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It is because of these indirect relationships, that it is very difficult

to accurately measure the precise economic value of tourism, and

some suggest that the actual economic benefits of tourism may be

as high as double that of the recorded figures!

- Contribution to local economies

The importance of tourism can be further seen through the

contributions to local economies.

All of the money raised, whether through formal or informal

means, has the potential to contribute to the local economy.

If sustainable tourism is demonstrated, money will be directed to

areas that will benefit the local community most. There may be pro-

poor tourism initiatives (tourism which is intended to help the

poor) or volunteer tourism projects. The government may reinvest

money towards public services and money earned by tourism

employees will be spent in the local community. This is known as

the multiplier effect.

- Overall economy boost

Tourism boosts the economy exponentially. This is partly because

of the aforementioned jobs that tourism creates, but also because

of the temporary addition to the consumer population that occurs

when someone travels to a new place. Just think: when you travel,

you’re spending money. You’re paying to stay in a hotel or hostel

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