Being of a labour-intensive nature, tourism is a major contributor in generating employment, which has a significant multiplier effect even on its related sectors
Though tourism represents ten per cent of the global Gross Domestic Product (GDP), one in ten jobs and seven per cent of the world’s exports, the sector is usually undervalued, especially in addressing unemployment problems. As per a 2017 United Nations World Tourism Organization (UNWTO) report titled, “Tourism and Sustainable Development Goals — Journey to 2030”, given these numbers, tourism has a decisive role to play in the achievement of the UN’s 2030 agenda, which is “Decent Work and Economic Growth.”
Being of a labour-intensive nature, tourism is a major contributor in generating employment which has a significant multiplier effect even on its related sectors. The global travel and tourism sector grew at 3.9 per cent to contribute a record $8.8 trillion and 319 million jobs to the world economy in 2018, according to the World Travel and Tourism Council (WTTC)’s 2018 Economic Impact Report.
The sector has been largely untouched by the global economic slowdown while the number of worldwide international tourist arrivals on an average grew at 4 per cent or above from the last few years. However, now there is a need to devise and implement policies to promote sustainable tourism by taking into consideration the impact of climate change in relation to job creation and promotion of indigenous culture and products. The role of the industry in employment generation and entrepreneurship is often underestimated in policy formulation and implementation. And this sector is also facing difficulty in attracting and retaining human resource talent, due to the casual approach towards creating a dynamic working environment. Market uncertainties, like the collapse of a major travel firm like Thomas Cook, are another hindrance to attracting and retaining talent. According to the International Labour Organisation (ILO) 2018 data, global unemployment has reached more than 192 million, which is on the higher side and needs immediate attention of the world community. Therefore, there is a need to create conditions for more jobs. In this scenario, embracing new technology could play a key role in achieving the goal of better job creation. Tourism, primarily a people-to-people sector, with an impressive growth rate can also serve as a natural ally of the ILO’s human-centred agenda for the future of work. In spite of the notion that women face exclusion in terms of access to education and training, they play a significant role in tourism entrepreneurship. However, in the workplace in the tourism industry, one of the major deterrents faced by women is a huge pay gap, where they are paid a quarter less than male workers, even after acquiring comparable skills.
India’s first National Tourism Policy was formulated in 1982 and the National Tourism Policy 2002 was formulated with the objective of positioning tourism as a major contributor to economic growth while ensuring that environmental sustainability is maintained. Then, to cope with the widespread, interrelated global developments and advancements in the tourism sector, a new draft National Tourism Policy was formulated in 2015 with a vision to develop and position India as a “Must experience” and “Must revisit” destination for global travellers. Recently on August 15, 2019, Prime Minister Narendra Modi also encouraged Indians to explore their own country by visiting 15 domestic tourist destinations by 2022.
Globally, India has improved its Travel and Tourism Competitiveness (TTC) index and has been ranked 34th out of 140 world economies, says a TTC biennial report published by World Economic Forum. With a new Union Tourism Minister, there are expectations that the new National Tourism Policy will soon come out and help achieve newer milestones.
Although tourism creates jobs, a policy push is needed to realise its true potential and create more opportunities. Also, given the advancement in global technology, the need of the hour is to develop a holistic approach in sync with all the stakeholders from the public and private sectors, so that a gap between the skills that tourism employers need and that are taught in educational institutions, is closed. More specifically, the digital revolution and use of Artificial Intelligence should also be included in curricula to enhance skills in the sector.
Supporting opportunities for industrial experiences like internships or scholarships, along with specialised education and training will also contribute towards creating a skilled workforce for the sector. The time has arrived to embrace tourism and recognise its potential as a key sector for creating jobs.
(The writer is Assistant Professor, Indian Institute of Tourism and Travel Management, under Ministry of Tourism, Madhya Pradesh)
