For decades, Tarvisio benefited economically from people coming from Austria and Yugoslavia for shopping trips. However, trade at the notorious "Rag Market" diminished after the implementation of Schengen Agreement and the establishment of the Eurozone. Today, tourism and winter sports in the Karawanks, the Carnic Alps, and the Julian Alps have become important industries. Tarvisio is known for its heavy alpine snow, which attracts many tourists for skiing and snowboarding, especially school groups. It was host to the 2003 Winter Universiade and the Women's 2007 Alpine Skiing World Cup.