The Effects of Tourism on the Real Estate Market
The real estate sector remains one of the most lucrative sectors of the global economy and is also referred to as one of the types of measurements used to measure the economic growth of a nation. The housing market, which depends on real estate, constitutes a large part of the real estate market, and the change in housing prices over time is not limited only by macroeconomic factors and construction industry factors. Housing price changes have also been correlated with the tourism sector activities carried out on the selected region.
For developed or developing nations, tourism is seen as a key economic activity. Due to its numerous beneficial benefits on the economy, the tourism sector has become more and more important. Tourism raises foreign exchange profits, encourages economies of scale, expands international trade, generates new jobs, aids in the development of infrastructure, preserves cultural heritage, and increases overall national income. As a result, it has favorable effects on economic growth.
According to World Travel and Tourism Council (2008) The tourism industry has considerable indirect and induced effects on the economy in addition to its direct economic impact The total amount spent on tourism within a nation by citizens and foreigners for business and pleasure is considered tourism’s direct contribution. Government spending on tourism-related services, like cultural and recreational ones, that are directly related to tourists is also included. Jobs supported by the government or private companies that deal directly with tourists are included in the indirect contribution. Examples include purchases of food and cleaning services by hotels, fuel and catering services by airlines, and services by travel agents.
The pros and cons of tourism as a long-term driver of economic growth in a nation are outlined by experts. These include the following: tourism increases a nation’s foreign exchange revenues; tourism makes it easier to use a nation’s precious resources. – for instance, traditional, natural, and cultural – Tourism boosts job opportunities in tourist areas, encourages infrastructure improvements that are advantageous to both visitors and locals, can help an economy develop its new managerial and technological capabilities, and fosters productive relationships with other economic sectors (e.g., agriculture, manufacturing, and other service industries).
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