Economic Impact Of Tourism Essay

Tourism has been identified for its important participation in the economy in different small islands. Tourism serves to encourage the growth of basic infrastructure, participates in the development of businesses, attracts foreign investment and supports the transfer of information and technology (Riaz, Suhejla, and Michael, 2008). Tourism has also been observed as a promoter for the conservation and development of the environment as well as sustaining local culture and diversity. Tourism is associated with different key economic sectors like hotels, transport, restaurants, and construction. This is because of the fact that tourism has the ability to make multiplier impacts in different ancillary and supporting services. The stable development

To recognise the major economic impact on Malta, this research will use inductive approach. Outcomes of this study will be relied on the primary data. In order to gather the primary data, a survey among 10 Maltese people will be carried out by the researcher. A particular questionnaire will be prepared and used to collect the primary data from survey participants.

1.6 Justification for Research

The study of the economic impact of tourism has generally matched the consideration of this activity from a demand perspective. In this respect, tourism consumption is the origin of the effects produced on production, income or employment for small islands. At a conceptual level, the estimated impacts of tourism require the distinction between so-called direct impacts, indirect and induced (Riaz, Suhejla, and Michael, 2008). The first are those that occur on businesses that directly serve the tourist demand. Indirect impacts would be those that take place through the chain of intersectoral relationships that originate from direct impact. Finally, the induced effects are rooted in spending income that has been generated as a result of the direct and indirect impacts of tourism on small