The arrival of a tourist/patient has linkages that result in industrialization extending well beyond the tourist/health sectors, as well as rises in employment, incomes, and aggregate demand. These in turn increase production, employment, and income as the country moves on a growth trajectory.
While sales and output multipliers are relevant, employment and income multipliers are the most important measure of tourism’s role in economic growth. They measure the ratio of the initial increase in tourism expenditure to its fi nal impact on employment or income. The higher the multiplier coeffi cient, the greater the amount of additional employment or income created by an increase in tourism expenditure. In typical LDCs, each dollar spent by tourists creates $2 to $3 of output in the economy (so the coefficients range between 2 and 351).