Destination Development and
Institutionalization Strategies
In the OIC Member Countries
12
enhanced through a strong supporting ecosystem as shown in Figure 3. How to identify the key resources
and the process for developing a destination in a sustainable manner is discussed further in Section 3 of
this report.
Figure 3: Tourism Resources 11
Source: Based on the destination competitiveness/sustainability model by Richie and Crouch
1.2. The Impact of Tourism
The economic impact of tourism is predominantly positive for host communities; however, its socio-
cultural and environmental impacts can be primarily characterized as mixed. The positive economic
impacts of tourism can be witnessed in its contribution to gross domestic product and employment in host
communities. Tourism direct contribution to the global economy in 2016 reached $2.3 trillion (3.1%
growth rate as compared to only 2.5% for the global economy), while its indirect contribution reached
$7.6 trillion. In terms of Jobs in the industry, tourism jobs reached 109 million jobs (1.8% growth rate) in
2016, while the industry supported 292 million jobs. Tourism accounted for 10.2% of global GDP and 1 in
every 10 jobs around the world. Tourismexports reached $1.4 trillion in 2016 (6.6%of total world exports,
30% of total world services exports in 2016). By 2027, the tourism industry is expected to outperform
major economic sectors including financial and business services, communications, manufacturing, retail,
and distribution. The tourism industry is forecasted to reach 11.4% of GDP (average growth rate of 3.9%
per year), to support more than 380 million jobs (1 in every 9 jobs around the world), and for its exports
to account for 7.1% of total global exports by 2027.12
As for negative economic impact of tourism, it is more noticeable in the case of less-developed countries,
which mainly import products to satisfy tourists leading to import leakage. The import leakage is
compounded by the fact that local companies do not possess the ability to operate in the less-developed
countries, thus, tourism services are mainly provided by multinationals which repatriate their profits
leading to an export leakage. Furthermore, the adoption of “all-inclusive” tourism packages create a form
11 Developed based on information from the model of destination competitiveness/sustainability developed by Richie and Crouch.
12 Travel & Tourism Economic Impact 2017 (Rep.). (2017). London, UK: World Travel & Tourism Council. Retrieved from
Tourism Resources
Natural Resources
Activities
Tourism Supra-structure
Accessibility
Infrastructure
Facilitating Resources/Services
Community Support
Linkages
Supporting Environment
Resources
Tourism
Impact
Lifecycle
Cultural Resources
Supporting Resources
Core Resources