Tourism Impacts

1. TOURISM:
WHAT IT MEANS TO THE U.S. ECONOMY
• Travel spending in U.S. is projected to total $738.5
billion in 2010.
• Tourism is the nation’s third largest retail industry.
• Tourism is the nation’s largest service export.
• Over 7.4 million Americans employed directly in
the travel industry, 9 million indirectly for a total of
over 16 million jobs.
• Tourism provides more than 684,000 executive
level positions in each year.
• Travel industry provides a disproportionate
number of jobs for the traditionally disadvantaged.
Source: U.S. Travel Association

2. Benefits of Tourism - Economic
1. Provides employment
opportunities
2. Generates foreign
exchange
3. Increases Incomes
4. Increases GNP
5. Can be built on existing
infrastructure
6. Develops an
infrastructure that will
also help stimulate local
commerce and industry
7. Can be developed with
local products and
resources
8. Diversifies the
economy
9. Tends to be compatible
with other economic
activities
10. Spreads development
11. High multiplier impact
12. Increases
governmental revenues

3. Benefits of Tourism - Social
13.Broadens educational and cultural
horizons
14.Improves quality of life - higher incomes
and improved standards of living
15.Justifies environmental protection and
improvement (Environmental)
16.Provides tourist and recreational facilities
that may be used by a local population

4. Benefits of Tourism - Cultural
17. Reinforces preservation of heritage and tradition
18. Visitor interest in local culture provides
employment for artists, musicians and other
performing artists enhancing cultural heritage
19. Breaks down language barriers, sociocultural
barriers, class barriers, racial barriers, political
barriers, and religious barriers
20. Creates a favorable worldwide image for a
destination
21. Promotes a global community
22. Promotes international understanding and peace

5. Disadvantages of Tourism -
Economic
23.Develops excess demand
24.Results in high leakage
25.Creates difficulties of seasonality
26.Causes inflation
27.Can result in unbalanced economic
development
28.Increases vulnerability to economic and
political changes

6. Disadvantages of Tourism -
Social
29. Creates social problems
30. Degrades the natural physical environment and
creates pollution (Environmental)
31. Degrades the cultural environment
32. Threatens family structure
33. Commercializes culture, religion, and the arts
34. Creates misunderstanding
35. Creates conflicts in the host society
36. Contributes to disease, economic fluctuation,
and transportation problems