Gross Domestic Product (GDP) and Tourism

As an economic activity, tourism is also factor in a country’s gross domestic product (GDP). In fact, tourism might be seen in various components of GDP: (a) the expenditures made by tourists either as part of exports (in the case of foreign tourists) or as part of household consumption (for domestic tourism); (b) investments made by businesses for building up tourism facilities and purchasing machinery or equipment to be used in providing goods and services to tourists as part of investments, which might also include government investment in tourism-related infrastructure; and, (c) expenditures incurred by government for tourism promotion and subsidies allocated by government to support health cures in medical tourism (e.g., subsidized treatment tickets in some European countries), both of which are considered part ...