Dairy farming is also an important economic activity. A variety of industries operate in the foothills and valleys of the Alps. Factories manufacture chemicals, electrical machinery, and other equipment. Traditional handicrafts still produced in the region include shoes and other leather goods, textiles, and ceramics. Natural resources found in the Alps include bauxite, iron ore, stone, and timber.
Many factories run on hydroelectric power that is generated by waterfalls in the mountains.
Hydroelectricity also powers most railroads in the region. Power plants in the Alps transmit some electricity to other parts of Europe. Tourism is important to the economy of the Alps. Well-known Alpine resort communities include Chamonix in France, Lucerne and St. Moritz in Switzerland, Berchtesgaden in Germany, Cortina d'Ampezzo in Italy, and Innsbruck and Salzburg in Austria. More than 40 passes occur naturally in the Alps.