Tourism: Direct Impacts And Positive Impact Of Tourism

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5.1 Economic Impact of Tourism
Tourism is considered as an important tool for economic development of a nation. It directly contributes to the employment sector, creates entrepreneurial opportunities, generate tax revenue and foreign exchange earnings to the nation and finally to the development of the nation. Yet the range of impacts of tourism is broad and it influences those are not directly related to tourism. Economic impact of tourism has been defined under three categories namely direct impact, indirect impact and induced impact. They are (Stynes, 1997):
1. Direct impact: Direct impact refers to changes in the industries associated directly with visitor spending.
2. Indirect impact: It is a multiplier impact through backward and forward linkages. It is about the intermediate consumption for the production of goods and services in the tourism sector. These are goods and services that tourism companies purchase from their suppliers, forming the tourism supply chain.
3. Induced impact: It relates to sales, income or jobs resulting from household spending as a result of income earned from visitor spending (either directly or indirectly). Induced effects also include the consumption of companies that are benefited directly or indirectly from initial expenditure in the tourism sector.
Thus the total impact of tourism = direct impact+ indirect impact+ induced impact
WTTC’s report compares the total impact of tourism in 2011 …show more content…

The survey starts with the personal data of the

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