Abstract
The destination life-cycle model was applied to the Smoky Mountain region in order to better understand the economic effects of the tourism industry over time. This model fits the region sufficiently well to be useful in analysis of the evolution of second- and third-order economic impacts. Although the involvement stage provides greater benefit for the local population, what seems to be of critical importance for social welfare is not the stage of development but the degree of diversity in the area where development occurs. In order for a local population to benefit from tourism development, policies need to be implemented to control growth and emphasize economic diversity.
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