Tourism plays an important role in the economic development of many countries. As incomes rise in developed nations, the demand for international travel also increases, providing opportunities for developing countries to earn much-needed foreign exchange. The economics of tourism includes both the direct effects of tourist spending as well as secondary effects as that money circulates through the local economy. While tourism brings revenue and jobs to host destinations, it can also cause economic instability and other undesirable impacts. Countries aim to maximize tourism's economic benefits through strategies like balanced growth, import substitution, incentives, and foreign exchange management.