International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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An Empirical Study of the Economic Effects of Tourism Development on Local Communities

Author(s) Ms. Divya Rani, Prof. Dr. Anjali Prasad
Country India
Abstract The development of tourism has become a major source of economic growth for developing and emerging economies, particularly the areas rich in culture, nature, and Religious Heritage. This study examines the financial impact of tourism on local communities using Structural Equation Modelling (SEM) techniques within AMOS software. Utilising a survey of residents living in areas that host a lot of tourism activity, this study looks at how tourism development affects Employment, income, infrastructure, and overall Economic Well-being in the communities they reside in. Community member participation was assessed to determine the mediating role it plays in transforming tourism development into the types of economic outcomes that local Community Members Experience. This study uses Confirmatory Factor Analysis (CFA) and SEM to validate the research model. The results demonstrate that tourism development provides a Very Significant Positive impact on the Economic Well-being of a Community Directly & Indirectly through Community Member Participation. This Research provides Theoretical Contributions to tourist Economics and Practical Implications for policymakers and planners to create more Inclusive and Sustainable Tourism Strategies.
Keywords Tourism Development, Economic Impact, Local Communities, Community Participation, Structural Equation Modelling, AMOS
Field Sociology > Economics
Published In Volume 8, Issue 1, January-February 2026
Published On 2026-01-11
DOI https://doi.org/10.36948/ijfmr.2026.v08i01.66314
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E-ISSN 2582-2160
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