Multiplier Effect

Posted on | December 9, 2008 | No Comments

Multiplier Effect: The money spent by the tourist circulates through the economy and stimulates it, as it changes hands and is spent and respent a number of times. There is a chain reaction of spending, triggered off by the ‘injection’ of the tourist dollar into a destination economy. The constant turnover of tourist expenditure is known as the ‘Multiplier Effect’.