7. Economic motives for tourism investment
The literature highlighting the potential economic benefits to developing countries are numerous. For example, Mathieson and Wall (1982); Seward etal. (1982); Duffield(1982).The major ityagree that developing countries tendtoadopt tourismas an export industry because it has the following economic implications on their economies: f The creation of new local requirements for equipment, food and other supplies, thereby fostering new industries and commercial activities and opening up new markets. f Thecreationofafavorableimpactuponemploymentinthecountrye.g.newjobsin hotels, travel agencies, government, handicraft industries etc. f An increase in urbanization through the continuous growth of construction and renovation of tourist facilities. f Helps increase the governments’ earnings of foreign currency which developing countries badly need for bridging or reducing their deficits in balance of payments, thus fostering the development of their national economies. f Acts as a channel for redistribution of wealth by redistributing capital between developed and developing countries. f Accelerating the multiplier effect within the economy of a country