Digital economy is based on electronic goods and services produced by an electronic business and traded through electronic commerce, a business with electronic production and management processes and that interacts with its partners and customers and conducts transactions through Internet and Web technologies. With growing population and resource mobilization, digital economy is not limited to business trading and services effecting on every aspect of life from health to education and from business to banking. Many observers have noted the rapid growth of the broadly defined digital economy. Much attention is being paid to the ongoing and dramatic growth in electronic or e-commerce. In spite of its rapid growth in recent years, we view the emergence of e-commerce as an important trend that is only part of the more general changing structure of the economy brought on by the dramatic changes in information technology (IT).The main purpose of this paper is to show the digital economy effects on tourism industry through Internet and Web technologies.
In this paper, we have outlined many of the issues involved in improving our measurement of the digital economy. However, while policymakers and researchers have an insatiable appetite for data, concerns about respondent burden and the resource costs of collecting data cannot be ignored. It is not likely that all the suggestions that we, or other observers, offer can be implemented. Therefore, realistic priorities must be set by the data using community. Moving into the new millennium, the competitive environment creates major opportunities, but also represents major risks for those who don’t change or adapt to the change. In exploring the options and potential areas of investment, it is prudent to benchmark the technologies. The travel and tourism industry have to work hard at integrating multiple channels that allow customers to switch effortlessly between them. The new technique visualizes innovation through mapping to help spot patterns and craft strategies. In the digital economy there is an emerging infrastructure of networks, which blurs the boundaries between sectors. The convergence of technologies is apparent as demonstrated by an example from the airline industry. This effectively implies that Boeing becomes a design, networking, project management and marketing company, working with suppliers and customers in e-business communities to design aircraft in cyberspace. According to analysis, much attention should be paid to the negative implications of the Internet on the tourism industry. The consideration of the Internet technology, being the major ICT, provides a clear view of the dramatic changes occurring in the tourism industry. In airlines, hotels and motels, car rentals, tour and travel operators, restaurants, special tour operators, and travel agents.