As argued by Kimbu & Ngoasong (2013), tourism is a collection of exercises, organizational and commercial ventures that convey a travel experience, including transportation, lodging, eating and drinking foundations, retail shops, stimulation organizations, action offices and other friendliness administrations accommodated people or gatherings voyaging far from home. Moreover, the tourism sector has been seen to the world largest industry with an annual revenue of over $ 3 trillion dollars and due to this, it has been the biggest employer in the employment sector. Economic growth has been influenced positively by the tourism industry, and this has been seen as a new global economic order and gross domestic product or the economic index has increased. As a result of this influence, many developing countries have opted to invest in tourism since the sector has the capability of boosting monetary records in a comprehensive way while contributing to the protection and conservation of the earth and giving a significant wellspring of employment (Holden, 2013). The tourism industry can restore in reverse linkages through its multisector exercises and hence makes multiple impacts that reinforce inward monetary development in a developing country.
For this sector of tourism, the bearable amount for investment start up is required since its principle items depend on existing characteristic and legacy resources, which have no exchanging confinements when contrasted with other businesses. Due to this approach, developing countries are utilizing the available natural resources through tourism which has been a form of revenue hence economic growth to the country. According to UNWTO, (2014), the tourism sector has maintained its success over half of a century, and this has been an essential source of revenue to many governments. It additionally demonstrates that 9% of the worldwide GDP is produced by tourism in immediate, aberrant and actuated effect, joined by US$ 1.14 trillion in fares encouraged by the record global landings of 1087 million travelers in 2013, a development of 5% in contrast with 2012. This is a clear indication that tourism industry forms an important and stable position in global economic scale as compared to other sectors. In 2013, tourism demonstrated intending to financial advancement when it gave numerous vocation opportunities around the world, aside from advancing upgrades in fares income and base improvement at destinations (Cernat & Gourdon, 2012). Furthermore, it is expected growth in international demand (international arrivals of tourists) for the next twenty years which would be moderate and suitable for enhancing economic growth. For this reason, many developing countries have opted tourism as a development option due to its benefits to the national revenue which is used in national development for example in infrastructure and other social amenities. Developing countries have promoted foreign investment to ensure tourism infrastructures, for example, accommodations, airports and entertainment sectors are in good order so that new visitors can get qualified facilities which would attract them to come many times. In light of the previously stated figures and the prospects for economic advancement, it is clear that tourism can convey numerous chances employment and revenue to a country.
Challenges that affect tourism sector need to be considered especially when choosing tourism as a development option in developing countries. Development of any nation is an essential element that shows progress and is used to measure the economic index which influences the living standard of the citizens. Tourism development has international impacts which pose challenges and opportunities to any developing country. Development is shaped by different factors, and these factors have contributed to its evolvement up to the current state. As argued by Chaperon & Bramwell, (2013), advancement hypotheses existed from Eurocentric-deduction which is installed in industrialist financial standards, where monetary development and business sector liberalization are put as a fundamental for improvement with the negligible intercession of the state. Momentum for development was initiated after the end of World War II where many financial institutions such as World Bank (WB) and the International Monetary Fund (IMF) purposed to lend money to damaged economies at the time. These financial institutions boosted economic growth which in turn brought impacts upon the developing countries which have stood to be positive in gross domestic product for a country. The time of advancement developed through various ideal models and these, not as matter, of course, supplanted each other; rather they show alternate points of view and ways to deal with development. When World War II completed in 1950, development emerged and different sectors that promoted growth were initiated to help nations in rebuilding their economy.
Modernization hypothesis is portrayed by a transformative way where conventional economics ought to show into advanced economies by industrialization so that improvement could be empowered by the development economy (Dent, Dubois & Dalal-Clayton, 2013). The defense of this theory was boosted with the insertion of ‘progress posts or groups’ in creating nations keeping in mind the end goal to fortify new businesses and large scale manufacturing, and with the ‘stream down impact’, where the abundance of created states would in the long run flood, achieving poorer countries as outcome. A sample of modernization theory usage in tourism advancement was found on the island of Cyprus. Tourism became a development tool as from the 1960s and this proved its potential until the Turkish invasion in 1974. National growth was positively influenced since there was the change in the employment opportunities which raised the earning of the income on workers. The tourism part of the island had a quick development and soon was merged as a mass-tourism sun-ocean destination, portrayed by a generous number of settlement offices in waterfront zones, transcendence of the UK market and with all around depicted regularity designs. Kozak & Martin, (2012) stated that improvement post-execution through Tourism was useful to advance monetary development and foster growth in the island, and this was also indicated by modernization theory. Additionally, there was monetary development as an aftereffect of mass tourism improvement, and this made an island of Cyprus be set as a nation with high human advancement signs, and the populace delighted in an abnormal state of livelihood, high salary per capita and access to social insurance in correlation with different countries. Regardless of significant improvement as a result of tourism segment advancement, there was natural entanglements and socio-social interruptions, other than a reliance on predominant outside visit administrators, which had control over the tourism request. These issues were difficult to handle, in spite of the endeavors of the Cypriot tourism commanding voices in seeking after a more supportable methodology with the new national arrangement. For instance, the German organization Preussag had control more than 30% of the entries in Cyprus and its energy impact over the kind of tourism on the island and over the costs, was in opposition to the goal of the Cyprus Tourism Organization who needed to enhance the tourism item and draw in high-spending guests whilst expanding their length of sit tight.
According to Job & Paesler, (2013), there are various reasons why tourism got to be conflicting for advancement in the island of Cyprus and this incorporate government failure in controlling tourism sector and its neglected to apply modernization hypothesis which could support the level of traveler. This area requires proper attentions mainly I regulating the flow of tourist in the country since failure to do this, huge consequences are expected to happen which would influence negatively the national income and other related benefits such as employment opportunities. For economic health to be established in developing countries, there is the need to ensure there is sustained mass tourism industry in about the environment capacity. This automatically regulates the flow tourist for the nation. From dependency theorists, there is a link between the underdevelopment of the poor countries (peripheral) with the development of western wealthier countries (core). These scholars confirm that the new monetary demeanor of poor nations (peripheral), would fill the needs of the effectively created states (core), by dispossessing financial surpluses delivered on fringe nations for capital gathering in core economies (Mason, 2015). This collection and centralization of capital have brought on the huge irregularity of influence relations in the middle of core and periphery countries, enlarging the hole in the midst of rich and poor and embracing the foundation of budgetary governments. Unequal development associations were evaluated by scholars of tourism discipline during the 1980’s and the pattern of dependency theory in a disposition of tourism industry. It is observed that transnational enterprises control the benefits generated by tourism activities and exert monopolistic power either by vertically-integrated ownership or foreign ownership. Moreover, there has been adverse monetary effects created by the repatriation of tourism use (spillages) to nations of possessed outside organizations, and a sample of this situation is Okavango Delta in Botswana. This section is a limited amongst the most critical wetlands on the planet that have an exceptional different natural life, pull in guests (particularly from created countries) to join in safaris in the area.
Transport industry, hotel sector, tourist companies and accommodations may be available in developing nations due to massive foreign investment, but a lot of revenue go back to foreign investors countries thereby reducing the overall revenue to the developing. The governments in developing countries do not collect full income from the country’s infrastructure since most of the money are directed to the countries where foreign investors originate from. The market for Botswana tourists is from Europe, New Zealand, Australia and North America. These visitors arrive by air, and all the airlines are foreign owned which mean all the payments made do not go to Botswana’s government but to foreign companies (Boley & McGehee, 2014). As a consequence of this, income gotten from air transport does not benefit the nation at all nor as to household flights that are given by visit administrators that typically own their little hedge airplanes. It is a difficult situation since the country has nothing to get despite the developed infrastructure which attracts many tourists. This case demonstrates that the vehicle division is set to address the issues of abroad guests and organizations rather than the host nation, which likewise apply little control over the volume or kind of tourism rehearsed in the Okavango Delta. Also, the lifted number of guests has an adverse effect on the wellbeing of local people and additionally their entrance to natural resources. It is also evidenced that many accommodation facilities and hotels are owned by foreign investors which pose a significant challenge for freely accessing these places as compared to local owners’ accommodations and hotels. Kim, Uysal & Sirgy, (2013) indicates that 53.8% accommodations are owned by foreigners, 27.7% are joint ownership with Botswanan citizens and only 18.5% that belongs to Botswanan citizens. Since many housing facilities and hotels are owned by foreigners, a government has no ability to reap the benefits.
Visitors who travel to Botswana fast pay full expenditure to their country, and this means that Botswana gets the small amount of income from most of the visitors. Most of the companies in the tourism industry are from foreign countries, and they have grown to a point where they can control the market, therefore, upcoming local enterprises in this field would not be able to withstand the standards, and this means they will automatically quit from functioning (Sharpley & Telfer, 2014). This has created a big blow for upcoming local investors putting the government of Botswana in economic decline since local investors who would generate revenue are unable to thrive the market field because of the high competition. Although there was economic neoliberalism which reduced state intervention and enhanced international trade many developing countries remain as nations without full power to influence the global market due to high foreign investment in their countries. For a country to access loan from financial institutions such as World Bank (WB) and International Monetary Funds (IMF) they have to comply with Structural Adjustment Programs (SAPs) which restrict nation ability in using the finances correctly because of the tight regulations that only favour the financial institutions (Liu at al., 2012). So as to advance improvement and fortify aggressiveness to take part in the worldwide economy, there has been the foundation of a corporate globalization which has forced neo-liberal motivation on countries. There has been dominant in power for transnational corporations in tourism, and they have controlled the supply chain in developing countries, as well as the type and volume of demand, and all this is brought by their domain direct sales and marketing links in the developed countries. Gössling, Scott & Hall, (2013) urges that a significant portion of the nations that welcome outside venture, for example, Cyprus and Botswana and, in the meantime bring credits with supranational money related foundations, stay in an endless loop that ‘s hard to move far from, sustaining unbalanced influence relations in the middle of developed and developing the world. As a result of this, many countries earn foreign currency which is used to pay off the foreign held debt, and this prevents a government from increasing country’s saving and investment which is necessary for the welfare of the public in the country. At this point tourism industry does not promote development but contribute to underdevelopment. These are no money that can be used for establishing social amenities and other essential facilities for a developing nation. Additionally, there has been an imbalance of power relations, and this has caused a drift in social organization in the world. For this situation, services industries have increased, and the owners are foreign investors who have the necessary equipment essential for the progress.
Capital is a key consideration for development since money will be used to cater for the expenses and other tools needed for the company to compete in a competitive market. For countries to be sustained in a global economic environment, they have to compete with the developed countries and withstand their market position, and this has posed a huge disadvantage to developing countries (Ghimire, 2013). Due to this condition, developing countries would remain in a level of increased poverty since they are unable to compete with developed nations. The governments in developing countries will not be in a position to enforce rules that protect its population or their environment from transnational corporations who exploit their available resources. Poverty has additionally been found in locales of wealthier nations, and this demonstrates the distinction in social classes in which underestimated social-financial gatherings are barred of exercises reasonable just for a few, this can incorporate relaxation and tourism (Lanfranchi, Giannetto & De Pascale, 2014). An illustration is the United Kingdom where it is the sixth biggest economy in the world but, 1 in 5 individuals of the aggregate populace live beneath the official destitution line. Due to globalization for example in telecommunication, socio-culture life and production there has been an ever-increasing demand for tourism in the modern world. The tourism sector has been seen to thrive in countries with advanced technology in areas of transport and also in richer nations for example in western countries. Use of internet has allowed many people to research on the available natural sites all over the world and precise information relating to the require feature has well been illustrated. In this way, cultural differences can be appreciated by different individuals who come from other nations (Stephenson, 2014). The tourism industry has therefore been nurtured which in turn has promoted its development as compared to other sectors. Be that as it may, because of the data scattered through the web, individuals can perceive the adverse effects created by the standard sort of tourism and are taking an interest in less harmful types of tourism.
Some tourism corporations are driven by profit-making motives, and they have used the internet in disseminating inappropriate information on the services they offer. They have acquired momentum and power which has hindered other potential and appropriated investors to venture in this sector of the tourism industry. Sustainable development and global awareness regarding climate change are a concern since man has made exploitation of the environment. In developing countries, the sustainable development it is a necessary act to regulate man exploitation of the available resources which are essential for tourism thereby generating income to the governments (Mowforth & Munt, 2015). Future generations need to be protected from over-exploitation of the natural resources which poses the high threat for their survival. As a result of this, the UN World Commission on Environment and Development (WCED) structured an important document which formed a reference point for governments, civil society, and businesses when it comes to issues of sustainable development. Moreover, Millennium Development Goals have been a vehicle for public awareness on matters of climatic change and sustainable development. According to Boley & McGehee, (2014), all these methodologies focused on endogenous economic advancement in communities Furthermore the requirement for independence from the impacts of prevailing force squares. In the tourism industry, supportable tourism has been drawn from top-down or bottom-up viewpoints. In alternative forms of tourism, community-based tourism (CBT) can be coordinated alongside other forms of tourism for example nature-based tourism, pro-poor, adventure tourism and rural tourism which create an immersive experience for the visitors. The Buhoma-Mukono Community-Based Tourism venture in Uganda shape a sample of base up way to deal with improvement in the option advancement worldview. The place is populated with 5000 people and is divided into 11 villages, and this is in the proximities of the Uganda’s Bwindi Impenetrable National Park’s (BINP) (Mitchell, 2012). These groups used to subsist chiefly from farming, which demonstrated challenge taking after a few starts for protection and conservation of the National Park, including its fauna, verdure, and the imperiled mountain gorillas.
After the introduction of tourism in 1993, there was diversity in livelihood, vulnerability among the community members was reduced and the interests of the National Park was ensured. Moreover, there was the initiation of Buhumo-Mukono Community Development Association (BMCDA). Thus, this affiliation has acquired improvement in the region through employment, upgrade of social administrations for instance education, wellbeing, and reinvestment of tourism benefits on the communities’ projects and the keeping of the environment (Chaperon & Bramwell, 2013). Individuals in the community as a result of tourism development were able to enjoy the full benefit from the tourist through the sale of their produce and other items. The living standards were able to change, and a new life was developed. There was an investment in other businesses which generates more income for the families. Social amenities such as schools, hospitals, and banking services were introduced, and this made the region develop at a high rate. Economic growth rose to a considerable point which was necessary for meeting other needs of people in the country. From the income received through tourism in the region, 92% was spent on the benefits of the communities. The proceeded with achievement in this endeavor is connected with accessibility of the prepared business sector, presentation to the web, critical area, capacity to serve as a distinct option for extravagance housing, compelling linkages, other than being based on solid institutional preconditions, which thusly, add to perform approaches results (Holden, 2013). It is important that communities are well organized to achieve success, and to be seen by the proponent in a wider perspective, taking into consideration not only tourism interests but also the interest of the communities as seen in the case Buhumo-Mukono Community Development Association.
Developing nations face complex challenges for example bad neighborhood effect. From the case study of Nigeria, peace and security forms thriving environment for the tourism industry. Tourists would not be comfortable to travel to countries where personal safety is a problem since they are mindful of their belonging. Developing nations with a desire to assemble a fruitful tourism industry need to handle internal instability and give a protected domain to potential visitors (Plummer, 2016). This is an essential consideration that many developing countries have failed to establish due to national insecurity in the neighboring country. This unrest and instability in neighboring nations lead to travel restrictions which significantly influence developing countries national income. Nigeria has experienced political instability, ethnic rivalry, crime, and violence and this has been a challenge in marketing tourism to the world market. The United States has given intrepid traveler pause to its citizen due to the dangers of violent crimes in Lagos and other large cities in Nigeria. Furthermore, there have been series of terrorist attacks in India that have targeted more profile sites owned by foreign investors. An example is an attack that happened in Mumbai in November 2008 which ended up the steady rise in international arrivals seen since 2002. Only a few tourists arrive at such nations thereby influencing their market volume which in turn affect negatively the employment opportunities. As argued by Spenceley, (2012) another challenge for developing countries to choose tourism as a development option is investments. For tourism industry to thrive there is the need for improved infrastructure which would promote the conducive environment suitable for tourism. Poor countries need to prioritize the search for capital investment for them to build airports, hotels, roads and leisure facilities which would attract visitors in large numbers. local communities are not able to access the opportunity for investment in the tourism industry since many procures and protocols are followed in arriving at the actual point of investment. Moreover, to work in any foreign hotel, one needs to know much about different nationalities, and all this require training which to a local individual is expensive to get. Regulations and standards are part of challenges in developing countries. Basing argument from India case study, laws and regulations need to put in place to ensure local communities benefit and prevent them from being exploited by the foreign investors. These laws need to be functional to protect the environment from overdevelopment and also be used to safeguard the land, property and livelihoods of communities affected by tourism (Stephenson, 2014). All the laws affecting tourism need to be applied and enforced. In developing countries these laws are not strictly followed since many of the institutions are not vigorous and productive either at national and local levels. Available resources are likely to be exploited till completion resulting in exhaust and closure for tourist sites, and this destroys the economic growth in developing countries. Since standard and regulations are not followed accordingly, tourist developments are owned by foreign investors whose aim is to make quick profit rather than providing sustainable growth over the long term. This has been experience in India as the case study indicate. Tourism has undermined to fulfill the Millennium Development Goals and as a result gender equality has negatively been affected due to problems associated with mass tourism for example prostitution and wage exploitation (UNWTO, 2014). Most of the tourism sectors have destroyed traditional livelihood, and this has caused many people with no option other than to take up low-paying and exploitative jobs in the tourism industry. In Indian case study, legislation designed to protect ecologically fragile areas from development has been ignored. For instance, In Goa, hotels and resorts have sprung up along the coast in clear violation of the rules. Moreover, Chanchani has criticized the state government of Maharashtra and Himachal Pradesh for bending rules about land in order to clear a way for large tourism developments.
Structural leakages in developing countries is a challenge. For developing countries to maximize their revenue from tourism, they need to capture more tourism spending and limit leakage (Winters, Corral & Mora, 2013). Employment opportunities may be created for local communities, but the profit earned by the foreign investors go back to their original countries. Host communities may opt to keep tourists happy, and this means they have to import the foods and drinks that are favorable for them. The money goes to other countries instead of used to develop the host countries. Where there is homegrown tourism, revenue received can be utilized by the government to support projects which are necessary for economic growth which would change the living standards of the individuals in the communities (Page, 2012). Developing countries need to look for ecotourism rather than tourism numbers. To overcome this challenge, governments need to emphasize and implement sound principles which favor ecotourism rather than fixating on increasing tourism numbers. With high-quality ecotourism revenue will grow, and harmful social and environmental effects of uncontrolled mass tourism would decrease (Gössling, Scott, & Hall, 2013). Communities will be able to enjoy the conducive environment that gives opportunities for individual growth. This avenue would be suitable to act as an example to other developing countries, and this will also fetch value to the tourism industry. The National government needs to have qualified leaders who would take the country to the next level. Strategic oversight is a challenge which needs to be evaluated for developing countries to withstand tourism as a development option. Because of poor planning, fragmented policies and poorly thought-out strategies, many countries have failed to reap the revenue that is gotten from the tourism industry. The Proper budget for all income need to be accounted for and local communities need to have a clear understanding of the quality strategies for investment (Sharpley, & Telfer, 2014). Developing countries have left local communities without correct information on areas to invest to boost the economic sector. From Nigeria case study, the government does not possess reliable figures indicating the number of international arrivals and departure from the country. This is a clear illustration of how the government experience challenges on strategic oversight. Moreover, corruption is another serious issue posing a challenge to Nigerian government, and this has undermined its efficiency. Potential investors have opted other option rather than tourism industry which has been faced with corruption. Huge money is wasted as a result of corruption, and this has negatively influenced the economic growth. The money that could have been used to finance important projects in the country is drained by individual people who have embezzled with these funds.
There are nations that have no other choice separated from developing tourism, however from those that have different options, the prospect of improvement and the diminished requirements for putting resources into this industry still speak to an alluring option. The foundation of a little scale entrepreneurial class is a need if tourism is to be viewed as an industry equipped for advancing maintainable advancement in the developing world. Tourism is a flourishing worldwide industry with the ability to shape developing nations in both positive and negative ways. The tourism segment has stayed vigorous regardless of the transnational difficulties affected by terrorism, wellbeing pandemics, and the worldwide monetary crisis (Kimbu, & Ngoasong, 2013). It is up to developing countries to grab the open financial doors that foreign investors present, and a few nations have demonstrated more proficient than others at doing so. Elective improvement represents a confident viewpoint for the tourism business, despite the fact that it requires a sophisticated organizing and cooperative attitude of those in the position of arranging and executing tourism, which would be driven by honorable qualities and ethics. Given the way that each destination has its particular characteristics, a base up methodology can secure a more suitable structure for utilizing the financial advantages of the action while regarding the breaking points of the typical habitat and giving reasonable conditions to defending human rights, subsequently tourism can be viewed as a practical device to advance economic improvement (Lanfranchi, Giannetto & De Pascale, 2014). Tourism can just accomplish the suitable objectives if it regards the environment and places host communities at the focal point of the advancement process. Obligation lies with the legislatures of developing countries to guarantee that tourism grows in a feasible way.