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