What is Tourism Backward and Forward Linkages

Effective tourism strategies of a developing country can create revenue generating opportunities (tax revenues) and provide sustainable employment for semi-skilled or unskilled workers. Such tourism development strategies require systemic thinking and comprehensive investment portfolio strategies regarding the tourism industry as a whole, i.e. going beyond investing in hotels, but also including transportation infrastructure, catering, restaurants, safe water, financial system etc. In other words, the destination countries need to review their tourism value & supply chains and identify structural impediments to the full utilization of their tourism assets and facilities. This chapter shows how Least Developed Countries (LDCs) can define their tourism sector development and suggests a framework which can be used by a LDC to assess its tourism development potential. It can also be used by potential investors interested in investing in an LDC's tourism sector who need to understand the broader context of doing business in LDCs.