Q.What is Tourism? Explain its importance in Indian Economy.

Tourism is travel and stay outside one's usual environment for leisure, business or other purposes, plus the services supporting it. In India it earns foreign exchange, creates jobs, promotes handicrafts, develops infrastructure, adds to national income, aids regional development and preserves culture.

This 5-mark question in AP Intermediate 2nd year Economics belongs to the services (tertiary) sector theme, treated in line with the NCERT/CBSE curriculum.

Meaning. Tourism is the activity of persons travelling to and staying in places outside their usual environment for a limited period for leisure, recreation, business, pilgrimage, health or education, and it includes the transport, accommodation, catering and allied services that serve such travellers.

Importance of tourism in the Indian economy:

1. Foreign exchange earnings. International tourism brings in valuable foreign currency, helping the balance of payments.

2. Employment generation. Being labour-intensive, tourism creates jobs in hotels, transport, travel agencies, guiding and handicrafts.

3. Promotion of handicrafts and small industries. Demand from tourists supports artisans, cottage industries and local products.

4. Infrastructure development. Tourism encourages the building of roads, airports, hotels and communication facilities.

5. Contribution to national income. As a growing service industry, tourism adds significantly to GDP.

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