Tourism: The Positive Economic Impact Of Tourism?

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2.7 ECONOMIC IMPACT OF HERITAGE TOURISM

According to many scholars of tourism (McNeely, 1998 and Mbaiwa, 2003), tourism is known as the largest growing industry globally, especially in the area of job creation, improve quality of life to host community and so on (Mochechela, 2010).Tourism is one of the largest industries where host resident can get the economic benefits as it has different sectors where both skilled and unskilled people can be employed. In the research on tourism impacts, the economic side of tourism is often noticed due to its positive impacts, while the negative aspects are from environmental and socio-cultural impacts. According Cooper et al (2008), a positive economic impact can directly bring benefits to communities therefore, it is also the major driver of tourism development. However, even though the economic benefits are popular with the tourism impact, the negative side still need to be taken with caution.

Boo (1991) and Zupan (2003) cited by Mochechela (2010), tourism can make a positive economic contribution such as increase income of local people, increasing foreign exchange earnings, expands the service sector by generating employment over a wide range of skill levels, attracts investment capital for …show more content…

Direct impacts include monetary transactions from operations during tourist visitation and tourism activities. This involves impacts on tourism businesses includes amount paid out including wages, taxes, supplies and services. Indirect impacts are changes in sales, income, or employment or also known as multiplier effect within the region of industries that supply products and services to the tourism industry. Induced impacts are changes in economic activity resulting from household spending of income earned directly or indirectly from the tourism industry (Sustainable Travel International,

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