The village economy was based on agriculture, mostly grain and vineyards. Then, in the 18th and 19th Century, the silk industry entered the village. Thanks to the views over Lake Lugano, Paradiso became a popular holiday resort after the opening of the Gotthard Railway in 1882. The funicular railway up Monte San Salvatore opened in 1890. The funicular and increasing lake traffic contributed to the further development of the hotel and tourism industry in Paradiso. At the same time, the population grew. The construction of the highway along the municipal border with Lugano in 1966 began to change the character of the municipality. At the beginning of the 21st Century, tourism began to decline and Paradiso began to develop into a residential community with many luxury buildings.