Benefits of Tourism - Economic
Geography: Cambridge International GCSE (2027 Exams), topic 9.3.3
Economic Benefits of Tourism
Tourism can have positive economic effects on the receiving area. The receiving area is the place tourists go to on holiday (the destination, resort, city etc. that they stay at while away on holiday/vacation).
Economic impact
- Tourism means more foreign income (money), which is good for the economy.
- This money can be used in LICs to develop infrastructure.
- Tourism brings jobs for local people.
Economic multiplier effect 1
- In basic words, this is when growth in an area is started by one new industry starting there.
- Examples of this effect are:
- Expanding a holiday resort or hotel, or putting in a new tourist attraction.
- This would create construction jobs.
- This would cause the demand for services like shops, schools and hospitals to increase. These all also need staff, making more employment opportunities.
Economic multiplier effect 2
- Other businesses like taxi companies, coach tour companies (drivers and guides), cafes, ice-cream stalls and restaurants will be attracted to the area to sell to more tourists.
- If there are more workers, there is more tax being paid to the government which they can spend on improving roads, education or healthcare etc.
- This will result in a higher living standard in the area, further attracting more people and companies.