Tourism Industry and Its Organization, Components of Tourism Industry

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Components of Tourism Industry

  • Tourism is the fastest growing industry in the world, it has different scope from other industries as its demand and supply can’t be separately distinguished, like the tourist guide is the person who help tourists to provide elaborative description of the destination, but when he is paid by the tourist, he become the end product that is the finished good for the industry, hence the demarcation is not yet clear.

  • But tourism plays an important component for the growth and development for the people as it is the import ant source of livelihood for the people. Tourism is a way by which socio political harmony could be established as it will help to promote global peace. There are certain components of the tourism industry, which are-




  • Space is the most important component as it can cover the whole world. The tourist are attracted by the nature of that place like e facilities for tourists may be transport, hotels, hygienic food, accessibility, attractions etc. in that region but if that region is notorious for terrorist attacks or theft than that place will attract less tourists. Therefore, the growth and development of tourism depends on development of tourist products in that space.

  • Second comes the entrepreneurship which is also an important component. This skill is requiring running the business. When the place is famous tourist destination, there is a need to build infrastructure. This will earn huge revenue for the locals also. Hence a collaborative approach from government and individuals need to build businesses.

  • Capital is also required to develop and run huge businesses in tourist fulfill various tourist facilities like internet connectivity, electricity, law and order etc. requires huge capital.

  • Then comes the manpower or the workforce which is needed to run the business. Workforce can be needed for transport, accommodation, food, entertainment, hospitality, tourist attraction, tour operators, travel agents, and finally tourist. So, to fill the structural gaps, manpower is the most important component.

  • Finally, the requirement is of market, where the goods and services can be brought and sold. Tourists are the consumers of services which are provided to them according to their demand and wishes. The services thus delivered become competitive at large and the struggle to deliver the best quality of products to the consumers generates demand and all these exchanges require a market. For e.g. Different components of a region like an airline, hotel, and travel agent may be competing but all of them are supporting and promoting tourism sector.

  • Hence all these components are interlinked and require the support of each other in order to flourish.

  • The industry of tourism is different from others as its inputs and outputs are not exclusive like in the case of other industries, but in this tourism sector the industry is demand driven and the products are developed according to the demand of the consumers.

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