4. Mass Tourism

Case study Tenerife    (7/8)

Economic Growth

The development of tourism on Tenerife has led to problematic changes and the replacement of some vegetation and built-up areas of the landscape. However, there have been positive effects, in particular economic growth.

Tourism can boost the economy of undeveloped regions, helping to reduce economic differences within a country. Tourism is generally believed to be an economic factor of regional, national and international significance.

The "economic engine" of tourism occurs in Tenerife. Between 1975 and 1990 the economic growth of the island increased about 3.6%, one reasons being the expansion of the tourism sector, which today accounts for 45% of the gross domestic product.

In contrast to the increase of the tourist figures and the boom of the industry, the agricultural production declined in the period from 1940 till 1975 from 50% to 20%. The service sector increased in the same period especially in the sector trade, transport, building and service from 27% to 51%. The proportion of services of the gross domestic product increased from 61.3% in 1973 to 78.4% in 1993 (Naumann 2008).