Why is tourism known as tertiary industry?

Answer 1

Tourism as a service industry comprises of several allied activities which together produce the tourism product. Involved in the tourism product are three major sub-industries. They are: -

1. Tour operators and travel agents.

2. Accommodation sector (hotel and catering) and

3. Passenger accommodation.

Also, the following points justify the nature of tourism as a service industry-

1. Tourism accounts for nearly 6% of world trade.

2. Bulk of tourism business is located in Europe and North America., with 1/8 of the market being shared between the other regions.

3. The highest growth rate in tourism in recent years has been in the third world.

4. Tourism, like most pure services, because of the character of inseparability, exemplifies a product, which cannot be sampled before purchase; the prospective consumers have to travel to a foreign destination in order to consume the product.

5. The major players in the tourism market include a number of intermediary companies. Some of them transnational in character, some of them exhibit vertical integration, both backward and forward, acquiring interests in all major sectors of this service industry.