Tourism is viewed as a major source of economic development and one that can bring a positive change in the event of an economic decline in a town. In many parts of the world, tourism is considered an important driving force of the economy. Many developing countries rely largely on the tourism sector for its important contributions to these countries’ gross domestic products. There are many consequences of tourism that impact towns, either directly or indirectly, contributing to their growth.
One impact of tourism is that it results in both residential and infrastructural development of a town. In order to boost tourism and accommodate many tourists, towns develop more restaurants, hotels, and other attractions sites for the tourists. This, in the long run, contributes to the infrastructural development of towns which were once farming villages. These developments may range from roads improvement, supply of power and water, improved telecommunication, and airports development which all contribute to the economic status of the town. There are also other commercial developments that come with these infrastructural developments which benefit the local people. (Mason, 2015).
Tourism is also associated with the creation of employment opportunities for locals. As a result of tourism, many are employed as tour guides, staffs in hotels, tour operators, travel agencies, and different tourism attractions employees. Indirect employment is also created in sectors such as banking, construction and transportation all of which improve the well-being of the local people. Tourism is also associated with the money multiplier effect. Most of the revenue generated by tourism re-circulates into the local economy also boosting the well-being of the locals. Hence, tourism has a massive economic significance and is thus good for the development of a town. (Mason, 2015).