Tourism's Contribution To Global Trade And Economic Growth Case Study

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ourism's Contribution To Global Trade And Economic Growth Case Study

Introduction of Tourism's Contribution To Global Trade And Economic Growth Case Study

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Section 1) Research Introduction and Foundation

Background information

A hospitality sector is a wide group of areas inside the amenities industry which comprises accommodation, food as well as beverages, event designing, and travel in addition to tourism. It also comprises inns, tourism activities, hotels as well as bars (King 2005). So, it can be identified from the above discussion that the given study is related to the hospitality industry and the topic which has been selected to further carry the dissertation is “Tourism's Contribution to Global Trade and Economic Growth.” The tourism industry in a wider sense is identified as the entire business that straightforwardly offers goods as well as services to simplify the trade, satisfaction as well as relaxation activities away from the hustle of life (Camilleri 2017). The main reason behind selecting this as the topic of discussion is due to its vastness. Tourism is considered to be as one of the important categories of the hospitality industry and presently this sector is contributing to the international business as well as financial development to a great extent. Overall the study will help in gaining an idea about how the tourism industry supports global trade in addition to financial development UK.

A study into the estimation of the travel industry's share of financial development has grown quickly somewhat recently. The causes are very justifiable - the travel industry is seen as the panacea for monetary development in numerous nations as well as in state-run administrations require an exact estimation apparatus to foster public and nearby techniques for invigorating the travel industry advancement. The subsequent writing on the estimation of the travel industry's commitment to financial development manages totally different techniques for estimating the peculiarity as well as it has been applied to a wide range of economies

Personal, vocational as well as academic rationals behind the study

The personal reason behind selecting this topic is my area of interest. I am currently studying this segment of the hospitality industry in addition to that is the reason I chose this topic. In addition to this, the topic is vast in nature which will help in getting lots of information that will further help in doing the data analysis part of the study.

The selection of this topic will help in identifying my own abilities on how I have understood the topic in addition to how the underpinning theories will be related to it. In addition to this, the vocational rationale behind this study will help in measuring the quality of the outcome of the study that will finally help in selecting the professional carrier.

The academic rationale behind selecting the topic gives the main significance of the study. As pointed out earlier that the topic is vast in nature as well as that will provide huge scope to get better information for further doing the study. In addition to this as the hospitality sector is considered one of the fastest-growing industries it will help in the professional area also.

Main aim of the study

The travel industry assists with upgrading "business valuable open doors in addition to income that might be of huge financial importance to the nearby populace. Considering the point of creation of job, the neighborhood local area might extend their profit and financial condition that might prompt a better way of life. A research aim is usually conducted to show the purposes or the ambition of the research study. It also helps in summarizing in a sole sentence of what the researcher hope to attain finally of a research study. The main aim of the research study is pointed out below:

  • To study the effectiveness of tourism's contribution to global trade and economic growth within UK

Research Objective

Research objectives can be defined as the final result which a researcher aims to attain by carrying out the study. Making influential study goals might assist the company in attaining its entire goals. The main research objectives related to the study are discussed in detail below:

  1. To study how tourism contributes to the international business and financial development of UK
  2. To study the relationship between tourism and global trade as a whole
  3. To study the relationship between the tourism and economic development in UK
  4. To study the role of tourism in international business and economic growth

Research question

Research question is a definite question that the study looks into to offer an answer to it. It stays the key of systematic examination as well as it also assist in lucidly define a way for the research techniques. The research questions related to the study are listed below:

  1. How tourism contributes to the international business and financial development of UK
  2. What is the relationship between the tourism and global trade as a whole?
  3. What is the relationship between tourism and economic development in UK?
  4. What is the role of tourism in international business and economic growth?

Section 2) Literature review

How to find relevant literature on the subject

In order to do a literature review there are some proper steps which are required to follow. The first step which has already followed in the study is creating the research questions based on the topic selected. This part is identified to be as the main segment because based on this the viewpoints of different authors based on the selected research question is carried out. In addition to this the literature review of the selected topic will also be further carried out using various reports and journals and also will be various authors idea related to the key concept (Roblek 2021).

The key literature

The key literature related to the study is mainly the different elements related to tourism. The components of tourism are vacationer sheets, travel administrations, convenience administrations, meetings and occasions, attractions and the travel industry administrations

The key concepts

 The key literature related to the study is mainly focused on the concept of tourism and hospitality industry. According to s. Luna Santos-Roldán The travel and tourism industry is a steadily extending administration industry with huge development prospective in addition to has subsequently turned out to be one of the critical worries of the countries as well as of the global local area all in all. In fact, it has come up as a conclusive connection in equipping the speed of the financial advancement world over (Roldán 2020). However as per the viewpoint of s. Emre Dilek, tourism is considered as highly difficult notion as well as might be entirely comprehended simply by accepting multidisciplinary shifts. Also the author pointed out that tourism not only enforces the social communication but also helps in creating economic development of a country (Dilek 2018). The second key concept which is related to the study is studying the relationship between tourism and economic development. Regarding this part also various authors have given their viewpoints. According to Haroon Rasoo, tourism and economic development are very much related to each other as it helps in enhancing the financial development by increasing the international monetary exchanges that directly stimulated the savings in fresh infrastructure, human fund as well as augments the rivalry too (Rasoo 2018). Also pointed out by Ding Du, the financial development might be attained by means of various monetary works considering that its extension is vital sufficient to have an important effect on the entire financial development. As a result, it has been proved that tourism is an important activity turning out to be in some nations an important support of their financial activities (Du 2016).

The key theories

The key theories related to the tourism are based on the theory of change. The concept of the theory of change within tourism is concerned on comprehending in what manner and the reason behind the modification occurs, in order that the growth program that creates the maximum part of the expansion prospective of the tourism industry. It is very much significant that there is an overall comprehension of the issues, suppositions, resolution as well as indicator for tourism.

Now considering the global business theories the most apt theory will be the theory of absolute advantage theory. In the context of financial study, the standard of absolute advantage theory can be defined as the capability of a body to manufacture product and amenities additionally effectively as compared to its rivalries. The absolute advantage theory is applicable in the selected study as it will help in identify which tourism company is providing the best services and which one is helping in the UK’s overall financial development.

Section 3) Research Philosophy and Research Paradigm

Critical theory paradigm

In this research, the approach taken is the critical theory paradigm which can be defined as the alternative paradigm that is associated with the society whose aim is to justify as well as criticize the status in the society for offering the knowledge for developing better order for the society. The reason behind taking this research is to manage the case study as well as the research report (Ryan, 2018).

Advantages of Critical theory paradigm

The significance of the critical theory Paradigm is that it mainly creates theories as well as practices developing the real change from the growth in the theoretical aspect.

  1. It will help to empower the people who have some world opinion as well as some ideological aspect for changing the situation in a social context. However, this has some potential to ratify the large-scale changes in society for small as well as big groups of people. Further, it gives an understanding of the level of communication that is used to oppress and provides different ways to foster the calculative social changes.
  2. The beliefs are considered a major part of the critical theory which mainly allows the researcher to identify the actual scenario of the activities. Theory mainly focuses on the research about the power as well as inequality in the society which act as a framework for understanding the human experience (Fraser, and Jaeggi, 2018).
  3. It also covers the cultural studies which mainly concentrate on the understanding of the real-life experience where communication plays an important role to define the positive changes in the society. It can help to lead the study in a short span of time with an aspect of dealing with the situational activities of the research. However, it also helps to understand the political economy that is based on the command level of communication.
  4. Further the critical theory paradigm also states that the communication aspect in order to look at the alternatives in the terms of oppressive communication. It gives a better idea to convey some quotes regarding the knowledge and skills for producing the social order in the research. The approach of critical theory helps to focus on the power which deals with the framework of research to consider the changes in the society. The criteria of critical theory are considered in the 3 different dimensions that allow the theorist about the way of using those strategies and their implication in society (Mertel, 2021).
  5. It doesn’t only show as well as explain some social factors but it can be oppressive for the group of powerful people in order to dominate them in the procedure of research. This is considered a huge advantage for the research and people can get a certain level of benefits in the research for enhancing the quality of the study (Moyo, 2020). Thus, it gives advantageous outcomes after the study and research.

Section 4) Research Ethics

Ethical Issues

Confidentiality - Confidentiality means all the participants have a right to their privacy so the researcher must protect personal information and data while used in the research. However, it is important to inform the participants about the risk involved in collecting the data.

Outcomes Communication- The way of communication can be considered an ethical issue sometimes due to the lack of transparency in the process of research (Facca, and et.al., 2020).

Misconduct in Research- The making of false data along with the manipulation of analysis of the data which results in the reports of outcomes is considered a type of academic fraud in the present scenario of research. It is one of the most serious ethical issues due to the scientific integrity as well as the credibility of the institution. However, it can lead to funding waste as well as resources regarding the disagreement about the research.

Voluntary Participation- It is essential to make clear to the various participants that there is no negative aspect or consequences regarding the refusal to participate in the research.

Informed Consent- It is considered a situation where all the different participants receive and manage the level of information that they require to collect for the participation. It mainly covers the study of the funding as well as a risk and benefits of the approval of the Institution (Stoll, Müller, and Trachsel, 2020).

Anonymity- The researcher doesn’t know about the participant and we cannot link the data of the participant like their name email address, physical characteristics as well as photos.

How to address ethical issues

In order to address the ethical issues, there are certain points to consider are as follows:

  1. The researcher must ask participants are agree to the confidential data and respect the privacy of people. So that it guarantees the confidentiality of the data and participants can be aware of the involvement of risk (Bunnik, Timmers, and Bolt, 2020).
  2. The process of informed consent must be followed properly so that individuals can participate in the research knowledge about the risk as well as benefits. The searcher must provide information to the participants regarding the prospective benefits of research, the incentive to them along with the limitations of confidentiality.
  3. The researcher must think about the data of participants before sharing it and consider the process of consent. However, it is important to understand the limits of the internet and technology plays an important role and savvy for online research (Sawai, and et.al., 2022). 
  4. The participants are not competent enough to analyze the risk it is important to give them a cognitive aspect to identify the formation as well as different practices and research. Further, it is important privacy as well as the confidentiality of a participant and tells them about the different Federal laws which can be applied to the research.
  5. It is important to create a positive environment among the participants so that they can feel comfortable in answer in the interview questions or focus groups and dealing with the research.

Section 5) Research Design, Methodology, Strategy

Research Design and its importance

Research Design can be termed as a framework for the market research techniques and methods which are mainly selected by the researcher. Please decide is selected by the researcher that permits them to use the different methods which apply to this study and set the studies successful in the future research. The process of research design mainly stands for the advancement in the planning of methods that are adopted by the researcher to collect actual data for the analysis.

Importance of Research Design

  • Research Design is important in the research process as it provides the influence based on the reliability of the outcomes which are attained by the study. It gives a great base for the whole research (Dannels, 2018).
  • It is required about the fact that mainly permits a researcher to bring some operations along with the smooth working. However, the research design process helps the researcher to make effective efforts by offering maximum data as well as information without spending a lot of money and time.
  • The Research Design has a huge impact on the process of carrying out research in a significant manner with the reliability of outcomes and it constitutes the base for the entire research work. It will help to guide the researcher to make their research and study in the right direction. The researcher gets an overview of the different studies and collects information from experienced people.
  • The Research design helps to minimize the level of accuracy and Research and provide a grade result based on the assumptions as well as practices. Further, it helps to get a high level of efficiency as well as reliability for the import of data in information based on the research quality (Sileyew, 2019).
  • It provides an idea about the different resources which are essential in terms of money as well as time or effort that plays an important role in the research. The Research Design is required as it helps to facilitate the clear aspect of different research options for making efficient outcomes.
  • Good research design helps to collect all the information in a single place and it can be evaluated with the help of a conceptual as well as a theoretical framework by implementing research objectives. The data collection technique must be used properly for the research purpose based on the technique of data analysis (Boaz, and et.al., 2018).
  • The research mainly develops suitability for this study based on the research question, and data collection techniques, and all of this is eventually summarized with the help of inferences based on the analyzed planning of research. It will help to assess the different opinions of people and create a valuable impact on the study.

Research methodology and its importance

The research methodology is considered as a specific process or technique which is used to analyze, choose, procedure, and identify the information about the topic. It allows the Reader a critical evaluation of the overall study with variety and dependability. It is a method used by the researchers for ensuring the valued outcomes which help in addressing the aims and objectives of the research.

Significance of Research Methodology

  • A research methodology provides scientifically sound as well as legitimate outcomes for the study. However, it helps to understand the detailed plan along with the researcher on the track of activities effectively and efficiently (McNichols, and Stubben, 2018).
  • It will allow the researcher to make some documents that are important for the research intended to achieve the researcher outcome in a given time frame. Research methodology provides a clear plan to follow and implement strategies for development in the research and planning.
  • The research methodology process helps the researcher to identify the correct methods for achieving the objectives of the study. It is important to discuss the methods with the team members before using them in the study.
  • In research methodology there is a critical evaluation of the study which plays an important role in analyzing and examining the research. It will help the researcher to get an explosion about the research effectively. There are different methods and techniques used by the researcher for the development of his study along with the various perspective (Snyder, 2019).
  • It is important for the researcher to know about the Different techniques of research methodologies so that they can develop some tests on the activities to perform in the study.

In this research, we are using a case study research strategy that is defined as an important inquiry that helps to investigate a phenomenon in terms of real-life aspects. However, the case study analysis is considered is an in-depth investigation based on a group or a single person to analyze the different factors of the study. It will help to understand the concept of research methodology and its importance to conduct the research successfully. To develop an idea regarding the research as well as provide a foundation for the research (Pandey, and Pandey, 2021). Theories about the case studies help to develop accurate opinions regarding the research topic. However, there is a specific topic regarding the case study and based on the teacher away from the research topic.

Qualitative research is a type of research methodology which is used to carry out the data collection. It mainly includes the collection of data with its analysis in written or verbal words. However, it also concentrates on the different elements like body language and visual elements which creates a detailed analysis of the observation of the researcher. In this, the researcher mainly collects the qualitative data with the help of observation, focus groups as well as interviews of people chosen by them only (Cr, 2020). Thus, the data collection technique used in the study is qualitative which is useful for developing certain ideas regarding the research methods. It will help to analyze the information and data for the future perspective and methodology. Thus, the research is incomplete without the research design and methodology to manage the different areas of study (Newman, and Gough, 2020).

Section 6) Research Methods and Data Collection

Data collection is defined as the process in which the researcher gathers data in a systematic manner that helps them in analysing and interpreting the secondary sources to come to a proper conclusion. There are usually two types of Data Collection method which includes primary data collection methods and secondary data collection methods (Cohen et al., 2017). Primary data collection Method can be defined as the process in which the researchers are successful at collecting first-hand data and information from those participants who have been helpful in conducting research. On the other hand, secondary data collection methods help research in collecting data from sources and resources that have already been published and exist previously (Cohen et al., 2017). These include sources such as articles, websites, blogs, journals, magazines, government accredited bulletin, book and many more.

Based on the methodology, the researcher will focus on gathering data through secondary data collection methods. Data will be gathered from articles and case studies and will be analysed in the form of thematic analysis where the researcher will focus on generating themes to interpret the collected data (Chu and Ke, 2017). There will be several sources that will help in understanding the contribution of tourism to global trade and economic growth which will be analysed by the researcher in order to come to a proper conclusion which will be helpful for them in enhancing the outcome of the research as well. The researcher will focus on collecting five research articles, one book and two case studies in order to analyse the significance of tourism in terms of contributing it to the Global trade and growth of economy of the country (Patten and Newhart, 2017).

Section 7) Data Analysis

Data Analysis: Thematic Analysis

7.1.1 Promoting economic growth through tourism

Tourism can refer to all the activities of visitors who focus on taking a trip to several destinations which are outside the usual environment for leisure or any other purposes. Over the past few years there has been a significant increase in world tourism, especially International tourism. According to Li et al., (2018), it has been found out that tourism is likely to impact the economy of the world in direct or indirect ways. There are significant ways in which tourism has been able to contribute towards economic growth and it has taken certain efforts in order to help measure the economic impact of these signs of tourism which includes sports tourism, ethnic tourism, rural tourism, park tourism and many more (Li et al., 2018). It can be stated that tourism has significantly increased foreign exchange earnings that has resulted in financial imposition along with encouraging various kinds of investment that took place within the business organisation. It has been able to drive the local firms in making great profit and efficiency due to significant increase in competition along with alleviating unemployment and many other factors.

There are several environmental factors which are positive and vibrant in nature which helps in creating development activities that focus on flourishing and proliferating tourism (Du et al., 2016). It has been stated that the economic growth has been properly achieved through various economic activities; taking into consideration the expansion is crucial for the organisations to have a significant impact on the overall growth of economies (Du et al., 2016). It has been found out that tourism can be helpful in leading the country towards economic development through direct and indirect effects. The direct effect includes generating revenue and Foreign Exchange in a country which is dependent on tourists. These effects include help in creating business opportunities that focus on thriving on money earned from tourism or depends on local sourcing of supplies. Winchester UK, has been able to reduce unemployment rate by hiring several individuals in their job positions to contribute towards the growth and development of the organisations along with contributing towards economic development and generating use profitability.

7.1.2 Factors influencing tourism growth

There are several factors that influence the growth in the tourism sector and provide a comprehensive understanding of experiences of the consumers in the context of tourism. These are defined below:

Physical environment: These are the physical facilities in the surrounding involving the individual and are one of the fundamental factors that have contributed towards influencing the experience of tourism encountered by most of the individuals (Liu and Wu, 2019). It is very important for individuals to feel safe and secure, such as the hotel entrance, the room they are staying in and other facilities provided to them during their tourism journey. This can also be known as socio-economic factors such as receiving accessibilities in accommodation in a proper manner where the individual are influenced by crucial factors like the amenities that they received during their trips.

Natural factors: These include the good environmental factors such as good climate, beautiful scenery and many more. There are a few important aspects that are considered by the tourist when it comes to influencing their decision to visit a place as their destination choice Liu, A. and Wu, D.C., (2019).

Situational factors: There are several factors which attract the tourist to a place which have historical and cultural factors along with religious factors as well. Most of the people are well attracted towards exploring destinations where they can experience ancient monuments, castles and palaces of earlier queens and kings (Telfer and Sharpley, 2015). Most of the people also focus on traveling to a place that holds religious importance in order to find and seek inner peace, get blessing Gurus and deteis.

7.1.3 Contribution of tourism in economic growth

It can be stated that tourism is one of the factors that is significantly growing at a faster rate than the overall economy and it is one of the crucial segments and important drivers of economic growth and employment in the country. Wellness tourism has also expanded in the Global markets which have been helpful in providing specific business opportunities to the individuals along with the companies through products to maintain health and promote essential health related items (Telfer and Sharpley, 2015). The case study is regarding the UK coastal research located in Bournemouth which has been able to contribute towards economic development by providing significant opportunities to the individual in terms of employment. It has been helpful in reducing the unemployment rate of the country along with recruiting several individuals who are skilled enough to perform specific jobs and roles within the business organisations. These individuals have been able to contribute their skill significantly towards attaining the goals of the company along with bringing profitability within the competitive business environment.

It can also be stated that tourism in international trade is one of the determining factors in the process of achieving the goals of 2030 agenda for Sustainable Development (SDGs). It has been proposed by the European Economic and Social Committee (EESC) that the stakeholders are majorly responsible in the economic sectors which are concerned in achieving these goals with the help of relevant statements of commitment (Page et al., 2017). It is also clear that International tourism has been significantly important in terms of providing economic growth along with playing a significant role in creating an understanding among peoples which has been helpful in breaking down several prejudices and providing strong support to the external impact of European Union aspects. On the other hand, it has also been found out that the sustainability of the tourism sector is usually dependent on the various forms of transport that are chosen by the countries to promote environmental friendly factors as much as possible (Telfer and Sharpley, 2015).

7.1.4 Tourism productivity and economic growth

According to the growth theory of tourism, it has been found out that export expansion is one of the major factors which have been able to trigger the growth of economics along with promoting specialisation and raising several factors of productivity by increasing positivity creating positive externalities with the help of advanced dispersal of specialised information and various capabilities (Séraphin et al., 2018). According to the study, it focuses on understanding the relationship between tourism productivity and economic growth which can be analysed for others with the help of this article. According to the results it has been found out that there is a significant contribution of the tourism industry in providing economic growth along with justifying any kind of public intervention that is necessary to be provided in the tourism infrastructure and facilities (Séraphin et al., 2018). Tourism productivity means that there will be an efficiency in which all the resources of the sector are utilised in a significant and systematic manner by relating the quantity of inputs, measuring significant decrease in unemployment rate of labour and capital along with measuring the outputs of the sector. There are several economic effects of tourism which include increased living standards of the individuals in which they are focused on adopting various lifestyles which are better suited for them (Brida et al., 2020). It also includes improving personal income and tax revenue along with creating more opportunities of employment recruiting individuals so that they can contribute their skills in attaining the goals of the organisation. Several socio-cultural impacts were also being associated with all kinds of interaction that takes place between people that come from different cultural backgrounds, have different behaviours and attitudes and maintain their relationship to material goods. With more than one billion tourists travelling to different International destinations on a yearly basis, there has been a significant increase in tourism that has become one of the leading economic sectors along with being able to contribute 9.8 % of global GDP and representing 7 per cent of the total export that take place within the world (Brida et al., 2020).

7.2 Conclusion

To conclude, it has been found out that the tourism sector has significantly been able to boost the economy of the nation along with increasing the flow of tourism by bringing in positive economic outcomes to the nation. It has been able to contribute to the Gross Domestic Product (GDP) of the country along with providing several employment opportunities to the people by reducing the unemployment rate of the country. The idea of tourism believes that individuals should visit the locations without harming any local community and nature along with building some constructive impacts on the environment, economy and society at large. In most of the countries, it has been found that tourism forms a very important source in terms of generating revenue and providing employment opportunities to both the informal and formal sectors. Tourism is one of the crucial aspects for maintaining success in the economy around the world along with providing several benefits to the nations. These include boosting the economic revenue of the country along with creating thousands of job opportunities to reduce unemployment rate along with developing the interest structure of the country and planting a sense of cultural exchange between citizens and foreigners of the nation. The government relies on tourism as they receive a percentage of their revenue so that they can invest a lot of that money in the interest rupture of the country. The government also wants the tourists to visit their country by providing them safe and advanced facilities which are required to attract bees tourists.

7.3 Recommendations

On the basis of the data analysis, it can be suggested that the outcome of the research would have been enhanced if the researcher would also have focused on implementing primary data collection methods which would have contributed towards enhancing the outcome of the research study. By analysing the responses of the participants through interview conduction and surveys, the researcher would have been able to analyse the impact of tourism in contributing towards the national economic growth and global trade in a better and significant way.

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