Tourism is one of the most visible and fastest growing facets of globalization in developing countries. Today tourism is one of the fastest growing sector for the economy worldwide, thus within the tourism industry events are getting more and more important. Tourism is important in many ways as it can be for leisure, business, education, culture and for fun; it is very happiest part of the life. Tourism has become a popular global leisure activity, People have become more interested in events of all kinds, and will travel far away to participate in events that they find interesting. Tourism industry in Sikkim is also of much significance in the sense that Sikkim is considered as one of the industrially backward states of of the country. Apart from agriculture, tourism industry is the most popular source of income in Sikkim. The attraction of Sikkim for tourists has been increased with the passage of time. This study examines whether the increase in tourists really have impact on economic development in Sikkim or not.
Keywords: Tourism, economic development,travel, global leisure activity,globalisation
Tourism is a peculiar form of market integration. Instead of shipping goods across space, tourism involves the export of non-traded local amenities, such as beaches, mountains or cultural amenities, and local services, such as hotels, restaurants and local transport, by temporarily moving consumers across space. Tourist expenditures on these local services are then reported as tourism exports in cross-country data on services trade flows. Over recent decades these tourism exports have grown to become a quantitatively important channel of global integration and this is particularly in the case for developing countries.
Tourism has attracted widespread policy attention in both developed and developing countries. Virtually every country in the world has one or several publicly funded tourism promotion agencies. Some governments and international organizations have also been advocating the promotion of tourism to foster local economic development in economically backward regions within countries. On the other hand, much of the existing social sciences literature on tourism has been critical about its long run economic consequences, especially in developing countries.
The boost in the growth of tourism in the state is also attributed to the growth in the associated sectors. Sikkim since last 5 years is following a strict Organic policy and is also the first state in the country to achieve total Sanitation. A Green Mission program has been launched by the government under which every individual, agency and the Department contributes towards the planting of trees all over the State. Village tourism is being specially encouraged to preserve culture, heritage & handicrafts and to create better economic and employment opportunity in the rural area. Floriculture is being promoted at large in the State and Sikkim has earned its place as a major orchid and exotic flower producer in the country. Use of polluting plastic is also banned in the State. All the ethnic Communities have different and distinct festivals, which are celebrated all over the State. Tourism Department plays a major role in promoting these festivals in order to showcase Sikkimese culture and heritage.
Sikkim’s nominal state gross domestic product (GDP) was estimated at US$1.57 billion in 2012, constituting the third-smallest GDP among India’s 28 states. The state’s economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, barley, oranges, tea and cardamom. Sikkim has the highest production of cardamom in India, as well as the largest cultivated area of cardamom.
In recent years, the government of Sikkim has extensively promoted tourism. As a result, state revenue has increased 14 times since the mid-1990s. Sikkim has furthermore invested in a fledgling fledgling gambling industry, promoting both casinos and online gambling. The state’s first casino, the Casino Sikkim, opened in March 2009, and seven further casino licences are being considered by the state government. The Playwin lottery has been a notable success in the state. In October 2009, the government of Sikkim announced plans to offer three online sports betting licences. Among the minerals mined in Sikkim are copper, dolomite, talc, graphite, quartzite, coal, zinc and lead.
Honey (1999) and Dieke (2000) have questioned the extent to which the gains from tourism accrue to the local population, rather than being cap- tured by multinationals or domestic elites. In economics, the existing literature has argued that tourism may give rise to a particular form of the “Dutch disease” by