Introduction to Tourism

5 Economic impacts of tourism

Introduction

The main economic impacts of tourism relate to foreign exchange earnings, contributions to government revenues, generation of employment and income, and stimulation to regional development. The first two effects take place at the macro or national level, whereas the other three impacts occur at sub-national levels. These effects are interrelated but for analytical purposes it useful to separate them.

Before examining these impacts it should be noted that with the exception of earning foreign exchange the other economic impacts can also be gained from domestic tourism activity. However, encouragement of domestic tourism may save foreign currency which would otherwise be spent on foreign travel. Obligations ...