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Week 2  impacts of tourism
 

Week 2 impacts of tourism

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  • Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  • Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  • Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  • Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  • Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  • Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.
  • Economic recession, the impacts of natural disasters such as tropical storms and changing tourism patterns can all have a devastating effect.

Week 2  impacts of tourism Week 2 impacts of tourism Presentation Transcript

  • The Impacts ofTourism School of Hospitality Management
  • 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. School of Hospitality Management
  • Key Perspectives to Tourism• Tourism also has an impact on tourists themselves. School of Hospitality Management
  • 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. School of Hospitality Management
  • 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. School of Hospitality Management
  • 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. School of Hospitality Management
  • Some Fundamental Truthsabout Tourism• A Case Study by McKercher in 1993 School of Hospitality Management
  • Some Fundamental Truthsabout Tourism1. 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. School of Hospitality Management
  • Some Fundamental Truthsabout Tourism5. 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. School of Hospitality Management
  • Activity• How do McKercher’s ‘fundamental truths’ affect your views on tourism impacts?• To what extent do you agree with McKercher’s ‘fundamental truths’. School of Hospitality Management
  • Impacts of Tourism ECONOMIC IMPACTS SOCIO-CULTURAL IMPACTS ENVIRONMENTAL IMPACTS School of Hospitality Management
  • Tourism and itsEconomicBenefits School of Hospitality Management
  • 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) School of Hospitality Management
  • COMMODITIES RESOURCES 1. Goods – tangible products1. Natural 2. Services – intangible products2. Labor3. Capital SCARCITY ECONOMICS School of Hospitality Management
  • Microeconomics v. Macroeconomics MICROENOMICS MACROECONOMICSThe firm How the national economy operatesThe consumer Employment and unemploymentProduction and selling InflationThe demand for goods National production and consumptionThe supply of goods The money supply in the country School of Hospitality Management
  • 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) School of Hospitality Management
  • Long Term Economic Cycles• Long-term economic cycles - the growth of a destination and its ultimate decline - (boom, recession, depression, recovery) School of Hospitality Management
  • The Economic Characteristics of thetourism Industry Travel and Travel and Tourism Tourism Industry Economy School of Hospitality Management
  • 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. School of Hospitality Management
  • 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. School of Hospitality Management
  • Economic Benefits of Tourism• Contribution to Government Revenues – Direct contributions – Indirect contributions School of Hospitality Management
  • Economic Benefits of Tourism• Generation of Employment Opportunities – Direct Employment – Indirect Employment – Induced Employment School of Hospitality Management
  • 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. School of Hospitality Management
  • Economic Costs of Tourism• Inflation – Increase in prices of land, houses and food that can occur as a result of tourism. School of Hospitality Management
  • 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. School of Hospitality Management
  • Economic Costs of Tourism• Opportunity Costs – the cost of engaging in tourism rather than another form of economic activity. School of Hospitality Management
  • 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. School of Hospitality Management
  • Economic Costs of Tourism• Seasonality – One of the major disadvantages in tourism – Its effect to jobs, investments and tourism- related enterprises School of Hospitality Management
  • Economic Costs of Tourism• Leakage – Goes out of the local economy to pay for imported items, expatriate salaries or franchise fees. School of Hospitality Management
  • 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. School of Hospitality Management
  • 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. School of Hospitality Management
  • 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. School of Hospitality Management
  • 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 School of Hospitality Management
  • THANK YOU!!!School of Hospitality Management