Tourism Management Certificate (TMC) Practice Exam

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How can tourism contribute to economic development?

By reducing job opportunities

By increasing local taxes only

By acting as a key driver of economic growth and job creation

Tourism serves as a key driver of economic growth and job creation, making it a vital component of a region's economic development strategy. When tourism thrives, it stimulates various sectors, including hospitality, transportation, entertainment, and retail. Increased tourist arrivals lead to higher demand for services and goods, prompting businesses to expand and invest in infrastructure.

This growth translates to more employment opportunities, as local businesses require additional staff to meet the needs of incoming visitors. The multiplier effect plays a significant role here; as employed individuals spend their income within the local economy, it further reinforces job creation and economic activity.

Additionally, tourism contributes to government revenues through taxes on hotel stays, restaurant meals, and various leisure activities. These revenues can be reinvested into the community to enhance public services, infrastructure, and attractions, further supporting sustainable economic growth. Therefore, viewing tourism as merely a secondary sector or a dependency on foreign aid overlooks its comprehensive role in fostering a stronger, more resilient economy.

By promoting dependency on foreign aid

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