Problem

Instability in tourist dependent economies

Other Names:
Unstable tourism
Nature:

Many branches of a national economy supply services and goods for tourism. In the case of some branches all, or almost all, of their activity is related to tourism, for example, hotels and similar accommodations, charter air passenger companies and travel agents; in the case of other branches, tourism supplies a major part of their revenue, for example, restaurants and souvenir shops in tourist resorts.  Tourism plays a major part in the balance of payments of many countries, frequently exceeding in importance the imports or exports of merchandise. 

Incidence:

In addition to international tourism, domestic tourism consists of hundreds of millions of holidays and other recreational and business trips away from home. The development of tourism may, in certain circumstances, contribute to pressures on the general level of prices. Its inflationary effect varies considerably from one country to another. Although the main effects are encountered in the accommodation sector, such as has happened with AirBnB, in some countries they may extend to basic items, including food and clothing, creating local socio-economic problems.

Related UN Sustainable Development Goals:
GOAL 8: Decent Work and Economic GrowthGOAL 11: Sustainable Cities and Communities
Problem Type:
F: Fuzzy exceptional problems
Date of last update
22.11.2020 – 04:54 CET