The Relationship Between Tourism And Tourism

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Gross Domestic Product(GDP) is a tools to know economic wealth of a country. It is because GDP in known as sum of private consumptions, government consumptions, investments and net exports. So that, it potential to influence tourist arrival in a country. According to World Travel and Tourism Council (2014), the GDP generated by firms that interrelated with tourism such as hotels, travel agencies, airlines, other passenger transport services and restaurants. It shows that, the basic need for tourist to travel and It also involve satisfaction of tourist. The relationship between tourist arrival and GDP has been shown in Brakke (2004) studies, ‘the increase of a percent in GDP per capita in America causes increase in tourism demand to an average destination by approximately 1.46 percent’. GDP represents the ability of a country to allocate the recourses for increase in the demand by tourists. For example, provide facilities that make tourist more demand on it. Next, according to Brakke (2004), there is a statement which is in Hong Kong ‘a ten percent decline in service earning from tourism results 5 percent decline in annual GDP growth. In this case, it shows that the relationship between tourist arrival or demand is interrelate with GDP of a country. So that, to reach a stability in economy of country, tourism sector also plays a important role on it. According to World Travel and Tourism Council (2014), the contribution of tourist arrival to GDP is MYR70.4bn(7.2% of GDP).

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