How Tourism Contributes to the Economy of Arizona? - Essay Sample

Paper Type:  Essay
Pages:  5
Wordcount:  1148 Words
Date:  2022-04-11


Tourism is among the primary pillars that support the economy of the state of Arizona. A report released by the Arizona Office of Tourism indicated that tourism was the leading export in Arizona (Franklin 23). Thus, it is an indication of the role of tourism plays in Arizona's economy. Empirical studies show how tourism supports an economy. They also stress the spillover benefits created b tourism to other sectors of the economy. Further, there is sufficient evidence showing how tourism in Arizona contributes to the broader policy agenda such as socioeconomic inclusion, sustainable development, business formation and regeneration (Totten 7). Therefore, this paper aims to explore the general contribution of tourism within primary contexts such as employment generation, influence on trade and investment, improves social services and infrastructure and how tourism spur broader economic growth and development in Arizona.

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Empirical data shows how a number of countries have experienced unprecedented economic growth as a result of tourism. Besides, most of the literature reviews suggest that tourism is an attractive option for stimulating development in low-income economies, which previously relied on natural resource extraction and agriculture (Shen et al., 21). Similarly, the growth and development of tourism industry in Arizona have been able to support economic development nearly across all sectors within the economy. It generates additional demand among numerous professions and services (Jonathan 14). Besides both the direct and indirect impacts, the state of Arizona has been able to derive benefits such as improved infrastructure used by other industries to promote trade investment and skills in other sectors.

Tourism has played a crucial role in promoting trade in Arizona. Besides the local businesses that emerge due to the vibrant tourism industry within the state. A previous global study carried out among 2,300 business people confirmed that sealing business deals often physical meeting between business partners. Out of the responses, from the respondents, 95% stated that developing long-term trade links in the first growing business environment require in-person meetings with business partners and leaders (Dwyer et al. 91). Therefore, Arizona has been playing the critical role of providing an avenue and space for business leaders and partners to meet, close deals and build long-term mutual business relations.

Therefore, the well-established tourism industry in Arizona facilitates rapid growth of trade. According to the econometric modelling performed at Oxford Economics, increased intensity of business travels often lead to increased intensity of trade (Franklin 27). Thus, this is an indicative of the manner in which tourism contributes to the economic growth of the economy of Arizona. There are some economic benefits associated with trade initiated through tourism. For instance, advancement in trade reduces prices, enhances the state to focus on its core competency areas, creates economies of scale, and creates competition and spur innovation (Jonathan 28). Through tourism in Arizona, the local entrepreneurs get an opportunity to develop relations with potential suppliers and customers from across the globe.

Besides trade, tourism also fosters investment by both local and foreign investors. Through tourism, the state of Arizona can benefit from Foreign Direct Investment, which introduces skills, technology, capital, and demand for local commodities as well as improving the balance of trades. Many tourist destinations often compete for foreign direct investments. Therefore, this prompts the need to establish connectivity across the sector including aviation, and technology to be able to attract maximum foreign exchange from tourists (Dwyer et al. 98). Airport hubs provide the connectivity that helps in increasing foreign direct investments. Thus, the tourism in the state of Arizona enhances investment in various support industries such as aviation.

Although a substantial portion of the direct foreign investment acquired from the tourism industry is used in activities that directly benefit tourists such as constructing new resorts and hotels, some part also goes to improving infrastructures that do benefit not only tourists but also the locals (Andereck, Kathleen and Gyan 54). Tourism has assisted in enhancing collective investments in transportation infrastructures such as harbours, roads, airports and communication infrastructure. Although these are necessary investments that have a considerable impact on the tourism industry, they also have a critical influence on the residents and other sectors within the state (Shen et al. 29). Tourism in Arizona has strengthened infrastructural network that has been able to improve transportation system to enhance mobility, ensure a continuous flow of goods and services, enabling competitiveness and improving public safety.

Improving Tourism in Arizona

However, despite the unprecedented growth of tourism in the state of Arizona, some issues still need to be addressed in to make the benefits of tourist economy sustainable in the long term. Latest reports show despite the encouraging leisure snapshots of the Arizonian tourism industry; there is an impending danger about the future of the industry. However, experts suggest that one of the critical ways of making Arizonian industry vibrant is identifying and implementing measures such as urging leaders to promote the state as the best tourist destination and take active roles in welcoming visitors (Maki 5). Further, the tourist authorities support marketing efforts through designating the function to a senior government official. Members of the Congress from the state of Arizona should also mobilise for the government to ease the process of entry for people from particular countries to enter the United States.

Works Cited

Andereck, Kathleen L., and Gyan P. Nyaupane. "Exploring the nature of tourism and quality of life perception among residents." Journal of Travel Research, May 2011, p. 248+. General OneFile, Accessed 20 Mar. 2018.Dwyer, Larry, Peter Forsyth, and Raymond Spurr. "Tourism economics and policy analysis: Contributions and legacy of the Sustainable Tourism Cooperative Research Centre." Journal of Hospitality and Tourism Management 26 (2016): 91-99.

Franklin, Paul M. "A Portrait of Arizona." Arizona & The Grand Canyon, DK Publishing, 2010, pp. [12]-29. Eyewitness Travel Guides. General OneFile, Accessed 20 Mar. 2018.
Jonathan Lansner. "8 reasons why tourism matters in Orange County." Orange County Register [Santa Ana, CA], 17 Dec. 2017. General OneFile, Accessed 20 Mar. 2018.
Maki, Sydney. "State tourism officials see big industry improvements." The Business Journal - Serving Phoenix & the Valley of the Sun, 24 Feb. 2017, p. 5. General OneFile, Accessed 20 Mar. 2018.
Shen, Fujun, Kenneth FD Hughey, and David G. Simmons. "Connecting the sustainable livelihoods approach and tourism: A review of the literature." Journal of Hospitality and Tourism Management 15.1 (2008): 19-31.

Totten, Steven. "Tourism's new face." The Business Journal - Serving Phoenix & the Valley of the Sun, 24 Feb. 2017, p. 4+. General OneFile, Accessed 20 Mar. 2018.

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