Investment In Tourism Sector Research Articles

THEORETICAL ASPECTS OF THE IMPORTANCE OF INVESTMENT IN TOURISM DEVELOPMENT

The following article is about the theoretical aspects of the influence of investment in tourism sector and the national economy in tourism development.

Examination on Foreign Direct Investment in the Tourism Industry in Kerala

Foreign Direct Investment (FDI) means investment by a person or firm from one country to the business located in another country. In India the major sectors where foreign direct investments permitted are infrastructure, automotive, pharmaceuticals, service, railway, chemicals, textile and airlines. Kerala always looking for FDI in innovative tourism projects. The infrastructure developments in tourism destinations are very crucial in attracting tourists. State Govt. is expecting annual growth of 15 % in foreign tourist’s arrivals. They expect 3 million foreign tourists by 2021. To reach those expectations there is a need to promote Ayurveda, Backwaters, Adventure tourism and Medical tourism. In Kerala, the tourism industry covers 13% of the state GDP. The central govt. wants to attract 100 billion dollar Foreign Direct Investment in tourism sector and generate up to 100 million jobs. During the period of April 2000 to June 2018, FDI inflows in to the state reached 1.97 billion dollar. South Korean Govt. has shown interest in investing in Kerala in electronic hardware manufacturing, knowledge industry, basic infrastructure development, pot development and shipbuilding. Elements of tourism industry include accommodation, tourist’s sales, attractions, transportation, amenities etc. This study attempts to analyze the FDI in this various elements of tourism industry in Kerala. Secondary data are to be used for the study and tables and diagrams are used for presentation of the data.

The Role and Influence of the Tourism Industry of the Crimean Region on Economic Development

Purpose: aim of article is role and influence of tourism on development of economy at all levels of economic system (example: Republic of Crimea). The article considers methodology for analyzing indices of social and economic growth in branch of Republic of Crimea. The role and influence of tourism on economy is considered. Tasks of article: analysis of works of foreign and domestic scientists on role and influence of tourism on development of economy; to conduct an analysis of sectoral structure of gross value added of Russian Federation; describe growth of socio-economic indicators; identify stages of methodology for analyzing indicators of social and economic growth of tourist industry; to give an analysis of indicators characterizing socioeconomic growth of tourist industry of Republic of Crimea; construct dependence of amount of amounts of investment projects on number of tourists who visited Republic of Crimea. Methods: dialectical method of scientific cognition was applied in studying role and influence of tourism on development of economy, calculation and analytical methods for monitoring, measuring, analyzing and comparing indicators that characterize social and economic growth of tourist industry of Republic of Crimea. Results: in modern conditions, development of tourism sector, as a source of sustainable development of state economy, acquires priority development. The tourism industry has a huge impact on economy of region, being locomotive of development of many other branches of management and providing non-raw budget receipts. The analysis of works of foreign and domestic scientists makes it possible to talk about integrated mechanism of role and influence of tourism on development of economy at all levels of economic system and, in general, national economy of country. Its essence is as follows: gradual increase in socio-economic standard of living of country's population increases its needs for rest and leisure, which increases domestic and outbound tourist flows. The coefficient of determination R² = 0.0191 showed that 1.91% of variation of declared amount of investment projects, applications is due to variation in sign the number of tourists who visited Republic of Crimea, and 98.09% of variation is already associated with impact of other factors not taken into account. Conclusions and Relevance: spread of tourism is becoming a stimulating factor for development of tourism services sector: tourism industry is growing in budget, number of employees in tourism sector is growing. Increased investment in tourism sector leads to creation of tourist facilities and development of tourism infrastructure, increases attractiveness of national sector of tourism services. This stimulates growth of domestic and incoming tourist flows and ensures an increase in country's socio-economic development. The social and economic growth of sector as a whole is promoted by institutional support, developed state regulatory and legal regulation in sphere of tourism, interaction of public-private partnerships, staffing, diversification of tourism products through development of various types of tourism, thereby eliminating reason for seasonality of tourism enterprises and increasing income.

Analysis Determinants of Investment, Demand, and Supply Indonesian Tourism

Tourism is one of the most significant contributors to the Indonesia growth of economy, based on data from the Indonesia Central Bureau of Statistics in 2012, the share of national tourism to GDP is 13.9 percent and of course the contribution of the sector to be helpful for the growth of the national economy, through foreign exchange earnings as revenue from tourist consumption. Besides that, it has provided a multiplier effect to other sectors which related to the sectors. Therefore, the increasing of tourism investment and trade will be focus in the tourism development program to improve the contribution. Meanwhile, the Indonesia Coordinating Board (BKPM) stated the average national investment for the tourism sector is Rp. 2.73 billion or 6 percent from total investment during 2006-2012, in other words an investment in tourism sector has not been able to provide optimal contribution to the national economy development considering to its potential. The purpose of this study was to analyze the determinants of investment, demand and supply of Indonesian tourism sector. Regarding to answer the problems, this research used series data from 1990 - 2012 periods; by using simultaneous model (2SLS) the model analyzed impact of investment, and international trade of Indonesia tourism sector to the national economic growth. Based on the Two Stages Least Squares method on simultaneous model, the results of the analysis gives some conclusions including: (1) tourism arrivals, tourism expenditure, investment, consumption price index, total consumption, government spending, export and import tourism affected the national tourism demand, (2) Current investment and investment on previous year, total consumption on previous year, and travel warning have positive impact to national tourism supply, (3) GDP was the most influenced variable beside Indonesia tourism price and neighbor countries' tourism price as competitors of Indonesia tourism. Finally, the simulations showed the fiscal and monetary policy impact to the national economic tourism sector. Keyword: Impact, investment, international trade, supply and demand tourism, and economic growth