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Full Name: I Gusti Kade Rai Mahendra

Name of GK / No Absent: Papua / 09

ECONOMIC RELATIONS WITH TOURISM


Tourism generates enormous economic benefits for both the host country
and the country of origin of tourists. One of the main motivations of a State
promoting itself as a State with a tourist destination is the emergence of advances
in the economy, especially for developing countries.
Negative Side of Tourism in the Field of Economics
a. Goods and Services Many countries must buy goods and services to satisfy
their visitors. This is also included with the raw materials used to produce the
goods and services,
b. Infrastructure Many countries that do not have domestic capability to carry out
tourism-related development, such as hotels, airports, and others. As a result the
State must use the capabilities of foreign countries that culminate in leakage.
c. Foreign Production Factors decrease State profits and belong to foreign
investors. Local People's Economic Dependency on Tourism Diversification in an
economy is good, but if a country or region is dependent on economic viability on
an industry, it can put great pressure on the industry and the people involved to do
well. Many countries, especially developing countries with little ability to explore
other resources, have used tourism as the main way to boost the economy
The Positive Side of Tourism in the Field of Economics
a. Earning State Revenue The Government's revenue is directly derived from
tourism workers' income taxes, and tourism businesses. And directly from
the tourists via departure tax. Job Increases Rapid expansion in the tourism
sector has increased the number of jobs.
b. Investment Infrastructure Investment Drivers can encourage local
governments to develop infrastructure such as roads, clean water,
electricity, and so on. With the increase of tourism facilities, automatically
also improve the quality of life for the local population.
c. Contribution to Local Economy Since the environment is the basic asset
of the tourism industry, tourism revenue is often used to increase the
economic value of protected areas
Tourism relationships with economic aspects, tourism can be said as the
tourism industry, if in a particular industry there is a certain product, in the
tourism industry called the particular product is the tourism itself. Just as in an
industry there is a consumer, there is demand, there is an offer, in which the
producer has a duty to produce a product in order to meet demand. In the
consumer tourism industry in question is the tourists. Tourism is a tool for
achieving goals in economics. In micro explained the development of tourism to
increase local income. The emergence of merchant communities around the
premises to increase revenue and increase the number of visitors, as it is one of
the available facilities and easily accessible.

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