Moreover, rapidly rising population necessitates a higher rate of investment to maintain old standard of living and per capita income. In India, as per 1991 census, about.0 per cent of the total working population was absorbed in agriculture. Sustainable tourism can eventually lead to sustainable development throughout the territory, while carrying out conservation, protection of culture, social and economic development (Fennell, 2012). Other economists claim that economic growth causes or contributes to economic development, because according to this perspective, because at least some of the increasing income is spend on human sustainable development such as education and health; this is actually the. Therefore, another requirement of economic development is to maintain stability by avoiding inflationary rise in the price level so as to check mis-allocation of resources along with its other evils. Actually, because of the tremendous variety of different ways of transportation people now can go practically anywhere. Estimating the Multiplier Effects of Tourism Expenditures on a local Economy through a Regional Input-Output Model. (iv) Changes in Social Structure: Finally, social system has much impact on the economic phenomenon of the country.
Tourism Management, 26 (3 431-445. Its annual growth rate is estimated from 10-20 to 30 (for adventure tourism, as part of which he passes on Statistics of the WTO a year, and its share of revenues from international tourism reached 10-15. Because this will generate adequate enthusiasm among, the general masses toward economic development of the country as well as for the successful working of the economic plan. Meaning of Economic Development: Again Mrs. Regarding the determinants of economic growth, Prof. While analysing the determinants of economic growth, Prof. Tourism Management, 24, 97-110. (iii) Poor Rate of Savings and Investment: Another important obstacle or constraint faced by the underdeveloped countries in their path of economic development is its poor rate of savings and investment. Problems and Perspectives in Management, Volume 4, Issue 2,.
So in preparation for an international conference this year was invited once 10 definitions, here are some of them (Hall, 2011 Any form of tourism, which is based on natural ecological attractiveness of the country (from scuba diving. Ragnar Nurkse observed that Economic development has much to do with human endowments, social attitude, political conditions and historical accidents. Capital Formation and Capital Accumulation: Capital formation and capital accumulation are playing an important role in the process of economic development of the country. Moreover, weak and corrupt public administration in these countries has been resulting a huge leakage of public fund meant for investment in developmental activities. In the 1900s, a new strategy took place by imposing some new policies and the government trying to make it diverse in terms of the economy. Determinants of Economic Development. Characteristically, the income from tourism is not always given to those who bear the costs. In this connection Prof. And also increased volume of concessional aid from international institutions like.M.F.,.B.R.D. Due to its GDP, Morocco is now the fifth economy in Africa and is competing with Tunisia about the first place in North Africa. 1.1 will clarify the situation.
However, its sustainable development for the benefit of the natural and cultural environment remains a priority for industry executives (Liu, 2013). Projected growth of the tourism sector and the growing importance of this sector for many developing countries, including small island developing States, as an economic sector, which employ a significant portion of the population and which contributes greatly to the. Thus the removal of market imperfections leads to an efficient allocation of resources which finally leads to advancement of industrial and agricultural production and also to expansion of foreign trade resulting an successful effort to break the vicious circle of poverty. Underdevelopment countries are facing various socio-political hurdles in the path of economic development. This development made the government less involved in a lot of sectors that privatization integrated.
In addition, countries that want to strengthen the tourism sector should develop and airport infrastructure, good roads Railways, ports, banks and medical facilities, which is necessary to provide quality services and create competitive tourist destinations (Frechtling and Horvath, 2009). If you hesitate which place to choose to pay a visit, you can always go to tourism bureau where youll get qualified help from operators and you wont need to bother booking your tickets and hotels everything will be done for you. In respect of changes in the contribution of services sector, the result is not so marked or consistent among the various countries. No less important is the extent to which national strategy hinders the outflow of capital from the national economy, is a chronic problem for many developing countries, and to minimize the damage that tourism causes environmental and cultural heritage. Tourism Management, 25, 307-317. Planning is also essential for mobilisation of resources, capital formation and also to raise the volume of investment required for accelerating the pace of development. Thus by the term economic development we mean a process so as to raise the per capita output with a scope for equitable distribution. But it has also been argued by some modern economists that with the growing momentum of economic development, standard of living of the general masses increases which would ultimately create a better environment for the control of population growth. But travelling also serves another purpose educational. And some of them would be the government intervening by creating some expansion of the economy and this by imposing new rules to respect. Thus the vicious circle of poverty is resulted from various vicious circles related to demand side and supply side of capital.
The HDI measures education and health besides GNP, and so is multi-dimensional. Technological Advancement: Technological advancement is considered as an important determinant of economic growth. Economic growth is a sustained growth from a simple economy to a modern one. This problem is particularly relevant in light of the rapid development of the industry, which is expected in the next few years, and increase its load on the environment if no action is taken. Attainment of economic development necessities a suitable environment for initiating, maintaining and accelerating the pace of economic development. Both physical capital and human capital. The increase in the volume of capital formation leads to capital accumulation. These three causes, through clearly distinguishable conceptually are usually found together. Rate of growth of GNP (Savings ratio/ Capital output ratio). (vii) Capital Formation: In order to attain economic development in an underdeveloped economy, capital formation is considered as an important pre-requisite for development. After independence, these underdeveloped countries like India had to face serious obstacles to break this deep rooted impasse of low level equilibrium traps. Determinants of Economic Development: By economic development we mean attainment of higher level of productivity in almost all the sectors and a better level of living for the general masses.
In addition to the different mathematical methods used to calculate economic development, the HDI (human development index) is another widely used process to calculate development. As far as you know, time is money. Schultz has rightly observed, To achieve economic growth of major importance in such countries, it is necessary to allocate effort and capital to do tourism and economic development essay three things: increase the quantity of reproducible goods, improve the quality of the people. This involves mathematical methods like differential equations and optimization. Everyone eventually is getting bored of the one and only surrounding, the same people they see every day, it can be frustrating. With the advancement of technology, capital goods became more productive. Advertisements: In this essay we will discuss about the Economic Development of a Country. (i) Peoples Desire for Economic Progress: Peoples desire for the attainment of economic progress is the most important requirement of economic development. Rapidly growing population slows down the rate and process of capital formation.
Firstly, the productive opportunities available within the existing resouirce and necessary known-how have to be utilised to the maximum extent through optimum allocation of the resources of the country. Pre-Requisites or Need for Economic Development: underdeveloped countries are very much concerned about their attainment of economic development. This vicious circle operates not only on demand side but also on supply side. Ecotourism is not open to the possibility of pre-existing small village settlements in Central America, India and Africa, and the so-called cultural tourism whose goal is familiarity with household and socio-cultural characteristics of the peoples of the world, contributes. The main point here is that, regardless of the approach used to connect economic development to human development, the outcome is always the same: economic development aims to improve the well-being of citizens based on different scales of priorities depending. Jacob Viner has rightly observed, Population increase hovers like a menacing cloud over all poor countries. Thus in order to achieve fast economic progress, an underdeveloped country must attempt to introduce a rational reorganisation of its entire economy. Accordingly, Kindleberger further observed, Growth involves focussing on height or weight, while development draws attention to the change in functional capacity. (v) Demonstration Effect: Demonstration effect on consumption level works as another major obstacles or constraints on the path of economic development of underdeveloped countries as it increases propensity to consume and thereby reduces the rate of savings and investment. Moreover, due to the lack of spirit of experimentation and proper Research and Development (R D) facilities, these underdeveloped countries fail to transform their production system to the desired level. Economic Factors: advertisements:. Thus to achieve a higher rate of growth of national income, the country will have to take the following two steps: (a) to raise the rate of investment and (b) to generate necessary forces for reducing capital-output ratio.
Therefore, in the future, transport and accommodation services, catering, waste management and other services guests need to be organized with much more cost effective and environmentally sound than in the past (Shaw and Williams, 2007). Such changes have resulted corresponding shifts in the sectoral allocation of labour force of the country. In this connection, united Nation Experts observed, Economic Progress will not occur unless the atmosphere is favourable. Ragnar Nurkse has further observed, Economic development has much to do with human endowments, social attitudes, political conditions and historical accidents. It includes: (a) Use of technological progress tourism and economic development essay far economic gains, (b) Application of applied sciences resulting in innovations and inventions and (c) Utilisation of innovations on a large scale. Inappropriate social forces impeding the economic development of underdeveloped countries like India include prevalence of caste system, creating divergence between aptitudes, joint family system, peculiar law of inheritance, outdated religious beliefs, irrational attitudes towards number of children in a family etc. Dwyer,., Forsyth,., Spurr,., (2004). Setting a dynamic economy in a static social set up is almost impossible as they cannot pull together. Advertisements: On the other hand, changes arising on the factor supply are also related tocapital accumulation, discovery of new resources, introduction of new and more efficient production techniques, increase in size of population and organisational changes. In this connection, Meir and Baldwin aptly observed, New wants, new motivations, new ways of production, new institutions are to be created if national income is to rise more rapidly. This equation shows that rate of growth of GNP is directly related to savings ratio and inversely related to capital-outlet ratio.
They have also destroyed the cottage and small industries by adopting unfair competition which has put a huge pressure on agriculture, disguised unemployment and poverty. The government would have to be responsible of all big industries and no privatization would be effective in this case. Under such a situation, the rate of investment in these countries is very low leading to low level of capital formation and low level of income. Economic development is considered as an important strategy for building various social and economic tourism and economic development essay overhead infrastructural facilities along with the development of both agricultural, industrial and services sectors in a balanced manner. The most recent developments in the Moroccan economy appeared to some of the best since it is one of the countries that best dealt with the general economic crisis. But it also requires a special attempt to identify some basic forces related to economic development.
On the other hand, the share of total labour force engaged in the services sector remained almost constant and relatively poor in the countries like Australia, Great Britain, Sweden and Belgium. Spread of Education: Economic progress is very much associated with the spread of education. Simon Kuznets has rightly observed that during the period of modern economic growth, the share of agriculture and agro-based industries in aggregate output (GDP) has recorded a sharp decline, while the shares of manufacturing industries, public utilities and certain service groups like professional, tourism and economic development essay government etc. Moreover, some importance was given to the tourist sector. Spengler has listed about nineteen determinants but Rostow mentioned six propensities having much bearing on economic growth. The country should arrange cheap and larger volume of credit facilities readily available for its industrialists, cultivators, businessmen, small traders and new entrepreneurs.
Raul Prebisch, Singer, Myrdal have formulated it Theory of exploitation of poor countries. Morocco invested.3 billion planning a 5 years project. Administrative Efficiency: Economic development of a country also demands existence of a strong, honest, efficient and competent administrative machinery for the successful implementation of government policies and programmes for development. By capital-output ratio we mean number of units of capital required to produce per unit of output. Moreover, market imperfections results factor immobility, under-utilisation of resources and thereby abstract sectoral expansion and the process of development. In the past two decades in developing countries, this sector has grown much faster than in developed, partly due to an increase in disposable income and the fact that travel has become much cheaper and easier. But too much dependence on external capital and external forces may dampen the spirit and initiative for development and paves the way for exploitation of natural resources of the underdeveloped countries by foreign investors. Puppim de Oliveira,.A. Journal of Travel Research, 37, 324-332. Inspite of their best attempt, the rate of savings of these underdeveloped countries remained very low, varying between 5 to 9 per cent only of their national income as compared to that of 15 to 22 per cent in the developed countries.
The people of a country must desire progress and their social, economic, legal and political situations must be favourable. As a result, worldwide director of the hotel are learning more about what can benefit from resource conservation and recycling (Neto, 2003). These countries suffer from surplus labour force but shortage of critical skills. In order to attain a rapid economic growth, the rate of domestic savings and investment must be raised to 20 per cent. Population and Manpower Resources: Population is considered as an important determinant of economic growth. Today the task of further development of tourism is formed as to minimize its negative impact on the environment around (Ko, 2005). Growing population increases the volume of consumption expenditure and thereby fails to increase the rate of savings and investment, so important for attaining higher level of economic growth. Environmental protection and nature conservation natural allies of the tourism industry. Thus to bring social and institutional change as per changing environment and to realise the modern values of life are very much important for accelerating the pace of economic development in a country. Underdeveloped countries like India usually face this type of problem.
The study of economic development includes theories of the causes, the process, and the policies by which a nation improves the economic, political, and social well-being of its people. Finally, modernization of the economy was an important thing to do by Morocco to have a better preparation to a better development. These Constraints on the path of economic development are of two types: (a) Short-term constraints and (b) long-term constraints. Contents: Essay on the Meaning of Economic Development. Ragnar Nurkse has rightly observed, The meaning of capital formation is that society does not apply the whole tourism and economic development essay of its current activity to the needs and desires of immediate consumption, but directs a part of it to the making of capital.
Put severe obstacle on the path of economic development and also retards its pace. In order to attain economic progress, people must be ready to bear both the sufferings and convenience. Cairncross observed, Development is not governed in any country by economic forces alone and the more backward the country is, the more this is true. Trends in ocean and coastal tourism: the end of the last frontier?, Ocean and Coastal Management, vol. Therefore, in order to provide all outward push to the production frontier, the productive has to be expanded.
Growing population also results food problem, unemployment problem which forced the country to divert its scarce resources to meet such crisis. It depends also on whether the tourism develops in line with the national strategy, encompassing political, regulatory and institutional framework and providing sufficient incentives for the expansion of supply capacity in national markets (Dwyer, Forsyth and Spurr, 2004). Development of a tourism sustainability assessment procedure: a conceptual approach. Cairncross has rightly observed that economic development is not just a matter of having plenty of money nor is it purely an economic phenomenon. Along journey or even a short trip is an important experience for everyone. (xiv) Inappropriate Social Structure: Underdeveloped tourism and economic development essay countries are suffering from backward social factors. Here the word process indicates long period changes related to changes in demand side as well as changes in factor supply. Growing concentration of income and wealth in the hands of few and political influence generally protects the richer section from higher rates of taxation and thereby the tax burden ultimately falls much on the middle class and poorer sections of the society. It also refers to productivity of capital of different sectors at a definite point of time.
(xi) Inadequate Infrastructural Facilities: Underdeveloped countries like India are facing serious obstacles due to inadequate infrastructural facilities. The suitable investment criteria should maximise the social marginal productivity and also make a balance between labour intensive and capital intensive techniques. Accordingly, higher rate of population growth can put serious hurdles on the path of economic development Moreover, growth of population at a higher rate usually eat up all the benefits of economic development leading to a slow growth of per capita income. Therefore, planners should make an endeavour to enlist public co-operation and to arouse popular enthusiasm for implementing their plan for development. Technically, we mean by economic development the increase in per capita income or the increase in national gross product (GNP it deals with macroeconomic causes of long term economic growth, and microeconomic issues tourism and economic development essay such as the incentives of households and firms. In these countries, the rate of savings is low due to low per capita income and higher marginal propensity to consume. In underdeveloped countries the problems are that of initiating and accelerating development. Modern economic growth has resulted a fall in the domination of sole trading small farms.
This was the period between the 1969 which explains different mistakes that made Moroccan development go a little bit slower. Economic development includes economic growth among the main criteria. With proper human capital formation, increasing mobility and division of labour, manpower resources can provide useful support to economic development. If now rapid economic development is to become the main objective of these societies, their attitudes and habits of mind must change correspondingly. Today, developing countries are more than 45 of all tourists, receiving more than 35 of global revenues from tourism. Some solutions for a higher economic development would vary in Morocco because of the diversification in the sectors that becomes a frequent fact.
Samuelson rightly observed that High Invention Nation normally attains growth at a quicker pace than High Investment Nation. External Factors: The present situation in the world economy necessitates active support of external factors for sustaining a satisfactory rate tourism and economic development essay of economic growth in underdeveloped economies. Thus this poor performance of agricultural sector is another major obstacle in the path of economic development of these underdeveloped countries. Foreign capitalists mostly invested their capital on mining, oil drilling and plantation industries where they exploited the domestic workers to the maximum extent and remitted their profit to their parent country. Emphasising the role of non-economic factors, Prof. In this connection, Prof. As per World Development Report, 1983, whereas about 45 to 66 per cent of the work force of developed countries was employed in the tertiary sector but India could absorb only 18 per cent of the total work force in this sector. Growth but occasionally, for the sake of variety. By all indications tourism causes much less damage to the environment than other sectors of the economy. Seeing new places is always exciting and so much fun! It is spirit itself that builds the body. Plan for economic progress and social betterment cannot be initiated from outside of a country.