Tourism has been regarded as a major source of economic growth and a good source of foreign exchange earnings. Tourism … is the general equilibrium effects of tourism on the other sectors in the economy. These effects can be quite substantial … and should be taken into account when assessing the net benefits of a tourism boom on an economy. This paper presents a …

This paper examines the effects of tourism in a dynamic model of trade on unemployment, capital accumulation and … resident welfare. A tourism boom improves the terms of trade, increases labor employment, but lowers capital accumulation. The …, the expansion of tourism improves welfare. However, when the traded sector is strongly capital intensive, the fall in …