The contributions of economics to tourism

Abstract

Both the logical and empirical dimensions of economic analysis have contributed to the quality of decisionmaking in the tourism industry. In particular, the recognition of the potential contribution of economic rent derived from tourist attractions and the complex role of public goods have aided the understanding of the functioning of tourism. On more practical levels, market segmentation has a part to play in maximizing revenues by reducing the adverse effects of seasonality, and empirical research on tourism demand has provided basic underpinnings for national development programs and project research. Finally, cost-benefit analysis allows the industry to judge its contributions more correctly in the light of other applications of scarce resources.