Diversification in an economy is a sign of health. If a country, or region
within a country, becomes dependent for its economic survival on one industry
and that industry fails then the social consequences can be devastating.
Overdependence on one or two industries is also often accompanied by
underdevelopment within other sectors of the economy such as education, health,
and the manufacturing and agricultural industries.
The tourism industry is extremely vulnerable to economic,
social, and political changes in either the generating or host countries.
The table below shows international tourism receipts as a per
cent of export earnings for selected countries around the world. Countries
with a high percentage are more at risk to any decline in tourism and travel.
Others are less vulnerable to the ill effects of a decline in tourism, because
their economies are more diversified. Japan is a good example.
International Tourism Receipts: % of Export Earnings (1998)
Argentina
17.2
Australia
10.2
Canada
03.8
China
06.1
Czech Republic
11.0
Egypt
19.0
France
07.7
Germany
02.6
Greece
25.4
Israel
08.3
Italy
09.6
Jamaica
35.4
Japan
00.9
Jordan
23.5
Mexico
06.1
Netherlands
03.0
New Zealand
10.9
Poland
18.3
Portugal
14.0
Russia
07.4
Spain
18.7
Switzerland
06.5
Syria
24.1
Tanzania
49.8
Turkey
14.3
United Kingdom
05.6
United States
07.6
Uruguay
16.4
Source: The World Bank Group: World Development Indicators
