Info IEB

Public Policies

Info IEB. Do More Tourists Promote Local Employment? A Deep Dive into the Impact of Tourism in Spain. Number 47. January 2025

The tourism industry is frequently hailed as a catalyst for economic growth and job creation. In 2019, before the Covid-19 pandemic, it accounted for over 10% of global GDP and supported more than 330 million jobs worldwide. Tourist hotspots often transform into bustling economic hubs, with new restaurants, museums, and leisure establishments springing up to cater to the influx of visitors. Governments, eager for a post-industrial development strategy, increasingly turn to tourism as a potential solution. Policymakers in lower-income countries similarly advocate for it as a tool for fostering economic progress. Yet, does tourism truly fuel economic dynamism in these destinations, or is the relationship merely correlational? A deeper dive into the data reveals a nuanced picture. While tourists flood the streets of Barcelona and Madrid, the economic benefits of this surge are less straightforward than policymakers might wish.