Economic impacts of tourism

Introduction to Tourism and
Hospitality Studies



The Economic impacts of tourism

, Overview
• Travel & Tourism is an important economic activity in most
countries around the world. As well as its direct economic

• impact, the industry has significant indirect and induced impacts.

• It is the economic impacts that are the driving force for tourism
development

• Tourism is a service based industry and the reason for service
sector growth

• Tourism, a major element of the service economy has a
sustained and rapid growth
2

, Overview
• Despite recessions over and over again tourism has continued
to grow

• The economic significance of tourism is determined by the type
and nature of the economy being considered- e.g.- tourism
generating economy and economies dependent on tourism
activity

• Despite progressive downgrades to growth forecasts through
2011, the industry grew by 3% over the course of the year (in
terms of Travel & Tourism’s contribution to GDP

• Tourism’s direct contribution to GDP in 2011 was US$2 trillion
and the industry generated 98 million jobs. 3