Nowadays the interconnection between the higher development of countries and the growth in the level of tourism can be objectively seen. Not only the welfare of a country demands some adjustments in the local economy, which may be brought due to the tourist industry, but also residents of the fast-evolving country have to adapt to the changes.
Developing countries may expand their tourist industry to improve the economy by addressing poverty. The growth of tourism demands the construction of some conveniences, such as new accommodations and stores and, therefore, more workforce is needed. As a result, under-average income residents will get a job and their salaries will rise. This will help the government to improve the economy, because the higher income of inhabitants will provide the country with higher taxes.
Nevertheless, the expanding tourist industry can be a negative development as the government often cannot provide a stable income to residents. Tourism is mostly seasonal, which means that the salaries will strongly depend on a season. The income of the South countries residents, for instance, in July may be significantly higher than the income in February, because many people consider summer the best time to visit a country. Although this problem may be solved by attracting tourists in winter by reducing the resort prices, workers still may struggle with income instability. This proves that the expanding tourist industry negatively affects the residents of a country.
To sum up, developing countries are expanding their tourist industry to stabilize the economy by addressing poverty. However, sometimes it may have its toll on the citizens as their income is unstable.
