1. Tourism and its
Economic
Benefits and
costs

2. Advantages to Tourism

Tourism brings much needed investment into an area.

Tourism provides employment for local people.

The money that tourism brings in can be used to improve
the infrastructure of the area.

3. INTRODUCTION
The Tourism industry provides an important impetus
to growth in other sectors such as agriculture,
transportation, retailing and manufacturing and is
therefore seen as a key ingredient of economic
development
It is one of the major foreign exchange earners and
main growth sector for many countries especially
developing countries that are rich in natural and
cultural resources

4. Advantages to Tourism

Income from tourism may be used to help
conserve the natural environment that is the
reason why visitors come in the first place.

The country can benefit from overseas
investment, primarily in the tourist industry, but also
in other related industries.

Tourism may help to preserve local cultures and
communities, as they become a tourist attraction.

5. Economic Benefits of
Tourism

Foreign Exchange Earnings

Travel and Tourism expenditures

Generate income to the host economy and can
stimulate the investment necessary to finance
growth in other economic sectors.

accelerate this growth by requiring visitors to bring
in a certain amount of foreign currency for each
day of their stay.

6. CONTINUE..

Foreign Exchange Earnings


Tourism is one of the top five export categories for
as many as 83% of countries and is a main source of
foreign exchange earnings for at least 38% of
countries.
Contribution to Government Revenues
 Direct
contributions
 Indirect contributions

7. Continue..

Generation of Employment Opportunities

Direct Employment

Indirect Employment

Induced Employment

8. Economic Benefits of
Tourism

Infrastructure Investment

Tourism can induce the local government to make
infrastructure improvements such as better water
and sewage systems, roads, electricity, telephone
and public transport network

This can improve the quality of life for residents as
well as facilitate tourism.

9. MULTIPLIER EFFECT

Takes place when spending is circulated throughout an
economy

Conceptualizes what happens when tourists spend
money on destination.

Shows and distinguish the direct and indirect income
derived from tourism

11. TOURISM DOES NOT ONLY HAVE BENEFITS BUST
IT ALSO HAVE COSTS:

Inflation:

Increase in prices of land, houses and food that
can occur as a result of tourism.

Opportunity Costs
the cost of engaging in tourism rather than another
form of economic activity.

12. CONTINUE….

Dependency



a place becomes over-dependent on tourism that
other industries are abandoned.
Over-reliance on tourism carries risks to tourismdependent economies.
Seasonality

One of the major disadvantages in tourism

Its effect to jobs, investments and tourism-related
enterprises

13. Economic Costs of Tourism

Leakage

Goes out of the local economy to pay for imported
items, expatriate salaries or franchise fees.

14. REFERENCES

http://www.slideshare.net/bongalinea/week2impactsoftourism121006202630phpapp02?qid=18eae4688cf3-4eb2-81d4-173b12e2a77f&v=qf1&b=&from_search=11

http://www.slideshare.net/tofujay/week-3-impacts-oftourism-2?qid=18eae468-8cf3-4eb2-81d4173b12e2a77f&v=qf1&b=&from_search=16

http://www.slideshare.net/reymarieoohlala/overview-oftourism-impacts?qid=18eae468-8cf3-4eb2-81d4173b12e2a77f&v=default&b=&from_search=29

http://www.slideshare.net/SirWoyo/the-impacts-of-tourismdevelopment-at-domboshava-nationalmonument?qid=18eae468-8cf3-4eb2-81d4173b12e2a77f&v=qf1&b=&from_search=15

http://www.slideshare.net/EmanAbbas/economic-impactof-tourism-13613739?qid=18eae468-8cf3-4eb2-81d4173b12e2a77f&v=qf1&b=&from_search=19