The Benefits of Tourism in an Economy
Tourism is one of the activities that many countries encourage because it helps them in earning income. We have two types of tourism: the local tourism and the foreign tourism. Since tourism deals with moving from one place to another, prior plans should be put in place.
As we had stated earlier on, tourism is not ideal for the travelers alone but also for the governments. Wealth is also injected into an economy with tourism. Like any other business, tourism is labor-intensive and thus needs experienced personnel. This article looks at the advantages of tourism in an economy.
Employment
One of the direct benefits of tourism in an economy is that it creates employment opportunities. With tourism, several jobs like the hotel staff, swimming instructors, coaching services, and tour guides are created.
The various industries that are established as a result of tourism will pay salaries to the locals who will boost the local industry in the area. Supporting industries like the food production and retail business will benefit significantly from tourism because people in the area will have the financial power to afford some of the services in the area.
Increased Spending in the Local Community
When tourists visit a given area, there is increased spending in the economy because the residents will have money in their pockets. The local shops and supermarkets will benefit because people will afford some of the items that they sell.
Owners of different business chains like the transport will get clients when they transport them from one end to another. In so doing they will pay them. There will be increased cash-flow in an area because of tourism.
Diversification of Income
Tourism will bring the diversification of income in an economy. Diversification of income in a given economy is one of the ways of strengthening a given economy. For example, if an area is predominately referred to as an agricultural economy, tourism can help the locals in that economy to diversify in the other businesses that will arise as a result of tourism.
If the traditional industries are under some form of pressure, tourism will help the business people in finding an alternative area to invest. Economies with diversified sources of income tend to do well as compared to those with a singular source of income.
Infrastructure Development
Tourism is one of the catalysts that will lead to infrastructural development in an area. It is essential to know that tourism needs some infrastructural support. Necessary infrastructure like good roads, hotels, shopping malls, and hospitals will be developed in an area because of tourism.
