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What are the economic impacts of tourism?

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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One of the biggest benefits of tourism is the ability to make money through foreign exchange earnings. Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy.

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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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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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Economic leakage in tourism is one of the major negative economic impacts of tourism. This is when money spent does not remain in the country but ends up elsewhere; therefore limiting the economic benefits of tourism to the host destination.

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Tourism Economics is an international peer reviewed journal, covering the business aspects of tourism in the wider context. It takes account of constraints on development, such as social and community interests and the sustainable use of tourism and recreation resources, and inputs into the production process.

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Tourism boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens.

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Environmental impacts can be categorized as direct effects including degradation of habitat, vegetation, air quality, bodies of water, the water table, wildlife, and changes in natural phenomena, and indirect effects, such as increased harvesting of natural resources to supply food, indirect air and water pollution ( ...

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There are many social benefits of tourism, demonstrating positive social impacts. These might include; preserving the local culture and heritage; strengthening communities; provision of social services; commercialisation of culture and art; revitalisation of customs and art forms and the preservation of heritage.

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Tourism boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens.

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It can put enormous pressure on an area and lead to impacts such as soil erosion, increased pollution, discharges into the sea, natural habitat loss, increased pressure on endangered species and heightened vulnerability to forest fires.

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The Disadvantages of Tourism – What Happens When Travel is not Sustainable
  • The commodification of culture.
  • Erosion of culture.
  • Tourists behaving badly.
  • Physical damage to built culture and heritage.


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It can put enormous pressure on an area and lead to impacts such as soil erosion, increased pollution, discharges into the sea, natural habitat loss, increased pressure on endangered species and heightened vulnerability to forest fires.

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Tourism often puts pressure on natural resources through over-consumption, often in places where resources are already scarce. Tourism puts enormous stress on local land use, and can lead to soil erosion, increased pollution, natural habitat loss, and more pressure on endangered species.

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Most of the common positive impacts of tourism on culture include increasing cross cultural interaction; understanding, maintaining and keeping local culture, arts, crafts and traditions; empowering host communities; and strengthening cultural values.

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