Give two impacts for the residents of the islands for Economic

Answer 1

1) Increased tourism revenue: One positive impact for residents of islands in terms of the economy is the potential increase in tourism revenue. Islands are often popular tourist destinations due to their beaches, natural beauty, and unique culture. With more tourists visiting the islands, local businesses such as hotels, restaurants, and souvenir shops can benefit from increased sales and earnings. This can lead to job creation and additional income for the residents, as well as the potential for improved infrastructure and services to accommodate the growing tourism industry.

2) Limited economic diversification: On the other hand, residents of islands may also face challenges related to limited economic diversification. Islands often depend heavily on certain industries such as tourism, fishing, or agriculture, which can leave them vulnerable to economic fluctuations. If the tourism industry declines or if a natural disaster affects fishing or agricultural activities, it can severely impact the local economy and livelihoods of the residents. Limited access to markets and resources due to geographic isolation can also limit opportunities for residents to engage in other economic activities, leading to potential economic stagnation.