Tourism and Development of infrastructure

The benefits accruing from investment in such infrastructure and superstructure as airports, hotels and restaurants, road network, communications, power and water supply as well as other related public utilities are widely shared with other sectors of the economy. Their development enhances the overall development at the local level and also encourages greater economic diversification.

It has been argued that tourism has a larger multiplier effects than any other sector since every unit of tourist expenditure goes through several rounds of income creation and expenditure before its effect is exhausted For instance many spent by a tourist on hotel accommodation, food and beverages, shopping, entertainment and transport does not stagnate but provides an income to hotel staff, taxi operators, shopkeepers and suppliers of goods and services. They in turn spend part of this income on their daily requirements of goods and services. Hence money accruing from tourism circulates trough numerous segments of the economy through the multiplier Process.    

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