tourism impact
TRANSCRIPT
Tourism’s positive impacts in society and at the destination
Tourism’s negative impacts at the destination
The economic impact
of tourism
The economic impact
of tourism
The dimension of tourism worldwide has an economical, social, cultural and environmental influence on
tourism destinations (Mathieson and Wall, 1982), and the influence can be
positive and/or negative
■ Income generation
■ Employment generation
■ Tax revenue generation
■ Balance of payment effects■ Economic disadvantages
■ Improvement of the economic structure of a region
■ Encouragement of entrepreneurial activity
Six major factors govern
the magnitude of the
economic impact:
■ The volume and intensity of expenditure
■ The level of economic development in the destination
■ The size of the economic base of the destination
■ The degree to which tourist expenditures recirculate within the destination
■ The degree to which the destination has adjusted to the seasonality of tourist demand (Mathieson and Wall, 1982).
■ The nature of the main facility and its attrac-tiveness
Comparative advantages
of tourism
1. Natural resources, culture and cultural heritage2. Human resources3. Capital and infrastructure resources.
■ The types of suppliers and producers with which the industry’s demands are linked■ The ability of local suppliers to meet these demands■ The historical development of tourism in the destination area■ The type of tourist development.
economic
Disadvantages
Cost inflation is a consequence of a number of factors:■ Peak management■ High taxes on some tourist ■ products and services.
Tourism and inflation■ Seasonal demand■ Inelastic supply■ An insufficient market reaction (certain resorts or firms profit from an eco-nomic rent)■ Imported inflation due to international arrivals (impact of hard currencies and increase of the money mass).
Balance of payments
and tourism
The real tourism
external account
The magic tourism
multiplier
There are 3
different effects
1. The direct effect of a change in final demand refers to first-round effects
2. The indirect effect recognizes the need for an industry – subject to a change in final demand for its product – to make purchases from other
industries within an economy in order to produce its output
3. The induced effect occurs as income levels rise throughout the economy as a result of the initial change in final demand,
and a portion of the increased income is re-spent on final goods produced within the local economy. This additional local
expenditure, arising from increased income, will generate further reper-cussive effects. The addition to total output,
income, employment and govern-ment revenue caused by this re-spending of local income is known as the induced effect.
Determining factors
1. The saving quota of the population of the destination2. The import quota, or the share of tourism expenditure that is spent to imported products
3. The tax quota, or the share going to the public sector.4. A fourth possible factor is the supply constraints in the economy
Types of
multipliers
1.Orthodox income multipliers■type I – (direct+indirect income)/direct income■type II – (direct+indirect+induced income)/direct income
2. Unorthodox income multipliers■type I – (direct+indirect income)/change in final demand (additional expenditures)■type II – (direct+indirect+induced income)/change in final demand (additional unit of spending).
Tourism Income
Multiplier
Input-output
analysis
The Tourism
Satellite Account
approach
measurement of
employment
generation
1. The supply approach■tourism-related sectors■minimum requirement method
2. The demand approach■the national accounts method■the tourism satellite account approach■the Henderson–Cousins method■the input–output approach■the multiplier method.
The input–output
approach
The multiplier
method
Special
characteristics
of employment
1. Tourism is a growth sector2. Tourism is a sector with a high degree of semi-
skilled and so-called unskilled workers3. Tourism is also a sector with a high percentage of
part-time jobs4. The high share of female workers
5. The sector also has many small firms and self-employed
6. The seasonality of employment7. Employment in tourism is growing
Cost–benefit analysisCost–benefit analysis takes these crowding-out effects into account through the application of the ‘with and without’ and not the ‘before and after’ principle (Vanhove, 1976).
Crowding-out’ effectsMajor events always involve ‘crowding-out’ effects, expenditure switching and retained expenditure. Big events are very often confronted with crowding-out effects, when traditional visitors prefer not to visit the region where the event takes place for reasons of over occupation, higher prices, etc. (Scherly and Breiter, 2002)
The impact of
events