The Economic Impact on Tourism in Davao City Spending holidays abroad with family, is trendy these days. People around the world visit different places during summers and winters. In our country, I have always wondered, "How does the country benefit from attracting tourists?" I roughly knew the answer that not only in our country but also in other country that the money that tourists spend in that particular country is the income of the tourism industry. Tourism is an important part of economy and the money it earns is helpful to everyone. Reason Why: It creates employment for people of the country. (this implies for the Maldistribution) It promotes cultural awareness and also helps to preserve local culture and traditions. (specially on eco tourism) Money gained from tourism can be used to develop the infrastructure and services e.g. new roads and airports. The foreign money can become aid to local people. Natural attractions can be protected using income from tourism. Contribution of Tourism in the Economy According to Glenn Kreag (2001), tourism has a great contribution to the economy as it produces new jobs and generates income as a result of emergence of new businesses. It has positive effects on both domestic and international operators, travel agencies, hotels and restaurants sprawling around the tourism sites. As tourism grows, more opportunities are made for investment, businesses, development and infrastructure spending. Locally, in the study of Fermaran, J.A., Legazpi, L. and Madero, L. (2013), the importance of tourism on regional economy are the following: (1) employment in the service sector in the economy. (2) transportation services since the demand of transportation in Davao increased hence the government spend transport infrastructure which brought entrepreneurial opportunities to people.