1. JOB CREATION
Employment generated by tourism is categorized into direct and indirect. Direct employment is defined as jobs which are specifically created by the need to supply and serve tourists. The obvious example is those jobs created by the opening of a tourist hotel. Tourism, however, requires a large input from the construction sector, and those workers employed on building tourism facilities constitute a backward linkage from the tourism sector. These jobs in relation to tourism may be regarded as being indirect in the sense that they will be diverted to other sectors of the economy requiring construction services work when tourism reduces. Tourism is often described as a labour-intensive activity as it tourism creates more jobs than a similar unit of capital invested in another sector. 2. CONTRIBUTES TO GOVERNMENT REVENUE
Contributions received by government from the tourism sector may be direct or indirect. Direct contributions arise from charging taxes on income; for example, private and company incomes generated by tourism employment and business. Indirect sources of income will mainly Government revenues in most developing countries are derived from indirect taxes, e.g. on land, on crops, on imports comprise the range of taxes and duties levied on goods and services supplied to tourists. 3. REGIONAL DEVELOPMENT
The regional impacts of tourism are often one of the major attractions for economic planners. Tourism can make use of historical and cultural sites,e.g. the Boroburdur Temple Complex in Java, Indonesia; a scenic, natural landscape, e.g. Scotland; historic cities, e.g. London; and natural climate advantages, e.g. Gold Coast in Queensland, Australia – all provide focus for development. Many of these locations have, for different reasons, few alternative economic development possibilities. In the case of Scotland, for example, where tourism is now the dominant sector in the economy, many of the most touristically attractive regions, such as...
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