The Business Magnate. The Service Sector, also known as the Tertiary Sector, is a collection of prominent and essential economic activities carried out by a country to ensure its economic growth, stability, and development. The service sector of a country provides various intangible goods and services for businesses to produce and consumers to seek help from its services. The importance and benefits achieved from this sector contribute significantly toward a country’s GDP, economic stability, growth, sustainability, development, innovation, productivity, efficiency, community well-being, employment opportunities, promoting a diversified economy, and bringing in foreign investments. The various intangible goods and services that the Tertiary or Service Sector provides are its Financial Services, Hospitality and Tourism, Retail and Wholesale, Healthcare, Educational, Professional Services, Transportation, Logistics, Information and Technology, Telecommunications, Real Estate, and Public Administration Services.
Therefore keeping in line with the imperativeness of having a strong Service Sector in a country, this article will delve into how Guatemala – a country in South America, moves towards achieving economic resilience and growth by having its Service Sector pilot the country and play a vital role as its largest economic activity.
The Country in Brief:
Guatemala is a Latin American country, located in Central America. Sat below Mexico and above Honduras, Guatemala is an upper-middle-income country famous and intriguing for its volcanoes, ancient Mayan sites, Spanish colonial buildings, Lake Atitlán, coffee fields, chocolate production, rainforests, mountains, beaches, the National Museum of Archaeology and Ethnology, the City of Antigua, rich culture, and delicious food among much more that the country is known for. A Spanish-speaking country, Guatemala is Indigenous dominated and is also referred to as the “Land of the Eternal Spring”. With the country’s old and newer emerging industries working together, Guatemala’s economic growth is contributed by the Service Sector, Agriculture, Manufacturing, and Mining.
Guatemala’s Service Sector:
Guatemala’s Service Sector growth is the country’s largest contributor to its Gross National Product (GNP) and accounts for 62% of the country’s Gross Domestic Product (GDP). Employing over 51% of the country’s population in the service sector alone, its Hospitality and Tourism services take and lead the upper hand over the other intangible goods and services provided, in Guatemala’s service sector.
The importance of the service sector also aids in creating more job opportunities for people based on their skills, expertise, experience, and industry. By incorporating the use of innovative creations and modern technologies, Guatemala increases its productivity levels through fresh practices in the IT sector, Finance sector, and Professional Services. This helps the country diversify its economy and expand its market interests and foreign investments by providing essential services in the service sector elevating its economic resilience as focusing on just one sector’s growth can not be a good long-term choice and strategy. Below are three various service sectors that drive the country’s economy, discussed in more depth.
Hospitality and Tourism:
Post-pandemic, Guatemala’s tourism industry and sector saw a 4% increase in tourists even though the country suffered greatly during the unfortunate pandemic hit. Making a prominent rise in recovery from a low period, Guatemala has still managed to be Central America’s largest economy today.
Historical sites like the Mayan Ruins and colonial buildings in the City of Antigua, attract tourists in huge numbers to the country every year. With a scenic landscape like Lake Atitlán is breathtaking. With the serene and peaceful surroundings that the country offers its tourists and locals, the natural beauty mixed in with cultural festivities, celebrations, and markets dares tourists into the hearts of the country providing a full and soulful experience. With money going into hospitality, local markets, and travel, the Tourism sector visibly plays into driving Guatemala’s economic growth.
Transport and Logistics:
In Guatemala’s service sector, the transport and logistics services contribute to the country’s trade and economy. Providing the locals, tourists, and foreign settlers with services revolving around investing in good infrastructure like roads and airports makes traveling easy and seamless. For its locals, Guatemala offers a strong mobilized integrated public transport system for the country’s workforce members. Another way transport and logistics contribute to the country’s economic growth and development is its smooth and uncomplicated supply chain activities that cut down on costs and time spent for the domestic and international export and trade of goods.
Retail and Wholesale:
With the retail services provided for consumers and the wholesale services provided for businesses, this service sector provides its locals and tourists with attractive shops and supermarkets of all kinds. With the retail growth and thrifty expenditures made by the people alongside the rise in online commerce or e-commerce platforms, consumer demand due to overpopulation makes way for more job opportunities. This has a direct effect on other industries like manufacturing that require increasing production rates. Wholesale trade also paves the path for more jobs to emergy and drives up manufacture, distribution, and supply.
Therefore, by viewing how the Service Sectors in Hospitality and Tourism, Transport and Logistics, and Retail and Wholesale contribute to driving Guatemala’s economic stability, resilience, and growth, we learn just how big this tertiary sector encompasses and oversees various essential industries for building its economy upwards as a still developing South American country, and they do it brilliantly.