Analysis of Financial Effects of Tourism on Economy of Serbia

Abstract

Tourism, as one of the key pillars of the economic base of each country, is based on a large number of business activities that are micro, small and medium sized. One of the basic functions of tourism as the economic sector of each country is its direct and indirect impact on the growth of gross domestic product (GDP). Key factors that will affect tourism and directly or indirectly determine its contribution to GDP are: resource availability, expertise, political and social stability in the country and investments. The development of tourism at the same time encourages employment, job creation and the improvement of the balance of payments structure of each country. Tourism as an economic branch consists of a large number of economic and non-commercial activities and is one of the most profitable activities in the world, which contributes to the overall development of the economy. It is present in all countries, but it is manifested by its effects and extent. The aim of the paper is to point out the significance of tourism as one of the fastest growing economic activities in the economic development of Serbia.