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Many countries promote tourism in an attempt to §increase the gross domestic product, increase §employment, improve balance of payments, enhance §community infrastructure and diversify the economic §base. While more information about the relationship §between tourism and a country s economic development §is needed, models assessing tourism economic impact §are not readily available, particularly in §developing countries.§§The purpose of this study is to develop a Keynesian-§based model to assess the economic impact of tourism §on imports, investments, and governmental §expenditure in Albania, Croatia, the Former Yugoslav §Republic of Macedonia and Greece. When a country is §deciding to embark on tourism development as a §policy option, or to expand tourism industry, it §must be decided that long term benefits outweigh the §estimated costs. The model provides good instrument §for tourism policy decision makers by considering §leakages from imports, taxes and savings. It §especially will be useful to professionals in §tourism studies who may be considering utilizing it §also to estimate the impact of different types of §tourism in countries with limited data sources.