MODULE 3

A. Entrepreneurship in Tourism Sector

Many economies around the world rely on tourism to thrive. After fuels and chemicals, tourism is now the third-largest export sector in the world, ahead of food and automobiles. International travel has greatly increased during the past few years, reaching a peak of 7% of global exports in 2016. Tourism has many advantages for places that host visitors. The economic benefits of tourism include increased revenue, thousands of new employment, improved infrastructure, and a sense of cultural interchange between visitors and locals. Cultural contacts between tourists and locals are fostered by tourism. Exhibitions, conferences, and events frequently draw visitors from abroad. The usual revenue sources for organisational authorities are registration fees, gift sales, showrooms, and media copyright sales. Furthermore, visitors from other countries enrich and diversify the host country. Foreigners can learn a lot about other cultures through tourism, but natives can also benefit greatly from it. Young entrepreneurs can launch brand-new goods and services that are unsustainable for just the neighbourhood's population. Additionally, locals profit from what tourism does for their nation.

1) Effect of tourism entrepreneurship on the economy

Tourism entrepreneurship can have a positive impact on the economy in a number of ways. For example:

Create jobs

Tourism businesses create jobs in a variety of sectors, such as accommodation, transportation, food and beverage, and entertainment. These jobs can provide a livelihood for people in both developed and developing countries.

Generate income

Tourism businesses generate income for businesses, governments, and individuals. This income can be used to create jobs, invest in infrastructure, and improve the overall standard of living.

Increase tax revenue

Tourism businesses can increase tax revenue for governments. This revenue can be used to fund public services, such as education and healthcare.

Promote exports

Tourism businesses can promote exports of goods and services. For example, tourists may purchase souvenirs, food, and beverages that are produced locally.

Improve the balance of payments

Tourism businesses can improve the balance of payments by generating more foreign exchange than it costs to attract tourists. This can help to reduce a country's reliance on foreign debt.

2) Social aspects of tourism entrepreneurship

Tourism entrepreneurship can also have a positive impact on society in a number of ways. For example:

Encourage entrepreneurship

Tourism entrepreneurship can encourage people to start their own businesses, which can lead to economic growth and job creation.

Promote cultural exchange

Tourism businesses can promote cultural exchange between tourists and local people. This can help to break down stereotypes and build understanding between different cultures.

Protect the environment

Tourism businesses can be encouraged to protect the environment through legislation and other measures. This can help to ensure that tourism is sustainable and does not damage the environment.

3) Tourism legislation on entrepreneurship

Governments can play a role in promoting tourism entrepreneurship through legislation and other measures. For example, governments can:

Provide financial support

Governments can provide financial support to tourism businesses, such as grants and loans. This can help to reduce the risk of starting a tourism business and make it more accessible to people from all backgrounds.

Provide training and support

Governments can provide training and support to tourism entrepreneurs. This can help them to develop the skills and knowledge they need to start and run a successful business.

Create a favorable environment

Governments can create a favorable environment for tourism entrepreneurship by simplifying regulations and providing access to markets. This can help to attract new businesses to the tourism sector and create jobs.

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