The economic contribution of tourism has two elements: direct and indirect. The direct contribution is solely concerned with the immediate effect of expenditure made by visitors. For example, when a tourist uses a taxi service, the direct output effect includes only the service of the taxi driver and the direct employment effect includes the proportion of the driver’s employment that is spent driving tourists.
The taxi driver, however, buys fuel from a petrol station, machinery parts from a garage, meals while on duty from a food outlet and so on. Petrol stations, garages and food outlets all hire staff and produce output to serve the taxi drivers, who in turn serve customers, some of whom are tourists. The food outlet in turn engages food manufacturers, electricity companies, delivery services and many other industries to provide the necessary inputs required to prepare the snacks it sells. Similarly, many industries are involved in supplying the necessary inputs to the petrol stations and the garages. The chain effects on output and jobs started by the initial taxi service demand of the tourist comprise what is termed tourism’s indirect effects on output and employment.
The economic contribution of tourism has two elements: direct and indirect. The direct contribution is solely concerned with the immediate effect of expenditure made by visitors. For example, when a tourist uses a taxi service, the direct output effect includes only the service of the taxi driver and the direct employment effect includes the proportion of the driver’s employment that is spent driving tourists. The taxi driver, however, buys fuel from a petrol station, machinery parts from a garage, meals while on duty from a food outlet and so on. Petrol stations, garages and food outlets all hire staff and produce output to serve the taxi drivers, who in turn serve customers, some of whom are tourists. The food outlet in turn engages food manufacturers, electricity companies, delivery services and many other industries to provide the necessary inputs required to prepare the snacks it sells. Similarly, many industries are involved in supplying the necessary inputs to the petrol stations and the garages. The chain effects on output and jobs started by the initial taxi service demand of the tourist comprise what is termed tourism’s indirect effects on output and employment.
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