What are the economic impacts of tourism?
Tourism can be an incredible boon to any economy. This is one of the reasons why cities bid to host the olympics. They know that if they get the bid, they will get so much money. Think about all the tourists. Restaurants, businesses, hotels, any service industry and more will all benefit. Some places are almost entirely based on tourism, such as some beach places in Florida, where there is no industry except tourism. On the flip side, if tourism takes a hit, then it can destroy an economy and hurt many lives.
Tourism refers to the business of providing services to tourist, who are defined as a person who travels away from home in the same or another country. The tourists may be travelling for various purposes such as, leisure, health, education, religion and business. The services provided to tourists include travel and transportation, accommodation, food, sight seeing, entertainment and other services and facilities required by the tourists.
Tourism is a labor intensive industry, particularly for the destination location of tourism. Also, a substantial turnover of tourism revenue results creates inflow of money to tourist destination from outside locations. In this way international tourism is a major foreign exchange earner for many countries.
Success of tourism of a particular destination depends to a large extent on the natural features of the location. However to some extent it is possible to develop tourist destination by creating tourist facilities like amusement parks and animal sanctuaries.