Tourism Reduces Poverty Assignment

Running head: TOURISM REDUCES POVERTY- AN ARGUMENTATIVE ESSAY
TOURISM REDUCES POVERTY- AN ARGUMENTATIVE ESSAY
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TOURISM REDUCES POVERTY- AN ARGUMENTATIVE ESSAYIntroduction
The term poverty denotes the condition in which the basic amenities of a person or a
community like food, shelter and clothing are not met. Poverty is of two types-absolute
poverty and relative poverty. The term absolute poverty refers to destitution and is a
condition when people are unable to meet the sufficient resources (Hagenaars 2017). On the
other hand, relative poverty is a condition when people do not enjoy minimum living
standards. Given the reference of the report used in this case, the tourism industry has created
the most number of employment in the developing countries. It was found that tourism has
generated an amount of US$50 billion to USD$260 between the period of 1990 and 2007 for
the developing countries. It was found that out of 46 of the 49 LDCs (Least Developing
Countries), tourism is the main source of foreign exchange (Gmelch and Kaul 2018). The aim
of the paper is to elucidate and support the contention that tourism reduces poverty with a
focus on India and employs scholarly evidence to substantiate the argument. The paper sets to
argue that tourism is beneficial for the reduction of poverty and also document counter
arguments regarding the same.
Tourism industry and its potential in the alleviation of poverty
Tourism has direct, indirect and induced impacts on tourism. The induced impact of
tourism is its contribution through the provision of direct and indirect employment. The
impact of tourism has been found to be beneficial for the rise in GNP (Gross National
Product) as it creates employment for the multiple stakeholders like the hotels, restaurants,
handloom and handicraft industry, flea market, guides and local shopkeepers. Tourism
development as an aspect in any country has been studied from the perspective of financial
growth or economic modernization. In the area of development, the emphasis of most
countries have been on identifying patterns of economic growth that augments the

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TOURISM REDUCES POVERTY- AN ARGUMENTATIVE ESSAYdevelopment. There are two critical paradigms of tourism that is related to poverty. One of
them is tourism being labour-intensive and provides small-scale opportunities. Secondly,
there is a thrust to revive the natural resources and value the cultural heritage which are
significant for the marginalized section. Vanegas, Gartner and Senauer (2015) strongly beliee
that tourism becomes an inclusive opportunity for women as it generates employment for
them. It has been found that countries such as Bolivia, tourism has filled up 60 per cent of the
seats; in case of Muslim countries it has been 10 per cent (Chen, Petrick and Shahvali 2016).
The service orientation of the tourism industry combined with the emphasis on low-level
domestic tasks enhances the possibility of employment for the women as they are largely
involved in the employment sector.
Tourists visit the country and return to their country, however the income ushered in
through the tourists is instrumental for the contribution to the human capital. This generates
income that is effective in developing the infrastructure to forge new business that is
significant for the for generating income for the growing population in the context of India.
Hugo and Nyaupane (2016) are of the opinion that in many developed and developing
countries of the world tourism is the vehicle for earning foreign revenue. It also creates direct
and indirect employment. Tourism has been reported to contribute to 5 per cent of the world’s
GDP (Step.unwto.org 2018). WTTC (World Travel and Tourism Council) have reported that
tourism contributes to 12 per cent of the GDP of the world and 40 per cent of the GDP of the
developing countries of the world. In 2010, it was reported that tourism contributed to 12 per
cent of the total GDP (Sharma and Kumar 2018). Tourism has been accounted for generating
8 per cent of employment and it is predicted to generate employment for 324 million and
tourism also accounts for 36 per cent of the service exports in the advanced countries of the
world (Brako and Joseph 2017). It is found to be the primary economic exchange for 47 per
cent of the world’s economy. . It is also reported that it contributes to 66 per cent of the