Tourism is one of the larger sectors in most economies. Demands for tourism, travel, and hospitality have income elasticities greater than one at low to middle levels of income and rises thereafter. Consequently, many middle-income countries, particularly in Asia, show high growth rates of tourism. While tourism resources are often seen as being dependent on natural, cultural, and historical endowments, there is considerable scope to expand and improve the efficacy of existing resources through state action, and through new assets.

When tourism is excessive or mismanaged, concerns that it intrudes into the lives of locals can arise. Fragile natural resources would have to be carefully managed. Evidence from countries with capable governments suggests that well-designed development strategies allow significant expansion before the true limits of tourism are reached.

Although many tourism services, such as hotels, transport, tours, and circuits, are privately provided, the role of the state is central, as it bears responsibility for natural and cultural resources, coordination, access design, public amenities, regulation, promotion, and community interfaces. For some smaller economies, tourism revenues are very important.