Sustainable tourism economic benefits from tourism 2

1. SUSTAINABLE
TOURISM
Economic Benefit from Tourism (2)

2. TOURISMASACONTRIBUTOR
TONATURECONSERVATION
Components of the issue Indicators
Measuring potential impact of tourism on
the natural environment
 Reports on a scientific understanding of potential environmental (number,
depth);
 % of projects where tourism impact is evaluated;
 % of conservation projects where tourism financial contribution is a component.
Source of financing for biodiversity
conservation and maintenance of
protected areas (Note need for
benchmarking for funds or value of
contribution to conservation.)
 % of the protected area, conservation site budget originated from tourism activities
(cash, value of in-kind contributions);
 Value generated through visitor fees (e.g. at parks);
 Value of contribution from operators (concession fees, donations, services
provided);
 Value of donations received from tourists;
 % of businesses in the destination or near the site contributing to conservation;
 % of tourism products (tours etc) with specific contributions built into the price or
surcharges;
 Number and % involvement in support clubs (e.g. ”friends of the park”) both locally
and in foreign lands.
Economic alternatives for local people to
reduce exploitation of wildlife and
resources
 % of the protected area, conservation site budget originated from tourism activities
(cash, value of in-kind contributions);
 Value generated through visitor fees (e.g. at parks);
 Value of contribution from operators (concession fees, donations, services provided);
 Value of donations received from tourists;
 % of businesses in the destination or near the site contributing to conservation;
 % of tourism products (tours etc) with specific contributions built into the price or
surcharges;
 Number and % involvement in support clubs (e.g. ”friends of the park”) both locally and
in foreign lands.

3. TOURISMASACONTRIBUTOR
TONATURECONSERVATION
Components of the issue Indicators
Constituency building which
helps promote biodiversity
conservation by tourists
 % of tourists participating in protection activities;
 % of tourists contributing to conservation (by type of contribution: fees, donations, in-kind,
volunteer time);
 Level of activity designed to engage tourists in protective activities (measure each
appropriate type: information, interpretive efforts, and educational programs);
 % of tourists aware of importance of conservation site;
 % of tourists who receive conservation materials, % who read, respond;
 % increase/decline in after visit correspondence from former visitors. (Could be in form of
"thank you letters", "how can we help letters", notes in suggestion box, citings on internet
websites posted by former tourist visitors, etc.);
 % of locals who receive conservation materials , % who receive, respond;
 % of stakeholders for whom materials are in their native language.
Site-specific regulations (See also
Protecting Critical Ecosystems p.
147)
 Applied codes of conduct (group size, mode of transport, equipment, waste disposal, noise
pollution, staff, energy efficiency, construction methods and materials, etc) designed to
minimize negative impacts;
 Percentage compliance
 (Refer to specific issue sections on each of these impacts).
Provision of opportunities for
participation by tourists in
conservation (these provide a
means of participation in support
for conservation)
 Number of conservation organizations coordinating for tourism activities at conservation sites;
 Number of conservation programs/activities open for tourist participation (level of participation)
(e.g. clean up days, guided learning events);
 Number of tour operators offering conservation activities as part of tourist programs (and level of
participation);
 Survey questionnaire re satisfaction (% filling out questionnaire, % noting contribution if asked);
 % of tourists receiving marketing materials which provide contribution opportunities;
 Existence of customer code of practice and guidelines (% receiving,
 % compliance);
 Vehicle and other powered equipment user codes (% receiving,
 % complying);
 Level of cultural sensitivity of educational materials (will require focus groups or textual analysis).

4. Tourism as a Contributor
to Nature Conservation
 Financing for Conservation
 Local Economic Alternatives
 Constituency Building
 Tourist Participation in Conservation

5. COMMUNITYANDDESTINATION
ECONOMICBENEFITS
Components of leakage Indicators
Employment
(see also issue section
on Employment p. 119)
 Number of local people (and ratio of men to women)
employed in tourism ➢ Baseline Indicator;
 Ratio of tourism employment to total employment;
 % of tourism jobs held by local residents;
 Average tourism wage/average wage in community;
 Ratio of part time to full time employment in tourism;
 Average tourism employee income (and ratio to community average).
Business investment in
tourism
 Number of tourism businesses in the community, and % owned locally;
 Number and type of business permits and licences issued;
 Ratio of the number of local to external businesses involved in tourism;
 Asset value of tourism businesses and % owned locally;
 Longevity of tourism businesses (rate of turnover).
Tourism revenue
 Tourist numbers;
 Tourist spending/spending per tourist;
 Occupancy rates in accommodation establishments;
 Revenues generated by tourism as % of total revenues generated in
the community ➢ Baseline Indicator;
 Local GDP and % due to tourism (see Box 3.19 on Tourism Satellite
Accounts);
 Total fees collected by community for access/use of community
attractions;
 Revenue from business permits, licenses or concessions and taxation.

6. COMMUNITYANDDESTINATION
ECONOMICBENEFITS
Components of leakage Indicators
Community expenditures
 Existence of tourism budget/plan;
 Annual expenditures on tourism (% of total tourism revenue);
 Amount and % of infrastructure expenditures for tourism;
 Amount and % of total annual operating expenditures for tourism ;
 Cost of tourism advertising and promotion per number of tourists;
 Amount and % contribution of tourism revenues to the cost of water,
sewage, roads, food production, energy, waste management, air
quality, human resources development, etc.
Net economic benefits
 Net tourism revenues accruing to the community;
 Economic Multipliers: Amount of additional revenue in other
businesses for every dollar of tourism revenue (based on satellite
accounts where available).
Changes in cost of living
 % increase/decrease in land and housing prices over time;
 % increase/decrease in average family weekly income;
 % increase/decrease in expenditures (groceries, transportation,
leisure etc.).

7. Community & Destination
Economic Benefits
 Capturing Benefits
 Tourism Revenues
 Tourism Contribution to the Local
Economy
 Business Investment
 Community Investment
 Taxes
 Satellite Account.

8. TOURISMAND
POVERTYALLEVIATION
Components of the issue Indicators
Stabilising and improving the
community’s income
 Annual total income generated by the community;
 Ratio of income attributable to tourism versus traditional income generating
activities;
 Ratio of time dedicated to tourism versus traditional income generating
activities;
 Ratio of time dedicated to tourism versus tourism income (i.e. income per hour
worked).
Improving local employment
opportunities
 Total number of workers in the community (% workers in the community
directly employed by tourism, % full time, % part time);
 Ratio of local to “outsiders” directly employed by tourism;
 % local workers employed at different skill levels (unskilled, technical,
administrative, middle/senior management, contract);
 Ratio of men to women employed directly by tourism;
 % indigenous people employed directly by tourism (if appropriate).
Operation and support of micro,
small and medium sized enterprises
(MSMEs), or community based
enterprises
 Number of tourism-related MSMEs operating in the community (subdivided
by types, e.g. accommodation and catering, guiding, transportation, tour
operation, etc.);
 Incentives for MSMEs (e.g. special credits, tax advantage, grants, legal
conditions, etc.): availability, level provided/used;
 Capacity building for establishment and improvement of MSMEs: number of
programmes/events, level of participation.

9. TOURISMAND
POVERTYALLEVIATION
Components of the issue Indicators
Achieving equitable distribution of
tourism funds / benefits across
the community
 % workers in the community directly employed by ratio of the top to the lowest
paid local tourism worker (cohort distribution of income from tourism – e.g, top
5%, bottom 5%);
 Annual financial contribution by tourism to community projects (common fund,
tourism taxes or net value of programs);
 Infrastructure development stimulated by tourism also benefiting the poor in
the locality (directly or through support to other sectors): amount of investment,
extension of new infrastructure;
 Number and type of development programs in place (education, training,
health, natural resource management, conservation etc. );
 Community survey assessment of the usefulness and success of the various
development programs.
Evaluating less tangible, non-
economic, livelihood priorities
 Annual audit of the contribution of different activities to household needs;
 Survey of household capacity to fulfil livelihood priorities for the year (rating
level of food security, ability to meet cash needs, local empowerment,
decreased vulnerability to external policy, decreased vulnerability to external
conditions, cultural values and physical security).
Other related issues
 See also issue sections on Access by Local Residents to Key Assets(p. 65),
Employment (p. 119),➢ Effects of Tourism on Communities (p. 57) and ➢
Economic Benefits (p. 128).

10. Tourism and Poverty
Alleviation
 Equity
 Micro Enterprises
 Employment
 Income Opportunities
 SMEs.

11. COMPETITIVENESS
OFTOURISMBUSINESSES
Components of the issue Indicators
Cost advantages, price and value Input costs:
employment, taxes, overheads & premiums,
costs of services and supplies, human resources
costs (hiring, training, retaining) transportation
costs
 Cost/Price ratios (including gross margin) of accommodation,
attractions, tours or packages compared to industry norms or
ratios for similar products at other destinations.
Differentiation
Unique products and experiences, Inherent
attractions, positioning the destination, branding,
quality, standards perceived or psychological
advantages (e.g. a perception of exclusivity may
allow higher prices to be charged)
 % of tourists attracted to destination because of unique
features (questionnaire);
 Rating of destination by tourists;
 Attractiveness compared to similar destinations;
 Expectations met or exceeded;
 Value/price rating by tourists;
See also Image and Branding (p. 236).
Specialty niches/focusstrategy Narrowing the
focus for tourism products and target markets,
Intangibles; tourist “experiences”, destination
“appeal”.
Business clusters around a theme
e.g. a “food and wine cluster” involving
accommodation, restaurants, chefs, vineyards,
cycle tours, cuisine, specialty book stores, wine
merchants
 Measure of uniqueness; e.g.;
 destination is the only location for………(a specific type
of activity, attraction);
 destination is one of only 2 (or 3,4,5) in the country (in
the world) offering (specify);
 Number (or %) of tourism businesses and support services
within a “cluster”;
 % of tourism revenue due to niche products or clusters.

12. COMPETITIVENESS
OFTOURISMBUSINESSES
Components of the issue Indicators
Cooperation/overcoming fragmentation
Cooperation amongst businesses; common
marketing, image, branding of the destination.
Research, training, support for small businesses
 % of tourism businesses that have integrated their goals and
objectives with the destination tourism strategy;
 % of tourism business participating in cooperative marketing;
 % of marketing expenditures in cooperative initiatives (e.g.
through private associations and joint public-private initiatives);
 Amount and % of public authority budget designated for
supporting business development, level of participation in
support schemes.
Vitality of the industry
 The longevity of tourism businesses (rate of turnover);
 Re-sale value of tourism businesses (average for type of
business);
 Level of participation by business in tourism strategy
development, and marketing initiatives;
 Strength of membership in tourism industry associations
(number, %);
 Tourism revenues (growth rates);
 Annual profit of tourism businesses.
 ➢ Occupancy rates for Accommodation (See ➢ Seasonality
p. 111)

13. Competitiveness of
Tourism Businesses
 Price and Value
 Quality
 Differentiation
 Specialization
 Vitality
 Business Cooperation
 Long-term Profitability

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