The primary and secondary beneficiaries of tourist spending

Abstract

The tourist industry is not a single entity but consists of a heterogeneous group of firms and establishments providing a wide range of services for tourists. Some of these businesses are entirely or mainly dependent upon tourist spending, whilst others cater primarily for the resident population and their income from holiday‐makers forms only a marginal addition to their revenue. Yet tourist spending becomes diffused through a region with multiplier effect and many other sectors of the economy receive secondary benefits from the initial round of tourist spending.