Abstract
The international tourist demand has grown at a rapid pace during the past three decades. In order to satisfy the increased demand more resources have been allocated towards the foreign tourist sector. Empirical evidence suggests that this development has had only mixed success in contributing to economic growth and development in developing countries. Further examination of the relationship between the development of the foreign tourism sector and economic growth and development in general is thus required. In this article the said relationship is discussed by referring to the export orientated nature of the foreign tourist sector, its role in autonomous and regional development as well as its contribution to the creation of employment opportunities and the distribution of income. Attention is also given to the economic and social costs arising from the development of this sector. The conclusion arrived at is that the foreign tourism sector can make an important contribution to economic growth and development if the domestic economy can satisfy the existing demand.