Tourism has significant economic impacts on a country. It generates income both directly from tourist spending and indirectly through the multiplier effect of money circulating in the local economy. Tourism also creates jobs, both directly in the tourism industry and indirectly in other sectors that support it. It can help a country's balance of payments by bringing in foreign currency. The government earns tax revenue from tourism. Tourism also leads to investment and development in destinations as their economies grow. However, there are also negative impacts like leakage of money out of the local economy if imports and profits leave the area. Poor countries often do not benefit as much from tourism relatively due to issues like enclave tourism.

1. ECONOMIC
IMPACT OF
TOURISM

2. TOURISM
 TOURISM IS GOING AWAY OF PEOPLE AWAY
FROM THEIR HOUSES FOR SOME SPECIFIC
PURPOSE LIKE ADVENTURE,MEDICAL ETC BUT
NOT STAYING THEIR AT NOT MORE THAN 365
DAYS.
 TOURISM IS SAID TO BE DONE ONLY WHEN A
PERSON IS NOT EARNING MONEY AT THE
DESTINATION .IF A PERSON IS EARNING THERE
THEN WE CANT SAY THAT TOURISM.

3.  THERE ARE MANY IMPACTS OF TOURISM
WHICH THIS SERVICE INDUSTRY DOES TO THE
COUNTRY LIKE IT HAS ITS IMPACT ON
ECONOMY,SOCIAL,GEOGRAPHY,ENVIRONMENT
AL ETC.
 HERE WE WILL DISCUSS ABOUT ECONOMIC
IMPACTS OF TOURISM.

4. ECONOMIC ASPECT
 TOURISM PLAYS AN VERY CRITICAL ROLE IN
THE DEVELOPMENT OF COUNTRY.
 THERE ARE CERTAIN FACTORS WHICH ARE
EFFECTED BY TOURISM AND HELPS IN
INCREASING THE ECONOMY OF INDIA.

5. ECONOMIC IMPACTS OF TORISM
 INCOME:-
INCOME IS ALSO GENERATED FROM
INTERST,RENT AND PROJECTS ON TOURISM
BUSINESSES RANGING FROM THE INTERSTS PAID ON
LOANS TO AN INVESTOR IN INFRASTRUCTURE.THE
AMALGAM OF ALL INCOME IN AN ECONOMY IS CALLED
“NATIONAL INCOME” WHILE THE SIGNIFICANCE OF
TOURISM IN A COUNTRY’S ECONOMY CAN BE
IDENTIFIED BY ITS CONTRIBUTION AS THE
PROPORTION OF NATIONAL INCOME.
TOURISTS COMING TO THE COUNTRY SPEND
MONEY ON NECESSARY ITEMS.THEY SPEND THEIR
MONEY ON DESTINATIONS ETC AND THAT MONEY
INCREASES THE COUNTRY INCOME.

6. THE MULTIPLIER EFFECT:-
 IN ECONOMIC TERMS, THE TOURIST SPENDING
IS AN EXPORT THAT BRINGS IN NEW MONEY.
THE PART THAT REMAINS IN THE ECONOMY
,BEING SPENT AND RESPENT,SETS A TOURIST A
INCOME MULTIPLIER (TIM).
 THE GREATER THAT % OF SPENDING THAT
REMAINS IN THE ECONOMY AND THE FASTER
IT IS RESPENT,THE GREATER ITS EFFECT IN
“HEATING”THE ECONOMY OF AN AREA.

7.  FROM AN ECOMIC VIEWPOINT,SERVICES
PERFORMED IN TOURISM ARE
EXPORTS.THOUGH SERVICES ARE NOT
TANGIBLES NEVERTHELESS,OFFERING
SERVICES TO TOURIST PRODUCES INCOME FOR
THE TOURIST DESTINATION AREA IN THE
SAME MANNER AS TANGIBLE GOODS SHIPPED
FROM THE AREA.

8.  TIM EXPRESSED AS MATHEMATICALLY:-
TIM=1-TPI/MPS+MPI
TIM=TOURIST INCOME MULTIPLIER
TPI=TOURISTS PROPENSITY TO IMPORT
MPS=MAGINAL PROPENSITY TO SAVE
MPI=MARGINAL PROPENSITY TO SALE

9. EMPLOYMENT:-
 TOURISM NOT ONLY CREATES INCOME BUT
EMPLOYMENT, TOO. WHILST SOME JOBS ARE
FOUND IN TRAVEL AGENCIES,TOUR
OPERATORS AND OTHER
INTERMEDIATOR,SUPPLIYING SERVICES IN
THE GENERATING AREA,BUT THE BULK OF
JOBS ARE CREATED IN THE TOURIST
DESTINATION THEMSELVES.

10.  THE EMPLOYMENT POTENTIAL OF TOURISM
COMPARED WITH OTHER INDUSTRIES HAS
BEEN CRITICISECD ON SEVERAL GROUNDS:
 THAT MUCH POTENTIAL IS SAESONAL
 THAT IT DOES NOT PROVIDE MEANINGFUL
JOBS.THE INHABITANTS ARE
,INFACT,RELIGATED TO INFERIOR,MENIAL
POSITIONS-THE UNSKILLED,LOW PAYING JOBS

11.  THE LOCAL POPULATION IS TOO SMALL TO
FILL VACANCIES
 IN MANY AREA THER ARE UNSUFFICIENT
WORKERS WHICH SPECIFIC TECHNICAL AND
MANAGERIAL SKILLS
 OUTSIDERS ARE ATTRACTED IN BY HIGH
WAGES AND THE OPPURTUNITY TO LIVE AND
WORK IN PLEASANT AND EXOTIC
SURROUNDINGS

12. BALANCE OF PAYMENTS:-
 IN A NATIONAL CONTEXT TOURISM MAY HAVE
A MAJOR INFLUENCE ON A COUNTRIES
BALANCE OF PAYMENTS.INTERNATIONAL
TOURISTS ARE GENERALLY GOING SERVICES
FROM THE ANOTHER COUNTRY AND ARE
THERE FOR “INVISIBLES”
 MANY OF COUNTRY TRY TO MAXIMISE THEIR
TRAVEL RECIEPTS THROUGH PROMOTINAL
AND MARKETING STRATETGIES.

13.  WHILST INBOUND TORISM IS IMPORTANT DUE
TO ITS ECONOMY WEIGHT OF FOREIGN
EXCHANGES,OUTBOUND TOURISM IS AS MUCH
AS BUREDN ON THE FOREIGN EXCHECKER OF
THE COUNTRY,AND INTERESTINGLY BOTH THE
DIMENSION OF TOURISM MOVE ALONG
SIMULATIONLY INDEPENTLY.

14. GOVRNMENT REVENUE OR TAXES AS
TANGIBLE BENEFITS:-
 TOURISM ACTIVITY IS USED BY CERTAIN
ECONOMIES AS AN IMPORTANT RESOURCE
FOR GENERATING GOVT REVENUES.
 TOURISM GENERATES TAX INCOME,SOME OF
WHICH IS DIRECTLY IMPLIED AND SOME
COMPUTED INDIRECTLY.

15.  MANY GOVTS RAISE MOST OF THEIR TAXES
FROM IMPORTANT DUTIES WHICH ARE EASIER
TO COLLECT THAN INCOME TAXES.
 THE TRAVELLER PAYS THE TAXES BY BUYING
FOOD,BEVRAGES,AND OTHER GOODS THAT
HAVE BEEN IMPORTED AND BY STAYING IN
HOTELS AND OTHER FACILITIES THAT HAVE
IMPORTED BULIDING MATERILAS AND MANY
OF THE GOODS USED IN THEIR OPERATIONS.

16. INVESTMENT AND DEVELOPMENT:-
 ONCE OF THE ECONOMY OF AN AREA IS ON
THE RAILS THAT IS GOOD BUSINESS AND
INCOME LEVELS HAVE BEEN GENERATED,THE
PRIVATE AND PUBLIC SECTOR MAY BE
INDUCED TO INVEST EVEN MORE IN THAT
AREA,AND THIS IS WHAT ECONOMISTS CALL
ACCELERATOR EFFCT.

17.  INVESTMENT IN TOURISM IS
HOWEVER,REMAINS AS IT DOES IN ANY OTHER
INDUSTRY BECOUSE THERE IS NO OBVIOUS
AND CLEARLY DEFINED RELATION BETWEEN
TOURISM PROMOTION AND ECONOMIC
DEVELOPMENT DUE TO COMPLICATING
FACTORS LIKE INFLATION,DIVERSIFYING
CAPABILTITY OF AN AREA AND THE
WILLINGNESS OF THE LOCAL PEOPLE TO
WORK HARD.

18. NEGATIVE ECONOMIC IMPACT:-
 LEAKAGE
 ENCLAVE TOURISM

19.  THERE ARE MANY HIDDEN COST TO TOURISM
WHICH CAN HAVE UNFAVOURABLE ECONOMIC
EFFECTS ON THE HOST COMMUNITY.
 OFTEN RICH COUNTRIES ARE BETTER ABLE TO
EARN PROFIT FROM TOURISM THAN POOR
ONES

20.  WHEREAS THE LEAST DEVEALOPED
COUNTRIES HAVE THE MOST URGENT NEED
FOR INCOME,EMPLOYMENT AND GENERAL
RISE OF THE STANDARD OF LIVING BY MEANS
OF TOURISM.THEY ARE LEAST ABLE TO
REALISE THESE BENEFITS.

21.  AMONG THE REASON FOR THIS ARE LARGE
SCALE TRANSFER OF TOURISM REVENUES OUT
OF THE HOST COUNTRIES AND EXCLUSION OF
LOCAL PEOPLE AND PRODUCTS.
 IN ADDITION,SIGNIFICANT AMOUNT OF
ACTUALLY RAETAINED AT DESTINATION LEVEL
CAN LEAVE AGAIN LEAKAGE.

22. LEAKAGE:-
 THE DIRECT INCOME FOR AN AREA IS THE
AMOUNT OF TOURIST EXPENDITURE THAT
REMAINS LOCALLY AFTER TAXES.PROFITS,AND
WAGES ARE PAID OUTSIDE THE AREA AND
AFTER IMPORT ARE PURCHASED,THESE
SUBSTRACTED AMOUNTS ARE CALLED
LEAKAGE.

23.  IN MOST ALL INCRESIVE PACKAGE
TOURS,ABOUT 80% TOURS OF TRAVELLERS
EXPENDATURE DUE TO AIRLINES ,HOTELS AND
OTHER INTERNATIONAL COMPANIES ,AND NOT
TO LOCAL BUSINESSES OR WORKERS.

24.  THERE ARE MAIN WAYS BY WHICH LEAKGES
OCCUR.
 IMPORT LEAKAGE:-
THIS COMMONLY OCCUR
WHEN TOURIST DEMAND STANDARDS OF
EQUIPMENT,FOOD AND OTHER PRODUCT
THAT THE HOST COUNTRY CAN’T SUPPLY.

25.  EXPORT LEAKAGE:-
TNC’S HAVE A SUSTAINAL
SHARE IN THE EXPORT
LEAKAGE.OFTEN,ESPECIALLY IN POOR
DEVELOPING DESTINATIONS,THEY ARE THE
ONLY ONES THAT POSSESS THE NECESSARY
CAPITAL INVEST IN THE CONSTRUCTION OF
TOURISM INFRASTRUCTURE AND FACILITIES.

26. ENCLAVE TOURISM:-
 WHEN TOURIST REMAIN FOR THEIR ENTIRE
STAY AT THE SAME CRUISE OR RESORT,WHICH
PROVIDES EVERYTHING THEY NEED AND
WHERE THEY WILL MAKE ALL THEIR
EXPENDITURE.
 NOT MUCH OPPURTUNITIES IS LEFT FOR
LOCALS TO PROFIT FOR TOURISM.

27. THANK YOU
EVERYONE