How does tourism reduce inequality?

The primary mechanism through which international tourism can contribute to the economy overall is that it generates pro-poor income growth and therefore alleviates poverty. Alam and Paramati (2016) conclude that tourism policy should offer more opportunities to the poor through tourism-related activities.



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The tourism sector can primarily reduce income inequality through the creation of new job opportunities. However, the redistributive effect of tourism may favor the rich, thus leading to further economic inequality.

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Agriculture by itself cannot create more jobs for its people, but tourism can help by increasing the number of tourists that visit the area. Tourism has the ability to create more jobs for the local people because it allows for more industries to be used, as well as adding jobs that are directly related to tourism.

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Tourism offers great opportunities for emerging economies and developing countries. It creates jobs, strengthens the local economy, contributes to local infrastructure development and can help to conserve the natural environment and cultural assets and traditions, and to reduce poverty and inequality.

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The UN's World Tourism Organization runs a program called Sustainable Tourism - Eliminating Poverty (ST-EP) that trains local guides and assists communities in developing tourist destinations around existing cultural heritage sites.

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Tourism has been identified as one of the effective tools for reducing poverty in the world (Muganda, Sahli & Smith, 2010; Scheyvens, 2007, 2008).

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Positive Impacts of Tourism on the Environment
  • Awareness raising and experience.
  • Skills and education.
  • Conservation activities and biodiversity.
  • Endangered species protection.
  • Illegal trade prevention.
  • Finance & jobs.
  • Sustainable practices & legislation.


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Top 5 Advantages of Tourism
  • #1 Economic Growth. ...
  • #2 Social Benefits. ...
  • #3 Education And Personal Growth. ...
  • #4 Creation of Jobs. ...
  • #5 Breaks the Stereotypes. ...
  • #1 Degradation of the Environment. ...
  • #2 Depletion of Natural Resources. ...
  • #3 Harm to Local Culture.


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Tourism contributes to 6-7 percent of total employment. International tourism ranks fourth (after fuels, chemicals and automotive products) in global exports. The tourism industry is valued at US$1trillion a year. Tourism accounts for 30 percent of the world's exports of commercial services.

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Tourism Impacts. Tourism can generate positive or negative impacts under three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations.

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