Dependence on tourism
Diversification in an economy is a sign of health. If a country, or region within a country, becomes dependent for its economic survival on one industry and that industry fails then the social consequences can be devastating. Overdependence on one or two industries is also often accompanied by underdevelopment within other sectors of the economy such as education, health, and the manufacturing and agricultural industries.
The tourism industry is extremely vulnerable to economic, social, and political changes in either the generating or host countries.
The table below shows international tourism receipts as a per
cent of export earnings for selected countries around the world. Countries
with a high percentage are more at risk to any decline in tourism and travel.
Others are less vulnerable to the ill effects of a decline in tourism, because
their economies are more diversified. Japan is a good example.