Globalization has made tourism an easy activity, opening up some of the best attraction sites to foreigners ( Gibson, 2016). In addition, tourism enables people from different backgrounds and cultures to interact more thus appreciate and accommodate each other. Over the past few decades, the tourism industry has grown into a multi-billion dollar venture. Its contribution to the world’s economy grows by the years. Local governments have taken to expanding their tourism sector as it promotes indigenous businesses and plays a role in improving the infrastructure. Countries with popular destination cites have their presence elevated and their disposable income also grows. These governments use the tourist attraction sites to earn their revenues as well as protect their culture and heritage. European countries have benefited in the tourism sector as they have beautiful sceneries ( Pablo-Romero, & Molina, 2013) . Italy and Switzerland, in particular, are two diverse countries which use tourism to enhance their economy, as discussed in this paper.
In the ancient days, Italy was regarded as an economic power in Europe. However, things took a major turn when the Roman Empire fell. The economy started deteriorating until the government learned how to turn the cities’ beauty into an income generating activity. Today, tourism contributes significantly to the economy of the country, both positively and negatively. The country’s GDP is received from the service industry, with tourism contributing approximately 10%. The Roman Empire contributes significantly to the heritage and culture of Italy, not forgetting their artistry and contribution to modern day fashion designs ( Gibson, 2016). Italy shelters four cities that are visited frequently for their art. These are; Venice, Florence, Milan, and Rome. Every year, it has been estimated that 40 million tourists visit these cities. The local governments of these cities are often coming up with economic strategies that help boost their revenue.
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As tourists continue to stream into these major cities, so do enterprises continue to come up to serve these tourists. These enterprises provide employment opportunities for the local people, thus, reducing the unemployment rate within the country. With more people working, the productivity levels of the country go up. The transport system plays an important role in promoting and supporting tourism. With the number of tourists increasing by the year, the infrastructure levels become an issue of concern. Therefore, the country invests in having proper transport systems to ease movement of tourists to their destinations. The local governments in the four cities do their best to maintain the originality of the attraction sites. Since the sector is the county’s main source of revenue, huge budgets have been set aside for marketing purposes.
In as much as the tourism sector impacts the economy positively by bringing in foreign revenue, there are some negative externalities that are associated with it. For instance, the increase of enterprises in the urban centers to accommodate the needs of the tourists push out the local residents. This, in turn, affects the quality of life of these local residents. Education levels of people working in these enterprises are also wanting. Most employees do not need higher diplomas and degrees to tend to tourists. In addition, the country experiences a lot of crowding in seasons when tourism is at its peak, especially in small cities like Florence ( Gibson, 2016). Moreover, as the local governments strive to maintain the culture and heritage of the country, they also try and make the stay of the tourists comfortable by giving them experience as those in their home countries. This includes construction of malls and fast food restaurants that only serve to push out the local businesses.
Just like Italy, Switzerland strives to grow its tourism industry. Many people go to Switzerland due to its many recreational activities, skiing being the major one. The country started venturing into tourism from the 18 th and 19 th centuries when mountains became the center of literature and art. Switzerland marketing strategy for the tourism sector involves packaging itself to lure groups as opposed to individuals. This has aided in increasing the number of overnight stays in the country. The growth in tourism has contributed to the strength of their currency, that is, Swiss franc. The infrastructure levels have also gone high, owing to the tourism industry. The railway and roads were extended to ease tourist movement and also build more homes and hotels to accommodate the rising population. Employment opportunities have also increases, benefiting the local residents. The country continues to benefit from foreign revenues as it taps into markets in emerging countries such as India. In addition, the industrial and agricultural sectors have been given a boost by the tourism industry ( Laesser, 2011) .
As the economy of the country continues to grow, there are other factors that have a negative effect. In the early 1990s, Switzerland experienced an economic recession due to the strength of the Swiss franc. The tourism industry was affected during this period and has been struggling ever since. The transport systems in Switzerland are always congested, making maintenance a huge burden. In addition, during peak seasons, inflation hits the country hard ( Laesser, 2011). The prices of almost everything go up, inconveniencing the local residents. These factors do add on to the overall income of the country but at the expense of the local people.
For both Italy and Switzerland, tourism has become their major source of revenue, as the countries try to elevate their economies. The major advantage of tourism is reducing the need for people to travel in search for employment. The local residents are also able to enjoy the recreation facilities and activities at a reduced price. Tourism also aids in leveling out disparities between regions in a certain geographical area. For instance, in Switzerland, the Alps are the major attraction site, meaning that the country strives to develop the mountain region, and not just the urban centers ( Laesser, 2011). The major difference in the economic impact of tourism in these two countries is seen in figures of revenue generated. Due to the fact that Italy has a higher population and more tourist attraction sites, more people go to the country as opposed to Switzerland. This automatically means that their foreign revenue is more than that of Switzerland.
It is evident that tourism is essential for the growth of economies. The positive effects of the tourism sector also spill over to other sectors such as agriculture and infrastructure ( Ashworth, & Page, 2011). Unemployment is greatly reduced owing to tourism. The local governments also get to support local businesses with the revenue received from tourism. Therefore, more counties should embrace this venture and package it to attract more tourists, just like Switzerland and Italy. However, care should be taken so as not to affect the lifestyle of the local people.
References
Ashworth, G., & Page, S. J. (2011). Urban tourism research: Recent progress and current paradoxes. Tourism Management , 32 (1), 1-15.
Gibson, S. (2016). Mobilizing hospitality: The ethics of social relations in a mobile world . Routledge.
Laesser, C. (2011). Health travel motivation and activities: insights from a mature market–Switzerland. Tourism Review , 66 (1/2), 83-89.
Pablo-Romero, M. D. P., & Molina, J. A. (2013). Tourism and economic growth: A review of empirical literature. Tourism Management Perspectives , 8 , 28-41.
