Typically, businesses support activities that attract tourists to the area. Special events such as festivals, fairs and concerts bring in tourists, who typically spend money while they are visiting the area.
In addition to visiting and spending money at the special event, tourists will commonly spend money at local restaurants, hotels and stores.
Tourism provides businesses with extra revenue as well as income for the employees who work during the event.
Employees are needed to set up, maintain, and sell tickets and concessions at special events.
National, state and local governments charge a tax on sales and wages generated by the tourists.
Sudden Population Growth
While attracting tourists may be a positive move, the area must be prepared to handle logistical issues that may be caused by a sudden population growth, including a possible rise in crime, more traffic congestion and accidents, and a lack of parking.