Economic impacts of tourism

Direct Impacts: Represents the GDP generated by activities that directly deal with tourism such as
hotels, travel agents, airlines and tour operators as well as restaurants and other activities that cater
to tourists.

Indirect Impacts, impacts which accrue due to the activities undertaken by the sector, and are a
function of three different factors.

Induced Impacts: Represents the wider contribution of tourism through the expenditures of those
who are directly or indirectly employed by the tourism sector.

Negative Impacts

1. Leakage
2. Increase price
3. Seasonal character of jobs
4. Inflation
5. Dependency
6.

Positive Impacts

1. Employment Genration
2. Foreign Exchange earnings
3. Regional development
4. Contribution to local economies
5.