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How can tourism reduce the development gap?

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Tourism is a human activity that has so many effects in a lot of industries. If the positivity of its impacts on environment level could be questionable, it is not the case in the economic dimension. Many people are seeing it as an important factor for reducing the development gap between countries. Here is how it could happen.

Tourism is beneficial to local inhabitants

Tourists generally leave developed countries to visit low income or middle income countries. When they set foot on an area, they spend money to buy goods and services in place. Then, a lot of economic activities take place around tourism. We can cite restoration, transport, hospitality and so on. Local population, the providers of these goods and services are the one who benefit from the exchange. They earn money and leave the state of poverty. As a result, the job creation enables local inhabitants to improve their standard of living, reducing the development gap.

Tourism foster economic progress

The benefits of tourism are not felt only by local inhabitants. Tourism could also be a continual source of public income for the government. The different taxes applied on items and revenues help the government to generate a lot of money. If the sector is important, the revenue drawn could represent thousands of millions of dollars. All that money can be used by the government to build infrastructures, to improve public services such as education and health. The construction of roads and buildings will also create jobs for thousands of person. This may cause a domino effect that would be beneficial for everyone.

Tourism foster transfer of knowledge

When tourists stay in a given place, they do not only learn, they also teach. It generally results on an exchange or a transfer of expertise. Both parties certainly learned useful things about each other. That exchange could lead to societal progress and reduce the development gap.