1. IMPACT OF TOURISM
3.01 Discuss the economic
impact of tourism.

2. Tourism…
•Provides employment for millions of
people.
•Provides profits for businesses and
corporations such as airlines, amusement
parks, and retail shops.
•Revives economically depressed areas.
•Provides tax revenue for local, state, and
national governments from the use of
services and facilities.
•Serves as the sole source of export
income in some countries that lack cultural
and industrial resources.

3. Tourism…
•Stimulates export of “place made”
products such as clothing or souvenirs.
•Provides incentive to improve
infrastructure that can be used by
residents and tourists.
•Provides incentive for entrepreneurial
activity.

4. Multiplier effect
Tourists spend money when
traveling which puts money
into the local economy. That
money is then spent by local
businesses to purchase goods,
pay employees, etc. This re-
spending expands the local
economy, creating the
multiplier effect.

5. Multiplier effect
•The more developed the area,
the higher the multiplier effect.
•Tourism dollars stay in an area
and are re-spent rather than go
outside the area to purchase
goods and services.

6. Leakage
Leakage occurs when
tourists’ dollars are used to
purchase needed goods or
services from outside the
area.

7. Leakage
•The more imports that are necessary,
the higher the leakage will be.
•Sometimes a large part of the income
from tourism has to be used to pay for
imported equipment and materials
used to satisfy the needs of tourists.
•When an area has the resources to
produce all the necessary goods and
services, the full amount of tourist
spending will remain in the area.

8. Necessary leakage
The cost of promoting a
destination abroad; if a
destination wants to attract
tourists, it must market
itself to convince potential
customers that it is more
appealing than other
destinations.

9. Impact of Tourism in NC (2002)
•$12 billion in revenue
•$1.1 billion in state and local tax revenue
•Over 44 million visitors
•Shopping, visiting beaches, outdoor activities,
visiting historical places and museums
•Average of 2.2 nights spent
•Average household spending per trip $316
•Most visit for leisure purposes
•Visiting friends and relatives
•Travel by car

10. NC Tourism Employment (2002)
•Second largest industry in NC
•Sixth most visited state behind
CA, FL, TX, PA, NY
•Employs over 189,000 North
Carolinians
•Top employers are food service,
public transportation, lodging,
and entertainment and recreation