Local produce and services , local participation, economies of scale and dependency

1. Challenges and Opportunities
of Inter-Sectoral Linkages

2. Opportunites of Inter-Sectoral Linkages
Use of local supplies to reduce
leakage: Through linkages with the
manufacturing, agriculture, fisheries
and entertainment sector the industry
will not have to import goods and
services. This will lead to a reduction in
overall operation costs, retaining
income in the country for locals as well
as government revenue when they are
taxed.
Create Partnerships: The reality is
that tourism entities will be more
successful when they cooperate with
government organizations, non-
government organizations and other
private sector organizations.

3. Challenges of Inter-Sectoral Linkages
1. Diseconomies of Scale: This
occurs when production is less than
proportion to inputs. This can be
caused from inefficient managerial
or labour policies. So for example
the delay experienced by businesses
to get government approval.
2. Dependency :If tourist entities
become completely dependent on
local sectors they may be affected by
internal shocks such as droughts
which drive up the cost of goods as
well as the supply.