Journal of Positive School Psychology http://journalppw.

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2022, Vol. 6, No. 5, 10046-10057

Role of Tourism in Growth and Urban Economic Development

Esfandiar Niazi*
[email protected]
Dr.MenochehrJahanian
[email protected]
Dr. Ja'far Ahangar
[email protected]
Dr. Abbas Malek Hosseini
[email protected]
University of Knowledge and Culture
Tehran

PhD student in Tourism Management, University of Science and Culture

Assistant Professor of Tourism Management, University of Science and Culture
Assistant Professor of Tourism Management, University of Science and Culture
Professor of Geography and Urban Planning and Tourism, Islamic Azad University, Malayer Branch

Abstract
This research examines the role of the tourism industry as a consumer industry in
terms of economic development and employment in a city. Since many tourism
services cannot be made using technology, the human resources employment in this
industry is abundant.
Given the infrastructure, services and attractions needed by tourists in these
population centers as one of the most important destinations that influenced the
trends of tourism in the world over the past decades, they are very important in
economics, development, planning, job creation (direct, indirect, voluntary Urban and
social motivation have caused them. The development of tourism industry in different
places provides opportunities for permanent, seasonal and part-time employment for
highly skilled human resources and reduces unemployment. For the same reasons,
many cities in the world have taken steps to improve the situation of this industry.

Keywords: urban tourism, job creation, economic development, tourism industry

1- Discussion and currency earnings, as well as creating new

1-1 Introduction occupational opportunities in the country;
The development of the tourism industry, Because Iran, according to the World Tourism
especially for developing countries, is faced Organization, is ranked fifth in the world for its
with many problems, such as high natural attractions, due to historic attractions.
unemployment, limited resource availability, Having such a position can have a high socio-
and the lack of a single-product economy. The economic value, and it has a huge potential for
economy of Iran has a strong impact on oil tourism and international tourism. Therefore, the
revenues, with its macroeconomic fluctuations fields of tourism development should be provided
over time as the global oil price rises. as an economic, political and legal strategy
The process that governs variables such as gross (Mirzai, 2009).
domestic product, gross investment, per capita This study examines the impact of urban tourism
income, etc. in the last three decades of the on job creation and seeks to find out if the
Iranian economy clearly illustrates this issue. development of the urban tourism industry as a
Therefore, the development of the tourism thriving part of the tourism industry can affect job
industry is of great importance for the purpose creation in the cities that are associated with this
of enriching the sources of economic growth industry?
 10047 Journal of Positive School Psychology

challenging cultural and social phenomenon.

2-Tourism After World War II, the growth of the tourism
The World Tourism Organization describes the industry and its development by the international
tourist as follows: a tourist who has been financial institutions were known as a rapid
traveling for at least one night, 24 hours or less, economic development and unprecedented
to a country other than his own home or ordinary change (Aspostolopoulos 1996: 1). One of the
residence, whose purpose is not to work and most important destinations that influenced world
earn an income. One travels for the sake of tourism trends in recent decades is urban centers.
having fun, spending the holidays, visiting The growth of short trips has made these
friends and relatives, treating and pilgrimage destinations one of the main tourist centers. As
(Gay, 1997). shown in Fig. 1, this problem is understandable in
2.1 Urban TourismTourism is the largest reducing the average length of austerity in most of
movement of people during peacetime the world's destinations.
(Greenwood, 1972) and today presents it as a
consumers
Leisure time available to

0/25 0/75 1/5 0/3

A few Urban
houres area Entertainment
centralized
area
One Day
Weekend Rural Vacation Resorts
A few Wide entertainment area
days
Long
Vacations

Shaww and Williams 2004

Figure 1: National and International Tourist Resorts

In the past decades, tourism has contributed a lot increased dramatically over the past decades
to the economy, development, planning, and (Bell, Albalate2008,).
urban employment and social development, and Today, urban tourism is considered as one of the
for this reason, many cities in the world have most important factors in the economic, social and
made progress in improving the situation of this financial development of the city. Each city has a
industry. Although urban tourism is a relatively special role in terms of its home and its places of
new subject of tourism, the history of which has deployment. This characterizes the kind of
flourished in scientific circles until the 1980s, relationship that the city has with its surroundings.
the urban market has suddenly grown since mid- This activity is tangible at the three levels: the role
decade. This market growth has taken place in that the city can play on a local, national and
other sectors of tourism and has entered the international scale (the role of capitals and mother
tourism literature with the Astoria theory since of major economic cities), the role played by the
the early 90's, and tourism as a fourth activity of city on a regional scale, and finally the role or The
man has affected cities as tourist favorite areas. activity of the city is followed by respondents to
Accordingly, many cities in the world have been their own needs, i.e. the role of services in the city
advancing and improving the conditions of the (Farid, 1991). The main advantages of the tourism
industry, for example, from the cities of industry for an area or a country are economic.
Barcelona in Spain and Berlin in Germany, Travel provides opportunities to create jobs and
where the number of tourists in these cities has increase income at a local, municipal, national and
even international level. It is a tourist to a city or
 10048 Journal of Positive School Psychology

a country, income in that area is beneficial to that all elements of the tourism system are divided
other sectors of the economy as well. into supply and demand groups, which include
domestic and international markets and local
2-2 - The attractions of the city and its people who use attractions, facilities and services,
various types including attractions and activities, residential
The attractions of tourism can be divided into facilities and other facilities and tourism services
different ways. These developments are the (Gun, 2002, 15) (Table 1).
result of the views of many people, each of
whom, according to their own point of view, has
classified the attraction of tourism.Gan believes
Demand factors Supply factors
International tourism markets Attractions & Activities

Domestic tourism markets Residences

Domestic tourism markets Other facilities and tourist services

Use of local residents from attractions, Other transportation infrastructure and

facilities and tourist services organizational elements

Source (Zargham, 2002) Table 1: The system of livelihood, the number of urban tourists was
supply and demand for tourism from the point increasing. Urban tourism became an important
of view issue in urban development.
Urban areas are usually considered to be the There are various attractions in the cities,
most important tourist destinations because they including museums, theaters, stadiums and sports
have many historical and cultural attractions. facilities, spaces and amusement areas, facilities
Cities have diverse attractions such as museums, in the hospitality area (restaurants, hotels, etc.),
tombs and monuments, theaters and sports shopping malls and markets one of the important
stadiums, parks, town hall, shopping malls and parameters for the formation of urban tourism.
pilgrimage sites, which attracts many tourists
(Haman). Since leisure was important for urban
 10049 Journal of Positive School Psychology

Reception
centers
exhibitions (hotels,
Green space restaurants, Cultural and
and urban etc.) Historical
parks Centers
Arts Centers
entertainme
and
nt centers
Museums

Congress
and Medical
Examination center
s

And health
Religious
tourism
centers
facilities

Major
Stadiums Shopping
and City tour Centers
stadiums

Figure (3) urban tourism elements

In the World Tourism Organization, people 2-3. Economic effects of the tourism industry
traveling, according to their purpose, are on cities
divided into three groups: (1) for the purpose of Evaluating the economic effects of the tourism
recreation and holidays; 2) trade, commerce and industry will provide the necessary information
the pursuit of professional activities 3) In order for the forming of tourism development policies.
to visit friends and relatives or to treat or These policies determine the entire structure of a
perform religious ceremonies (Y Gi, 1997). In country to achieve the most appropriate type of
the tourism industry, recreational trips are production in tourism. In any case, because of the
offered to specialist holidaymakers who usually definite problems due to the relative error in the
go to special places to go to their most important statistics of tourism, it is difficult to determine the
places in the city. Unlike travel excursions, economic effects of this industry precisely.
business trips are organized in economic Despite all these issues, examining the economic
centers. Religious travel attracts a large part of effects of tourism in the global economic analysis
the population. The great European churches, is vital. Tourism is the most useful industrial
large mosques in Muslim cities, and especially sector in the world, accounting for about 13% of
the city of Mecca, are among the religious gross national product. This industry is a sector
places that are considered by many religious that employs some 100 million employees - the
travelers (Haman). most human-made. Tourism affects a number of
In Iran, the religious cities of Mashhad and Qom economic activities, including: employment,
also attract a high percentage of travelers every human resources, development, and international
year. Based on statistics provided by the trade and beyond.(Farzin, 2007)
Cultural Heritage, Handicrafts and Tourism Tourism, as an industrial enterprise that leads to
Organization of Khorasan Razavi province, the comprehensive development, is the third largest
number of pilgrims and tourists in the after the oil and petrochemical industry (Azizi,
metropolitan area of Mashhad in 2006 was 2006). In fact, by investing in attracting tourists, it
about 15 million. is possible to invest capital and currency, and on
the other hand, by creating employment, another
 10050 Journal of Positive School Psychology

step towards the development of the regions, so (social, political, economic, and management),
that with one-day stay of each tourist in a region, but all refer to the concept of "employing
five direct job opportunities are created specialist labor in specialized professions and
(Misapur, 2006). adapting the conditions of specialists with
Tourism affects all sectors of the economy of a specialized posts for the needs of social
given country and affects all of these areas. The organizations".
economic effects of tourism are all the effects
that affect economic factors. Tourism, through 1-3. Employment and Travel
its impact on major economic components such Tourism is a consumer industry. Since many
as income, employment, price levels, supply and tourism services cannot be made using
demand, and financial and financial balance of technology, human resource employment in this
the community. In this regard, "Tourism is the industry is abundant. Therefore, the development
largest producer of gross domestic product and of tourism in different places provides for the
labor, and it boosts many countries and creation of permanent, seasonal and part-time
regions." (22: Jeffries 2001) Tourism increases employment for manpower with specialist and
revenue and revenue for a city or region. This moderate education and reduces the
will be done at the expense of a traveler during unemployment rate. In addition to direct
his stay in the host country. This economic flow employment in tourism, other activities related to
is called "invisible exports". tourism, such as construction works, repairs, car
rentals, handicrafts and the like, are provided to
3. Employment indigenous people. Employment is calculated by
Regarding employment, several definitions its type, which includes types As follows:
have been proposed from various perspectives

City tour
Attractions services Infrastructure

Employment
Induction Indirect Direct

Employment

Part time Seasonal Permanent

Inductive employment: Individuals who are
sponsored by spending on direct and indirect
Direct employment: People working in income earners.
tourism-related institutions, such as hotels,
restaurants, tourist stores and travel agencies.
Indirect employment: Jobs created in the
supply sector, such as transportation,
agriculture and crafts.
 10051 Journal of Positive School Psychology

800

700

600

500

400

300

200

100

2001 2003 2005 2007 2009 2011 2021

Increasing the link between this sector and other

Source:WorldTeavel& Tourism Council 2011 sectors, the employment rate will also increase.
Chart (1) the number of jobs created in Iran by Tourism has a significant role in creating job
the tourism industry during the years 2001 to opportunities and reducing unemployment,
2021 (thousand). correcting employment patterns and building
3-2-Tourism and Employment sustainable employment opportunities. Fifteen
Research suggests that the tourism sector percent of global jobs are devoted to tourism. In
generates more employment than other sectors other words, from every 15 job opportunities, 2.5
for each dollar earned. For this reason, many / 2 belongs to the global tourism sector (Surbruk,
policymakers consider tourism development to 1999). (Study article)
be a desirable policy to reduce unemployment in In another study, the impact of tourism attraction
areas where there are few job opportunities in in Semnan province was studied, in the fourth
other sectors of the economy. These regions, of program, economic and social development of
course, may also have high incomes that occur incomes from tourism entry to the province was
when the industrial structure of a region has a predicted to be 123296 million Rials, which if the
high added value but also has high program succeeds, it will be possible to create 948
unemployment rates, and as a result of the direct jobs in the province and cover 24.66percent
distribution of unequal income and in a small of the population in the country if it can be
number of jobs. (Musa'i, 2011). programmed Proper management and
Tourism will generate many jobs in the management of related organizations in the
community. Over time, the diversity of relevant province's tourism sector and the provision of
branches and tourism workers is also increasing, appropriate infrastructure, services and amenities
and today's travel has attracted a wide range of will attract 12 million tourists from the 2.7% route
different occupations. throughout the year. The unemployment problem
In other words, the industry has almost 2/6 of will be eliminated in the country (Cairo, 2007).
the indirect labor opportunity in other sectors for David and Marcquiller (2008) also found that job
a direct job opportunity. In 1998, tourism creation and income generation are important
industry in Thailand has managed to provide elements that allow for a better understanding of
640000 direct em The existence of such a the job and revenue generated by the travel and
coefficient is reasonable given the link between tourism sector.
the tourism industry and other sectors, and it can
be expected that by increasing the link between 4. Economics
this sector and other sectors, the employment Economically, tourism, and especially
rate will also increase employment international tourism, makes the most of it.
opportunities and one million indirect jobs Foreign exchange earnings from international
(Zahedi, 2000). The existence of such a tourism are higher than oil products, automotive
coefficient is reasonable given the link between and communications equipment. Tourism has also
the tourism industry and other sectors, and it can played an important role in encouraging
be expected that by investment in infrastructure, generating revenue
 10052 Journal of Positive School Psychology

for government, and direct, indirect, and income, development of handicrafts and the
inductive employment throughout the world. avoidance of their forgetting.
Tourism is one of the most important activities On the other hand, attention to the negative
of the contemporary world. aspects of economic development, such as paying
According to the World Tourism Organization, attention to tourism costs and payments, creating
the number of tourists grew by 4.3 percent false employment in the community, the effects of
annually, reaching 1.6 billion by 2020. At the tourism activities on land, inflation, etc. are also
same time, tourist spending around the world included. Many researches have shown that
grows 6.7% every year to $ 2 trillion (World shopping is almost the most common tourist
Tourism Organization). The awareness of activity in all destinations of tourism. Commercial
societies that tourism provides a very shopping centers (including shops selling food
appropriate and significant source of foreign and beverages, handicrafts and children's toys,
exchange income to a country's economy has led etc.) in parks and other tourist sites are important
tourism to become very broadly conceptualized for shopping in the tourism industry.
in various economic, social and cultural In many cases, the income of retail outlets exceeds
dimensions. the rental rates for tourist sites, and even some
The tourism industry can have a significant tourist sites diversify their products, including t-
impact on employment growth, revenues from shirts and hats, souvenirs, ornaments, dried
residential locations and government revenues. animals, toys, Postcards, books and memorabilia
Tourism therefore has a direct and indirect (Timothy, 2005).
effect on economic growth. So far, the tourism
industry has generated more than 100 million 4-2 - Tourism and Income
direct job opportunities and has been the basis Visitor spending not only affects job performance
for dramatic socio-economic developments and wages, but also generates revenue for the
around the world. public and private sector, which earns through the
following: (which is also a positive tourist and
4-1-Tourism and Economics developmental asset). Because tourism
The pioneers of tourism industry studies in 1998 companies, like other local businesses, pay taxes
emphasized the potential and the role of this to the government, so with the development of
industry in promoting economic growth, tourism, tax revenue also increases. Getting fee
creating jobs and raising revenue. Studies show for using public facilities (toilets, parking lots)
that cultural-historical tourists tend to have high increases the total revenue from tourism.
incomes and spending more money in their Receiving domestic taxes or other forms of
leisure than other types of tourists. In the early tourism tax will increase tourism income (Effect
1990s, a survey by the Museum Association = coefficient of multiplication).
found that almost 80% of museums had a kind These additional funds, in most cases, can be used
of retail space, and this figure was likely to to preserve historical buildings and create
increase in recent years (Timothy, 2005). facilities, as well as to development and
On the other hand, we can mention the great advertising activities. Nevertheless, the size and
impact of tourism on economic development, variety of the local economy of an area determines
Tourism, while creating diverse activities in the the real value of tourism for that region.
community, has caused more mobility in the rest 4-3 Marketing Tourism
of the economy and can also have a constructive Growth and expansion of cities have an important
effect on the currency balance. Also, role in the development of markets and tourism.
transportation, food, fuel and energy sectors, The number of visitors to urban destinations has
handicrafts, construction and, consequently, increased and today, urban managers are in
tourism activities are booming. The economic competition to expand the tourism market. The
productive effects of tourism can be: creation of marketing and definition of the market for urban
wages, income generation, taxation of diverse tourism is one of the new issues in the tourism
tourism activities and development of public industry and urban management.
facilities, preservation of ancient works and For over a hundred years, the economy has
natural attractions as sources of economic become a well-defined member of the social
 10053 Journal of Positive School Psychology

sciences. The current growth of tourism comes communities) use less, but it is necessary to
from three social changes: establish a proportionate balance between them.
1- Development of transportation infrastructure Ultimately, tourism development is a topic
2- Increased net income (capture capability) beyond tourism. Although economic variation is
3. Improved access to communication good, but to avoid its negative effects, there is a
technologies need for precise planning and management, which
The term "market" refers to all potential does not cost much. In addition, in the
customers who have a common need and development of tourism, for the restoration and
willingness to do their own business to supply diversification of the economy, we need an
their needs and desires (Cutler, 2006, p. 50) official agency and a survey (which forms the
Tourism marketing is the process of planning basis of the market or non-market activities).
and implementing concepts, pricing, advertising Economic diversification requires planning and
and distribution of thought and goods, goods management to avoid its negative effects, which
and services, in order to create a platform that will cost a lot (operating costs, consultancy
meets individual and organizational goals. costs).These costs should be recovered when
Urban areas are often considered important tourists visit the localities and use their pools in
tourist destinations due to their historical, shops, attractions and other services. The
cultural and economic attractions. As an economic effects of tourism have different factors,
important part of the city's economy, the market each of which is important at different levels of
plays an important role in the tourism industry. activity, which must be identified in each order of
It is based on two main approaches: 1. these factors.
Customer-2-goods. A tourism market in general 4. Economic Impacts of Tourism Development
includes components such as product, price, In many countries of the world, tourism has
promotion, physical evidence, planning, and become one of the key sectors for economic
people. The strategic relationship between these development and development. Of course, the
components moves from the present to the magnitude of the impact of development on the
desired state. Given the specific characteristics government and on the coordination of them is
of the tourism product, the role of marketing in directly related. The economic effects of tourism
this industry is of particular importance to other are multiple. Its most important work is to create
industries and the effective use of tourism and earn money. The results of numerous studies
marketing tools for a country or an area is confirm that tourism leads to a reduction in
essential because marketing can provide unemployment and income (Zahedi, 2006: 40).
potential tourists with information about what Tourism as one of the sources of income and
the region can be To offer, and encourages them employment at the national level can be an
to visit it. approach to economic development in the national
4-4. Tourism structures and economic realm. Trading, especially when the profits of
diversification other sectors of the economy are declining, is an
In turn, the characteristics of the tourism appropriate alternative for them and a strategy for
structure of each place are influenced by the development.
importance, credibility, nature, variety of roles Based on this, the main reason for the
and functions and, in general, its spatial development of tourism is to overcome the low
attractions. Nevertheless, the point to consider is level of income and provide new job opportunities
the identification of talent, the potential of the and social transformations in the local
tourist sites, so that the optimal investment can community, and can provide hope for poverty
be taken to further development of these areas. reduction, especially in regions that have
In many societies, reliance on a single industry somehow undergone a recession. Tourism
has been very problematic, especially when that development themes are as follows:
industry has a declining trend. But the tourism 1) As with any export activity, it creates a
industry is an industry that can overcome the source of income and employment.
economic downturn. 2) Creates a chain of total economic and
Although, of course, tourism costs can support service activities and acts as a leverage
goods and services that local residents (host for a large number of economic
activities.
 10054 Journal of Positive School Psychology

3) From natural landscapes without Although the situation is different in different

changing their nature or changing their parts of the world, tourism has always been a
raw material. Or transports them to factor in economic progress. This industry can
other areas. lead to economic and social changes. Tourism
4) Demands for traditional industries and influences the national economy, through its
arts and activities that require more impact on national income, employment, changes
workforce. in prices and national trade, (Zahedi, 2006: 66).
5) As much as attracting tourists from The extent of this impact depends on the type of
outside the national economy, it investment and industry in the national economy.
extrinsic costs into the region and For example, if its development is through
increases the multiplying factor (Moein investing and foreign, the profits from this capital
Fard, 2008). will consist of paying foreign workers' fees for
Countries and societies have increasingly significant non-residual currency in the country,
recognized the fact that in order to improve their which will go down to each other (Table 2).
economic situation, they have to take initiatives
and seek new ways.
Positive aspects Negative aspects
-Increase in foreign exchange earnings -Inflation, general price increase
-Create Job Opportunities -Seasonal jobs and jobs
-Mobility of capital -Rising land prices
-Attracting foreign capital -Development of service sector and
-Improvement and development of manufacturing research
infrastructure - Reducing public services
-Balance of international payments - Unbalanced development of the region
-Non-oil export development Dependence on foreign countries
-Use existing local capabilities
regional expansion

Table 2: Economic Impact of Tourism

 10055 Journal of Positive School Psychology

Conclusion development, will facilitate the rationalization

Urban expansion The focus on leisure and of the inhabitants of the city and urban tourists.
urban tourism has increased the tendency to Therefore, considering the extent of urban
create amusement spaces and urban management to track the tourist attractions, it
attractions, and developed governments and can now play an effective role in the
local governments and urban management by urbanization of the world as a tourist attraction
investing in their urban attractions.Therefore, and have a significant impact on the economy
urban attractions grew and people were of these cities.
attracted to it. Creating employment and Solutions
income and increasing the income of cities - Adopting macro policies to improve the
from tourism brought competition between productivity of the tourism industry in the city.
cities to increase the attractiveness and - All-inclusive government support for
attraction and attract more tourists. The tourism-related organizations from private
increasing expansion of the population in the investors in the field of tourism in the city.
world's cities has been the cause of the - Creating convenient amenities and one-day
complexity of urban issues, so that city tours when the tourist's peak is to the cultural-
management now needs to learn, analyze and historical complexes and natural attractions of
consider the issues of the city.Urban travels are the city and surrounding cities.
the main destinations for tourism and tourism - More Interactions between municipalities
in our country. Tourism includes all the and the cultural heritage organization of
infrastructures, attractions, services and tourism and to develop new attractions of
features that are being provided on a daily Urban Tourism.
basis, rather than what the traveler will - The importance of the existing tourism
provide, but the most prominent type of potential and capabilities of cities in the
tourism is its urban model, due to the special development of urban development plans.
position of the city, in many successful - Development of services and infrastructure
countries in this industry, the city, is the base necessary for the development of tourism in
of the of tourism development.Creation and accordance with the principles of sustainable
development of suitable urban spaces, urban development.
restoration of historical and cultural spheres of - Long-term financial feasibility for
society, are the effects of urban tourism investment in infrastructure for urban tourism
development. To this end, many cities have development.
sought to take advantage of their city's specific - Development and reinforcement of urban
features and amenities and use it to attract tourism development strategies.
urban tourists.The creation of urban spaces
based on new activities focused on the - Designing specialized tourist sites and
development of tourism activities and the creating a database of city-specific attractions.
creation of more attractions for the survival of - Introducing urban tourism attractions at the
passengers, along with the development of national, regional and international levels
work cores and activities, with the goal of through modern advertising and brochures, as
improving the harmony of urban mobility in well as informing tourists about the tourist
the entire urban area, and the creation of a attractions of cities.
multi-disciplinary system reflects the - Creation of seasonal camps for the
theoretical and practical experiences and establishment of tourist destinations in order to
lessons learned from the clans Cities and towns prevent the dispersal of tourists in the nature,
around the world can be learned and such as the establishment of tourist parks in
practiced.Creation and development of cities;
modern residential centers, recreational and - Examining the feasibility of proposals for
recreational areas, large shopping malls, designs and compatibility of designs with each
museums and cultural and artistic centers, other in high-level cities in cities.
especially native culture with the aim of - Organizing local and regional markets of
creating jobs and creating tourism cities to sell the products of residents of the
 10056 Journal of Positive School Psychology

urban area as an economic and cultural Economy".Economic Research.Tenth year,

opportunity suitable for introducing tourists; number three, pp. 267-28.
- The process of participation and participation - Yaghoubzadeh Rahim, HejaziNegin and
Shafati Ismail - Tourism Economics
of the executives, stakeholders and
(2014).Publishing House Jihad University.
stakeholders in the city. - Hossein Pour Mohammad Nabi
- Holding of festivals about city and city (2003)."Tourism, Development and Jobs."
production capacities in different seasons Selected papers selected by the second
conference were celebrated by the researchers
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