In the majority of developingcountries the privatesector is so underdevelopedthat the various governments have no choice but to assume responsibility for economic development — a role which automatically qualifies them as the direct recipients of foreign aid (Chib, 1980). Since capital is not unlimited, government investment in one sector of the economy leads to a re-distribution of capital away the other sectors (opportunity costs). This means that governments in developing countries that embarkon massiveinvestmentsin tourism infrastructure,mustpostponeor ignore other projects such as irrigation, small scale manufacturing, diversification of agriculture and education among others. Rodenburg (1980) argues that these might be more worthwhile investments in terms of the economic rate of return and in long-term benefits to the people of the countries.