Playing a major role in economic regeneration

[Darren03]

Tourism may play a leading role in the process of economic regeneration or in providing better support for marginal economies through diversification. These powers have been evident for some time within rural economies. In Britain, in areas such as Wales or Devon and Cornwall, less profitable hill farming economies, or diary farms where profits have been limited by the European Community (EC) production quotas, they have been widely sustained by the development of farm holidays and related activities like:

• Fishing
• Riding
• Shooting
• Self-catering facilities
• Bed and breakfast businesses
• Caravanning and camping

More recently, however, tourism-based regeneration and diversification have been recognized in new forms of urban tourism. The active promotion of urban business tourism (conferences and conventions, etc), sports and event-related tourism and the development of new attractions centered on leisure shopping or industrial heritage has permitted places with no tradition of tourism to develop a new industry that has revitalized the flagging local or regional economies. In the UK, for example, tourism and visits to the ports and the industrial city of Liverpool generates an estimated £ 335 million pounds annually and supports around 14,000 people in direct employment.

Also, tourism may promote development through the encouragement of new economic linkages and a significant increase in the Gross Domestic Product (GDP) of an economy. This is rightly evident in places like Kerala and especially with respect to the better performance shown by the hotels in Munnar. However, tourism’s contribution to the GDP will vary substantially according to the level of diversity and the extent of economic linkages within an economy.

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