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Positive Economic Impacts Of Tourism

2000 Words8 Pages

According to McNeely (1998) and Mbaiwa (2003), tourism is known as the largest growing industry especially in the area of job creation, improve quality of life to host community, improving local economy and many more (Mochechela, 2010).This is because tourism industry is one of the largest industries where host resident can get the economic benefits where both skilled and unskilled people can be employed. Economic impact usually can directly bring benefits to communities. However, even though the economic benefits are popular with the tourism impact, the negative side still need to be taken with caution. In addition, tourism industry can make a positive economic contribution such as increase income of local people, increasing foreign exchange …show more content…

Direct impacts include monetary transactions during tourist visiting to the destination and tourism activities. This involves impacts on tourism businesses includes amount paid out including wages to the workers, taxes, supplies and services. According to Sustainable Travel International (2005), indirect impacts are changes in income, sales and employment or also known as multiplier effect within the region of the tourism industry. The third categories is induced impacts when changes in economic activity resulting from household spending of income earned directly or indirectly from the tourism industry (Mochechela, …show more content…

The sales taxes will increase when tourist expenditures are high. Tourism also has a positive role in enhance of cultural tourism and its role in contributing to the economic benefits of tourism. In can be seen when tourism activities boosting the GDP in the tourism district. Besides that, tourism also can be seen as an important source of revenue for further historical restoration and preservation (Mochechela, 2010). It can provide a market and audience for the art of the local crafts people. For example, when one visits attractions such as George Town, Night market in Batu Feringghi and Padang Kota that are located in Penang it is easy to see domestic and international tourists buying arts, crafts and visiting museums in the surrounding areas to get the experience, feeling and know more about the historical

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