Author(s)

A. Ntibanyurwa

Abstract

If well exploited and closely linked with other sectors of the economy, tourism is believed to serve as an engine of growth. This paper shows how the tourism sector can be a factor of development by offering diverse job opportunities and by increasing foreign earnings which in many nations are used to boost other economic activities. Activities that are developed as a result of tourism include among others: entertainment, transportation services, craft rental and sales, tour guides, restaurants, hotels, beach manicures and pedicures and many more. These activities are interlinked with financial influx. From a trade perspective, the paper argues from reviewed literature that tourism in many developing nations contributes to foreign earnings more than many other economic sectors regarded as main export-oriented without facing the same trade restrictions. Tourism has a powerful multiplier effect through which it contributes to development. Through consumption of local tourism products and other local but non-tourism products, tourism can perform as a means for development of many small businesses. The paper concludes that the tourism sector needs to be sustainable in order to successfully play its role of development factor. Keywords: development, economic growth, foreign earnings, GDP, income, job, linkages, multiplier effect, tourism, trade. 1 Introduction The contribution of tourism sector to development needs to be clearly explained to allow countries to invest into tourism. The objective of this paper is to demonstrate how tourism can be considered as a development factor. The approach used is a literature based analysis. From economic perspective, the paper shows how tourism contributes to boost economic growth, therefore to development. Through its powerful linkages

Keywords

development, economic growth, foreign earnings, GDP, income, job, linkages, multiplier effect, tourism, trade.