Tourists disembark from the cruise ship MV Norwegian Dawn at the Port of Mombasa on January 14, 2024.
Tourism is often hailed as a primary economic engine for many regions because it delivers a direct financial boost.
This occurs when tourists spend money in hotels, game parks and reserves, museums, or when they purchase mementoes and artefacts.
However, the true impact of tourism goes far beyond these immediate effects. Indirect opportunities created by tourism — often subtle but equally significant — help drive local economies, spur entrepreneurship, and improve social infrastructure.
From job creation and skills development to the revitalisation of urban spaces, tourism’s ripple effect transforms communities in ways that may not always be immediately visible.
That, however, does not make them any less important, particularly in the context of what economists refer to as the multiplier effect.
Many hotels rely on local contractors for maintenance and cleaning services, as well as local food producers and suppliers. This spreads the benefits of tourism well beyond the businesses that cater directly to visitors, contributing to sectors such as agriculture, construction, and even technology.
One of the most significant indirect opportunities generated by tourism is the growth of entrepreneurship. As a region attracts more visitors, local entrepreneurs often seize the chance to create new businesses tailored to tourists’ needs.
These could range from local tours and experiences to souvenir shops, transportation services, or even local art galleries and craft workshops. The presence of tourists motivates entrepreneurs to develop products and services suited to visitors’ tastes.
In destinations popular with nature lovers, for example, eco-tourism ventures naturally emerge, offering sustainable travel experiences, wildlife tours, or environmentally conscious accommodation. These ventures, while initially intended to cater to tourists, often become permanent fixtures in the local economy, contributing to a region’s overall cultural and economic diversity.
While tourism directly creates jobs in sectors such as hospitality, transportation, and entertainment, its indirect impact on employment is often just as substantial.
Beyond entry-level positions in tourism-related industries, there is a rise in demand for workers in related fields such as logistics and event management.
Hotels and restaurants occasionally need extra staff to handle increased business from tourists, creating opportunities for additional tour guides, drivers, and interpreters.
Importantly, the tourism industry also facilitates skill development. Jobs in tourism often require employees to gain new competencies, such as customer service, language proficiency, or storytelling skills.
These skills are transferable, meaning workers who start out in tourism-related jobs can transition into broader sectors such as business management and public relations.
The infrastructure improvements that come with tourism often have lasting benefits for local residents. As cities and towns invest in better transportation, roads, public parks, and recreational facilities to accommodate tourists, these upgrades also serve the needs of the local population. A newly expanded airport or modernised bus system benefits both visitors and locals alike.
Infrastructure set up to serve tourism can also raise property values, which benefits homeowners. Overall, as tourism grows, so too does investment in local infrastructure, creating a cycle of improvement that benefits everyone.
While tourism’s economic impact is often the primary focus, the social benefits it brings can be just as transformative. One of the most significant of these is the cultural exchange between visitors and locals.
Tourism provides an opportunity for residents to share their traditions, arts, and way of life with people from around the world. At the same time, it exposes locals to new perspectives and ideas, which can lead to increased understanding and tolerance.
This exchange can foster greater social cohesion and pride in local heritage. Embracing local heritage can encourage communities to preserve and promote their cultural practices, crafts, and traditions, knowing that these are attractions for tourists.
Tourism’s indirect benefits are numerous and far-reaching. They certainly go beyond the immediate influx of visitors. As communities continue to harness these opportunities, they can build more diverse, resilient economies and foster a greater sense of local pride and global connection.
By recognising the hidden power of tourism’s indirect impacts, cities and regions can ensure that many people experience the economic, social, and cultural benefits — not just those working directly in the tourism industry.
Ms Miano is the Cabinet Secretary for Tourism and Wildlife
