- Employment will generate higher GDP
- Infrastructural investment from TNCs. The quality of roads, buildings and public services is likely to improve
- Government have more revenue via taxation from tourist industries. This money can be spent on merit goods such as healthcare and education
- Employment is only seasonal, creating instability in local incomes
- Negative externalties may arise from the consumption of natural resources; pollution/ waste/ damage to local habitats
- Imports increase as toursists may require specialised goods and services. This may worsen the deficit on the current account of the balance of payments.