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Tourism as a secondary source of income

It is a fact that tourism is an efficient engine for the prosperity of any economy. Regions that have assets such as natural resources, sites of cultural and heritages interests, modern infrastructure, etc. have huge opportunity to make economic and social progress. Not only tourism companies, but the destination and the communities together start seeing the effects of tourism. These effects of tourism are categorized in direct and indirect effects. The people and organisations involved in the tourism businesses such as –tour operators, guides, transportation, food and accommodation providers come under the first round that shows effects of tourism instantly. If tourism flourishes, the components involved in first round get improved profits and employment opportunities. This is the direct effect of tourism that generates primary income for tourism businesses.

Secondary income through tourism

The components of first round of providers require sufficient supply of resources to cater to increasing demand of tourism. These supplies are in the form of food, water, sanitation, fuel, electricity, equipment, furniture, communication networks, local art and handicrafts, local artists, modes of transportation, flora and fauna, land, etc. These are the types of supplies that are not necessarily only for tourism but also are part of local system. With the increase in tourism, the suppliers and creators of these components also gets an opportunity to grow.

When we compare the scope of first round of supply for tourism with the supply of goods and services associated with it, we can see that the later one is broader than the first round. Therefore, there are many businesses, vendors and professional that are not dependent on tourism but can benefit substantially with an increase in tourism.

Lets consider the example of supply of food provisions. Agricultural activities in the region makes provision for food for most consumption. The destination might also have agriculture as its main source of income. But with increase in tourism, there is an increase in demand for agricultural produce. The demand can be to cater for food for tourists and those employed in tourism, or for making other items sourced from agricultural produce. There is also the opportunity to showcase the agricultural activities and culture for tourists seeking authentic and local experiences. This can result in an additional source of income for the agricultural industry where traditionally the income is seasonal and unpredictable. Tourism, thus can be treated as a secondary source of income.

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