We could sense the atmosphere of being in Italy even though we are in the USA if we visit Little Italy in New York, USA. The same thing works for Chinatowns in Japan and Europe Street in China. These ethnic enclaves are win-win circumstance for both the visitors and the destination country. Visitors will think that they save travel fare for they could experience different atmospheres within the same country with the existence of this culturally diverse society. On the other hand, the destination country will gain more income flow from tourism.
Besides international tourists, more income for GDP flow also comes from international students. Ethnically diverse environment would attract more international students, so it could enhance country's GDP from educational sector. This kind of environment appears interesting to international students because it generates a range of education benefits, such as improved understanding of racial and cultural diversity, enhanced openness to diversity, and greater satisfaction in experiencing education. This argument is supported by a study conducted by Jeffrey E. Millem of the University of Arizona. He assessed the impact of culturally diverse education environment in tertiary institutions and the result showed a positive relationship. It is also proven by the fact that Australian education contributes $17 billion to its GDP in 2014, constituting education as the fourth largest export within the country. Australia itself is the second most culturally diverse country in which cohesive cultural diversity contributes to the appeal of Australia as an education destination and thereby continue the growth of Australia's GDP.
Next to the growing interest on tourism and education, cultural diversity also brings with itself a construction of global linkage. Cultural diversity within a place which is accompanied by adequate amount of tolerance is essential to attract knowledgeable workers---the creative class. This creative class people are the ones who would majorly contribute to the countries' long-term economic development as world's economy is driven by innovation and ideas. Besides, these knowledgeable workers with wide variety of cultural backgrounds would further enrich the environment with different skills and perspectives which often result in creative conflict. Being the outcome of interaction between different skills and perspectives, creative conflict could boost better decision making, introduction of new ideas, and increased creativity. As the domino effect goes on, the performance of economic activities will be enhanced and therefore it will generate extra revenue. Besides extra revenue, culturally diverse society would also invigorate global linkage. Having people with various cultural backgrounds at the same place could possibly open international connection aiding the flow of labor, goods, and services. It will help to accelerate economic activities and products differentiation. International connection could broaden the market and the acceleration in economic activities will increase productivity.
All in all, multiculturalism is undeniably attached to the society and therefore it affects various aspects of the society. As for economic development, when widely accepted, cultural diversity generates a positive relationship. This argument has been examined by several studies and all of them agreed for the positive relationship, but varied in the level of its significance to economic development. As explained above, cultural diversity could enhance two main factors of economic development---GDP and market productivity. Increase in GDP resulted because cultural diversity tends to draw more interest in the services sector that contributes to GDP, such as tourism and education. Meanwhile, increase in market productivity resulted because cultural diversity constructs a firm global linkage which broadens the market and innovation which accelerates economic activities.
REFERENCES
Florida, Richard, 2008. Who's Your City?: How the Creative Economy Is Making Where You Live the Most Important Decision of Your Life. Basic Books: New York.
Fainstein, S., Powers, J., 2007. 'Tourism and New York's Ethnic Diversity: An Underutilized Resource?' in Rath, J. (ed.), Tourism, Ethnic Diversity and the City. Routledge: New York.
Hoffman, L., 2003. 'Revalorizing the Inner City: Tourism and Regulation In Harlem', in Hoffman, L., Fainstein, S., Judd, D. (eds.), Cities and Visitors: Regulating People, Markets and City Space. Oxford: Blackwell.
Nieuwenhuyson, J., & Storer, D. 2011. The Economic Advantages of Cultural Diversity in Australia. Prepared for NSW Government and Community Relations Commission, Australia.
Syrett, S., Sepulveda, L., 2011. Realising the Diversity Dividend: Population Diversity and Urban Economic Development. Environment and Planning A, 43(2).
Steve., 2009. '12 Exciting Ethnic Enclaves and International Districts', https://weburbanist.com/2009/07/27/12-exciting-ethnic-enclaves-international-districts/
