The Impact of Tourism in Economic Stability

Abstract

Tourism nowadays has become a strong industry which directly affects the development and the wellbeing of a country. The impact of tourism is not measured only by visitor export and total spending but also from the opportunities that this industry offers inside the country. Apart of being one of the strongest sources of income tourism also increases employment, diversifies the economy and helps countries to promote their selves. This study analyses more closely of how tourism affects economic stability of Spain, Albania, Montenegro and Italy. The variables analyzed are GDP, Visitor export, Capital investment etc... The period of the time when the analysis’s is conducted is from year 1990 till 2016.The result of the analysis is that countries with small economic capacity and limited options of developing many industries, also with low development of tourism background are directly affected from tourism income in generating income. From the study Montenegro and Albania are the two countries in which their economic development is affected directly and mostly by tourism.