Final answer:
The income generated from tourism beyond direct and indirect income is induced income, which is the additional economic value created when tourism industry employees spend their earnings locally. While tourism provides jobs and income, it can also strain resources and contribute to multiplier leakage, with profits not staying in the local economy.
Step-by-step explanation:
The income that arises from tourism after the direct and indirect income is often referred to as induced income. The induced income comprises the spending by employees from the tourism industry in the local economy. For instance, when tour operators, hotel staff, and restaurant workers who have been employed due to tourism spend their wages on local services and goods, they create additional economic value through a chain of financial transactions. This is a critical element of the economic impact of tourism, sometimes described in models such as the multiplier effect, which shows how money spent in an economy can circulate and create further income.
However, tourism can be a double-edged sword. While it can provide essential income to regions without other substantial industry, it can also lead to what is known as multiplier leakage, where much of the profit generated does not stay within the local economy but instead benefits international corporations or a small local elite. Tourism can also strain resources that could otherwise go to local necessities like education and healthcare.
Despite these potential drawbacks, tourism continues to be an essential part of national economies, providing jobs and fostering economic development. Sustainable tourism development aims to minimize its negative effects while maximizing benefits for local communities and environments.