In recent times, the market forces have taken over the tourism sector as well. This is a natural reflection of the urgency with which mass forms of tourism have emerged. Thus, it is better to examine tourism in the context of the situation faced by the less developed nations. At present, most of the discussion is concerned with the physical development and economic impacts within the setting of the developed nations. Till recent times, studies have been centered upon the factors that shape and regulate the physical development of tourism and the contrasting spatial forms that may result. Then, the wider relationships between tourism and economic development, including the capacity to create employment can be introduced and explored. The development of tourism in any given location requires several key elements to come together to produce the right conditions. These may be summarized under three headings namely: â¢ Resources and attractions â¢ Infrastructure and investment â¢ Labor and promotion Tourism is a resource industry and it is dependent for its basic appeal upon nature's endowment and societyâs heritage, the natural appeal of a locality may rest upon one or more of its physical attributes like â¢ Climatic diversities â¢ Landforms â¢ Landscapes â¢ Flora and fauna In kerala backwater tour operators have utilized the unique natural settings of the backwaters and also the diversity in natural flora and fauna to develop the houseboat industry from small beginnings to a major foreign exchange earner for the state.