Tourism can be used as a tool to reduce poverty in developing countries by giving locals the opportunity to be employed or indirectly participate in the tourism sector.

Tourism acts as a powerful engine for poverty reduction primarily through the "multiplier effect" and the creation of accessible jobs. It provides employment opportunities for semi-skilled and unskilled workers in sectors like hospitality, transport, and handicrafts, often in rural areas where other industries are scarce. Beyond direct hiring, tourism stimulates local economies as hotels and restaurants purchase supplies from local farmers and fishermen. Furthermore, tax revenues generated from tourism allow governments to invest in infrastructure—such as roads, clean water, and electricity—which benefits the entire local population, not just visitors. When managed through "pro-poor tourism" initiatives, the industry empowers marginalized groups, including women and youth, by providing them with the capital and training needed to start small businesses, thereby diversifying the local economy and reducing its dependence on subsistence resources.