Impacts of Tourism

This is a effect of tourism spending, wherein the income of workers and business owners provided by tourism revenue is spend acquiring different goods and services.

• Induced

• Indirect

This is a simplest form on how many times money spend by a tourist to circulate through a country economy.

• Tourism Multiplier Effect

• Direct

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

• Induced

• Direct

In 1930's, the British economist introduced the concept of multiplier effects in economic.

• Keynes

• Rusu

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

• Imports

• Taxes

When the multiplier effect continues, its impacts weakens, the money eventually leaks from the economy.

• True

• False

There are three(3) types of leakages: taxes, savings and imports

• True

• False

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

• True

• False

Due to the international nature of the tourism industry, along with the world becoming increasing globalized and monopolized by the most successful multinational corporation (MNC's) economic leakage is becoming more and more prevalent.

• True

• False

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

• True

• False