Tourism is a significant strategic activity, which has both positive and negative impacts on aspects like the economic sector. Tourism plays a vital role in the global economy, therefore in this article, we will enumerate how it does.
Economic Impact Of Tourism
As already mentioned, tourism is a significant economic factor, which denotes in detail:
- It raises numerous jobs in hotels, restaurants, tourist guides and service area in general.
- Low Investment Businesses, that is, even small businesses or uncapitalized individuals can create jobs.
- Higher-income, since resorts usually pay higher prices than the national average.
- In developing countries, tourism jobs also mean additional education, since a foreign language is generally required and other skills are needed.
- Improvement in public services. Since tourists are accustomed to comfort, expectation and demand, the development of infrastructures such as traffic, public transport, communications, water, wastewater and electricity is positively influenced in visiting countries. These can only be financed with tourism funds, but they are also of great importance for other economic sectors, for example, transport routes such as airports, roads, communication facilities.
- International tourism is an important source of foreign exchange. As a result, these countries can also buy abroad again. It is especially important for developing countries.
- As visitors can enjoy the things they have come to know on a vacation like the tuk tuk food tour, this can generate exports.
- The local economy is boosted, for example, by buying hotel accommodations from local suppliers.
Not all the economic effects of tourism are positive for visiting countries:
- Developing countries with a high dependence on tourism have dangerous monocultures, that is, when tourism declines, it returns to the national economy.
- Significant investments, such as hotels, can often only be made by foreign investors. These investors do not let the profits achieved remain in the country. This means that the money earned in tourism in part does not remain in the country.
- Investors require tax exemptions before investing, that is, the government loses the tax revenue it needs for other tasks.