Economic Perspectives: Tourism Impact on the Indian Economy

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Running head Economics Perspective
Economic
Perspectives 2019

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Economics Perspectives
Economics Perspectives
Name of the Student
Name of the University
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Economics Perspectives
Contents
Question 1…………………………………………………………………………………………………………………………………….3
Question 2……………………………………………………………………………………………………………………………..……..5
Question 3………………………………………………………………………………………………………………..………………….6
Reference…………………………………………………………………………………………………………………………………….10

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Answer 1
There are vast tourism impact and the changes that can be seen in the Indian economy which are
below-:
Employment: Due to the increased tourism, it has resulted in the increase in the employment
opportunities along with the more tourism that can also provide a rapid employment opportunity
with respect to the local people (Baum, 2016).
2. Growth of the Service Sector: The country has been experiencing extensive growth and
the Services sector model that is related to the tourism sector and it can get out of the tourism
sector. This would also be due to a large number of businesses that would be examined with the
service sector includes the airlines, hotel, surface transportation, etc. that also experience
significant growth.
3. Foreign Exchange earnings also lead to significant earnings and the more income contribute
to the foreign exchange connections. It also helps in boosting and preserving the economic
reserves in connection to the region and it also results from the increasing of the income along
with the stepping to introduce the disposable income. To connect at a better place of the
improvement to the urban and the rural areas it also has to step and improve on the positive
image to connecting it to the area
4. Recreation: It would help to relate and experience with the reception and the connection to
the industry. it would also lead to providing better local facilities and it would also help in the
relating and creating a better education along with introducing better leisure facilities and it
would help to connect with the organizing frequent social events along with introducing a better

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Economics Perspectives
lifestyle which would help to the local people. It can also result in the tourist's connection and to
mix with people that belong to the diverse backgrounds and it would also help to connect with
the cosmopolitan culture that would help to relate with the region. It would also be integrated
and allow to evaluate how to have better services and also be able to examine the varied
employment opportunities that can be related to the region.
5. Economic growth: It would help to boost the economic growth of the Indian economy.
6. Meet new people: This also extensively been related to examining how they would be Indian
people who would be connected extensively with the local people that can focus to build on
international relations (Baum, 2016).
The country India has a true interpretation of the cultural aspects along with the impacts of the
Tourism. It has been observed that tourism, is one of the most significant attributed to the
industry that can also work in connection to the improvements in the economy. The social and
the cultural aspects in connection to the tourism industry and the relation to the economy would
be examined through the Tourism industry.
Answer 2
Tourism can lead to negative outcomes such as the below-:
Loss of Potential Economic Benefits :

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Economics Perspectives
As the tourism is one of the most capital intensive industry and includes the extensive use of the
local resources, along with the key abidance to the immediate tourist facilities and also
subjective to the transfer of the airport, services roads, bridges and with the sewage or the
electricity which would made by the efforts of the government or private enterprises, it would
lead to the lack of the development of the rural and widen the gap between the urban and the
rural (Baum, 2016).
There can also be an extensive contribution by the locals and there would be no incentives or the
benefits to aid the local people.
There would also be potential foreign exchange earnings that would be reduced evidently in
connection to the imported goods and services that can be related to tourism.
Economic and Employment Distortions :
It can cause employment distortions as some of the tours may be more connected to the specific
industries or the sectors such as the agriculture o the fishers, it can result in the higher wages to
be paid to such industry in lieu of the migrant workers who would be bearing a loss of potential
economic benefits (Baum, 2016).
It can even cause an imbalance on the small scale and the large scale industries due to the
extensive use of the one large sector or the enterprises creating disparities and the issues.
Inflation and Loss of Amenities for Residents :
It can also cause inflation as the more money is coming from tourism and the foreign tourists
would be paying extra for the overvalued goods and services in comparison to the local people. It

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would also lead to price shooting, causing heavy traffics and also cause. imbalance in the local
amenities due to the over-consumption of the resources.
Fluctuations in Productivity Index :
Due to the tourism which is the seasonal phenomenon, it can also cause steep climatic changes
along with the issues of the international and domestic political situations, that would connect
with the world economy (Chen, 2016). It would also cause a low productivity index due to the
given industry that would be connected with the offseason and in connection to the national
economy.
It can lead to the epidemic spreads, wastages and the overburden to the existing resources.
Cultural Impact :
Due to the extensive tourism mix, it can cause the change of the local and the domestic people.
They may get influenced and may also be significantly be integrating the western culture.
Waste Disposal Problems :
It would cause littering of debris if there is no rules and regulations to control the wastage and
the disposal of the solid waste. It can even lead to the degradation of tourist sites (Chen, 2016).
Answer 3

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Economics Perspectives
To examine the recommendation of the Tourism industry on the Indian economy it would be
reviewed on the basis of the follow basis-:
Social & cultural impact is more related to how it would be able to create in terms of social
changes and how to would be interpreted from the attributes of the lives of local people along
with the essence of the improvements in relation to the infrastructure, lifestyle changes, etc.
TO determine how the economic impact would also be examined in connection to the terms of
monetary benefits, it would also be related and examined in terms of the overall economic
development that can connect to the given society.
Environmental impact helps to examine how there would be a related nature along with the
contradicting areas (De Grosbois, 2015).
Social & Cultural Effects (impact).
The tourism may be examined in the evaluation of the different social and cultural aspects that
would be dependent on the life and the region in connection to the strengths of a given region.
There can be related impacts of the positive or negative.
Positive Impact:
The tourism industry not only churns out huge money but it also helps to procure and secure with
the given dynamics of the local heritage which would be injected into money which can be
connected invested per the examination to the presence of the local heritage, It would also be a
step to improve infrastructure (Eid, 2015). it would also lead to providing better local facilities
and it would also help in the relating and creating a better education along with introducing

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better leisure facilities and it would help to connect with the organizing frequent social events
along with introducing a better lifestyle which would help to the local people. It can also result in
the tourist's connection and to mix with people that belong to the diverse backgrounds and it
would also help to connect with the cosmopolitan culture that would help to relate with the
region. It would also be integrated and allow to evaluate how to have better services and also be
able to examine the varied employment opportunities that can be related to the region.
Negative Impact:
With high tourism, ti can result in the heavy traffic within a given region. it would also lead to
the bad infrastructure and can impact the people that would connect and lead to the increased
rush which would also be evaluated with the overcrowding or due to the poor sanitation and can
channelize to the diseases due to the tourists that can infect the local people. It also causes an
intrusion due to the outsiders and in connection to the area that would disturb the local culture
and also relate to the negative impact on the people.
Recommendation
It is important to keep the local people that can relate to the lifestyles of tourists and for the
government to introduce the best ways to preserve the native customs and traditions. It is
important to impart knowledge within the tourism industry ad to preserve the core ethnics values
of the country (Eid, 2015).
The environment is the influence of the internal and internal factors-:
Positive Impact:
it would lead to the development and the more attractiveness along with the incentives t build on

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the overall beautification connection to the surroundings along with the need of the regular
planting in relation to the trees and landscaping that would lead to the aesthetics. The
government would also be investing and creating a huge investment that can help to channelize
with the sitting areas having proper sanitation, drinking water
Negative Impact:
Tourists may cause a negative interference and there would be imprudence as the government
may also step in overdeveloping the given area which may not be the correct cost of nature. It is
a so as local people would like to preserve the flora and fauna would lead to the disruption, as the
government would be using extensively the natural resources and deplete the natural resources.
interference with nature (Guimarães, 2015). Overdevelopment comes at the cost of nature. There
may be damage and create an imbalance ecological environment
Recommendation
The government should step for the beautification and also introduce environmentally friendly
policies. they should introduce restrictions who could preserve the environment and does not
affect them.
Economic Impact
tourism industry helps in value aiding the economy of the country such as it is the major
contributor the imports goods and services and also helps in increasing PPP & GDP.
Positive

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GDP, PPP, better education system and better development policies and the growth are also
positive aspects of the tourism, It also helps in boosting and preserving the economic reserves in
connection to the region and it also results from the increasing of the income along with the
stepping to introduce the disposable income. To connect at a better place of the improvement to
the urban and the rural areas it also has to step and improve on the positive image to connecting
it to the area (Han, 2015).
Negative
Tourism helps in the Indian economies to boost the income, but with the depreciated currency, it
can cost the Indian economy to pay extra in services which they are not repeating in the cost It
would be overexploitation of the resources and the uses.
Recommendations
The government should introduce the friendly taxation policies and should also aim to improve
the national balance of payments along with the earning revenue that would help to undergo with
the direct taxation that would be purchased form the indirect taxes and forming to the goods and
services purchased by the tourists.

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Economics Perspectives
Political effects
The bureaucracy and political enrichment should always be in support of the tourist-friendly
policies.
Positive
To understand the virtues of international tourism it also has to introduce and also evaluate the
process of the force for peace that can connect to the nations and would be subjective to the
utopian image. It would also be dependent on the Long-haul travel that can connect to the
developed and developing countries that can contact each other (Sigala, 2017).
negative
As the people do have a different background and it would also lead to having a contrasting
lifestyle along with the levels of income. It can also create and widen the disparities.
Recommendation
To preserve the local traditions and the customs the government has to ensure strict action that
tourists would be able to abide by. There should be criminal based activities or the non abidence
of it (Tan, 2017).