Islamism/Jihadism is religious term used by Muslims from the time of Prophet Muhammad to signify an obligation of a believer to struggle. Jihad commonly referred to as a holy war is a quranic word that has always explained the duty for Muslim struggle either spiritually or physically in the determination towards the will of Allah Ii. Key Muslim scholars have always argued jihadism as an obligation by Muslims to fight for Allah and against Muslim oppression by use of the sword or the ultimate sacrificing of a believer towards a Muslim struggle in an act called mujahedeen. The word jihad originates from the Quran with 41 appearances stressing on the crucial practices that a Muslim believer is called to accomplish in this world. The term can be used to wage a war against non believers in a measure for religious expansion as well as territorial defense of a Muslim empire. It unites all Muslims in an obligation to struggle in deep oneself to build a good society by fostering peace and calling against secularism, external influences and the conservation of the Islamic culture. In the quran hadiths sahih Muslim claimed that Islam is peace and it calls for all Muslims to fight for peace and attain submission to Allah, he referred jihadism as a collective responsibility and insisted on its validity to solve religious problems, to instill the knowledge of the law while receiving good and shunning bad in the society. The society has generally had the deep meaning of jihad signifying the presence of a lesser and greater jihad, generally signifying the non violent and violent respectively. It's highly controversial where Muslims are called to unite and by the sword fight against non believers, sacrificing one's life for Allah. It's assumed a noble duty towards god that comes with a reward as a divine duty towards the true worship of god. It has variably been defined as a measure to attain peace, a living principle in Islam, the struggle to achieve the requirements of Islam and the struggle to achieve one goal in life. The world of today is in the wake of dealings pertaining terrorism. Acts of violence coupled with political values aggravated with hard-line religious faiths have emerged a key disquiet in today's world. This paper therefore assesses the impacts of religious fundamentalism in Islam on the social and economic setup of any given country. This explains the loss of lives, loss of confidence among the citizens of a country as well as the tumbling of tourism industry in the respective countries.vi Terrorism has claimed several lives since 1960s in the first crusade in the spread of Islam through jihad. The vice has evolved over the years from tiny militant groups to strong, stable and government backed organizations which have aggravated the influence and power of terrorism. Modern day terrorism has spread to Middle East, America and therefore today it has become a great threat to all nations of the world. The stagnation of economies such as in Somalia as a result of declining consumer and investor confidence owing to security concerns has also been as a result of terrorism. In effect, this has depressed several economies' ability to create employment as well as keep a favorable balance of payments and stable productivity also. This creates the need for destabilizing political structures which create a haven for terrorism expansion which are a threat to mankind. Tourism has borne the worst brunt of the modern day terrorism. Mill and Morrison refer to Maslow's classical needs theory and note that safety and security are second only to physiological needs. Consequently, the lack of these aspects has been a blow to tourism which has been among the biggest sectors in the economies of many developing countries. In effect their economies have suffered due to travel advisories issued against them from other countries. The Islamic leadership can be traced from the times of Prophet Muhammad. After Muhammad's death the decision on who to succeed the prophet arose and this lead to killings that brought the division of Sunni and Shia Islam. Shia believed that a successor should be ordained as a measure to refrain from politics while the Sunni believed that a successor should originate from ordained infallible twelve Shia imams. Islam is generally divided into Shia, Sunni and Sufism. The history of jihad traces from the times of Muhammad. He put it that a jihad was a tool to combat non believers and bring them to submission as an obligation to Allah. Muhammad brought jihad as a religious obligation to Muslims as a way to expand religious and territorial boundaries a key tool in the first and the second crusade in the spread of Islam to the non believers. Fundamentalists have argued that it's the only permissible warfare under Islamic law and therefore must be embraced by all Muslims as a religious duty. Jihad can trace its roots from the Islamic conquests during the Islamic expansion under Muhammad, Rashid caliphate and