The tourist dollar is more valuable to a local economy than the dollar generated and spent within the economy. This is because:

Question

Quizplus · Accepted Answer

The tourist dollar acts as a "seed" of money, initiating a cycle of spending within the local economy. This concept, known as the multiplier effect, suggests that money spent by tourists supports local businesses and services, which in turn spend more within the economy, leading to additional economic activity and growth.

The Tourist Dollar Is More Valuable to a Local Economy