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# Vital Goal of Travel & Lodging ## Revenue Generation - The sale of rooms, suites, and related services contributes substantially to the financial success of hotels, resorts, and other lodging establishments. - The variety of accommodation options available, from budget-friendly to luxury, allows...

# Vital Goal of Travel & Lodging ## Revenue Generation - The sale of rooms, suites, and related services contributes substantially to the financial success of hotels, resorts, and other lodging establishments. - The variety of accommodation options available, from budget-friendly to luxury, allows businesses to cater to a diverse range of travelers, maximizing revenue streams. ## Importance of the Travel & Lodging Industry in the Economy - The Travel & Lodging industry has contributed to the global economy through job creation and cultural and foreign currency exchanges. - It reinforces a country's economic position on the global podium as well as helps it preserve its rich art, culture, and craft. - It does not only quench a traveler's thirst for adventure, exploration, and leisure, but also their curiosity about culture and art. ## How Hospitality Industry Contributes to the Economy of a Country? - Back in 2020, it was estimated that the hospitality industry accounted for 10.4% of the global GDP (Gross Domestic Product), and the percentage is predicted to increase by 10% in the next 10 years. - In 2018, the direct contribution of the tourism and hospitality industry to Philippines GDP was over $98 billion. This was forecasted to be 194 billion U.S. dollars by 2028. ## Importance of the Travel & Lodging Industry in the Economy 1. **Employment Rate Boost** - The Travel & Lodging industry significantly boosts national economies through job creation. - In 2023, it employed 320 million people globally, with 16.5 million in the US and 39 million tourism jobs in the Philippines, which made up 8% of their workforce. 2. **Support to Local Businesses** - Tourism boosts local businesses as visitors spend on shopping, dining, commuting, and entertainment, leading to increased demand and sales for local shops and services. - This industry also contributes to economic growth by creating jobs and providing income for local residents and businesses. 3. **Revenue Generation** - Hospitality businesses generate revenue through various services, including accommodations, food and beverages, events, and subscriptions, which are subject to different taxes like VAT. 4. **Local Art and Culture Preservation** - The hospitality industry, especially tourism and leisure, helps preserve and showcase a country's art, history, and culture, boosting national GDP. - Tour guides play a key role in educating visitors about the significance of cultural and heritage sites. 5. **Foreign Exchange and Direct Investments** - The Travel & Lodging industry boosts economies by attracting foreign tourists and currency. - Some countries require visitors to carry a certain amount of local currency during their stay. 6. **Encourages Infrastructure Development** - Funds may be used to upgrade existing infrastructure and invest in new projects. - Governments and private investors might focus on improving transportation, communication, and recreational facilities to enhance the tourism experience and create a more attractive destination for visitors.