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The roles of government are vital to tourism. First, governments generally set the policy of their country, state, or locality towards tourism. They also regulate the different components of the industry on a day-to-day basis.

Second, they perform the research and analysis that result in statistics on the tourist industry. Third, they are often involved in the development of tourism in their areas. This is especially true in the developing countries, but it occurs in industrialised areas as well. Fourth, governments are actively engaged in promoting a flow of tourism. In many countries, tourism is so important that its interests are represented at the ministerial level of government. Spain, for example, has a Ministry of Tourism and Information.

One of the ways in which countries or regions can promote tourism is by relaxing the kind of regulation that usually comes under the heading of "red tape." Travel is made easier when there are no visa requirements and when the entry formalities are simple.

National policy can also discourage tourism. In some cases, this may work to prevent the country's nationals from travelling outward.

Any country can discourage incoming tourism simply by not providing accommodations and catering services or by restricting the length of time a traveller can stay in that country. Some countries have set visa and entrance requirements that severely restrict entry.

Governments at all levels are also involved in day-to-day regulation of the tourist facilities, including various kinds of licensing.

A license is a document giving permission to carry on a particular kind of activity after meeting prescribed standards and paying a fee.

Catering establishments must be inspected periodically in most localities to ensure that they maintain standards of cleanliness.

Research involves travel statistics, tourist expenditures, the purpose of the trip or the tourist's reactions to his vacation. Much of the purpose of research simply involves a classification count - business, pleasure, visiting friends or relatives, health and so on.

Deeper research tries to find out why tourists visited a particular resort and what their reactions were.

Still another kind of research in tourism involves trying to determine the social impact of tourism on an area. This has become an important factor before undertaking tourist development, in part because of the negative effect that tourism has had on many places in the Caribbean.

Where government investment in tourism is not direct, there must be an indirect investment in the form of building or improving the infrastructure. The infrastructure consists of those things that are necessary before development can take place - roads, sewers, electricity, telephone service, airports and water supply.

The facilities that are based on the infrastructure are often called the superstructure.