Inbound and Outbound Tourism in Thailand - Coursework Example

INBOUND AND OUTBOUND TOURISM IN THAILAND and Inbound and Outbound Tourism in Thailand Tourism has played a major role in almost every country as the aspect of globalization has increased the level of travel taking place in between countries. Tourism can be described as the travel of individuals for particular purposes including leisure, business or even medical objectives (Asworth 2008). Though it can be argued that tourism has always existed in one form or another since the division of the earth into geographical locations, it became a business model in the late 50s as countries solidified their relationships with their neighbors. Thailand was not left behind in this new wave of promotional resources, and it has been an active region in the advancement of these activities. One of the issues that have come into play concerning this topic includes inbound and outbound tourism. The balance of these two types of tourism within Thailand can be said to be the key to ensuring the region enjoys the maximum potential offered by this sector (Cohen and Neal 2010). In order to ensure that such a subject is delved into efficiently, it would be necessary for one to understand the meaning of both terms. Inbound tourism refers to incoming individuals from other countries while outbound tourism describes the movement of residents from their country to other regions. This sort of travelling as earlier mentioned can be said to be as a result of the rapid development of globalization. Improved means of travel and communication have opened up the world to one another and allowed for more convenient means of moving about. Tourism is a large part of Thailand’s economy thus the need for a proper balance between inbound and outbound tourism is a necessary part of the equation. Records from the year 2013 reveal that Tourism had a direct contribution of 9% to the country’s economy which rises to above 20% with the addition of indirect contributions added to the equation (Walker and Harding 2009). This means that a significant portion of the country’s GDP is as a result of outside economic sources that need to be maintained in a bid to sustain this particular source of revenue. With this in mind, it can be expected that the government would focus on the promotion of inbound tourism as a key source of additional revenue. The higher the inbound tourism levels of a country, the more money it is bound to make the region. Outbound tourism, on the other hand, can be seen to do the financial opposite (Davies 2002). That is; it can be argued that it takes out revenue from the country and transfers it to other regions. Though outbound tourism is an active part of any country’s activities, there is a need for a control to ensure that the country is also able to benefit directly or indirectly from it. Benefiting from this particular type of tourism could be complicated by the fact that a country cannot prohibit its citizens from travelling to other parts of the globe (Mostafanezhad 2014). A solution would need to be developed whereby the levels of outbound tourism are slowly replaced by other alternatives such as local tourism. Pro – poor Tourism Practices It should be noted that inbound tourism has had a huge role in the assistance of not only the government’s economic stability but individuals’ financial capabilities through pro-poor tourism practices. These could include the setup of new attraction sites that bring about revenue to residents of the region via the tourists who come to visit. These tourists spend their money on homemade products for example as souvenirs which improves the lives of the sellers on a direct basis. The increase in inbound tourism has also enabled the creation of new jobs in this sector. This job creation arises as a result of the service oriented design of the tourism industry that requires a number of positions to be filled in businesses such as hotels, restaurants and even tour guides. The creation of these jobs reduces the poverty levels that can be found in these regions and improves the quality of life these residents are able to enjoy. Challenges Faced By Developing Countries Concerning Tourism There are a few major challenges that can be found in developing countries such as Thailand when it comes to balancing inbound and outbound tourism (Smyth and Watts 1998). These challenges can be seen as a result of the economic fragility of the regions that render the need for tourism an essential part of their financial sustenance. It is essential for the regions involved to ensure that the money that is made from this tourism sector is retained within the local economy and not simply transferred back out again. Some of the challenges faced when facing these circumstances include: Sex Tourism, Security and Environmental Concerns Sex tourism and child labor are some of the challenges that directly affect the residents of Thailand as a result of tourism as well. Though the sex trade is officially illegal in Thailand, the government has attempted to control the brothels present in a bid to stem the spread of diseases such as AIDS. Child labor can be found within the service sector as parents and sometimes even the children themselves would rather go to work during high seasons than go to school. This is due to the poverty that is experienced by some of these children who look at the opportunity of these tourist jobs as a means of feeding their families. Environmental degradation can also be seen in the destruction of natural resources for the expansion of buildings and other setups related to the tourist trade. The introduction of human activities to some natural habitats increase elements such as the levels of pollution that can be found in that region which is dangerous to the environment. Safety and security is also a concern as some residents may see tourists as easy targets for robberies and other illegal activities. The rise in security concerns could be potentially damaging to Thailand’s image thus it is a problem that needs to be dealt with efficiently. It should be noted that should things get out of hand (for example, a spate of violent scenes involving tourists were to take place) some countries could issue travel warnings to their citizens advising them to stay away from the country. Economic Imbalance One of the main challenges faced by developing countries is the financial instability that can be found in most developing countries. The Thailand population can be said to have undergone a financial divide, which gave rise to both immensely rich individuals and pathetically destitute citizens. The former is the main group that would take part in outbound tourism while the latter is more likely to benefit from inbound tourism (Mings and Chulikpongse 1994). This is due to the economic capabilities of the aforementioned groups. Rich Thailand citizens would be able to afford trips to external locations while the other half (that is, economically unstable citizens) would be more focused on the financial benefits offered by inbound tourism. This means that it can be said that particular groups would be the main focus of the government concerning outbound tourism. These citizens could potentially play a significant role in the promotion of regional attractions through their involvement. They could also serve as a means of representation to other people when they visit their countries and thus in this way enable the government to indirectly benefit from their activities (Rittichainuwat 2008). However, the problem lies in the fact that most people with money prefer travelling abroad to remaining within the borders. Choosing to stay within the country can be seen as a means of saving money so when this is not the case, it becomes difficult to convince individuals to promote their tourist attractions. Political Stability The political stability available in a region is also an essential factor in the balance of inbound and outbound tourism. The political unrest that was faced in Thailand a few years ago led to the decline of inbound tourism as fewer people felt safe traveling to the country during that period. The financial downfall due to the decrease of inbound tourism was added upon by the increase in outbound tourism as individuals sought to leave the country (Peleggi 1996). Such cases could severely affect a government’s bottom line especially when the area affected happens to be a large portion of expected revenue. Age disadvantage of elements such as political instability lies in the fact that such factors can affect a large part of the sector in question. For example, with regard to tourism, the political instability experienced in Thailand towards the end of 2013 affected all sectors of tourism such as sports, leisure and even medical tourism to an extent thus effectively dwindling the level of contribution that tourism was able to make on the overall regional budget (McBurney 1996). External Competition External competition refers to the other tourist locations close by that are available to potential inbound tourists. Thailand is located in the Southern part of East Asia with its main attraction being the city of Bangkok which is visited by a large number of fellow Asian tourists (Page and Connell 2010). However, this popularity is in completion with other famous destinations such as Hong Kong, which provides an alternative to the Asian and global tourist markets. With China and Japan fast becoming popular tourist destinations as well, they can be considered to be potential threats to countries like Thailand, who are located more or less around the same continental region. Such countries are able to input more investment in their tourist sectors due to a stronger economic spine as compared to Thailand which could make it difficult with regard to issues such as international promotion (Ishii 2012). The lack of this sort of promotion could result in the arrival of fewer tourists as individuals choose to visit alternative destinations (Elliot 1983). This would lead to a decrease in inbound tourism but, unfortunately, would not change the levels of outbound tourism. In such a scenario, it could be argued that there could potentially be more money going out than coming into the country concerning tourism. Potential Solutions to the Balancing of Inbound and Outbound Tourism The main solution that can be implemented in the balancing of inbound and outbound tourism is the enhancement of the latter (Williams 2007). Outbound tourism mainly deals with individuals going out of the country and thus in a sense it can be argued they are hardly any significant revenue to be made from such an activity. Inbound tourism on the other as earlier seen plays a large role in the financial betterment of a region’s economic stature and thus the better it is, the better the local economy (Dhaliwal 2006). There are a number of ways that this inbound tourism can be promoted and some of these include: Increased Promotion International advertising of the various local attractions that are available in Thailand would go a long way in attracting more tourists to the country (Chaisawat 2005). The main aim of such actions should be ensuring that effective mediums are implemented in these advertisements such as the use of international channels and global platforms such as the internet. Tax Breaks Tax breaks in places such as airports and other authorized regions may also serve to attract more individuals to the destination. A relaxation of taxation may seem like an initial loss of potential revenue, but a long term application could lead to more positive results (Cornwel-Smith 1997). Individuals in such areas would be compelled to spend more money simply due to the notion of such items such as tax breaks and the marginal profits experienced from such changes could be significantly larger than those that were previously enjoyed before the tax breaks. Local Tourism Practices of sustainable tourism have also come to play as Thailand attempt to maintain the levels of visitors who come into the country which include the promotion of local tourism which consists of visitors from their own country visiting different parts of the region instead of going abroad. This is especially useful during low seasons when not many foreigners visit the country. Most foreign tourism takes place during international holidays but tourist attractions need to be able to make money for more than just this season if they are to survive the rest of the year. The promotion of Thailand to neighboring countries such as China can also be a means of sustainable tourism as the shorter distance means it would be easier for the Chinese to cross the border as compared to further placed tourists. The promotion of local tourism is a good way of attracting potential revenue within one’s borders. An increase in local tourism would almost automatically lead to a decrease in outbound tourism which would help with the balancing act that needs to be put in play (Barwick and Barwick 2001). The main recommendation for sustainable tourism planning involves the targeting of Thailand residents as potential tourist to other regions of their country. The need to increase inbound tourism cannot be ignored but local tourism allows for an all year round potential market that could stabilize the tourism industry during the dry spells. Conclusion The most direct economic evidence of the impact of tourism can be seen in the improved GDP of the country when the levels of tourism rise in a particular season. With regard to noneconomic evidence of the same, one can study the standard of living of Thailand’s residents which improves with increased tourism levels. With the additional revenue provided by tourism, residents are able to improve their quality of life. An increase in tourism has also opened up the world to Thailand and vice versa with local residents being exposed to new cultures from the inbound visitors who come to their regions from other places. The government and other stakeholders are mainly involved in tourism via the investment that is undertaken by the parties mentioned above. This investment can be seen in the form of the hotels, restaurants and related businesses that are setup in the country. The government is also involved via policy regulation that allows for an easier flow of activities within the industry to not only encourage more tourists to visit Thailand, but investors to continue with their investing as well. Reference List Asworth, G 2008, Thailand tourism, Journal of Heritage Tourism. 3(3), pp. 215 Barwick, J. and Barwick, J 2001, Tourism, Echidna, Abbotsford, Vic. Chaisawat, M 2005, Travel and tourism education in Thailand. Journal of Teaching in Travel and Tourism, 5(3), pp. 197-224 Cohen, E. and Neal, M 2010, Coinciding crises and tourism in contemporary Thailand,Current Issues in Tourism, 13(5), pp. 455-475 Cornwel-Smith, P 1997, Thailand. DK Pub, New York, NY. Davies, P 2002, Tourism. Oxford University Press, Oxford. Dhaliwal, N 2006, Tourism. Vintage Books, London. 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