A major contributor to employment generation

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The economic importance of tourism in the national economy can also be appreciated with reference to its contribution to employment generation. “Tourism as a source of employment”, according to Medik a leading expert, “is particularly important for areas with limited alternative sources of employment, as is often the case in non-industrial areas deficient in natural resources other than scenic attractions and a good climate. For states like Kerala ayurveda the ‘science of life’ is now emerging as a good selling proposition, in the absence of any other viable selling theme.

Millions of people throughout the world now depend directly or indirectly for their employment on tourism. According to an estimate, about 140000 people in Switzerland and about a million in the United Kingdom are directly employed by the tourism industry. Since the liberalization of the Indian economy, scores of entrepreneurs started investing in tourism infrastructure and thus newer employment opportunities were created in this sector. Scores of travel and tourism schools now churn out hundreds of qualified highly skilled professionals that are immediately hired with better pay packages by the hospitality industry.

This aspect of tourism is of high significance, particularly for states like Kerala and also for other territories in the Indian Union, where there is large-scale unemployment and under-employment and where employment opportunities are growing at a slower rate. Apart from the direct employment opportunities created in hotels, restaurants, curio shops, travel agencies and also in the transport, handloom and handicraft industry, the tourism industry also generates “Employment Multiplier Effects” by providing employment opportunities in ancillary industries such as handlooms, handicrafts, art and crafts, sanitary ware, glassware, cutlery, crockery, furnishings, designer furniture and many other areas.

The tourist boom is yet to subside in Kerala and there was a slowdown in the previous year only due to the global economic recession. Things are likely to look up within a short span of time and major developments are likely as a result of that. If the tourism sector witnesses a continuous boom, more investors are likely to make significant investments into this sector.