What can inbound tourism contribute to a country's economy?

Inbound tourism significantly contributes to a country's economy through an increase in local job opportunities. When tourists visit, they engage with various services such as hotels, restaurants, transport, and attractions, all of which require staff to operate effectively. This demand creates a diverse range of employment opportunities across different sectors, such as hospitality, retail, and entertainment. Additionally, as local businesses thrive due to increased foot traffic and spending from tourists, they may expand and hire even more workers, further bolstering local employment rates.

In contrast, the other options do not accurately reflect the positive impact of inbound tourism. For instance, a decrease in hotel occupancy rates contradicts the fundamental nature of successful inbound tourism, which aims to fill accommodations as visitors arrive. Similarly, inbound tourism fosters cultural exchanges, as interaction between visitors and locals often leads to a sharing of traditions, values, and experiences, enriching both parties. Lastly, limited visitor spending would not support a thriving tourism sector; rather, inbound tourism typically results in higher expenditure from tourists, which stimulates various areas of the economy.