Economic Impact Of Tourism

1419 Words6 Pages
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 of tourists and tourism receipts over the decade since international travel became reachable to the common people, has convinced different small islands that they can profit from tourism and Malta is no exception. Tourism has become an important source of employment and income in different small island economies. Due to this, variations in tourism demand can have important effects on the economy, both at the macroeconomic position of gross domestic product, the national budget and the balance of payments and at the microeconomic position of various financial sectors and the companies that perform within them (Leslie, 2000). However, there is not enough information regarding the nature of these influences, including their diffusion and
Open Document