution to escape. It is estimated that if nothing
is done against this now, the costs of the damage of this pollution will far
exceed the income from the tourist industry, which again implies that tourism
is not beneficial for the economic development of the country. The last factor
in which tourism is bad for Nepal, is the huge amount of litter that is left
behind by tourists who are mountaineering. This is destroying the natural beautiful
of Nepal, mostly being Mt. Everest.
Overall, tourism does increase countries economic
development, as it offers the opportunity of development very well in most
countries such as Vietnam. However, in some countries it destroys the economy
completely as it brings more costs to the economy than opportunities for
development, such as in Nepal.
EXAMPLE 3
Tourism can be a guaranteed route towards economic
development in low income countries and can contribute to help gain wealth,
despite also forming challenges. This is seen using the examples, of Nepal
where around 35,000 people flock to Mount Everest yearly and Vietnam, where
around 5 million people visit Ho Chi Minh City to see the culture and beach.
Both of these countries receive a low income overall and from the tourism
opportunities and visitors, it provides a great contribution towards economic
development annually.
Mount Everest is located in the Himalayas in Nepal and
borders onto China. Officially confirmed as the world’s highest mountain with a
peak of 8,848m above sea level, Mount Everest attracts many visitors not just
to climb the mountain, but to see its beauty. Despite having only 35,000 people
who visit annually, it is extremely expensive to climb because of the
equipment, insurance and guide which totals at around $45,000. From this, there
are only around 1,000 visitors who attempt to climb Everest, but it still costs
around $200 per day (per person) to stay at base camp, for visitors not
climbing to the top, when including site fees, food and hiking. Mount Everest
is a great asset for Nepal as it will always be there and the government have
noticed the popularity and opportunity for tourism and so the prices have
increased to suit the demand. There are also not many ways to avoid paying this
amount as The Nepal Ministry of Tourism requires that everybody climbing needs
to have a Sherpa guide and this will averagely cost a group around $40,000.
There are many challenges that have come hand in hand with this, including
excessive amounts of litter and the deaths that have occurred, which has led to
only 1 in 2 people being able to reach the summit. Due to extremely harsh
conditions at a high altitude, there is a large amount of litter on the tracks
that cannot be fully cleared up, despite having made many previous attempts.
Overall, despite some challenges of death and litter, Nepal’s Mount Everest has
provided many economic opportunities for the country due to the high expense
that is required to climb the mountain.
Vietnam has become an increasing popular tourist
destination because it is located on the coast and provides a warm climate. In 2015,
Ho Chi Minh City welcomed 4.2 million tourists, which was a 4.6% increase from
the previous year. This city is attractive to many guests because of the
culture, where there are temples, museums and markets such as the Binh Tay
Market and Jade Emperor Pagoda Temple. The Vietnamese Tourist Ministry are
proud of the culture and advertise what is available to do for tourists,
providing excursions to be able to visit the monuments and museums. The city is
also on the coast, where there are many 5 star, all-inclusive hotels for guests
to at stay on the beach. Providing for all of the western tourists has brought
an inventible challenge that the country, that was so rich in culture, has
become westernized with the hotels and western restaurants that have opened to
accommodate the millions of tourists. Despite this argument, it can be seen
that although the country has been ‘westernized’ it has been done so to attract
more tourists and inevitably make more money from hotels and restaurants.
Unlike Nepal where Mount Everest will always be there, Ho Chi Minh City has had
to develop the city to encourage tourists to continue to visit, to bring in
more income. Ho Chi Minh City has developed after seeing almost 5 million
tourists visiting annually to accommodate for the visitors and to receive more
economic income for the country overall.
Both of the low income countries of Nepal and Vietnam
have a guaranteed route towards economic development, despite also encountering
challenges. Mount Everest in Nepal is the tallest mountain in the world and
attracts many visitors annually who hike up, costing around $45,000. Ho Chi
Minh City in Vietnam, on the other hand, has developed the city by building
hotels and restaurants to accommodate for the tourists and to encourage them to
come back. All in all, we see two countries who have adapted to the tourists
visiting to ensure an income that will provide economic development for their
countries.
Examine the view that tourism offers a guaranteed route towards economic development for low-income countries. [10]
Economic development for a low-come country is vital to insure a safe future for the population. Tourism is an import part of a countries economic development as it offers multiple ways in order to contribute to a communities GDP. Tourism destinations tend to beautiful, rich in history, culture and nature. Tourism is one of the largest growing industries in the world it is vital to the economic development of many countries. Tourism can contribute to the economic growth and development of a country if it managed properly. It can give a structural change in the economy and open numerous amounts of job opportunities. Tourism can be seen as a developmental strategy for low-income countries. Tourism contributes to reducing poverty such as providing employment this contributes to the country’s GDP. Factors such as social, environment and cultural benefits should be kept in mind.
Tourism in low-income countries is very important as it
opens many opportunities for the community such as improving infrastructure and
jobs. Nepal a landlocked country in central Asia has become a tourist hotspot
due to many possibilities and things to see such as Mount Everest. These
beautiful and unique hotspots of the country open many opportunities for
tourism to expand and help Nepal. The landscape of Nepal and its biodiversity
has attracted people looking for adventures this has opened opportunities for
economic development as these tourists seem to be mostly rich westerners. Even
though Nepal is ranked as one of the poorest countries, Mount Everest the
highest mountain in the world at and 8,848 meters above sea level has become a
vital part to attract foreigners such as mountain hikers and trekkers. Tourism
opens up jobs such as tour guides, hotels, busses, builders and so on. It has
opened up 412,500 jobs which is around 3.5% since 2011 and expected to increase
significantly by 2020. Tourism has a maigure impact on local communities as
locals will try to keep their culture alive however, in order to attract
tourist the community has to adapt their culture in order to keep tourists
coming. Developing the tourist industry has become of high importance for low
income countries as tourism is 30% of their GDP. Even though there are multiple
positive aspects of improving tourism in order to improve a countries GDP and
helping peoples income be higher, infrastructure safer, roads, airports and
health care. Tourism can improve all of these things however can also not be a
guaranteed safety root to economic development as there can be challenges such
as getting the money in order to start up the countries tourism business.
Starting of tourism can be very expensive in order to maintain and advertise
into western communities. It is also important to keep in mind that Nepal is
prone for natural disasters and this could damage everything they government
and communities have built up. Given Nepal’s political instability and
corruption there can be no reassurance that the money is being distributed
equally among the population.
Vietnam a country in Asia has become a popular tourist
destination. Vietnam’s tourism sector aimed to attract 6 million tourist in
2010 compared to the 3.6 million tourist which came in 2006. Future development
of tourism in Vietnam is vital for economic development as it will generate
jobs, increase incomes, and contribute to the overall economic growth of the
country. Since 1990 Vietnam has been benefiting from international tourists.
Since 2000-2006 the GDP growth has averaged at 7.5% which is one of the best
economic performances in Asia. In 2000 there where 2.1 million tourists were as
in 2006 their were up to 3.6 million. The tourism sector employs 250,000 people
directly whilst an additional 500,000 people work in tourism related businesses
and industries. Improving tourism will directly impact the countries GDP,
economic welfare, infrastructure, jobs and health. In low income countries
money most money is made through agriculture. Vietnams is very seasonal so it
can be very beautiful however during its tropical monsoon season it can be very
dangerous. This makes it difficult to improve and invest in infrastructure when
there is a known possibility and a high chance it can be destroyed.
Tourism can contribute to the development of economic
growth however it can also destroy it. There is high possibilities that tourism
can and will improve economic development in low income countries however there
are also opportunities that natural disasters can strike and destroy everything
which was built up or the advertisement into western countries does not come
across as good as hoped. Tourism cannot ensure economic development for low
income countries both in Vietnam and in Nepal it can improve and help
communities but there is no reassurance of that it will be a definite route
towards economic development for low income countries.
Examine the view that tourism offers a guaranteed route
towards economic development for low-income countries. [10]
In low-income countries, tourism offers a guaranteed
route towards economic development. This view will be examined through the case
studies of Nepal and Vietnam, where Nepal, unless a new mountain emerges, is
the country with the tallest mountain in the world, offering a guaranteed
tourist attraction. Vietnam, being a coastal country bordering Cambodia and
Laos, is also able to offer a guaranteed route towards economic development,
especially after the war, making it a popular tourist destination in areas such
as Ho Chi Minh City.
In Nepal, the effect of tourism has been dramatic towards
the development of their economy. The main attraction is Mount Everest,
standing at 29,029ft, is the tallest mountain in the world. This is able to
bring in 35,000 tourists per annum, of whom, 1000 are paying between €35,000
and €100,000 each for the climb, equipment, accommodation, and the extras that
come with embarking on this journey. To show how much of a difference tourism
has made in Nepal, we have to look at the GDP per capita. In 1960, only 7 years
after Sir Edmund Hillary climbed Everest, the GDP per capita was €49.2,
compared to today, in 2017, where it is €772.9. This shows the drastic
difference that tourism has made in Nepal, a low-income country, for economic
development. In the 1960s, Nepal received around 6,000 tourists annually. This
does not compare to today, where over the past 20 years, it has consistently
received between 400,000 and 800,000 visitors every year. From this we have to
acknowledge the guaranteed route towards economic development in the low-income
country of Nepal as it’s GDP and annual tourists have been consistently and
dramatically improved from before it became a popular tourist destination.
However, with reference to the Butler Model, we are able to see that Nepal may
begin to stagnate, especially with the damages that tourism is bringing to
Everest as well as the country itself. With tourists taking little care on
their trek up the mountain, a build-up of litter and human waste is beginning
to form and become more prominent, leaving something required to be done. The
waste on Everest will eventually surpass being unpleasant, taking the glamour
away from it, causing the Nepalese tourist attraction to decline. This would
remove the guaranteed route towards economic development in Nepal, as people
would gradually stop going. This would severely hinder the economy, but as
Nepal currently is a tourist destination, tourism does guarantee a route
towards economic development in the country, but this may not last forever as
an over visited destination can cause it to eventually decline and lose the
economic stability in this low-income country.
Another example of a low-income country who is guaranteed
a route towards economic development through tourism, is Vietnam. Vietnam is
located in South East Asia, along the coast, bordering Cambodia and Laos. This
immediately gives it the attraction of being a coastal country, boasting
beautiful sandy beaches, as well as bordering nations with culture to explore,
not that Vietnam doesn’t have enough itself. With an average temperature of 26oC
(79oF) it offers a pleasant warmth throughout the year, which cannot
be competed in by most Western countries, making it a popular destination for
tourists. With the climate being warm and humid, it offers a guaranteed
attraction and route for economic development as the climate will, unless a
shock occurs, be at an attractive temperature. This being said, the main
attraction for tourism in Vietnam is the war that lasted for two decades
between 1955 and 1975. Because of this, Vietnam in 1989 had a GDP of €5.96
billion and remained similarly so until tourism properly began in the mid
1990s, where Vietnam in 1995 received 1,351,300 tourists, giving them a GDP of
€26.4 billion. This has been gradually increasing and today stands at
10,012,735 tourists visiting the nation each year. This consistent growing of
the Vietnamese tourist industry, is offering them a guaranteed route towards
economic development, as the past cannot be changed and Vietnam will always be
the place where USA lost the war, making it heavily visited by people to see
the culture that was brought along by Ho Chi Minh and what Ho Chi Minh City has
to offer. However, with negative energy being associated with Vietnam, it makes
it difficult, as shown by the 20 years after the war, to encourage people to
visit. If the people of the USA decided to forget their past and not visit
Vietnam, then the country would face huge losses to their economy as the
tourist industry in a low-income country is vital to their economic stability
and without that being guaranteed, they would suffer a large drop in their
economy. Although there are problems that could occur in Vietnam if tourism
wasn’t guaranteed, it is currently in a phase of economic boom from tourism, at
its highest point in history. This makes it clear that tourism offers a
guaranteed route to economic development in a low-income country such as
Vietnam as it has only been able to recover from the war since tourism began in
the 90’s.
All in all, from the case studies of Nepal and Vietnam,
we are able to see that tourism can bring its problems to a country, but
without it, a low-income nation would not be able to offer a guaranteed route
towards economic development unless they have tourism to support them. This has
been shown by Nepal and Vietnam both having their GDP’s increased from tourism
and by tourists consistently visiting the country annually, enabling its
economy to develop.
“Examine the view that tourism offers a
guaranteed route towards economic development for low-income countries”
Tourism is the act of traveling away from
home for at least one night for the purpose of leisure. Tourism undoubtedly
brings economic development for low income countries, however, this is not a
guaranteed path as it comes with its own challenges. This can be seen in the
case studies of 2 low-income countries: Vietnam, a South- East Asian
country where tourism contributes 6.6% to the country’s GDP, generating
approximately 2 million jobs in this sector. Nepal which is situated in Central
Asia is one of the world’s top 20 poorest nations, where in Nepal, tourism is
the largest industry and the largest source of foreign exchange and
revenue.
Due to Vietnam’s unique
attractions, the country expects a guaranteed route for economic development
and as well as risks that is faced by the whole country. Tourism in Vietnam has
been increasing exponentially. In 2016, Vietnam welcomed 10 million
international visitors (this number continuing to increase). However, the majority
of Vietnamese (approx. 55% of its population) still work in the primary sector.
Nevertheless, as tourism grows, the service sector is seeing growth in terms of
employment and income. Vietnam has seen an increase in tourism due to various
reasons. Some of them are due to the significant improvement in transportation
(specifically air travel, which is the main way most tourists). Furthermore,
after the war, Vietnam emerged victorious, however with lasting scars resulting
in a divided population (north and south). Vietnam spent its next 20 years in
total state control. However, from the 1990’s Vietnam’s political situation
started to relax. Vietnam still has a communist system, but the ruling party
has allowed greater private ownership- resulting in expansion of the tourism
sector. Other reasons include relaxed immigration- visas still being required
but easier to obtain, and the low exchange rate, as it’s a relatively cheap
place to a visit. Another key reason why Vietnam sees a steady increase in
tourism is due to the fact that Vietnam offers excellent and unique human and
physical attractions- such as the UNESCO world heritage site of Hoi An, a town
that has Dutch, French, Japanese and Vietnamese influences. Halong Bay, another
UNESCO world heritage site which consists of thousands of limestone karsts
situated off the coast of North Vietnam in the South China Sea. Due to these
factors, the country is home to more than 1500 international travel companies,
and in 2016 itself, Vietnam opened approximately 100 new five-star hotels.
Between 2010 and 2015, the tourism sector recorded average growth of 9.5
percent. The industry grossed 15.4 billion USD in revenue, which contributes
6.6 percent to the country’s GDP, while generating 2.25 million jobs- as it is
estimated that the tourism sector employs about 250,000 jobs directly and
500,000 jobs indirectly. However, as the tourism sector increases, Vietnam
continues to face challenges and risks. For instance, one of the main risks is
economic leakage. Most of the tourist developments for e.g. Sheraton hotels are
mostly owned by foreign companies. This infers that because of deregulation and
increased foreign ownership, much of the profits that are generated through the
tourism industry may leak overseas. Additionally, Vietnam maybe over dependent
on the tourism industry, which can cause problems to the tourism industry, if
for e.g. an insurgency or a natural disaster arises. Vietnam has an inflation
rate of over 10%, having the potential to cause a strain on the economy and
clearly affect the most vulnerable minorities in Vietnam. And finally, Vietnam
doesn’t have a strict enforced minimum wage and working hour laws- which means
that the workers would be exploited and underpaid. Overall, tourism shows a
promising path towards economic development for development, however Vietnam
faces economic barriers that they have to overcome.
Nepal’s unique biodiversity brings economic benefits to Nepal such as a
significant contribution to the GDP and creation of jobs. 8 of the 10 highest
peaks are in Nepal-a main reason why tourism is the largest industry in Nepal.
The tourism industry not only brings direct income to its GDP, as there are
indirect contributions to the GDP and jobs, such as the government spending
money on tourism related marketing and promotion, improvement in the education
system and investing in tourism itself.
According
to the World Travel & Tourism Council, the total contribution of
tourism to GDP has risen from 82 billion Nepalese rupees in 2002 to 119 billion
Nepalese rupees in 2011. it is also predicted that the total contribution of
tourism to GDP in Nepal will be raised to 185 billion Nepalese rupees by 2022.
Furthermore, tourism can contribute more income to Nepal’s GDP with fewer
employees than agriculture. Due to the fact that almost 86% of the Nepalese
population engages in agriculture, only 30% of its income accounts for the
overall GDP. Therefore, tourism transforms the economy to develop and help
boost the economy and absorb the surplus of the employees working in the
agriculture sector. Other advantages that tourism brings to Nepal are that of
improving the country’s debt, a rise in revenues and allowing room for
international recognition which gives the opportunity for Nepal to improve ties
with other countries. Additionally, in the Khumbu region of Nepal, Sherpas earn
money as they accompany tourists who are willing to trek the mountains. The
Sherpas are benefited by this as they see an improvement in their lives and
could look after their families. This also results in other jobs such as tour
guides, security services, shop owners etc. However, some of the economic
disadvantages are an unequal share of money. It costs approximately $50,000 to
trek the Himalayas. However, the Sherpas earn only $8,000 in the 3-month peak
season. This suggests that the money is unequally shared and may hardly be used
to invest in Nepal itself- given the fact that the Nepalese government is known
for corruption. This also suggests that the jobs are seasonal, making this a
negative aspect of tourism as a development strategy in Nepal.
Additionally, tourism undoubtedly shifts the jobs away from the agriculture
sector. This could be seen as an advantage for tourism in Vietnam, as when a
natural disaster (for e.g. cyclones) strikes, the economy would not be that
badly affected, as the crops maybe badly affected. However, if a natural
disaster strikes Nepal (and this was seen in the 2015 Nepal earthquake), where
the country’s top historical sites where affected. So therefore unlike Vietnam,
Nepal’s tourist sites would be directly affected, hence affecting the arrivals
of tourists. Overall, it can be seen that tourism emerges as a more guaranteed
route towards economic development where the opportunities outweigh the
challenges in Nepal.
In conclusion, after examining if tourism is
a guaranteed path for economic development is in LEDC’S of Nepal and Vietnam,
it definitely is. However, as both the countries expect the number of tourist
arrival numbers to increase, they are challenged to overcome economic barriers.
Examine the view that tourism offers a
guaranteed route towards economic development for low-income countries.
Tourism is defined as the
travel away from home for at least one night for the purpose of leisure. This
definition excludes day trips, some of which may be international trips.
Tourism allows countries to expand economically as it brings an influx of people
from different parts of the world who are willing to spend their money on
different attractions. Tourism is especially important for LEDCs that use it as
their number one source of economic development. However, tourism can also
bring negative consequences that might disrupt the LEDC’s road towards economic
development. For example, jobs might be seasonal and poorly paid. Tourism in
Nepal and Vietnam, both LEDCs, will be analyzed to discuss this controversial
statement. This essay is going to argue that tourism does not always
“guarantee” a route towards economic development for low-income countries.
Tourism in Nepal started in
1952, and ever since, it has helped the country’s economy. Nepal’s tourist
opportunities are related to its topography. In fact, the country’s
biodiversity and unique ecosystems have mainly attracted rich westerners
looking for adventures. Nepal is home to Mount Everest, Earth’s highest
mountain. Its peak of 8,848 meters above sea level is a hotspot destination for
mountaineers and rock climbers. Nepal ranks among the poorest countries in the
world. Tourism is a vital economic lifeline for the country: it is in fact its
largest industry and its largest source of foreign exchange and revenue.
Tourism gives direct income to Nepal’s GDP and provides contribution to jobs,
including domestic purchases of goods and services. In 2011, tourism in Nepal
created 412,500 jobs, representing 3.5% of total employment. Studies show that
by 2022, tourism will account for 562,000 jobs directly. Indirectly, due to the
multiplier effect, even more jobs will be created, encouraging growth in the
primary and secondary sectors of the industry as well. Tourism
contributed more income to the GDP than agriculture. Even if 86% percent of the
Nepalese population is employed in the agriculture sector, tourism contributed
30% of Nepal’s GDP in 2011. Tourism also allows to diversify the economy.
Developing the tourist industry can help boost the economy efficiently and
absorb the surplus of employees in agriculture. However, given Nepal’s
political instability and corruption, not all incomes might be distributed
equally among the population. Nepal is also at risk of leakage if foreign
companies manage the business and ‘repatriate’ profits to their own country.
For example, the German pharmaceutical company Hoechst AG has recently just set
up a plant in Nepal. The country in this case might be at risk of leakages.
Nepal’s hazards history also needs to be considered. In fact, the country was
badly hit by a series of earthquakes in 2015. The total damage was of about $10
billion (about 50% of Nepal's nominal GDP). Even if tourism has led to economic
development in Nepal in the short run, it is not guaranteed that it will
continue to do so in the long run.
Vietnam’s tourist
opportunities increased in the early 1900s when the country began to relax its
policies towards capitalism and opened up to the world. In fact, after the
Vietnam War (1955-1975), the communist government embraced the idea of
capitalism, allowing there to be more and more tourists. Ever since the 1990s,
visitor numbers have been constantly increasing. In 2008, around 4,400,000
tourists visited Vietnam. In 2012, WTTC’s (World Travel & Tourism
Council) Vice-President Nguyen Thi Doan stated that “the tourism sector has
been a major factor in job creation, economic development and poverty
alleviation in Vietnam, leaving no doubt that tourism has played a crucial role
in our country’s overall socio-economic development”. In 2012, tourism
accounted for 4.3% of Vietnam’s GDP and 3.7% of all jobs. Numbers are expected
to double in the next 10 years. However, Vietnam’s tourism is significantly
dictated by seasonal changes. Overall, it is recommended to visit Vietnam
during autumn (Sept-Dec) and spring (March and April) due to the country’s
tropical monsoon climate. This means that jobs related to tourism are seasonal,
and thus salaries are not distributed equally over twelve months. Given that
Vietnam is an LEDC, jobs might be poorly paid. According to the Japan Trade
Organization, the average monthly salary of a Vietnamese worker ranges between
$145 in Hanoi (the capital city of Vietnam), and $148 in Ho Chi Minh City.
Vietnam is also commonly struck by typhoons from May to January, with extensive
flowing, especially in the Mekong River delta. Natural disasters are able to
destroy the economic progress made thanks to tourism. Just like in Nepal’s
case, Vietnam’s tourism can help the country to find economic stability, even
though it can never be guaranteed.
Tourism aids the road to
economic development for low-income countries, however, this doesn’t mean that
it can ensure economic development in the long run. Both in Vietnam and Nepal,
tourism has led to the creation of thousands of jobs thanks to the multiplier effect,
and it has also diversified the countries’ economies. However, a lot of factors
can affect tourism and therefore also economic development.
