What is the role of the tourism sector in a command economy?

Economics Command Economy Questions



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What is the role of the tourism sector in a command economy?

In a command economy, the role of the tourism sector is typically determined and controlled by the central planning authority. The government decides on the development and promotion of tourism activities, sets targets for tourist arrivals, and allocates resources accordingly. The tourism sector may be seen as a means to generate foreign exchange, create employment opportunities, and stimulate economic growth. However, the government's control over the sector may limit the potential for market-driven competition and innovation.