How does tourism effect the economy

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How does Tourism benefit an Economy?
Tourism can be a large part of a country's economy or it can be a very small
segment. For example, places such as Spain and some Caribbean islands rely
entirely on tourism and the money it provides for the economy. When tourist
pay for their holidays abroad, the establishment that they are staying at
receives a large sum of that money, which helps to keep the holiday running
and looking desirable to other tourists. As well as this, tourists will spend
money in local restaurants and bars; this money keeps the establishments open
which therefore provides work for local people.
From the above, tourism sounds like a very stable economic choice for a
country, however it can have defects. When a country first decides to delve
into tourism, it can either be positive or negative. To first see an increase in
tourism within country money must be spent, to renovate areas or build
accommodation and generally make the local area attractive to tourists.
However, this money usually comes from a large loan, which needs to be paid
back. In many cases this money can't be paid back because the renovation did
not attract any more tourists than usual, this means businesses lose out on
money and jobs aren't created for local people. Another defect of tourism is
that the locals are driven away from their hometowns because they do not like
the sudden increase in tourists, or they are not fond on the tourists that are
visiting, for example stag and hen parties. Few locals mean that there aren't
enough people available to work in the local restaurants, bars and hotels. This
can then cause the area to become unappealing to tourists. As well as this, it is
quite easy for a country to become dependent on tourism, this means that the
majority of the country's GDP comes from the tourism industry. This can be a
downfall of tourism because if the industry suddenly collapsed (because of
things such as natural disasters or the area becomes rundown) then the
country has no other means of income and could go into a recession. Not only
would the country most probably go into a recession but many people would
lose their jobs because of the lack of tourists.
Tourism can be very positive for the cultural heritage within a country. If
tourists are attracted to a certain country because of it's iconic landmarks or its
unique cultural heritage, locals are more likely to preserve them because they
notice that they are having a positive economic impact. This is also true for
wildlife and certain animals, many tourists are attracted to a certain country
purely because of its wildlife, so, locals try their best to preserve it in order to
keep attracting tourists who bring money to spend in the local economy.
To conclude, in my opinion tourism has a very positive effect on local
economies because it provides jobs and allows businesses to thrive. Without
tourism many countries may have stayed an LIC because they didn't excel in
other fields such as manufacturing (for example China).


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