The role of tourism investment in achieving development

Ahmed Maged Badawi Hamza
Supervisor: Prof. Dr. Abd Ali Kazim Al-Fatlawi

The tourism sector is considered one of the additional active sectors alongside other economic sectors as it helps the country grow economically and socially, and many countries seek to achieve sustainable development by developing and activating the tourism sector for the economic and social development it brings about. Although tourism policies are not based solely on economic and technological considerations, preserving the environment and the needs of the host population in general and those working in the tourism field, in particular, must also be considered. Accordingly, we will define the role of tourism investment in achieving economic and social development in some detail as follows:
1- The role of tourism investment in achieving economic development: Investment is characterized by several positive advantages in the economic, social, cultural, and environmental fields, as it is one of the pillars of economic development through:
– Improving the balance of payments and providing foreign exchange: Countries seek, through their establishment of investment projects, to improve the balance of payments, given that tourism movement produces revenues and, in return, leads to a set of expenses, as it is an element of the balance of payments by recording it in the partial total of the balance of goods and services under the title “tourism” or “travel.”
– Tourism investments represent an important source of foreign currency, which most countries in the world, especially developing ones, seek to obtain due to the importance of tourism revenues and their fundamental role in achieving surpluses in the balance of payments, and thus influencing the country’s tourism position compared to other tourist countries. (Al-Mukhtariyah, 2016: 16)
The impact of tourism investments on employment and labor: Tourism is an integrated process interconnected with various productive and service sectors in the country, and thus, increasing tourism investments will lead to an increase in employment directly and indirectly in the sectors that affect and are affected by tourism.
– The effects of tourism investment on employment vary according to the importance of tourism in the national income and its priorities in the productive sectors in which investment is made. Various studies on tourism and its effects on employment indicate that tourism investments are closely related to the increase in tourist hotel rooms. (Al-Tuni, 2001: 17)

2- The role of tourism investment in achieving social development: Tourism leads to harmony between society and the tourism project by expanding the base of participation to the most significant number of tourists within tourism facilities. It is also a tool for deepening belonging and developing tourism awareness, which plays a significant role in achieving social development, represented in the following elements:
Emphasis on customs, traditions, and environmental issues: Tourism is a civilized means of developing rates of cultural exchange between peoples and societies, as tourist countries acquire cultural skills and experiences from the summer community. It also allows for exposure to incoming foreign cultures.
– Social development: Tourism investments and the resulting tourism are among the most important reasons for social development in tourist countries, as they provide the opportunity for members of society to learn about different foreign ideas, interests, and cultures through their interaction, observation, and direct contact with tourists, which contributes to acquiring sound experiences and values, in addition to helping them open up to the outside world. (Al-Ansari, 2012: 8)