Economic Impacts Of Tourism, Particularly Its Potential Contribution To Economic Development

Economic debate on tourism development represents only a partial development view, yet in our globalised market economy, it is still integral to any development debate. There is a consensus among tourism economists that, tourism provides positive economic developmental benefits, which are discussed at length in the literature (Bull, 1995; Gartner, 1996; Sharpley and Telfer, 2002; Tisdell, 2005; Tribe, 2005). There is enough evidence that tourism has a potential to influence the economic development of the host region or country and reduce the economic gap between developed and less developed areas; that it is a valuable source of foreign currency earnings that less developed countries need for economic development; that it generates employment opportunities; and last, but not least, it creates earnings through the exploitation of the inherited natural and cultural attractions of the host country. Importantly, however, tourism impacts are not only unidirectional, they might be positive or negative; they are very complex, temporary and might be location and time specific and dependent on many factors. Thus it is also unrealistic to expect tourism to be a magic wand that can solve all the problems of underdevelopment. Therefore, this chapter reviews briefly the main economic developmental impacts of tourism but focuses principally on fundamental issues and discusses many factors and situations that may enhance or reduce the tourism developmental potential of a given regional or national economy.