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What is economic cost in tourism?

Economic Costs Tourism development of infrastructure (airports, roads, etc.) can cost the local government a great deal of money. May inflate property values and prices of goods and services.



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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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Some show immediate effect while, there are also factors which affect in the long run.
  • Environment at Destination. ...
  • Economy of the Country. ...
  • Historical or Cultural Importance of Destination. ...
  • Research Importance of Destination. ...
  • Religious Importance of Destination. ...
  • Technology.


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