Economical Impacts Of Tourism

Tourism in the small context involves people who come from other countries for the pleasure of visiting the island environment. Since tourists spend money on travel, hotels, food, entertainment and recreation, they can be important sources of income. It generates benefits to both host countries and tourists' home countries. Especially in developing countries, one of the primary motivations for a region to promote itself as a tourism destination is the expected economic improvement.

There are many hidden costs to tourism, which can have unfavorable economic effects on the host community. Often rich countries are better able to profit from tourism then poor ones. Whereas developed 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 realize these benefits. Among the reasons for this are the large scale transfer of tourism revenues out of the host country and exclusion of local businesses and products.Economically, tourism can create jobs for local people and bring money into country. However many tourists like their comforts from home, and it is often necessary to import a large part of their requirements, so that much of the money may leave the country again to pay for these imports. If the resorts and hotels have been financed by overseas investors, they will also want to export their profits. The developers may want the government to improve the airport, roads and other infrastructure, and possibly to provide tax breaks and other financial advantages, which cost the country money. The remaining benefit to an island country from some kinds of tourism facilities provided by villages or financed locally may be economically more interesting.