• Home
  • Management
  • The tourism industry creates considerable economic benefits to both tourists' home countries as well as the host countries. Evidently, tourism creates employment, both directly in the tourism industry as well as indirectly in other sectors like transportation and retail. When tourists spend their income on services and goods, it results in what is recognized as the multiplier effect, generating extra jobs. Furthermore, the tourism industry as well offers opportunities for small-medium- enterprises (SMEs), which is particularly vital for communities in rural, and as a result creates additional tax revenues, like hotel and airport taxes, which as per reference can be utilised for hospitals, housing and schools (Abbas). Booming tourism depends on setting up a basic infrastructure, like hotels, visitor centres, and roads. Usually, the government is responsible for setting up country’s infrastructures, but they use money from tax revenues in various industries including tourism. However, tourism also negatively impacts the country’s economy considering that tourism-driven jobs are often poorly paid and seasonal. Apart from that, money collected through tourism does not at all times do good to the local community, since most of it spills out to big foreign companies, like hotel chains. Moreover, destinations that rely on tourism may be negatively be impacted by occurrences like economic recession, natural catastrophes and terrorism. Subsequent to the 2008 economic crisis, most nations which managed to recover by 2010 profited from the increasing tourism demand, both locally and internationally, and this helped them to strengthen the economic growth. The impact of tourism on countries economy is rooted not just on the country’s infrastructure, but also on the policies espoused by the host government that will see the local communities benefit largely, and not just the foreign companies.

The tourism industry creates considerable economic benefits to both tourists’ home countries as well as the host countries. Evidently, tourism creates employment, both directly in the tourism industry as well as indirectly in other sectors like transportation and retail. When tourists spend their income on services and goods, it results in what is recognized as the multiplier effect, generating extra jobs. Furthermore, the tourism industry as well offers opportunities for small-medium- enterprises (SMEs), which is particularly vital for communities in rural, and as a result creates additional tax revenues, like hotel and airport taxes, which as per reference can be utilised for hospitals, housing and schools (Abbas). Booming tourism depends on setting up a basic infrastructure, like hotels, visitor centres, and roads. Usually, the government is responsible for setting up country’s infrastructures, but they use money from tax revenues in various industries including tourism. However, tourism also negatively impacts the country’s economy considering that tourism-driven jobs are often poorly paid and seasonal. Apart from that, money collected through tourism does not at all times do good to the local community, since most of it spills out to big foreign companies, like hotel chains. Moreover, destinations that rely on tourism may be negatively be impacted by occurrences like economic recession, natural catastrophes and terrorism. Subsequent to the 2008 economic crisis, most nations which managed to recover by 2010 profited from the increasing tourism demand, both locally and internationally, and this helped them to strengthen the economic growth. The impact of tourism on countries economy is rooted not just on the country’s infrastructure, but also on the policies espoused by the host government that will see the local communities benefit largely, and not just the foreign companies.

  • Category:
    Management
  • Document type:
    Article
  • Level:
    Masters
  • Page:
    1
  • Words:
    308

The Impact of Tourism on Countries Economic

Introduction

The tourism industry creates considerable economic benefits to both tourists’ home countries as well as the host countries. Evidently, tourism creates employment, both directly in the tourism industry as well as indirectly in other sectors like transportation and retail. When tourists spend their income on services and goods, it results in what is recognized as the multiplier effect, generating extra jobs. Furthermore, the tourism industry as well offers opportunities for small-medium- enterprises (SMEs), which is particularly vital for communities in rural, and as a result creates additional tax revenues, like hotel and airport taxes, which as per reference can be utilised for hospitals, housing and schools (Abbas). Booming tourism depends on setting up a basic infrastructure, like hotels, visitor centres, and roads. Usually, the government is responsible for setting up country’s infrastructures, but they use money from tax revenues in various industries including tourism. However, tourism also negatively impacts the country’s economy considering that tourism-driven jobs are often poorly paid and seasonal. Apart from that, money collected through tourism does not at all times do good to the local community, since most of it spills out to big foreign companies, like hotel chains. Moreover, destinations that rely on tourism may be negatively be impacted by occurrences like economic recession, natural catastrophes and terrorism. Subsequent to the 2008 economic crisis, most nations which managed to recover by 2010 profited from the increasing tourism demand, both locally and internationally, and this helped them to strengthen the economic growth. The impact of tourism on countries economy is rooted not just on the country’s infrastructure, but also on the policies espoused by the host government that will see the local communities benefit largely, and not just the foreign companies.

Work Cited

Abbas, Eman. Economic impact of tourism. 12 July 2012. 26 August 2014. <http://www.slideshare.net/EmanAbbas/economic-impact-of-tourism-13613739>.