High inflation is a significant factor affecting tourism demand and the tourism sector in developing countries. International tourism is highly susceptible to changes internal (e.g. prices) and external (e.g. global economic trends) to the industry. The inflationary consequences of tourism can arise in several different ways. Retailers in tourist areas often raise their prices in the knowledge that they will continue to find a market among affluent tourists. Inflation in tourist destination areas is also caused by land values, with tourism generating additional demand for land. The extent to which inflationary price increases are compensated for local residents by economic benefits such as increased employment and income is uncertain.