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Tourism does not solely involve the movement of individuals from their homes or their country to visit other recreational facilities. Still, it is a cultural, social, and economic phenomenon that involves the movement of individuals to countries for business or personal purposes. Besides just the basic concept of movement, tourism comes with a package of activities, services, and personnel involved to make this experience worthwhile (Ren et al., 2019). A Tourist is sometimes called a visitor who can either be a resident or a Non-resident. Tourism brings both positive and negative impacts on the social-economical lives of the local communities. It, therefore, sum up all the activities and industries that create a tourist experience. This article shall look at how tourism has impacted the economic growth of different countries of its origin.

The growth of a country depends on the revenue it generates from the activities that are carried out within its boundaries. Tourism, for one, is income-generating that brings with it huge economic potential. Employment, currency exchange, imports, and taxes are some of the money is generated in the country (Ren et al., 2019). In recent years, tourism has increased in numbers. For many reasons, we experience growth in technology, increased disposable income, the rapid growth in Airlines, and a more personal desire to travel to new destinations. Arguably, tourism is a financial expenditure. Money invested in tourism cannot be used anywhere else. This is why several independent investors play a vital role in the tourism industry. they own hotels, lands, and roads that ensure tourism is a success (Zhang,2021).

Most importantly, Tourism generates income for the host country through foreign exchange, and this money can be reinvested in the economy. Only how this money is invested in the country differs greatly. some countries may invest in public amenities like schools, hospitals, etc. others can reinvest in improving the tourism sector while some lose the money through corruption (Ren et al., 2019). Further, through taxes collected as a result of tourism employment or businesses, the government can invest the money to expand the businesses of local communities who, in one way or the other, supply these tourists with locally produced goods and foods. Also, the government can revamp its social amenities to make the country a desirable tourist destination (Zhang,2021. Moreover, through the expansive intentional tourism, hotel owners have led to job creation for the locals, both directly and indirectly. The Hotels might require staff, taxi drivers, guides, cleaners, etc. these people can only be accessed through the locals. Economically, all the money realized through tourism, either formal or informal, is invested back in the local economy. this money is invested mostly in the local community where the tourist attraction is (Puah 2018). sustainable government investment will see its locals benefit more even to areas that are not tourism-related but connected somehow in the economic system.

In conclusion, tourism plays a vital role in the economic development of a country. The local community always benefits greatly through job creation as staff and guides in the hotels. They also can sell their locally made wares to the tourist to earn a living. The Government earns its revenue through taxes collected on tourists whenever they visit any creational facility. Different countries have different currencies. The strong ones benefit the low currency; whenever money is received and exchanged to the local currency, the amount realized is huge and can help commence different government projects that will eventually benefit the local community.


Puah, C. H., Jong, M. C., Ayob, N., & Ismail, S. (2018). The impact of tourism on the local economy in Malaysia. International Journal of Business and Management13(12), 151-157.

Ren, T., Can, M., Paramati, S. R., Fang, J., & Wu, W. (2019). The impact of tourism quality on economic development and environment: evidence from Mediterranean countries. Sustainability11(8), 2296.

Zhang, J. (2021). The effects of tourism on income inequality: A meta-analysis of econometrics studies. Journal of Hospitality and Tourism Management48, 312-321.

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