The Impact of the Travel and Tourism Sector on the Growth of the National Economy

Abstract

Purpose – This study aimed to examine the interrelationship between the economic development of the country and the development of tourism. This study strived to conceptually categories in TandT sectors recent reports in India and Indonesia. Methodology – This study employed secondary data involving United Nations (UN) and International Monetary Fund (IMF) reports and highly-rated peer-reviewed scientific journal articles. Systematic deductive reasoning was employed to perform UN and IMF report reviews. Findings– The service sector's contribution to the Gross Domestic Product (GDP) is denoted as a progress predictor. Therefore, organizations are required to adapt tactics and operations in SCs to address current dynamic settings, possibilities, and threats. An essential procedural element involved adequate partner choice in SC to organize and provide competitive package tours. High service sector contribution to the national economy implied industrial advancement. As developing nations, Indonesia and India encompass rapidly advancing service industries on a global scale. Economically, the travel and tourism (TandT) sector proved essential in facilitating GDP and employment opportunities while a competent workforce vitally affected industrial growth and development. In this vein, human resource development is a crucial industrial component. Research limitation/implications – This paper provides several important points that need further research in the future. Some points have been presented regarding the Integration of technological engines and important factors of basic engines in tourism. Originality/value– This study shows the interrelationship between the economic development of the country and the development of tourism. Tourism helps in revitalizing the supply chain sector, which directly affects economic and industrial development and vice versa. This is beneficial for both governments and those in the tourism and economic sectors to make joint and effective cooperation. This research also mentions many important points that may help them to revitalize this relationship.