National Economic Policy

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This research was done to explain how local and national economic policies that influences the success of the travel and tourism sector. According to Abbas (2012), economic impacts are effects on the level of economic activity in a given area. It is also the changes of the economic activities that are associated with the industry, event or policy in an existing regional economy where the primary motivation is to promote that of the expected economic improvement.
Research Findings
The findings for how local and national economic policy influences the success of the travel and tourism sector are:
1. The national policies according to OECD (2011), must emphasize the regional economic dimension of tourism of the total impact of the national economy.
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There are several economic policies used by the government which affects the tourism sector and OECD (2011), said that this makes any evaluation of tourism difficult and incomplete. Economic information on tourism both at the local and the national level is currently lacking and could be strengthened by supporting both tourism activities as well as other activities and turnover. This reflects on the overall performance of the sector which emphasized decentralization, devotion and participation. This is merely seen as an achievement in the short term but as integral components of the development…show more content…
Household spending patterns are caused by changes in income generated from the direct and indirect effects where tourist spend their income on transportation, food, housing and product and services in that particular region. Changes in tourist spending can impacts virtually in every sector of the economy in one way or another. This occurs when the tourist spends money into the local economy, for example, whenever they purchase souvenir made by a local at the tourism destination, the supplier then goes on to spend that money in some way at a local vendor and that vendor goes on to spend it locally and the process continues. Say that to say this, induced effects capture the way in which this increased income is in turn spent in the local economy of the travel and tourism

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