Types of Trade Affecting the Tourism Industry
Tourism is a rather diverse industry that depends heavily on international trade. The international tourism industry has specific properties: the presence of a resource orientation for the location of tourism enterprises, seasonality in the provision of services, and the development of information infrastructure. International tourist operations are not only a factor in the formation of foreign exchange income but also an important factor in increasing the prestige of the state. The example of Thailand shows that trade openness positively correlates with the demand for international tourism services (Chaisumpunsakul and Pholphirul, 2018). By stimulating specific types of tourist trade, the country can strengthen its position on the global scale, which, in turn, provides an incentive for further development of the sector.
Effects of International Trade on the Tourism Industry
The exchange of international tourism services between countries, as well as the exchange of goods, is a part of international trade and has a significant impact on a country’s exports and imports. For example, the provision of first aid to a tourist in the host country is an export for the host country, and the things that tourists purchase abroad are considered an import for the country of origin of these tourists. International tourism is also an active generator of international trade of goods and services in other sectors of the economy. Cherkasov et al. (2017) add that “international tourism not only boosts inflows of foreign currency into the country but also ensures employment for the population and helps make rational use of domestic resources” (p. 1166). Many countries satisfy the needs of foreign guests with the help of imported products and services, and the development of tourism infrastructure in the country can also stimulate the import of various building materials, raw materials, and technologies.
“Winners” and “Losers” of Transactions
Absolute trade advantage plays a decisive role in international tourism as it provides countries with specific attractions for tourists. Some countries have unique tourist resources: exceptional natural places, such as Niagara Falls in the USA, Mount Chomolungma in Nepal; or monuments of art – the pyramids of the pharaohs in Egypt, the Taj Mahal in India, the Acropolis in Greece, the Colosseum in Italy. Unique natural monuments and works of art created by man determine the monopoly position of a country and encourage foreign tourists to visit. Such a country can further strengthen its absolute advantage with an innovative policy that allows it to create specific tourism products and thereby secure a good specialization in international tourism.
Should “Losers” Benefit Too?
Countries whose citizens engage in outbound tourism gain various advantages from it, although these advantages differ in nature from those of the host countries. The question of whether the income of “winners” and “losers” is equal and balanced is not of a social nature – it is regulated by specific trade and tourism agreements and laws. For example, according to Khalid et al. (2021), “all types of regional trade agreements have a positive and significant effect on bilateral tourism flows” (p. 1391). Thus, society has no leverage to influence any part of it: the adjustments and changes should come from economic assessments of the trade conditions and legal treaties between countries, as well as from the state’s own support for the tourism industry.
Summary
International trade and the tourism industry are deeply interconnected and can stimulate each other through various economic opportunities. The development of the tourism sector should always be based on the principles and laws of international trade and strive to maintain mutually beneficial relations between countries to facilitate further exchange. By drawing on their unique advantages, such as specific places or monuments that can interest students, countries can strengthen their global status and improve foreign income flow.
References
Chaisumpunsakul, W., & Pholphirul, P. (2018). Does International Trade promote international tourism demand? Evidence from Thailand’s trading partners. Kasetsart Journal of Social Sciences, 39(3), 393–400.
Cherkasov, I.L., Seredina, M.I., Mishurova, O.I., Adashova, T.A., Lebedeva, O.Y. (2017). The Effect of international tourism on the Development of global social-economic Processes. Journal of Environmental Management and Tourism, 6(22), 1166-1170.
Khalid, U., Okafor, L. E., & Burzynska, K. (2021). Do regional trade agreements enhance international tourism flows? Evidence from a cross-country analysis. Journal of Travel Research, 61(6), 1391–1408.