The tourism industry is one of the most important industries for developing countries worldwide and Grenada is absolutely no exception. As stated by Annie Kelly (2008), “Since the hurricane the government has been struggling to rebuild the island’s bankrupt economy and has been increasingly looking to tourism development as the answer to its woes.” As expressed above, hurricane Ivan has negatively affected the country of Grenada; killing dozens of people, damaging 90% of the island’s buildings and devastating the nutmeg crop. The tourism industry is presently the largest industry in Grenada and has the potential to affect the country’s social and economic development drastically. The tourism industry in Grenada leads to economic developments, mainly in employment, Gross Domestic Product (GDP), agriculture and visitor exports and investment. Additionally, the system also allows the preservation of traditional customs and festivals. Economic Impacts The tourism industry has been on a steadily increasing rate over the past years and as a result, has contributed to the development of Grenada’s economy tremendously. The tourism industry has affected the development of Grenada’s economy in four specific areas: employment, Gross Domestic Product (GDP), agriculture and visitor exports and investment. Employment Caribbeanhotelandtourism.com (2015) stated the following: Travel & Tourism generated 3,000 jobs directly in 2014 (6.4% of total employment) and this is forecast to remain the same in 2015 at 3,000 (6.5% of total employment). This includes employment by hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). It also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists. By 2025, Travel & Tourism will account for 4,000 jobs directly, an increase of 2.5% pa over the next ten years. Gross Domestic Product (GDP) Caribbeanhotelandtourism.com (2015) claims the following: The direct contribution of Travel & Tourism to GDP in 2014 was XCD154.4mn (7.0% of GDP). This is forecast to rise by 2.5% to XCD158.3mn in 2015.This primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). But it also includes, for example, the activities of the restaurant and leisure industries directly supported. The direct contribution of Travel & Tourism to GDP is expected to grow by 4.1% pa to XCD237.2mn (8.3% of GDP) by 2025. Agriculture Cardi.org (2011), stated, “The economy of Grenada is dependent on agriculture and tourism, and while tourism is the main source of foreign exchange, historically, the island has been an agricultural society.” Grenada’s main export crops nutmeg, mace, bananas and cocoa have influenced many …show more content…
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