economic advantages and disadvantages of tourism in LEDC's

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Economic advantages and disadvantages of tourism in LEDC'S
Advantages Disadvantages
Benefits other sectors of the economy- Economic leakage- 60-70% money from
multiplier effect package holidays stays in developed
Plays important role in balance of Money borrowed for capital
payments between nations investment- increases national debt
Provide employment in rural areas and Tourism's labour intensive providing
decrease rural to urban migration and jobs, but these are low paid, menial
its associated effects tasks with seasonal positions,
management positions filled by people
from MEDC's
Provides governments with high tax Locations can become over- dependant
revenues on tourism leading to problems if vistor
numbers fall
Act as growth pole which stimulates Might not be best use of local
economy in local areas resources
Provide opportunity for small All inclusive deal don't encourage
businesses tourists to spend in local communities
Support jobs in informal sector International trade agreements allow
global companies to set up in most
countires even if the host government
would rather support local investors-
they can't prevent this


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