Tourism, economic diversification and economic diplomacy: Lessons from the Arabian Gulf (original) (raw)
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Journal of Tourism & Hospitality, 2020
ABSTRACT This paper presents an examination of the emergence of the tourism industry in some of the Gulf Cooperation Council (GCC) countries (limited to the United Arab Emirates (UAE) and Oman) as a potentially viable and profitable economic diversification alternative. Indeed, the tourism industry is a growing economic sector in some of the GCC countries, with different trends, specializations, comparative advantages, and comparative competitions. However, the industry has encountered various challenges in the context of the GCC region because of the distinctiveness of the political and socioeconomic structures of the GCC countries in terms of the rentierism system. How are most of these GCC countries succeeding in making tourism a viable and prioritized economic policy? Why are some of these GCC countries attracted to the tourism industry? How have some of them made tourism an economic diversification priority? To what extent are current tourism projects considered sustainable? What are the challenges facing the tourism industry in some of these countries? Providing answers to these research questions requires a thorough examination of the socioeconomic context shaping and influencing the emergence of tourism as a beneficial industry in the context of some of the GCC countries. Keywords: Tourism; Gulf cooperation council; Rentierism; Economic diversification; Branding approach
EFFECT OF TOURISM IN ECONOMIC GROWTH OF THE TOP5 RICHEST COUNTRY The Economic Impacts of Tourism
1-QATAR-Qatar ranks number one on the list of the top 10 richest nations because of this high GDP (PPP)per capital of 140,648.Qatarhasawell−developedoilexplorationindustrywherethepetroleumindustryaccountsfor70140,648.Qatar has a well-developed oil exploration industry where the petroleum industry accounts for 70%of its government revenue,60% of its GDP and 85% of its export earning .Because of its wealth and economic success ,it has been chosen as the host of the 2022 FIFA World Cup. The first Arab nation to ever hold this role .However Qatar is also the most conterversal country on the list for it use of forced labor from nations throughout Asia and part of Africa. 2-Singapore-This tiny city-state has moved up from 5 th position to take 3 rd with per capita income (PPP) of 140,648.Qatarhasawell−developedoilexplorationindustrywherethepetroleumindustryaccountsfor7082,763 which is five times the average per capita income for an ordinary individual in the world. The basis of Singapore's wealth is its financial service sector. A chemical export industry and its liberal economic policies that encourage growth and innovation. Singapore has the second busiest port in the world .exporting 4.14billionofgoodsin2011alone.3−Kuwait−Kuwaitissmall,relativelyopeneconomyanditscitizensenjoyapercapitaGDP(PPP)of4.14 billion of goods in 2011 alone. 3-Kuwait-Kuwait is small ,relatively open economy and its citizens enjoy a per capita GDP (PPP) of 4.14billionofgoodsin2011alone.3−Kuwait−Kuwaitissmall,relativelyopeneconomyanditscitizensenjoyapercapitaGDP(PPP)of73,246.The highest –valued currency unit in the world currently is The Kuwait dinar .With nearly 10% of the world's oil reseves ,petroleum accounts for nearly half of GDP and 95% of export revenues and government income .In recent years. Kuwait has done little to diversity its economy due to positive fiscal situation. 4-Brunei-Brunei,a small country with a wealthy economy that is a mixture of foreign and domestic entrepreneurship ,government regulation and welfare measures ,and village tradition has lead to GDP per capita (PPP) of 71,185.It is almost completely supported by exports of crude oil and natural gas .Like other oil countries in the list the government has shown progress in diversifying the economy away from just oil and gas. 5-Luxembrourg-A symbol of wealth ,number two on the list of has a per capita GDP(PPP) of 97,662,wichisninetimestheworldaverage.Thebackboneofthisstrongeconomyisitsvibrantfinancialsector,prudentfiscalpolicies,anddynamicindustrialandsteelsectorsofitseconomywithanassetbaseofover97,662, wich is nine times the world average .The backbone of this strong economy is its vibrant financial sector ,prudent fiscal policies ,and dynamic industrial and steel sectors of its economy with an asset base of over 97,662,wichisninetimestheworldaverage.Thebackboneofthisstrongeconomyisitsvibrantfinancialsector,prudentfiscalpolicies,anddynamicindustrialandsteelsectorsofitseconomywithanassetbaseofover1.24 trillion alone. ABSTRACT Tourism has been criticised for having negative impacts on many of the destinations which tourists visit. There are considered to be three principal impacts-economic, environmental, & socio-cultural. This study looks at economic impacts and finds that although there are some negative aspects, most economic consequences of tourism are beneficial. These benefits include the effects of price and income elasticity, and also the economic consequences of tourism spending, including the generation of foreign exchange. This process stimulates the local economy through the multiplier effect, which can be direct, indirect, and induced. The article uses three tables to explain the multiplier, and policy implications are reviewed, using Turkish and Jamaican studies as reference points. At the same time, the difficulties faced when calculating multipliers are considered, and also how multipliers in deflationary situations can turn from being positive to negative. Although the economic effects of tourism are usually held to outweigh tourisms economic benefits, the negatives can be significant. These negatives relate particularly to a likely increase in demand for imported goods once tourists begin to appear, revenue leakages out of the economy, over-dependence on tourism, and land value inflation. The study concludes that the economic benefits of tourism normally outweigh what negative features there may be. But it also acknowledges that the situation is much less clear-cut when considering environmental and socio-cultural issues as opposed to economic ones.
Visions and Mirages of Tourism in the Middle East
Current History, 2022
After years of disruption from war and the pandemic, tourism in the region is rebounding, with the Gulf states emerging as leading destinations. But sustainability remains elusive.
The Tourism Industry as an Alternative for the GCC Oil-BasedRentierEconomies
Tourism Economics, 2007
During the past four decades, the tourism industry has emerged as one of the leading industries worldwide. This article examines its development in the Gulf Cooperation Council (GCC) countries. The article looks at, first, the main factors that led the GCC rulers to select tourism as a major catalyst for enhancing economic development and diversification. Further, it examines the GCC comparative advantages in the global tourism arena and then analyses Dubai's tourism development as an example of both the potential as well as the costs of having a well-established tourism industry in the Arabian Gulf region. Finally, it considers the major barriers to further GCC tourism development. The main conclusion of the article is that, although tourism development may provide a viable economic solution to some of the major socio-economic problems currently facing the GCC oil rental countries, one should not disregard the fundamental barriers and risks to further GCC tourism development, f...
Tourism and economic growth: The role of globalization
2018
Tourism is believed to bring significant impact on economic growth in both developed and developing countries.. However, many still question the role of globalization to foster tourism impact on economic growth. This research amied to review current journals on tourism to examine possible impacts of globalization on tourism and economic growth. This study is aimed to review articles from 2007 to 2017 (10 years) to map the correlation between those three aspects. The finding supports the notion on the positive impact of globalization to tourism contribution to economic growth. The developing and third world countries need to manage globalization, in term of export, Foreign Direct Investment (FDI) and foreign tourist spending to increase tourism developement and economic growth. Proper tourism expansion policy should not only focus on physical insrastructure such as hotels, roads, and restourants, but also no-physical infrastructucture such as innovation and coordination to enhance ...
2013
This paper explores a number of tourism variables such as visitor exports services, travel and tourism consumption and demand, tourism gross domestic product (GDP) throughout the period 1988-2011. In addition to, tourism arrivals, tourism expenditure and percentage of Saudi employment in the tourism sector throughout the period 2012-2017 in KSA. Moreover, services related to tourism sector such as numbers of transport and rent a car companies, recreations, restaurants, travel agencies, furnished apartment units and hotels, in addition to, their value added are analyzed as well throughout the period 2007-2011. The pattern of the earlier mentioned variables is investigated by employing data in levels and first differences. It then predicts their future values throughout the next decade (2012-2023) via employing the Double Exponential Smoothing technique. The results suggest that, tourism variables such as visitor exports services, travel and tourism consumption and demand and tourism gross domestic product are estimated throughout the period 2012-2023 at about (US $ billion) 7.1, 18.8, 58.1 and 13.3 (on average) respectively. Whereas, for tourism arrivals (8.5 million arrivals), tourism expenditure (30 US $ billion) and percentage of Saudi employment (29%) throughout the period 2012-2017. In addition, the prediction for services related to tourism sector (during the period 2012-2017) such as numbers of hotels, furnished apartment units, travel agencies, restaurants, rent a car and transport companies and recreations estimated at 1050, 938, 1917, 28284, 533, 2010 and 12983 respectively. Whereas, total value added for accommodation, food services, recreation, travel agencies and transportation estimated at about (US $ billion) 2.9, 5.2, 0.8, 0.2, and 5.6 respectively(during the same period). Moreover, it investigates the main difficulties facing this important industry and the suggested ways to overcome them.