Tourism Multiplier Effect

This is an effect of tourism spending wherein the income of workers or business owners provided by tourism revenue is spent acquiring different goods and services.

• INDUCED

• INDIRECT

This is the simplest form of how many times money spent by a tourist circulate in a country's economy.

• DIRECT

• TOURISM MULTIPLIER EFFECT

This effect of tourism spending is experienced by the providers of tourist goods and services and generating income for various economic agents.

• INDUCED

• DIRECT

In 1930's, this British Economist introduced the concept of multiplier effect in economics.

• KEYNES

• RUSU

This refers to a type of leakage where the resources collected by the government through direct and indirect taxes leave circulation, reducing the purchasing power of individuals and businesses.

• IMPORTS

• TAXES

When the multiplier effects continues, its impact weakens, and money eventually "leaks" from the economy.

• TRUE

• FALSE

There are 3 types of leakages: taxes, savings, imports.

• TRUE

• FALSE

The indirect effect of tourism spending can be observed when business owners receive profits, workers receive wages, and the government receive taxes levied on the sale of goods and services.

• TRUE

• FALSE

Due to the international nature of tourism industry, along with the world becoming increasingly globalized and monopolized by the most successful multinational corporations (MNCs), economic leakage is becoming more and more prevalent.

• TRUE

• FALSE

The revenue generated by outbound tourism flowing into a country, region, or location injects new resources into the economy.

• TRUE

• FALSE