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The Important Industry of Tourism

Today, cities and towns are developing and promoting their tourism industries as critical parts of their economic development strategies. And, rightfully, they should.

Tourism is not just the week-long family vacation. Tourism happens anytime some one from outside of your community spends money in your community.

When these visitors "import" cash into your community, they are officially supporting local tourism.

The more money a visitor spends in your community, the less you, the local resident, have to pay for better streets, roads, parks, law enforcement, and other public amenities you may enjoy.

Tourism has a tremendous economic impact on communities. Tourism:

  • Supports local businesses, which creates and supplies jobs
  • Diversifies the economy, so the community is not dependent on one or two industries
  • Creates a multiplier effect to support other complementary and non-tourism related industries
  • Increases the tax base to pay for public services and amenities
  • Creates business opportunities for more businesses and entrepreneurs
  • Creates jobs
  • Encourages communities to improve their appearances for better visual appeal (which, in return, encourages more tourism)

Visitors come in a number of forms for different communities: entertainment, recreation, dining, shopping, hospitality, history, events and festivals- all of these are reasons for people to visit your community. Additionally, the longer they stay, the more they tend to spend.

More and more cities are waking up to tourism's importance and impact on their communities.



Millions visit the City of Louisville, KY annually for venues, such as the Kentucky Derby and the Muhammad Ali Center. Given Ali's recent passing, I'm certain the Louisville area saw an uptick in tourism activity where many visited to pay their respects, including yours truly.

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