Tourism Contribution to Promoting Socioeconomic Growth and Development

This dissertation explores the concept of tourism and its importance in promoting socioeconomic growth. It discusses the challenges faced by the tourism industry and strategies for tourism development. The study highlights the significance of tourism in preserving local culture, strengthening communities, and providing social services. It also emphasizes the commercialization of culture and art as a positive socioeconomic impact of tourism.

Dissertation

Contents
Contents...........................................................................................................................................2
CHAPTER 1- INTRODUCTION....................................................................................................1
Research topic........................................................................................................................1
Overview of the study............................................................................................................1
Significance of the research....................................................................................................1
Problem statement..................................................................................................................2
Research aims and objectives.................................................................................................2
Rationale of the research........................................................................................................2
Research Questions................................................................................................................3
Structure of the project...........................................................................................................3
Theoretical framework...........................................................................................................4
Chapter 2: LITERATURE REVIEW...............................................................................................5
The concept of tourism...........................................................................................................5
The importance and benefits of tourism in socio-economic growth......................................6
Challenges faced by the tourism industry..............................................................................8
Strategies that helps in tourism development.......................................................................10
Chapter 3: Research Methodology.................................................................................................12
3.1: Introduction...................................................................................................................12
3.2: Research Philosophies...................................................................................................12
3.3: Research Approach........................................................................................................13
3.4: Research Strategy..........................................................................................................13
3.5: Research Method...........................................................................................................14
3.6: Research Choice............................................................................................................15
3.7: Research time horizon...................................................................................................15
3.8: Data collection and analysis..........................................................................................15
3.9: CONCLUSION.............................................................................................................16

CHAPTER 4- DATA ANALYSIS AND FINDINGS...................................................................16
Introduction..........................................................................................................................16
Theme 1- To understand the concept of tourism..................................................................16
Theme 2- To evaluate the importance & benefits of tourism in socio-economic growth...18
Theme 3- To analyse the challenges faced by the tourism industry.....................................20
Theme 4- To identify the strategies that helps in tourism development..............................21
Conclusion............................................................................................................................22
Chapter 5: Conclusion and Recommendation................................................................................23
Conclusion............................................................................................................................23
Recommendation..................................................................................................................24
REFERENCES..............................................................................................................................27

CHAPTER 1- INTRODUCTION
Research topic
“Tourism contribution to promoting socio-economic growth and development”
Overview of the study
For the several countries tourism is vital sector because there is generation of income by
the consumption of goods and services by tourists. It has developed an important part of the
economic foundation for several countries. In tourism it comprises of the movement of people to
countries outside their usual environment for the purpose of personal & professional. Across the
globe it is a rapid growing industry which becomes significant part of the global economy as
several people travel to different countries & becomes interested in visiting new locations. In the
global economy tourism is one of the growing sector with the increase in tourism flow it brings
positive outcomes to nations especially in GDP and employment opportunities (Islam, Zhang,
and Hasan, 2020). Whereas tourism development is the procedure of establishing and
maintaining the tourism industry in specific location. There is development of strategies and plan
which helps in encouraging tourism. In research there is discussion based on tourism concept
with its importance and benefits. Further researcher will cover the challenges faced by the
tourism industry along with strategies leading to tourism development.
Significance of the research
The current study is significant as it helps in providing the understanding of the tourism
concept along with its importance which contributes in socio-economic growth. The tourism is
important for boosting the revenue of economy and in different areas number of jobs are created
by tourism. The study of current investigation will help in analysing the challenges faced by
tourism industry & strategies which helps in tourism development. The activities related to
tourism sector contributes in the generation of income, employment and foreign-exchange
earnings (Mazzola, Pizzuto, and Ruggieri, 2019). The contribution helps in developing brand
value and identity. The socio-economic growth impacts the tourism involving improved tax
revenue and personal income, increases standard of living with this socio-cultural impacts is
related with the interaction between people with different cultural backgrounds, attitudes and
behaviours. In term of employment, the local community will expand their earnings and socio-
economic conditions which leads to improvement of living standards.
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Problem statement
The main research problem in the current investigation which is determined how tourism
contributes in promoting socio-economic growth and development. The lack in contribution
hampers the growth of economy as travel agencies are not able to target their customers. The
challenges which are faced in tourism development is related to the taxation, infrastructure
issues, travel marketing. The other problem which tourism industry face is the fluctuations in
currency exchange rates (Rogerson, and Rogerson, 2020). There is difficulty in predicting the
long rage tourism prices due to inability to know the value of currency. The challenges hamper
the growth and development of tourism which contributes in promoting. For the tourism
development several strategies are determine which helps in overcoming the problems.
Research aims and objectives
Aims
The aim of the research is to evaluate the tourism contribution to promoting socio-
economic growth.
Objectives
 To understand the concept of tourism
 To evaluate the importance & benefits of tourism in socio-economic growth
 To analyse the challenges faced by the tourism industry
 To identify the strategies that helps in tourism development.
Rationale of the research
The main aim of the conducting the research investigation to analyse the contribution of
tourism in socio-economic growth. It is essential to know and understanding the benefits and
importance of tourism as this sector is growing. For the organisation the economic growth is
important within same time to take care of society is equally important. There can be direct
economic growth of the nation if effective services are provided by the tourism industry which
also helps in attracting customers (Sahoo, 2019.). By conducting this research, personal
objectives can be attained as there will be development of the different research skill such as data
analysis, problem solving and many more that benefits in completing the research in systematic
manner. With this Professional objective can be attain by having the understanding of tourism
which helps in development of professional career in Tourism. Henceforth, current investigation
will help in accomplishing research objectives in sound manner.
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Research Questions
 Explain the concept of tourism?
 What are the importance and benefits of tourism in socio-economic growth?
 Determining the challenges faced by the tourism industry?
 What are the strategies that helps in tourism development?
Structure of the project
Chapter 1- Introduction – This section involves the brief overview of the research study
along with the research aims & objectives related to the topic of tourism. The rational and
significance related to the research topic is been mentioned.
Chapter 2- Literature review – It is the second chapter in the research which comprises
review of different literatures in which viewpoints of different authors are compare that is related
to research topic.
Chapter 3- Research methodology – In this section different methodology is been
selected for gathering and analysing data regarding the study. It helps researcher in performing
the research study systematically as to attain aims.
Chapter 4- Data analysis and research findings - This is fourth chapter in which data is
analysed and findings are discussed that help researcher to draw conclusion of the research
study. the raw data for the study is being measured as to gain useful information (Zhu, Zhan, and
Li, 2021).
Chapter 5- Conclusion and recommendation – It is last chapter in research where
overall summary of the investigation is provided related to research topic and recommendation is
provided as to overcome with the challenges.
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Theoretical framework
4
Research aim is to
evaluate the tourism
contribution to
promote socio-
economic growth.
Understanding the
concept of tourism
Defining tourism
Elements of tourism
Motivation factors
Evaluating importance &
benefits of tourism in
socio-economic growth
Preserving local culture
Increase employment
Opportunities
Improves infrastructure
Challenges faced by
the tourism industry
Proficient human
resource
Cost of inflation &
vacation
High rate of
competition
Identifying strategies
which helps in tourism
development
Engage tourists
Using social media for
promotion
Determining target
customer

Chapter 2: LITERATURE REVIEW
The concept of tourism
According to the view of Labanauskaitė, Fiore and Stašys (2020) tourism refers to as the
process and act of spending time away from home in chase of relaxation, recreation as well as
pleasure while making the use of commercial provision of services. The concept of tourism is
based on the movement of people outside from their home areas. It can be defined as the
movement of the people within a state, city, country or across the international boundary. At any
one point every individual has been taken part in some of tourism activity, whether they visit
their grandparents staying at a nearby city or going for a trip for visiting monumental places
within their city or a foreign trip for holidays and many more. It has been analysed from these
tourism activities that the many people are involved in providing the services like the travel
agent, transporter, guide, ushers and many more. In today's dynamic world, it has been analysed
that tourism industry has been constantly changing and evolving (Xiang, Stienmetz and
Fesenmaier, 2021). It is mainly because of its linkage with other industries like accommodation,
aviation, water transportation, surface transportation, attraction management, telecommunication
and so on. There are three main elements of tourism which define as fundamental without them
any kind of tourism activities are not possible. The first element is man which define as the
human element as the creator of the act of tourism. Another element is space which means a
physical element which require to be necessarily covered by the act itself. Last one is time which
means the temporal element which is composed by the trip itself. Tourism industry create
positive impact on socio-cultural because it helps in making renewal of cultural pride (Jamal and
Higham, 2021). Tourists visits help the local in order to revisit their own culture and heritage as
well as it also help in enhancing a sense of belonging as well as helping in order to preserve
traditional arts and crafts of the country. Tourism industry also create positive impact of
economy of the country by giving rise to employment in the local destination along with the
guest tourist generation region.
As per the view of Chen, Law and Zhang (2021) tourism is the term which means the
activities of a person travelling to a location outside their usual environment for less than a
specified period of time as well as whose main purpose of travel is other than the exercise of an
activity which remunerated from within the visiting places. There are three things which has
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been identified in connection with the tourism business. These are movement of people from
their residence, a certain period of time (more than 24 hours and less than 1 years) and tourism is
an economic activity. There are some motivation factors of tourism that motivate travellers in
order to move out of their home region for tourism activity. The first factor is physical
motivators, these are defined as those motivators who are related to the refreshment of mind and
body, sports, health purposes and pleasures (Alarcón and Cole, 2019). These motivators are
linked with those activities that help in reducing tension. These motivators motivate those people
who are want to refresh their mind and body by travelling. Another motivation factor is cultural
motivators, these motivators are those who are identified by the desire in order to see as well as
know more about the other cultures in order to find out about the natives of a country along with
their music, art, lifestyle, dance, etc. The motivators basically motivate those person who want to
travel those destination that provides an opportunity in order to visit the historical monuments as
well as take participate in dance recitals, music concerts and many more (Beck, Rainoldi and
Egger, 2019). Another group of motivators are interpersonal motivators which define as those
group who like to meet new people, visit relatives or friends as well as to seek new and different
experiences. Another motivation factor is the status and prestige motivation. It involves those
factors which has a desire for the continuation of their education. It includes personal
development in relation to the pursuit of education and hobbies.
The importance and benefits of tourism in socio-economic growth
As per the perspective of Ruhanen and Whitford (2019) tourism play very important role
in the growth of socio-economic benefits. There are many factors that shows that tourism
industry is most important for the socio-economic growth of the country. Some of these are
described below:
Preserving local culture- It define as great importance of socio-economic growth of the
country. Most of tourists are often come in order to visit the local culture of country. For
example most of the tourists visit Beijing for learning more about the Chinese dynasties, some
tourist visit Thailand for tasting Thai food and so on. Most of the destination places makes a
conserved effort for protecting and preserving the local culture of their country.
Strengthening communities- Another importance of tourism in socio-economic is to
strengthen the community. The festivals and events in which local residents have been take
participation and spectators are also interesting for the tourists which makes them to visit in the
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country. Increase in tourism service in the country, increase the job opportunity that can create a
great boost in their local community (Senetra and Szarek-Iwaniuk, 2020). It has been analysed
that the people with these kinds of jobs are happier and more social than those without a
disposable income.
Provision of social services- Another importance of socio-economic culture is the
provision of social services in the host community. The tourist industry needs several
infrastructure and facilities for meeting the wants and desire of the tourist. It means that the
development in many areas for the tourists. These developments are also beneficial for the local
people of the country also. These are use of new roads, new sewage systems, bus services, new
playgrounds and many more.
Commercialisation of culture and art- Tourism industry helps in creating rise in many
commercial business. It can be considered as positive socio-economic impact of tourism. It helps
in enhancing the community spirit because people tend to have more disposable income
(Shcherbakova, 2018). These commercial businesses are the reason that promote the local culture
and arts of the country. Galleries, Museums and shows are described as an effective method that
helps in showing local customs and traditions of a destination.
Preservation of heritage- Another importance of tourism in socio-economic is the
preservation of heritage. There are many tourist who visits the different destination in order to
see their local heritage. This is the reason that make many destination to make every possible
efforts for preserving their heritage.
As per the view of Dushanova and Radjabov (2021) there are many benefits that the
socio-economy of the country gain by encouraging more tourism. Tourism boosts the revenue of
the economy, creates thousands of employment, develops the infrastructures of the country as
well as create a sense of cultural exchange in between the citizens and foreigners. Some of the
benefits of tourism that helps in increasing the growth of socio-economic are described below:
Increase employment opportunities- The number of employment which has been
created y tourism in many areas are very important. These employments are not only part of
tourism sector but it may also includes communication sector, agriculture sector, health sector as
well as education sector also. Many tourists are like to visits many destination for gaining
experience of their culture, different traditions as well as gastronomy. It become profitable for
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the local restaurants, stores and shopping centres of country. Around thousands of people get
employment through tourism only (Buhalis and Cooper, 2022).
Increases gross revenue- Tourism provide most effective benefit for the socio-economic
growth is it increases the gross revenue of the country. The more and more employment for the
local people helps in increase the gross revenue of the country. Higher revenue is the most
important factor for the economic growth of the country. The more and more tourists come in
particular destination increases their revenue.
Improve infrastructure- Tourism is the major source of revenue of the country. Thus,
the government of country invest a large amount of revenue for the development infrastructure of
the country. In order to attract more and more tourists for visiting in the country, the safe and
advanced facilities are very important. It leads new highways and roads, improved public spaces,
developed park, better school and hospitals as well as new airports. Innovative and safe
infrastructures allow the smooth flow of goods and services. It help local people of the country
in order to gain opportunity for educational and economic growth (Klyachko and Semionova,
2018).
Create a culture of exchange- Tourism helps in creating a cultural exchange between
the local citizens and tourists. Many places like conferences, exhibitions and events usually
attract foreigners towards them. It provide opportunity for the organising authorities to gain
profits through gift sales, registration fees, exhibition spaces as well as sales of media copyright.
Foreign tourists are also helps in bringing more diversity and cultural enrichment in the host
country.
Challenges faced by the tourism industry
As per the view of Kwok and Koh (2019), tourism industry is an important industry that
helps in generating most of the revenue in the economy. Tourism is considered to be a vast,
dynamic, vibrant and growth oriented industry in the business market. This industry helps in
providing employees with all the different types of products and services which different tourists
need at the time of travelling from one place to another. It is already known that customers in the
tourism industry are always unique and demanding for the particular goods and services
provided by the for their benefit. It is the responsibility of stakeholders to carry out the
challenges in an effective manner so that they retain more and mote customers towards the
business organisation. Tourism industry is one of the growing sector that helps in providing
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livelihood to different people so that they live their life in a proper and effective manner. There
are different types of tourists existing in the market that like various places and are attracted
toads that place due to their quality and beauty of that particular place (Insch, 2020). It can also
be defined as a travel industry for leisure, business or recreational purposes in a proper and
effective way. The tourism and travel industry is considered to be one of the major ad largest
industries across the world. An essential prospect of economic life, the industry is closely
facilitated with the different set of factors such as food, travel and accommodation. It is very
important for the hotels to understand the needs and wants of the tourists so that they feel
satisfied and happy while visiting the place and always choose us at the time of visiting again.
There are different challenges that tourism industry face as there are different type of people who
have different tastes and preferences and this makes them focus more on customers reliance
(Gallagher and Huveneers, 2018). COVID-19 has also effected the performance and productivity
of the tourism and hospitality industry in a negative manner and this creates a major challenge
for the business for their survival. The challenges faced by tourism industry are defined as under:
 Proficient human resources – Skilled and proficient human resources is a major
challenge for the tourism industry as it helps in treating the customers or tourists in the
right and effective manner (Battistella and et. al., 2018). High quality of trained human
resources helps tourism industry in gaining high competitive advantage in the market and
in delivering value in their services. For building qualified and experienced staff, it is
important for the business organisation to provide effective education and training related
to the tourism standards and opportunities. Training and education related to tourism
mainly involves concepts, knowledge and techniques related to the specific area and how
to treat customers in an effective manner.
 Cost of inflation and vacation – Another major challenge that tourism industry faces in
the rate of fluctuation in the exchange rate of currency. Due to the inability to know
properly the value of the currency, the price of tourism becomes hard to predict and this
results in decreasing the overall profitability of the business (Peceny and et. al., 2019).
The tourism and hospitality industry is of seasonal nature and it do not have a regular
flow of high income as different place has various seasons in which tourist visits. With
the high rate of inflation the rate or price of restaurants and hotels increases with time and
this also differs the rate of profits and revenue earned by them.
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 Tourism and tax – The tourism and hospitality industry is considered to be most high
taxed industry across the world. There are different types of taxes that levied in the whole
industry right from the transporters, airline industry, and tour operators for hotels and
these involves luxury tax, service tax, transportation tax, tax related to aviation fuel and
several taxes on transportation (Polukhina and et. al., 2021). These tax rates that prevails
in the tourism industry tends to be different for every country as it is famous for different
variety of things. All these different types of taxes are finally delivered on to the number
of travellers in one or other way which results in hampering the overall growth.
 High rate of competition – Tourism industry is highly competitive in nature and this
results in impacting the performance and productivity of the business. This is the major
challenge that tourism industry face as this results in training the staff for more desired
results and activities (Bello and Kamanga, 2020). It is important to train the staff in an
effective manner so that they earn high profits and revenue in the competitive market.
Strategies that helps in tourism development
As per the view of Sharpley (2020), tourism industry is regarded as the most effective
and growth taking industry that generates most of the profits for the whole economy in an
appropriate manner. With the advancement of new technology in the market, it is important for
the business organisation to adopt new and relevant techniques that help in promoting the
business in the competitive market. Gaining success in the tourism industry is a challenge for
most of the business organisations so that they develop their promotional activities in an
effective manner. Tourism industry is considered as a large industry that requires regular
innovation and creativity in order to attract more and more tourist for taking the services of the
particular hotels and restaurants. Marketing plays an important role in acknowledging about the
qualities and features of a particular travelling place across the customers so that they feel
attracted towards the place (Seraphin, Sheeran and Pilato, 2018). Tourism industry also provides
various working opportunities for the number of people so that they manage their day to day
work in a proper manner. Understanding about the preferences and new technologies coming in
the market so that they deal with the business opportunities and challenges in an effective
manner. In order to gain high competitive advantage in the business market, it is necessary for
the business to develop and train staff to bring new changes and innovativeness in their work so
that they deal with the tourists in a better manner. There are different strategies that help in
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developing the tourism industry in a positive and effective manner (Niñerola, Sánchez-Rebull
and Hernández-Lara, 2019). Customers are the most important part of the business which helps
them in increasing their overall profits and revenue in the market and in surviving in the
competitive market in the long run. The strategies are defined as under:
 Engage tourists – Engaging the tourists towards the travelling place or hotel is the most
effective strategy that helps in developing the tourism organisation and in dealing with
the competition. There are different types of customers that exist in the market and are all
of different nature and have different perspective about everything which mainly requires
more attention (Hwang and Lee, 2019). It is important for the business organisation to
train and develop their employees in a proper manner so that they treat customers
properly and in taking benefit from the services. Educating and training the staff in a
better manner is an important task of the business as this helps in providing efficient and
effective services to the client that visit the hotel or restaurant at that particular period of
time.
 Use social media for promotion – Using social media for promoting the services of the
business is an important strategy that helps in dealing with the competitive market in an
effective manner. By creating engaging and innovative content on the social media site
help in attracting more number of customer to prevail the service of that particular hotel
or restaurant at the time of travelling. This results in increasing their level of profitability
and revenue of the tourism business in the market so that they develop and make new
changes for making tourists comfortable (Aquino, Lück and Schänzel, 2018). It is
important for the business for developing more stable tourists so that they acquire more
number of customers towards availing the services of the business in an effective manner.
 Highlight the place attraction – One of the most important strategy that helps in
reaching out to the larger audience is by keeping in mind about highlighting the services
and main points of the place (Alarcón and Cole, 2019). When people travel from one one
place to another, they generally want food, a comfortable place and good ambience for
stay while staying at the particular hotel or restaurant. It is necessary for the food industry
to deliver good quality of food like famous dishes of that particular place, serving
effective services and creating good ambience for tourists in order to make them feel
comfortable.
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 Identifying the target customers or visitors – Knowing the target audience is very
important because it helps in making the best and effective marketing strategy that helps
in attracting more and more customers (Higgins-Desbiolles and et. al., 2019). Tourists
have different needs some want accommodation for their families, some for couples,
some for personal stay, and all this requires new and innovative think so that they deal
with the working in an effective manner. Considering the demands of the customers, it is
important for the business to develop the tourism organisation in such a way that they
feel attracted towards staying and receiving the services more willingly.
Chapter 3: Research Methodology
3.1: Introduction
The term research methodology refers to the process of deciding the method of doing
research systematically. Research problems are solved by system plan which is known as
research methodology. It helps researcher to find and select the best method of conducting
research and specify the purpose of the research. With the help of research methodologies clear
idea of research can be determined (Bertolini and et.al, 2018). It provides base to researcher to
forecast the environment and form business plan. Proper guidance is provided by research
methodologies to the researcher so that their proper involvement in research is specified.
3.2: Research Philosophies
Development of knowledge in particular field of study is called research philosophies. It
help to provide exact direction to the researcher which is helpful in overall project of research. It
is a system of researcher's thought in which new, authentic and genuine knowledge about the
particular object of research is obtained. It deals with nature, source and enhancement of
knowledge. Research Philosophies specify the way of collection, analyse and use of data. There
are four types of research philosophies, Pragmatism, Positivism, Realism and Interpretive. In this
research project interpretive philosophy is used which emphasize on qualitative analysis. It is
socially constructed, subject reality and composite of multiple perspectives. This philosophy
comprises of theoretical frameworks based on personal experience of different participants. This
method play an important role for developing clear and complete idea of different aspects of
theory. To identify review of people and focus on the method of performing interpretive
philosophy is used (Firdaus, Zulfadilla and Caniago, 2021). This philosophy provide flexibility
12

to researcher to collect the viewpoints of employees on different aspect of problem. This
approach is based on naturalistic data collection approach like observation and interviews.
3.3: Research Approach
Plans and policies which are required to carried out research are known as approaches of
research. It comprises of various steps from assumptions to explain the data collection method.
There are two types of research approach inductive and deductive. In this research project
inductive method of secondary data collection is adopted. Inductive method include the patterns
of search for development and observation of theories and explanations. This method is focused
on learning from experience, so much experience is required to reach conclusion (Flick, 2020).
When inductive research is carried down by researcher they need to focus on the earlier studies
carried down by other authors. It describe the clear picture of the study that is going to be carried
down further. It emphasis on resilience,individual behaviour, emergence, understanding of
dynamics and and formation of alternative course of action for future. This approach is used
combine the raw data into useful information, from multiple interpretations research is made
from raw data. It signify clear links among the objectives of research and findings and summary
examine from the raw data. It is well developed approach which is used to set systematic
procedures to analyse qualitative data which provide authentic and reliable findings.
3.4: Research Strategy
Research strategy refers to provide direction to the research and how it is to be carried
down. Research strategies examples are ethnography, grounded theory, experiment, action
research and case study. It provides direction to efforts and thoughts and allows to systematically
conduct of research and produce quality result and maintain detail of the report. Research
strategies provide general direction to the research. Qualitative strategy of research is adopted in
this project. It refers to the gathering data by online, library and journals (Patkar, 2018). This
method examine in-depth behaviour and perception of individuals regarding the topic which is
already defined by others and further taken into consideration. It involves secondary method of
data collection refers to assemble the data which is already exit and specifying from different
sources. Data is collected by the use of internet, libraries and reports of organisation. Data is
collected, organised and analysed from different journals and in texted through authentic
references. Qualitative methods of research involve dependencies on previously collected data
which help the researcher to focus on the current study of research, basically this data provide
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general information and overview about the topic of research. Secondary research is cost
effective and less time consuming method of data collection. It helps to identify gaps of
knowledge which can use for further investigation.
The articles which are used for literature review is related to government websites,
journal peers and other sources. The researcher mainly focus to include relevant, authentic and
valid sources. Overall 50 articles were reviewed by researcher from which 10 articles were
mainly used by the researcher in this research report. Google scholar is the main source of
identifying articles related to relevant topic. Only those articles were selected which is published
in English and the articles which are published after 2018. Some specific keywords are used by
the researcher to identify sources and journals for the research. These keywords are related to the
research topic and objectives like “concept of tourism”, “benefits of tourism in socio-economic
growth”, “challenges in tourism industry” and “strategies for tourism industry development”.
Researcher also focus to include the articles of those researchers only which are having well
popular name in research background due to their long experience in writing articles and other
research papers. This will ensure the relevancy and reliability of the data. Few of the articles
which are used for this research are mentioned below-
1. Islam, M.F., Zhang, J. and Hasan, N., 2020. Assessing the adoption of sustainability
practices in tourism industry: Insights from a developing country. The Bottom Line.-
2. Labanauskaitė, D., Fiore, M. and Stašys, R., 2020. Use of E-marketing tools as
communication management in the tourism industry. Tourism Management
Perspectives, 34, p.100652.
3. Insch, A., 2020. The challenges of over-tourism facing New Zealand: Risks and
responses. Journal of Destination Marketing & Management, 15, p.100378.
4. Setokoe, T.J., 2021. Community-based tourism: A panacea for community development
in nqileni village, eastern cape, south africa. Geo Journal of Tourism and Geosites. 34(1).
pp28-32.
These sources are selected because they are related to the objective of this research and they are
published recently in the year 2020 and 2021.
3.5: Research Method
Research methods refers to the process, technique and techniques which are used for the
collection of data and verification for the analysis to have better understanding of topic and to
uncover new information. In simple words research methods are tools that are used to collect the
information and data. The ways of collection of data to carried down the research is known as
research method. There are three types of research method Mono, Multi and Mixed. Mono
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method is used in this research report (Sun and Lipsitz, 2018). This method refers to the adoption
of one method of research. Qualitative method is used in this project because it involves
theoretical analysis. Data is expressed by words and language, it does not include numerical
representation as authenticity is not obtained in it.
3.6: Research Choice
Research choice refers to the focus, technique, analysis, approach and purpose of studies
of research. Correct choice of study helps in getting the success and increase the quality of
overall research. Research method should be selected according to the information available in
the project. Qualitative method of secondary data collection method id adopted in this research
project. It provides systematic analysis of secondary data and find the conclusion from it
( Abolhasani, 2019). It does not include any calculations, and is closely related to the
components that are non quantifiable in nature. Information of secondary method is already
available, researcher just need to analyse the pre determined information. Data is published at
different resources like trade and technical journals, public records, government publications and
historical documents.
3.7: Research time horizon
Time frame of the research is known as time horizon. The researcher is studying and
showing interest in different field of particular research topic. There are two types of research in
time horizons are longitudinal research and cross-sectional research. When researcher gathers
data from sample at varied intervals is known as longitudinal research (Volkova and et.al, 2018).
To examine changes in attitude, behaviour, phenomenon and process are the longitudinal study
purpose. Cross sectional refers to have clear picture of two sides of studies. Data is not repeated
in samples of cross sectional research due to collection of data is done only one time.
3.8: Data collection and analysis
Data collection analysis can be done in five steps first define the goals, then decide
measurement of decided goals, then collect the data, next step is to analyse the collected data and
at the end interpreted results are visualized. In this research project data is collected by secondary
research method of data collection, it is most effective method as it does not involve high cost
and time can be saved as information is already available, researcher just need to analyse it.
Sources of secondary data collection are articles, books, literature reviews, scientific journals,
15

educational institutions, census and survey collected by government, repositories and database.
When raw facts are comprising and converted into useful information is is known as data
collection by secondary source.
3.9: CONCLUSION
From the above chapter it has been concluded that secondary data is most effective tool
to collect the data and make prediction out of it. All the information is widely available in
secondary data; researcher just need to make best interpretation. Secondary research of
qualitative is widely used in the above chapter. In the above chapter qualitative research method
is defined. It refers to method of market research that emphasis on gathering data by online,
journals and different sources. This method provides clear and in-depth description of all the
questions. Qualitative method of secondary data is used in this project. Behaviour and perception
were not included in quantitative method, but included in qualitative method.
CHAPTER 4- DATA ANALYSIS AND FINDINGS
Introduction
The data analysis is the procedure which researcher use for interpreting data to derive
insights. It is considered an illustrative method for applying the logical techniques. Ire helps in
determining the finding patterns and themes in the data for easy identification & linking. The
data analysis help researcher in reducing cost and better decision making (Dwyer, 2022). The
data analysis is being taken on the topic of tourism contributing in the promotion of socio-
economic growth and development. For the data analysis thematic analysis is being used as the
research is based on secondary method which involves analysis and findings of the research
objectives.
Theme 1- To understand the concept of tourism
From the above data, it is being analysed that tourism consists of the activities of person
travelling and staying outside in places than their usual environment for leisure, business and
other purposes. It is analysed that tourism is phenomenon of the social, cultural and economic
which involves the movement of people to countries for the purpose of business & professional.
It is product of the modern social arrangement which give rise to shared categories such as
business tourism, sports tourism and medical tourism. It is business of travel which serves the
traveller need, exciting and demanding group of visitor service industries touches all our lives. In
16

the tourism industry there is being high growth which consist of number of tangible and
intangible components (Hambira, +Stone and Pagiwa, 2022). Here, tangible items involve
transport, road, water, food & beverage, hospitality service accommodation and services such as
banking, insurance etc. whereas intangible elements involve rest & relaxation, culture, new and
different experiences etc. The people spend their leisure time engaging in several sports, touring,
sunbathing and many more. It is being analysed that concept of tourism involves four
perspectives- the tourist which seeks several psychic and physical experience along with
satisfaction. The nature of this helps in determining the destination and activities enjoyed. The
business offering tourist good & services as business people see tourism an opportunity to
generate profit through supply of goods and services that is demanded by tourist (Hussein,
Kusairi and Ismail, 2021). The government of the host community is third perspective in which
politicians see tourism as wealth factor in economy and related to the income that citizens earn
from this business. Lastly, host community in which local people see tourism as cultural and
employment factor. therefore, it can be said that tourism refereed as sum of phenomena and
relationship which arise from the interaction of tourist, business suppliers, host governments &
host communities in procedure of attracting & hosting tourist and other visitor. It is analysed that
tourism has major contribution in promoting socio-economic development and growth by
enhancing employment opportunities and earnings (Khan and Hou, 2021).
It is found that tourism provide the services of travel agent, transporter, guide and more
which is fundamental to three main elements such as human, space and time element. It creates
the positive impact on socio-cultural by enhancing the sense of belonging along with preserving
traditional arts of economy. On the economy the positive impact is provided by giving rise to
employment in local destination as it creates number of jobs in different area that ultimately
boosts the economy revenue, develop infrastructure of country. It is considered tourism industry
is become significant part of global economy due to its fast growth (Kosmaczewska and Poczta,
2021). It has the contribution in generating of income, employment and foreign exchange
earnings. The contribution of the tourism is towards the complete growth and development of
country by bringing several economic values and benefits. It also helps in developing brand
value and image. In the number of destinations, tourism helps in ensuring high water quality and
better protection of nature and local resources which also generates additional resources for
investing in environmental infrastructure & services. It brings the economic value for country
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which creates demand as an activity and then fulfils that demand as group of industries. On
global scale tourism creates demand for economies as it is commercial activity that involves
consumption of services and products (Kurnianingsih, Zulkarnain and Mahadiansar, 2021). The
value chain of tourism is created on the basis of three needs that involves tourist attractions &
travelling, local tourism & stay and ancillary activities which is important from the view posit of
economic growth. The demand in the tourism is created for travel & transportation industry,
hospitality industry and last is booking & reservation industry. It is also found that tourism helps
in contributing towards the overall development of country and well-being of societies. It is
required to establish strong inbound tourism market for consistently attracting new tourist. In the
socio-economic growth tourism is important driving force for inclusive development and poverty
reduction. It is considered that its impact improves tax revenue & personal income which
improves standards of living that involves the interactions between people with different cultural
backgrounds, relationship to material goods (Mishra, Rout and Chaini, 2021).
Theme 2- To evaluate the importance & benefits of tourism in socio-economic growth
It is analysed that tourism has great contribution in the growth of socio-economic by
developing employment opportunities leading to increase in revenue. It is a growing sector
which boost’s nation economy and increase in tourism flow bring positive economic outcomes in
GDP. With the increase in tourism, tourist feel inner satisfaction, which positively affect the
future behavioural intention. In similar developing countries engender huge amount of foreign
exchange from tourist which boost the sustainable growth & development. In the developing
countries it is the main source and foundation for country economic development and growth.
The understanding of the socio-economic impact of tourism is important in ensuring the
sustainable management of tourism industry which demonstrates benefits to both local
community and tourist (Mtapuri, Camilleri and Dłużewska, 2022). On the host destination
tourism provides the several benefits which plants a sense of cultural exchange between
foreigners and citizens. The foreigners are attracted through exhibitions, conference in which
organising authorities gain profits along with bring diversity and cultural enrichment to the
hosting county. It is evaluated that preserving local culture is considered great importance of
socio-economic growth as visiting most of the tourist is for seeing local culture of country. It
also helps in preserving the natural resources along with cultural traditions. It is analysed that
people travel from all over the world to different countries which brings the money and people
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gets the jobs in hotels, restaurants and other industries (Nurov, Khamroyeva and Kadirova,
2021). In this way it benefits in sustaining services so that vacations of the tourist can be enjoyed
by them. The creation of incentives for the people is most vital way in which nature and
environment can be preserve for the growth. The promotion of international connections benefits
tourism in developing new favourable relationship between different countries. This helps in
gaining deep understanding of the destination by travelling and enjoying food, & culture in
promoting socio-economic growth. In socio-economic tourism is important in strengthening the
community by attracting the tourist to take participate in the festival & events which benefits in
increase of tourism service. The people fell happier with rise in disposable income leading to
growth of socio-economic (Palit and Saren, 2021).
In the host community the another important socio-economic culture is the provision of
social service in which tourist requires several infrastructure & facilities in order to meet the
needs and wants of tourist. For the local people these developments are beneficial leading to
growth and increase of revenue. It is found that increasing employment opportunities is
important and helpful in promoting socio-economic growth & development as most of the tourist
visit to destination for the gaining the experience of culture, different traditions which becomes
profitable for the restaurants, stores, hotels. It is being considered vital source of income for local
communities by offering job opportunities in hospitality and agriculture industries (Parviznejad
and Akhavan, 2021). From the above data it found that in country tourism is major source for
revenue n which government contributes in investing large amount of revenue in order to have
development of infrastructure. The improve in infrastructure leads to attract more tourists for
visiting in country by offering safe and advance facilities that enable to smooth flow of goods
and services. It is long term relationship between consumer and provider. the societal progress is
encouraged as tourist learn to show respect and love for each other while visiting to new place as
tourism is wonderful place for cultural exchange. The key finding is that tourism is being great
important in the education as it involves educational exchange program, short-time courses etc. It
is seen that profit earned from tourism is reinvested into country for having the better
infrastructure, education, funding conservation efforts in order to create more responsible way of
touring. Moreover, it allows hosts and visitors to share culture & meet diverse group of people
which leads to growth in socio-economic development (Rahman and Saima, 2021). Henceforth,
it can be said that tourism has become an important sector which having impact on the
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development of country economy. Tourism brings huge economic potential for destination in
order to develop tourism industry such as employment, currency exchange, imports and taxes.
The ability is provided to make money through foreign exchanges earnings in which
expenditures generate income to host economy.
Theme 3- To analyse the challenges faced by the tourism industry
It can be analysed from the above data tourism industry is vast sector which leads to
development of economy and helps in generating revenue as this industry helps in offering
several employment opportunities with the diverse product and services that tourist requires at
time of travelling from one place to another. For the stakeholders it is responsibility to carry out
the challenges in effective manner so that more tourist can be retain towards the business
organisation (Rasool, Maqbool and Tarique, 2021). It is considered that travel and tourism
industry face several challenges which impacts on the growth and development of economy as
there is existence of different people with diverse taste & preference of different countries. It is
found that to gain competitive advantage in the market tourism industry requires high quality of
trained human resources that can be developed by offering effective education & training in
respect to tourism standards & opportunities. In this tourism industry face challenge in lack of
skilled and proficient human resources. The cost of vacation and inflation is challenge for the
tourism industry in which there is fluctuation in currency exchange rates. It does not guarantee
the flow of income which hampers the overall business. The rise in inflation raise the prices of
restaurants, hotels which lower the services and airline industry becomes vulnerable. This
situation results in keeping leisure travellers stay away from expensive vacations which further
impacts the overall tourism sector (Setokoe, 2021). The safety is the paramount consideration for
the traveller as security is major problem in the growth of tourism. The foreign tourist is affected
adversely with the improper law & order, terrorist attack etc. despite the economic growth,
tourism is vulnerable to natural and man-made crises which affects the tourist destination. It is
considered that tourism can be affected with natural disasters that interferes with the ability to
operate normally. The performance and productivity of the business is affected as tourism
industry is highly competitive in nature which is considered as major challenge.
The regulatory and broader issues is being issue in tourism industry such as visa process is
seen hindrance. The difficult visa process keeps the tourist away from some destinations. With
this there are number of tourism project infrastructure segment and hotel industry are delayed
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because of non-attainment of licence. The issue of tourism and tax is being seen in hospitality
and tourism industry as it is recognised to high taxed industry across the world in which different
types of taxes are levied. The taxation system prevails in tourism industry is different for every
country which hampers the overall growth (Singhania, Swain and George, 2022). Infrastructure
is considered as issue which hampers the development and growth of tourism due to the lack of
good infrastructure in terms of quality of hotels and poor connectivity which makes tough for
traveller. The lack of funding impacts on the tourism industry as there is low generating of
revenue which is not reinvested leading to lack of infrastructure which becomes a major
disadvantage. The change in advertising and marketing trends oftens creates problems for the
hoteliers which is big challenge for the hospitality industry in tourism development as online
deals are booked by genuine guests and major transactions are paid in advance.
Theme 4- To identify the strategies that helps in tourism development
From the above data, it is being analysed that there are several strategies which are
considered effective that benefits in the development of tourism. As the tourism industry is
regarded as most effective and fastest-growing industry, generating the majority of profits for the
entire economy in an appropriate manner. With the advancement of new technology in the
market, it is critical for business organisations to adopt new and relevant techniques that aid in
business promotion in a competitive market. In tourism development it takes constant innovation
and creativity to attract more and more tourists to use the services of specific hotels and
restaurants. Marketing plays an important role in informing customers about the qualities and
features of a particular travel destination so that they are drawn to it (Teng, Cox and
Chatziantoniou, 2021). They need to understand consumer preferences and new technologies
entering the market so that they can deal with business opportunities and challenges effectively.
To gain a highly competitive advantage in the business market, it is necessary for the company to
develop and train employees to bring new ideas and innovativeness to their work so that they can
better deal with tourists. In the context of tourism development engaging tourists in a travel
destination or hotel is the most effective strategy for developing a tourism organisation and
dealing with competition. There are various types of customers in the market who are all of a
different nature and have different perspectives on everything, which necessitates more attention.
It is critical for businesses to properly train and develop their employees so that they can
properly treat customers and benefit from the services. Educating and training employees is an
21

important task for businesses because it allows them to provide more efficient and effective
services to customers who visit the hotel or restaurant (Venugopalan, 2021).
The highlighting of place attraction is considered as effective strategy which helps in
tourism development by reaching out to a larger audience is accomplished by emphasising the
location's services and main points. When people travel from one location to another, they
generally want food, a comfortable place to stay, and a pleasant atmosphere while staying at a
specific hotel or restaurant. In order to make tourists feel comfortable, the food industry must
provide high-quality food, such as famous local dishes, as well as efficient service and a pleasant
atmosphere. Customers are the most important part of the business because they help them
increase their overall profits and revenue in the market and survive in the long run in a
competitive market. Identifying the target customers or visitors in tourism development is
considered to be an effective strategy by knowing the target audience which is critical because it
aids in developing the most effective marketing strategy for attracting more and more customers
Tourists have various requirements. Some want accommodation for their families, others for
couples, and still others for personal stays, and all of this necessitates new and innovative
thinking in order to deal with work effectively (Wondirad, Kebete and Li, 2021). Considering
customer demands, it is critical for the business to develop the tourism organisation in such a
way that they are enticed to stay and receive services more willingly. The use of social media for
promotion is important strategy for dealing with a competitive market effectively. Creating
engaging and innovative content on social media sites aids in attracting more customers to use
the services of that particular hotel or restaurant when travelling. This increases the level of
profitability and revenue of the tourism industry in the market, allowing them to develop and
implement new changes to make tourists more comfortable. It is critical for the business to
develop more stable tourists so that they can attract a larger number of customers to use the
business's services.
Conclusion
From the above data, it is being concluded that tourism is the large industry in the
economy in which people travel for the rest and relaxation, leisure. It is movement of people
which boots the economy growth and development by increasing employment opportunities,
developing infrastructure and generation of revenue etc. With this from data analysis, tourism
industry faces several challenges such as tourism & tax, high rate of competition, cost of
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vacation & inflation etc. To overcome there are several strategies which leads to development of
tourism such as engaging tourist, use of social media platforms etc. Tourism is a growing
industry that helps to provide a living for various people so that they can live their lives properly
and effectively. There are various types of tourists in the market who like various places and are
drawn to them because of the quality and beauty of that particular place. It can also be defined as
a proper and effective travel industry for leisure, business, or recreational purposes.
Chapter 5: Conclusion and Recommendation
Conclusion
It has been concluded from the current research is that tourism signifies the term in which
people tend to spend their time away from their home in order to pursue relaxation, recreation
and pleasure. As tourism activities has been increasing all over the world, it significantly
contributes to the commercial provision of services. Tourism mainly covers activities of people
who roam around the world as well as stay in places outside the common environment for
different purposes such as business, leisure and other purposes for not more than a straight year.
It is found that tourism industry is one of the dynamic and competitive industries that need a
constant focus on the changing needs and wants of customers. The tourism sector is mainly focus
on the customer's satisfaction, enjoyment and safety. As the tourism industry is one of the
growing industries plays a very important role in the growth and development of various factors
of the country such as social, economic and many more. It is also concluded that the tourism
sector is vast in nature and thus, involves many people that provides different kinds of services to
the tourists such as guide, travel agent, transportation and many more. Tourism provides a very
big impact on the culture as different people interacts and communicates with each other who
have differences in languages, religion, beliefs, social norms, values, art, food and many more.
Such differences sometimes may provide a good impression on the people when interacting with
different kind of people as they make a good relationship with people living in other place.
Whereas, it may also damage the emotions of people if culture of one is not understood by other.
Tourism encourages to bring various social services for the people who visit and roam the tourist
places. The government also support and take initiates to develop tourism sectors by focusing on
providing services such as well constructed road, bus services, new playgrounds, new sewage
systems and many more. This sector also benefits the local people of society by creating different
23

employment opportunities. Tourist places involves many types of restaurants, shopping malls
and so on in order to deliver best tourism experience. Increasing such services provides an
economic growth of the country. Tourism also involves an encouragement to culture and art. It
supports in making different kinds of commercial business that delivers positive influence on the
socio-economic factor. Tourism promotes local culture and art to attract tourists in order to
dispose their income to visit such places. Furthermore, as the tourism industry provides different
benefits to economy, it also brings challenges such as taxation, cross-border rules and
regulations, travel marketing, security regulations and many more. One of the major challenge
that the tourism industry faces is to overcome the negative impact of coronavirus as it falls down
the travel activities of the people due to which employment has been reduced, revenue has been
reduced, additional costs have been exposed and many more. It is one of the challenging
practices that needs attention of enhanced risk management in the tourism sector. Other causes
such as cost of vacation and inflation has been imposed as a challenge of tourism industry.
Tourist places involves the risk and challenge of fluctuating currency exchange rates. Lack of
understanding to identify the value of currency signifies the issue of monetary instability.
Whereas, inflation tend to increase the prices of goods and services that customers need for
consumption purpose. It is concluded that inflation can increasing the prices of flight tickets,
food and drinks prices and many more, resulting in decreasing attraction of tourists. It is also
seen that lack of skills in human resources is one of the major challenges that has been facing by
tourism sector. Destinations also needs people who are well-educated, bright, energetic, well-
trained, multilingual and many more who can identify the nature of tourism so that such
workforce can better serve to the people who are coming to the places. Thus, all such challenges
are need to be addressed by effective techniques and measures so that more tourist can be
attracted towards the destination while fulfilling their respective purposes. In this research, some
of the key strategies have been identified through which the negative impact or challenges of
tourism activities can be reduced. These strategies can be better exploitation of social media
channels, identification of right customers, engage customers towards tourist places and many
more.
Recommendation
By analysing all the discussion, it has been recommended that tourism industry can be
improved and developed by numerous ways. One of the recommendations is to use social media
24

platforms effectively. In present times, almost every individual is connected to social media
channels such as Facebook, Instagram, YouTube and many more. Marketers may use such
platforms for attaining the attraction of tourist all around the world. They may use video
marketing to reach and engage the target audience (Achmad and Yulianah, 2022). Through video
marketing, audience can effectively visualise the destinations in order to make decisions whether
they should go for the place or not. Marketers may also communicate the tour products in order
to promote the attractiveness of the tourist places. Ultimately, it helps in increasing the bookings
for the tour and other tourism activities (Dang, 2021). Also, tourists can enhance their knowledge
or get information by seeing exciting videos about the city as a whole. Some extra video ideas
cover local people providing their views into their favourite places to shop, dine and explore.
They may also give ideas to where people can roam around the city or where they can take best
photographs.
Other way to attract tourists is to bring sustainability into the destinations by minimising
the wastages, increasing eco-friendly activities, promoting recycling activities, carbon emissions
are so on. These are ways through which organisations in tourism sector can bring sustainability
to positively impact the community, environment while gaining trust of tourists. Customers are
always attracted to such places which gives less harm to the environment. It is also done by using
the natural resources in a best possible way to develop and manage tourism activities. The
education may also be provided to spread awareness on the sustainable tourism. Education
creates awareness how the actions of one can influence the environment so it is equally essential
to educate others by scattering awareness on sustainable tourism (Agaeva, Shchetilina and
Kovaleva, 2021). It has been provided by individuals, organisations, groups and even
governments to spread awareness on the same. The tourism industry can enhance their socio-
economic impact by promoting local business on the destinations. It is important to encourage
local businesses such as restaurants which signifies a sampling of locally sources ingredients on
the destination. It is a great way of interacting new people who are more likely to try something
new or traditional to the destination.
Furthermore, it is also recommended to use travel influencers to attract audiences towards
tourist places. It is one of the ways that is trending in order to influence audience to consume
services or goods. It is an indirect and effective marketing strategy to promote the country. These
influencers can be bloggers, celebrities, vloggers or anyone who has lots of fan following on
25

social media channels (Deshpande, 2021). The reason behind this is to develop trust through
such influencers who already have an involved audience. It is suggested that the number of fan
following should not be the vital element in selecting the travel influencer to promote the
country. If most of the cases, the better results can be achieved by partnering to niche
influencers. It may require little effort to find the right influencer (Bellato and Cheer, 2021). In
order to promote the destinations, giving free accommodation in exchange for a influential and
promotional blog can be a way to promote the country.
Exploring different online advertising methods is also recommended to enhance the
socio-economic impact of tourism industry. When the customer data and information has been
gathered then it is important to utilise the right platforms and show advertising to promote local
culture and religion to the target audience through third part websites or own websites. PPC
advertising can be an effective way to promote the tourist places. Through Google Adwords, one
can place the ads within the searches of the target audience such as “Book a trip India”. Paid
search provide a particular market that outcomes in increased conversion leads. Re-marketing is
also an effective strategy to reach out those audiences who are already displayed an interest into
the website or tourist destinations (Chatterjee and Dsilva, 2021). Therefore, by using all such
recommendations, the tourism organisations, groups or individuals can lead tourist attraction
towards destinations. It may also improve the socio-economic growth and development of the
tourism sector.
26

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