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In many nations like Maldives tourism cover a large portion of the GDP and it is assumed that tourism assist these nations to grow economically. On the other hand, tourism also leads to bearing of heavy cost by the Government. Thus, often debate happened, whether the economic cost otherwise the economic benefit of tourism. In the present research study, the economic cost and benefits of tourism are explained in detail. It is proved that cost surpassed benefits. At end, conclusion and recommendation section is prepared.
Question 3:
“Tourism is not worthy pursuing as a way of supporting a country’s development goals because its economic benefits are outweighed by the economic costs”. Discuss this statement with the aid of relevant examples.
Answer: It is true that the economic cost outweigh the economic benefits. Tourism generates lots of economic opportunities and benefits, but at the same time it also generates economic costs on large scale. Every year the Government spends massive amounts of money on developing tourism related infrastructure like roads, beaches and others. Neighbor nations also have huge tourism potential and to win cut throat competition Government consistently elevate its expenditure. Sometimes up to expected level nation did not receive the expected number of tourists and it takes long time to cover the investment amount which is the biggest cost to the Government. Sometimes due to certain reasons tourism remain low and in the hope that tourism will increase at rapid pace firms make large investments. Due to decline in demand value of their property did not increase in the market, which is an economic cost for them. In today the time period concept of all inclusive holidays is going so popular among people. Under this large hotel chains are located in the nation.
These hotel chains provide varied services to their clients like accommodation, entertainment, food, snacks, availability of guide, etc. Hence, foreign tourist did not have an incentive to go anywhere else, hire a local guide or eat in local restaurants. These restaurant chains take away entire money to their homeland. Thus, local people did not get benefitted from the tourists as entire benefits are taken away by large resort and hotel chains. On the other hand, to attract tourists Government makes heavy expenditures. In proportion to that expenditure local people did not get the proportional benefit and economic cost outweighs economic benefit of tourism.

On comparison of benefits and costs it can be said that economic cost outweighs benefits. Due to tourism, coastal areas and the marine environment is negatively affected due to which to further prevent harm Government are forced to make a further heavy expenditure. Sometimes Government makes a heavy expenditure on infra but tourism not increase at the same pace. Thus, time is taken to cover investment amount. Moreover, large benefits of elevation of tourism are taken by restaurant chains. Employment no doubt increased, but people did not receive the required level of benefit from tourism. So, overall it can be said that on one hand, the Government is consistently making the heavy expenditure and on the other hand, tourism increase but benefit taken away by restaurant chains. Local people less benefitted and benefits further unequally distributed among local people. Hence, economic benefits are very less and economic cost is very high. Thus, it can be said that tourism is not worthy pursuing as a way of supporting a country’s development goals.