This course examines the concept of economics of tourism and hotels. It analyzes the information regarding tourism/hotel income and expenditure and examines various factors affecting the size of tourism/hotel enterprises. It analyzes the historical evolution of the tourism system for the period from 1950 until the present time and covers distribution tourism economies regionally and globally. It also focuses on the impact of tourism/hotel revenues on the gross domestic product GDP, the income balance of tourism and its importance relative to the trade balance, and the ability of tourism and hotel sectors to employ large numbers of the workforce. It explains the concept of the multiplier effect of tourism, and tourism impacts on natural and human environment in both its positive and negative effects as it focuses on the new dimensions in the feasibility studies, such as social and cultural feasibility as related to the economy.