What are the effects of tourism on GDP?

The main part of the gross domestic product (GDP) is consumption that is powered by the demand for goods and services. One of the effects of tourism on GDP is that tourism affects the economy by providing employment. The main effect of tourism on GDP is that tourism increases demand for goods and services. Such an increase in consumption levels increases market activity and then increases GDP level. However, not all the effects of tourism are positive, as this can also lead to leaks, especially in smaller areas.

Any area that has a high level of tourist activities, creates many job opportunities for the local population. Hotels, amusement parks, tourist attractions and other such places need people to provide the necessary services. Since it increases and decreases in employment affects GDP levels by influencing people's expenditure habits, employment provided through tourism has a positive impact on GDP. People who areThe locked people have income to spend and the increased level of consumption is the result of tourism on GDP.

In the field of tourist expenditure, the influence of tourism on GDP can be seen in the way that the demand of tourists for services affects the level of the HDP area. Tourists spend money on tickets, tariffs on a cruise ship, restaurant and a wide range of other services. The impact of tourism is that some economies are partially maintained by tourism and its related factors. In these economies, tourist consumption of goods and services consists of a large part of the total annual expenditure.

The effects of tourism on GDP are also evident in the way that existing services are constantly added new services and goods to satisfy the demand of tourists. For example, some small industries, especially crafts, are a direct consequence of demand for tourists for souvenirus and other memorabilia orthe monuments. Some of these industries would not survive without sponsorship of tourists who buy such artifacts and objects to take with them when they return home. In some areas where tourist trade is seasonal, these industries can only operate in a period when tourism is fully active. Souvenir manufacturers may therefore have other revenue sources and depend only on tourist trade as a source of income for part -time.

One negative effect of tourism on GDP is in the area of ​​leaks, as is common in smaller, insufficiently developed countries. This usually occurs when most tourist facilities are owned and managed by foreigners. Examples of these facilities include airlines, accommodation and other services. In these cases, leaks apply to the fact that the money obtained from tourism is usually transferred to external bank accounts and does not significantly increase the local economy or GDP.