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The Impacts of Tourism
Key Perspectives to Tourism
• Tourism impacts are likely to change over
  time as a destination area develops
  (Butler, 1980).
• The impacts are also affected by time
  (when), location (where) and seasonality.
• Tourism impacts also occur beyond the
  destination.
Key Perspectives to Tourism
• Tourism also has an impact on tourists
  themselves.
Advantages to Tourism
• Tourism brings much needed investment
  into an area.
• Tourism provides employment for local
  people.
• The money that tourism brings in can be
  used to improve the infrastructure of the
  area.
Advantages to Tourism
• Income from tourism may be used to help
  conserve the natural environment that is the
  reason why visitors come in the first place.
• The country can benefit from overseas
  investment, primarily in the tourist industry,
  but also in other related industries.
• Tourism may help to preserve local cultures
  and communities, as they become a tourist
  attraction.
Disadvantages to Tourism
• The jobs for the locals are often badly
  paid, with very poor working conditions.
• The huge number of tourists coming to the
  attractions could easily damage the
  environment.
• Increasing numbers of tourists brings
  problems such as littering, pollution and
  footpath erosion.
• Local cultures could be devalued by tourism.
Some Fundamental Truths
         about Tourism
• A Case Study by McKercher in 1993
Some Fundamental Truths
         about Tourism
1. Tourism consumes resources and
   creates waste.
2. Tourism has the ability to over-consume
   resources.
3. Tourism competes with other resource
   users and needs to do this to survive.
4. Tourism is private sector dominated.
Some Fundamental Truths
          about Tourism
5. Tourism is multi-faceted and is therefore
   almost impossible to control.
6. Tourists are consumers, not
   anthropologists.
7. Tourism is entertainment.
8. Unlike other industrial activities, tourism
   imports the clients rather than export a
   product.
Activity
• How do McKercher’s ‘fundamental truths’
  affect your views on tourism impacts?
• To what extent do you agree with
  McKercher’s ‘fundamental truths’.
Impacts of Tourism
ECONOMIC IMPACTS

SOCIO-CULTURAL
IMPACTS

ENVIRONMENTAL
IMPACTS
Tourism and
its Economic
   Benefits
What is Economics?
• The study of methods of allocating scarce
  resources and distributing the products of
  those resources, and the study of the
  consequences of these methods of
  allocation and distribution. (Craven, 1990)
COMMODITIES
 RESOURCES   1. Goods – tangible products
1. Natural   2. Services – intangible
2. Labor        products
3. Capital




 SCARCITY
                  ECONOMICS
Microeconomics v.
             Macroeconomics
   MICROENOMICS          MACROECONOMICS
The firm                 How the national economy
The consumer                operates
Production and selling   Employment and unemployment
The demand for goods     Inflation
The supply of goods      National production and
                            consumption
                         The money supply in the country
Economic Cycles
• Short-term economic cycles
  - periods of dramatic change (seasonality)
• Medium-term economic cycles
  - changes over a period of several years
  (may be due to natural disasters)
Long Term Economic Cycles
• Long-term economic cycles
  - the growth of a destination and its
  ultimate decline
  - (boom, recession, depression, recovery)
The Economic Characteristics of
     the tourism Industry


 Travel and          Travel and
  Tourism             Tourism
  Industry           Economy
Economic Benefits of Tourism
• Foreign Exchange Earnings
  – Travel and Tourism expenditures
  – Generate income to the host economy and
    can stimulate the investment necessary to
    finance growth in other economic sectors.
  – accelerate this growth by requiring visitors to
    bring in a certain amount of foreign currency
    for each day of their stay.
Economic Benefits of Tourism
• Foreign Exchange Earnings
  – Tourism is one of the top five export
    categories for as many as 83% of countries
    and is a main source of foreign exchange
    earnings for at least 38% of countries.
Economic Benefits of Tourism
• Contribution to Government Revenues
  – Direct contributions
  – Indirect contributions
Economic Benefits of Tourism
• Generation of Employment Opportunities
  – Direct Employment
  – Indirect Employment
  – Induced Employment
Economic Benefits of Tourism
• Infrastructure Investment
  – Tourism can induce the local government to
    make infrastructure improvements such as
    better water and sewage systems, roads,
    electricity, telephone and public transport
    network
  – This can improve the quality of life for
    residents as well as facilitate tourism.
Economic Costs of Tourism
• Inflation
  – Increase in prices of land, houses and food
    that can occur as a result of tourism.
Economic Costs of Tourism
• Inflation
  – Increase in prices of land, houses and food
    that can occur as a result of tourism.
  – Lies heavily on the demand.
Economic Costs of Tourism
• Opportunity Costs
  – the cost of engaging in tourism rather than
    another form of economic activity.
Economic Costs of Tourism
• Dependency
  – a place becomes over-dependent on tourism
    that other industries are abandoned.
  – Over-reliance on tourism carries risks to
    tourism-dependent economies.
Economic Costs of Tourism
• Seasonality
  – One of the major disadvantages in tourism
  – Its effect to jobs, investments and tourism-
    related enterprises
Economic Costs of Tourism
• Leakage
  – Goes out of the local economy to pay for
    imported items, expatriate salaries or
    franchise fees.
Economic Costs of Tourism
• Leakage
 – occurs through;
 1. Repatriation of profits generated from foreign
    capital investment;
 2. Vertical integration;
 3. Not sourcing goods and services locally.
Economic Costs of Tourism
• Enclave Tourism
  – Remain for their entire stay at the same cruise
    ship or resort, which provides everything they
    need and where they will make all their
    expenditures, not much opportunity is left for
    local people to profit from tourism.
Economic Costs of Tourism
• Seasonal Character of Jobs
  – Job (and therefore income) insecurity
  – No guarantee of employment from one
    season to the next
  – Difficulties in getting training, employment-
    related medical benefits, and recognition of
    their experience
  – Unsatisfactory housing and working
    conditions.
Economic Costs of Tourism
• Prostitution and the Underground
  Economy
  – Sex Sector, prostitution, which many regard
    as a by product of tourism, has been
    estimated to contribute between 2%-14% of
    the GDP of Indonesia, Malaysia, Thailand and
    the Philippines.
  – 2% - earnings of the prostitute themselves
  – 14% - incomes of people indirectly benefiting
    from prostitution
THANK
YOU!!!

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Week2 impacts of tourism

  • 1. The Impacts of Tourism
  • 2. Key Perspectives to Tourism • Tourism impacts are likely to change over time as a destination area develops (Butler, 1980). • The impacts are also affected by time (when), location (where) and seasonality. • Tourism impacts also occur beyond the destination.
  • 3. Key Perspectives to Tourism • Tourism also has an impact on tourists themselves.
  • 4. Advantages to Tourism • Tourism brings much needed investment into an area. • Tourism provides employment for local people. • The money that tourism brings in can be used to improve the infrastructure of the area.
  • 5. Advantages to Tourism • Income from tourism may be used to help conserve the natural environment that is the reason why visitors come in the first place. • The country can benefit from overseas investment, primarily in the tourist industry, but also in other related industries. • Tourism may help to preserve local cultures and communities, as they become a tourist attraction.
  • 6. Disadvantages to Tourism • The jobs for the locals are often badly paid, with very poor working conditions. • The huge number of tourists coming to the attractions could easily damage the environment. • Increasing numbers of tourists brings problems such as littering, pollution and footpath erosion. • Local cultures could be devalued by tourism.
  • 7. Some Fundamental Truths about Tourism • A Case Study by McKercher in 1993
  • 8. Some Fundamental Truths about Tourism 1. Tourism consumes resources and creates waste. 2. Tourism has the ability to over-consume resources. 3. Tourism competes with other resource users and needs to do this to survive. 4. Tourism is private sector dominated.
  • 9. Some Fundamental Truths about Tourism 5. Tourism is multi-faceted and is therefore almost impossible to control. 6. Tourists are consumers, not anthropologists. 7. Tourism is entertainment. 8. Unlike other industrial activities, tourism imports the clients rather than export a product.
  • 10. Activity • How do McKercher’s ‘fundamental truths’ affect your views on tourism impacts? • To what extent do you agree with McKercher’s ‘fundamental truths’.
  • 11. Impacts of Tourism ECONOMIC IMPACTS SOCIO-CULTURAL IMPACTS ENVIRONMENTAL IMPACTS
  • 13. What is Economics? • The study of methods of allocating scarce resources and distributing the products of those resources, and the study of the consequences of these methods of allocation and distribution. (Craven, 1990)
  • 14. COMMODITIES RESOURCES 1. Goods – tangible products 1. Natural 2. Services – intangible 2. Labor products 3. Capital SCARCITY ECONOMICS
  • 15. Microeconomics v. Macroeconomics MICROENOMICS MACROECONOMICS The firm How the national economy The consumer operates Production and selling Employment and unemployment The demand for goods Inflation The supply of goods National production and consumption The money supply in the country
  • 16. Economic Cycles • Short-term economic cycles - periods of dramatic change (seasonality) • Medium-term economic cycles - changes over a period of several years (may be due to natural disasters)
  • 17. Long Term Economic Cycles • Long-term economic cycles - the growth of a destination and its ultimate decline - (boom, recession, depression, recovery)
  • 18. The Economic Characteristics of the tourism Industry Travel and Travel and Tourism Tourism Industry Economy
  • 19. Economic Benefits of Tourism • Foreign Exchange Earnings – Travel and Tourism expenditures – Generate income to the host economy and can stimulate the investment necessary to finance growth in other economic sectors. – accelerate this growth by requiring visitors to bring in a certain amount of foreign currency for each day of their stay.
  • 20. Economic Benefits of Tourism • Foreign Exchange Earnings – Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.
  • 21. Economic Benefits of Tourism • Contribution to Government Revenues – Direct contributions – Indirect contributions
  • 22. Economic Benefits of Tourism • Generation of Employment Opportunities – Direct Employment – Indirect Employment – Induced Employment
  • 23. Economic Benefits of Tourism • Infrastructure Investment – Tourism can induce the local government to make infrastructure improvements such as better water and sewage systems, roads, electricity, telephone and public transport network – This can improve the quality of life for residents as well as facilitate tourism.
  • 24. Economic Costs of Tourism • Inflation – Increase in prices of land, houses and food that can occur as a result of tourism.
  • 25. Economic Costs of Tourism • Inflation – Increase in prices of land, houses and food that can occur as a result of tourism. – Lies heavily on the demand.
  • 26. Economic Costs of Tourism • Opportunity Costs – the cost of engaging in tourism rather than another form of economic activity.
  • 27. Economic Costs of Tourism • Dependency – a place becomes over-dependent on tourism that other industries are abandoned. – Over-reliance on tourism carries risks to tourism-dependent economies.
  • 28. Economic Costs of Tourism • Seasonality – One of the major disadvantages in tourism – Its effect to jobs, investments and tourism- related enterprises
  • 29. Economic Costs of Tourism • Leakage – Goes out of the local economy to pay for imported items, expatriate salaries or franchise fees.
  • 30. Economic Costs of Tourism • Leakage – occurs through; 1. Repatriation of profits generated from foreign capital investment; 2. Vertical integration; 3. Not sourcing goods and services locally.
  • 31. Economic Costs of Tourism • Enclave Tourism – Remain for their entire stay at the same cruise ship or resort, which provides everything they need and where they will make all their expenditures, not much opportunity is left for local people to profit from tourism.
  • 32. Economic Costs of Tourism • Seasonal Character of Jobs – Job (and therefore income) insecurity – No guarantee of employment from one season to the next – Difficulties in getting training, employment- related medical benefits, and recognition of their experience – Unsatisfactory housing and working conditions.
  • 33. Economic Costs of Tourism • Prostitution and the Underground Economy – Sex Sector, prostitution, which many regard as a by product of tourism, has been estimated to contribute between 2%-14% of the GDP of Indonesia, Malaysia, Thailand and the Philippines. – 2% - earnings of the prostitute themselves – 14% - incomes of people indirectly benefiting from prostitution

Hinweis der Redaktion

  1. Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  2. Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  3. Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  4. Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  5. Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  6. Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  7. Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.