Tourism can contribute to economic development by providing jobs, creating small businesses, generating revenue from spending and taxes, and supporting infrastructure development. A vibrant tourist region offers employment and small enterprises for citizens, leading to an increase in GDP and development of cultural heritage sites. Infrastructure, such as airports and roads, may not be developed without the importance of tourism to the economy.
Tourism and economic development are linked by the various ways in which tourism can contribute to the economic development of a tourist destination. This relationship between tourism and economic development is the basis for the dependence of some tourism-based economies on the effects of tourism on their economic development. For example, tourism provides more jobs for local citizens, helps local citizens set up businesses to cater to tourists, leads to revenue generation from tourism spending and tax policies, and helps infrastructure development.
One of the advantages or links between tourism and economic development is the fact that a vibrant tourist region offers employment to the citizens of that area. Tourism needs many services to support the industry. For example, the hospitality industry creates jobs for people in businesses such as hotels and restaurants. Employment is a macroeconomic factor that contributes to the growth of an economy by providing workers with disposable income and consequently leading to an increase in the gross domestic product (GDP) of the region.
Another way that tourism and economic development are linked is through the provision of small or micro enterprises for certain citizens. Citizens who could benefit from tourism-related small businesses include sole proprietorships or individual entrepreneurs with limited funds, and other types of partnerships that don’t require a lot of funding. For example, some people might open a shop that caters primarily to the needs of tourists. They could work with local artisans and artisans to supply them with handicrafts, which they would sell to tourists as souvenirs.
The shop owners will share the profits with local artisans, or they can purchase the items directly from them. This helps the economy by providing poorer members of the community with disposable income. Tourists also like to visit places with rich cultural heritage. Often these places are located in villages that otherwise wouldn’t get much government attention. Due to the significance of the villages, they will get more attention and more development as a result.
The infrastructure to support the tourism market or commerce includes factors such as good airports, security, hotels and roads. Such factors help facilitate economic development and may not be developed other than because of their importance to the economy. For example, a tourist destination that is in a remote village will need good access roads, which may not be built except for the tourist interest in the area.
Protect your devices with Threat Protection by NordVPN
