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Classes With News18: Tourism’s Contributions to Global Trade and Sustainable Development

For the last two years, the world has been restricted to homes. Daily activities that couldn’t be managed without stepping out, came indoors all at once — from office to grocery shopping and schools. As the world accepts the new normal, News18 launches weekly classes for school children, explaining key chapters with examples from happenings around the world. While we try to simplify your subjects, a request to break down a topic can be posted @news18dotcom.

Travel and Tourism is more than simply a fun getaway. It includes a broad range of activities, such as business travel, medical tourism, cross-cultural interactions, and more. It has thus developed into one of the biggest and most significant industries worldwide. The tourism industry has developed into a vibrant, diverse sector of the economy that is of paramount significance. Tourism, in addition to providing visitors with leisure and cultural experiences, has developed as a major trade mechanism that promotes economic growth and exchanges while also considerably increasing cross-border cooperation.

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Let us understand the business of tourism and its impact on economy and sustainability in this week’s Classes With News18.

The tourism sector was significantly impacted by the COVID-19 pandemic when both domestic and international travel was put on hold for a while due to travel restrictions, lockdowns, and safety issues. The pandemic brought to light the tourist industry’s vulnerability and the requirement for better adaptation and resilience. However, as the global economy begins to revive, tourism is once more emerging as a significant trade mechanism.

The United Nations World Tourism Organization (UNWTO) forecasts that international tourist arrivals will increase to 80 – 95 per cent of pre-pandemic levels this year. Tourism has a significant role in the framework of the world economy since it creates a lot of income and employment possibilities. The worldwide travel and tourism operations contributed 7.6 per cent of the world’s GDP in 2022, up 22 per cent from 2021, according to the World Travel and Tourism Council (WTTC).


The economic impact of tourism as a channel for international trade is one of its most salient features. Tourism directly and indirectly contributes considerably to the GDP of many countries. Tourism-related spending on lodging, dining, travel, and other services are considered direct contributions. Indirect contributions are generated by the ripple effect of tourism expenditure, which stimulates growth in allied businesses such as hospitality, transportation, and retail.

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Impact of Tourism on India’s Economy

India has been a significant participant in the world of tourism thanks to its varied landscapes and rich cultural history. India’s economy is greatly impacted by tourism, which makes large contributions to both GDP and foreign exchange earnings. Regional development has also been boosted by tourism. Significant infrastructure upgrades have made popular regions like Rajasthan, Kerala, and Goa more accessible and desirable. In addition, tourism helps rural regions by boosting local economies through community-based programmes like homestays and local artisan sales.

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Rise of Sustainable and Green Tourism

While tourism provides various economic benefits, it also confronts obstacles, notably in terms of sustainability. The travel and tourism sector is changing in favour of sustainable and green practices in response to rising environmental concerns. As in many other nations, ethical and responsible tourism that minimises adverse environmental effects and promotes local communities is becoming more and more of a priority in India as well.

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National parks and wildlife sanctuaries promote eco-tourism by supporting animal protection and providing tourists with the opportunity to admire different flora and fauna responsibly. Preservation of cultural heritage is another goal of sustainable tourism, which goes beyond environmental preservation. Such initiatives guarantee that tourist places are sustainable for future generations while preserving their distinctiveness.

G20 Summits’s Goa Roadmap for Tourism

A forum for discussing global issues and solutions was offered by India’s G20 Leaders’ Summit Presidency over the last few days. The “Goa Roadmap for Tourism as a Vehicle for Achieving SDGs” was revealed during this summit, demonstrating a serious commitment to the utilisation of tourism for sustainable development. The Goa Roadmap lays out a plan for long-term global tourism and highlights tourism’s potential to help the United Nations achieve its Sustainable Development Goals (SDGs).

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