Why is the tourism multiplier theory used to analyze the economic impact of tourism?

In today's society, tourism has become an important tertiary industry. In some countries or regions, tourism has even become the pillar industry with the largest economic income. In recent years, the open policy and rapid economic development have contributed to the development of my country's tourism industry. Good conditions have been created. my country's tourism industry has developed rapidly, which has produced considerable economic benefits.

Indirect effect stage: Tourism departments and enterprises that directly benefit must purchase raw materials, materials, and equipment from relevant departments and enterprises in the reproduction process. Governments at all levels invest the taxes paid in tourism with other enterprises. Careers, welfare undertakings, etc. These sectors have benefited from continuous economic operations, that is, they have indirectly benefited from tourism revenue.

Process of action:

Direct effect stage; the impact of tourists’ native tourism consumption on the output, income, employment, etc. of tourism enterprises in the economic system becomes a direct influence of tourism consumption effect.

Induction effect stage. Increased revenue or increased output resulting from servicing the wider strata of the tourism-related sector. (Tourism - Agricultural sector - Industrial sector, etc.).