GLOBAL FINANCIAL CRISIS AND IMPLICATIONS ON TOURISM IN DEVELOPING COUNTRIES

Miloshoska, Danijela (2010) GLOBAL FINANCIAL CRISIS AND IMPLICATIONS ON TOURISM IN DEVELOPING COUNTRIES. In: Tourism & Hospitality Management 2010, Conference Proceedings, Faculty of Tourism and Hospitality Management in Opatija. Biennial International Congress. Tourism & Hospitality Industry; Opatija.

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Abstract

The current financial crisis has evolved differently from other major crises that have hit the
developing world in recent decades. Not only it is occurring in a world of unprecedented
financial globalization, where the financial sector plays a historically large role in economic
activity, but it is also an “imported” crisis, with origins outside the developing world.
The global financial crisis that emerged in September 2008, following more than a year of
financial turmoil, will have serious implications around the globe. Developing countries
were at first sheltered from the worst elements of the turmoil, but this is no longer the case,
as the cyclical downturn that was already under way in September has intensified. Financial
conditions have become much tighter, capital flows to developing countries have dried up,
and huge amounts of capital have been withdrawn, leading to sharp falls in equity
valuations and increases in bond spreads.
Many developing countries are moving into a new danger zone, with heightened risk to
exports, investment, credit, banking systems, budgets, the balance of payments, and the
most vulnerable. With this latest financial crisis, growth is slowing and is likely to weaken
even more sharply.
Tourism can be one of the key sectors contributing to overcome the current economic
difficulties in this recession’s period and can play a vital part in a long -term economic
indicators. Tourism can deliver for the economy as a whole. It is a catalytic industry and
should be part of stimulus packages for infrastructure, jobs, and investment. Tourism is one
of the largest and fastest growing industries in the world. It is an increasingly important
source of income, employment and wealth in many developing countries.
Keywords: financial crisis, developing countries, an “imported” crisis, global crisis, tourism

Item Type:	Conference or Workshop Item (Paper)
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business Scientific Fields (Frascati) > Social Sciences > Law
Divisions:	Faculty of Tourism and Hospitality
Depositing User:	Prof. d-r. Danijela Miloshoska
Date Deposited:	11 Jul 2023 12:04
Last Modified:	11 Jul 2023 12:04
URI:	https://eprints.uklo.edu.mk/id/eprint/8657

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