Economic Impact of Tourism

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  • 0:04 Tourism and the Economy
  • 0:32 Job Creation
  • 1:42 Transportation
  • 2:49 Wildlife and Nature…
  • 3:36 Lesson Summary
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Lesson Transcript
Instructor: LeRon Haire
In this lesson, we will discuss the various ways in which the tourism industry can impact the economy, focusing on job creation, transportation, and wildlife/nature conservation.

Tourism and the Economy

The economic significance of tourism can easily go overlooked, as its importance extends well past people simply purchasing souvenirs and local outings. Revenue generated through tourism and hospitality offers a chance for a local economy to continue to be relevant as a tourist destination by using the funds in multiple areas. Below are some of the different ways in which tourism has a significant impact on economics.

Job Creation

Tourism is a noteworthy motor for job creation and a main thrust for monetary development and improvement. Jobs for tourism can include everything from a souvenir shop clerk, to a bartender, to a tour boat captain. There is sustainable growth for jobs in the tourism industry. What's more, tourism is a staff-concentrated industry. Tourist attractions can assure economies across the world that tourists have to be fed.

Therefore, there must be staff to prepare and serve the food as well as clean up afterwards. Depending on the size of the tourist area, some staffs can account for hundreds or thousands of staff employees for various tourist attractions. Tourist attractions are constantly in need of people to perform the jobs, thus making a significant impact on the economy through tourism.

New Orleans for example, even after Hurricane Katrina, continues to be a huge tourist destination. In 2014, the city had almost 10 million visitors that generated $6.8 billion for the economy there.


Someone would be hard-pressed to think of the tourism industry without thinking about transportation. Transportation is so important because without it, how would individuals be able to visit Orlando, Hawaii, or Cancun?

For this reason, there is big business (economically) in the tourist transportation sector. Just think of all the modes of transportation that must be used. For example, if you live in Texas, then there is no way that you can gas up the car and prepare to drive all the way to Hawaii - at least not without that huge problem in the way known as the Pacific Ocean.

Air, automobile, sea, and railway methods of transportation all make up the majority of ways for tourists to travel to tourism destinations. Some cities even feature trolleys, streetcars, or horse and buggies that attract tourists. Multiply that by the estimated number of tourists per year and you can see the positive economic impact that transportation has on tourism.

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