Which of the following services is a core component of the tourism industry?

Question

Which of the following services is a core component of the tourism industry?

1. A. Banking
2. B. Hospitality (Correct answer)
3. C. Teaching
4. D. Insurance

Correct Answer

Option B — Hospitality

Detailed Solution & Explanation

The correct answer is Hospitality.

Key Points

• Hospitality — accommodation, food and beverage, and related guest services — is a core component of tourism, because every traveller needs somewhere to stay and eat. The two industries are structurally inseparable.
• Banking and insurance are support services: a tourist may use foreign exchange or travel insurance, but these exist independently of tourism and serve every other sector equally.
• Teaching belongs to the education sector and has no direct place in the tourism value chain.

Additional Information

• The core components of tourism are conventionally listed as the 5 A's: Attraction, Accessibility, Accommodation, Amenities and Activities — hospitality supplies the third and fourth.
• All of these sit within the tertiary (services) sector, which contributes over half of India's GDP.
• Tourism is described as a multiplier industry because spending by visitors circulates into transport, handicrafts, agriculture and construction — which is exactly why questions distinguish *core* components from *linked* ones.
• India's Ministry of Tourism runs the *Incredible India* campaign and the Swadesh Darshan and PRASHAD schemes for destination and pilgrimage circuit development.