Carrying capacity and the tourism multiplier effect

Question 1

What is carrying capacity in tourism?

Answer 1

It’s the maximum number of visitors a destination can support without causing environmental degradation, social disruption, or reduced visitor satisfaction.

Question 2

What are the 4 types of carrying capacity and what are they?

Answer 2

Physical – limits based on infrastructure (e.g. number of beds).

Environmental – the point at which nature is damaged.

Social – when local communities or tourists feel overcrowded.

Economic – when rising costs affect locals’ quality of life.

Question 3

What is the tourism multiplier effect?

Answer 3

It refers to how money spent by tourists circulates through the local economy, generating more income and jobs beyond the initial spending.

Question 4

Can you give an example of the multiplier effect?

Answer 4

A tourist pays for a hotel → hotel staff spend wages at local shops → shop owners buy local goods → more income spreads through the economy.

Question 5

What limits the tourism multiplier effect?

Answer 5

Leakages (when money goes to foreign-owned companies)

Seasonality

Import dependency (if local businesses import supplies)