The travel industry boosts demand and contributes significantly to the economy. It leads to the all round development of various cities, towns, and destinations that attract travellers.


Have you ever wondered why countries encourage tourism, not just as a means to attract tourists but as the best way to supplement economic growth and development?
It is now being recognized as a vital indicator towards growth and development.


Travellers spread the word about the destination they visited. When they return back to their homes, they share with others their wonderful experience. They also share their feedback on social media.

Thus, they encourage others to visit the destinations.


This is an extremely important aspect of the travel industry. Your customers become brand ambassadors. Tour operators add to the economic value of a destination. So, tour operators play a significant role in the growth of a destination.

How do inbound tour operators play a significant role in the economic growth of a destination?

Let’s find out.

1. Creates demand

• When tour operators advertise about their travel service and market about the destination, travellers around the world get attracted to it.

• They wish to find out more about the place and understand how visiting that destination is going to be a special experience for them.

• Tour operators discuss various aspects about the travel, hotels, activities, nature’s delight, the significance of various tourist spots, culture, art, etc. 

• This encourages tourists to explore the place and decide to travel to a place they’ve never seen before.

• Once they reach the chosen destination they start shopping, buying various services thus, boosting the demand, triggering the need to supply and fulfil the demand.

• Industries and businesses start to grow. 

• Undoubtedly, this is a significant contribution to the economic growth of a destination.

• Governments around the world have realized this positive impact and have started encouraging tourism development in their country.

   

2. Increases employment

• As the demand for various products and services increases, new businesses are launched and employment increases.

• More and more local people get new avenues of employment thus, the buying capacity of local people also improves.

• This in turn increases demand thus, contributing to the economic growth of the destination.

• When travellers visit a particular destination they expect some services and if the local businesses cannot fulfil them, it disappoints the travellers.

• When this is observed by the local population, they realize there is a gap in the market between supply and demand.

• They begin to study the traveller and their expectations to launch new businesses.

• Obviously, every company/business needs a team to function efficiently, so they employ local talent thus, creating new employment opportunities

   

3. Encouraging local artisans and businesses

• When tour operators arrange for travellers to visit a particular destination they encourage local artisans since the people who travel there are interested in local art and culture.

• Each region has a unique art that is an inherent part of the local culture that has been passed from generation after generation.

• It is the reflection of the society, various beliefs and their lives.

• Travellers are interested in knowing more about these aspects of a destination. 

• They also prefer the local tour operators since they are better networked and informed about local people and their culture.

• Now travellers love to connect with local people and have deeper and personal connections with them.

• Also, they view local offerings as the best way to engage in transformative experiences. 

• All this has a tremendous impact on the local artisans and businesses.

• They feel encouraged to innovate and take more efforts to be able to promote their art thus, boosting the local economy.

   

4. Boosts infrastructure - best facilities

• When people visit a place for a holiday, or for official purposes they want to feel a bit more relaxed.

• They wish to experience some degree of comfort and feel rejuvenated.

• As they travel or stay at a particular hotel they expect the best facilities. If they have trouble travelling while reaching various places, they feel a bit disappointed.

• Tour operators ensure that the local travelling is seamless and the hotels are up to the mark.

• The food available is of the best quality and the hotels cater to the traveller’s taste palette. 

• All this is necessary to attract more and more travellers thus, boosting the local economy.

• When the government observes the impact of tourism on their economy, they ensure that the quality of infrastructure improves.

• Best facilities attract more tourists and tour operators also recommend that particular destination to their customers with confidence.

• Infrastructure is the base of economic growth. Once infrastructure improves it not only boosts the business of tour operators but also encourages local business owners to grow.

• Along with this, investors outside the regions also get attracted to the destination. 

• Let’s say various tourist destinations are not encouraged. The local population, businesses and government don’t bother to attract tourists. What would be the impact? The region will not make the most of its local art, talent, and business opportunities.

• They will not be able to experience maximum growth and development.

• Thus, when tour operators attract travellers to a destination they are triggering a ripple effect that boosts the local economy thus, rising the Gross Domestic Product (GDP), Per capita income, global demand and local supply. 

All said and done, tourism doesn’t just boost the tour operators’ business it uplifts the entire economy of a tourist destination bringing hope and prosperity.

We at ETOS are serving tour operators to streamline their processes through travel management software, so they can better serve their customers and also grow their business.

ETOS offers travel software, CRM- Customer Relationship Management Software that speeds up various processes involving communication with customers. They give micro and macro-view of your business thus, monitoring business performance.

Also, there is software that helps take a 3D tour walkthrough of hotels so that travellers can experience the place before they book a room/suite thus, aiding their decision-making process.

Our team is always eager to hear from you. All you need to do is connect with the ETOS team to know more about our offerings.

Connect with us and also request a FREE DEMO that will help you understand the significance of using the software and its impact on your business.