- The production of tourist goods and services requires the commitment of resources that could otherwise be used for alternative purposes. For instance, the development of tourism resort in Spain may involve the migration of labour from rural to urban areas which implying additional infrastructure pressure for health, education and other public services. Furthermore, if there is a shortage of skilled labour then there may be a need to import labour from other countries such as Morocco and this will result in additional economic leakages as income earned from this imported labour may, in part, be repatriated (repatriated income)
- Where tourism development substitutes one form of expenditure and economic activity for another, this is known as the displacement effect. The displacement effect should be taken into account when the economic impact of tourism is being estimated. Displacement can take place when tourism development is undertaken at the expense of another industry and is generally referred to as the opportunity cost of the development.
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