Direct Tourism Effect

The direct tourism effect is the most obvious and easily measurable economic benefit of tourism. It involves the money that visitors spend in a destination, directly related to tourism activities. This includes spending on accommodation, transport, attractions, food and beverage, souvenirs, and related services.

Indirect Tourism Effect

The indirect tourism effect is the money that the direct tourism spend generates for the local economy. For example, when visitors buy food and drinks from local establishments, the suppliers of those establishments benefit from the increased demand. The money spent by these suppliers on goods and services in the local economy creates the indirect tourism effect.

Induced Tourism Effect

The induced tourism effect is the money spent by the employees of the direct and indirect tourism businesses. This can include wages and salaries, as well as money spent on goods and services in the local economy. The induced tourism effect is often difficult to measure, as it is not as easily tracked as the direct and indirect effects.

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