Economic Impact of Internal Tourism

Internal Tourism: Understanding the Economic Significance of Local Travel

Introduction

Internal tourism, also known as domestic tourism, refers to the travel activities of residents within their own country. It includes both residents and non-resident visitors traveling within the country and contributes significantly to the economy. Internal tourism consumption, as defined by the OECD, is the sum of domestic tourism consumption and inbound tourism consumption. This article explores the economic significance and implications of internal tourism.

The Role of Accommodation in Internal Tourism

Accommodation is a crucial aspect of the tourism industry, providing a resting place for tourists during their travels. Investors have recognized the importance of accommodation in the tourism sector, leading to increased investment in various types of accommodations tailored to different tourist needs.

Employment Generation by Domestic Part of Internal Tourism Consumption

The tourism industry, including internal tourism, is a significant source of employment. Food and Beverage Serving Activities, for example, have been identified as the highest value contributors in terms of employment generated by the domestic part of internal tourism consumption.

Impact of COVID-19 on Internal Tourism

The COVID-19 pandemic has had a profound impact on the global economy, including the tourism industry. The leisure and internal tourism sector experienced a steep decline, with revenue losses amounting to 2.86 trillion US dollars, equivalent to more than 50% of the sector's revenue.

Conclusion

Internal tourism is an essential component of the overall tourism industry, contributing significantly to the economy through employment generation, accommodation, and travel activities. Understanding the economic implications of internal tourism can help inform policy decisions and investment strategies in the tourism sector.

Explore the significance of internal tourism on the economy, including its role in employment generation, accommodation, and travel activities. Learn how understanding internal tourism can inform policy decisions and investment strategies in the tourism sector.