Canada 's Economy And Tourism Industry

963 WordsOct 16, 20144 Pages
There are multiple measures of the performance of the country’s economy and GDP is one among them. GDP represents the total production output of the economy and it is the sum of individual industries. One of these industries is tourism and this essay will explore the contribution it has made on the example of Canada’s economy and tourism industry. Canada’s tourism industry is experiencing considerable redevelopment since 2002, which was thought up by National Travel Coalition of Canada and Canada’s Tourism Commission. By this, Canada aims to regain the top 10 ranking in the world by number of arrivals by 2020. There are a few challenges that need to be addressed. One is global cost competitiveness through illuminating unnecessary charges and taxes assisted with visas and foreigner travel to Canada. Another one is improved national infrastructure and addressed labour shortages within tourism industry. Gross Domestic Product (GDP) is an important macroeconomics indicator used to measure the performance of the economy. The basic formula for calculating the GDP is as follows: GDP = C + I + G + (X-M) Where C is a consumption, I - investment, G - government expenditure, and (X-M) is the difference between the imports and exports. Fundamental assumption of the GDP is that spending in any of these areas will increase the GDP and in turn, represent the increased growth of the economy. However, some economists argue that GDP ignores the quality of the goods produced, efficiency
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