Chapter 4

Question 1

What does Section II of Republic Act 9593 declare about tourism?

Answer 1

Tourism is an indispensable element of the national economy and an industry of national interest and importance, which must be harnessed as an engine of socio-economic growth and cultural affirmation.

Question 2

What are the three pathways through which tourism contributes to the economy according to ODI?

Answer 2

Direct, indirect, and dynamic effects.

Question 3

What are direct effects in tourism?

Answer 3

Direct effects are produced when tourism spending occurs for commodities such as accommodation, transportation, entertainment, and attractions.

Question 4

What do visitor exports refer to?

Answer 4

Visitor exports refer to spending by international tourists in a country.

Question 5

What are induced effects in tourism?

Answer 5

Induced effects are the collective spending by direct and indirect employees on food and beverage, recreation, clothing, housing, and household goods.

Question 6

What do dynamic effects refer to in tourism?

Answer 6

Dynamic effects refer to the longer-term macro-level effects, such as general enhancement of skills within the economy, provision of better social services, and infrastructure.

Question 7

What percentage of income of poor people can direct effects account for?

Answer 7

Direct effects can account for 10% to 80% of income of poor people.

Question 8

What is the significance of linkages in indirect effects?

Answer 8

Indirect effects tend to be the biggest where the linkages are strongest, such as in big, rich, diversified economies.

Question 9

What percentage of total tourist expenditure do revenues of semi-skilled and un-skilled workers constitute?

Answer 9

Revenues of semi-skilled and un-skilled workers constitute 27% of total tourist expenditure.

Question 10

What is the importance of income from craft for minority groups?

Answer 10

Income from craft is important for minority groups.

Question 11

What is the issue of leakage in tourism?

Answer 11

Leakage occurs when a small proportion of tourism-generated income is re-spent in the local economy, limiting its multiplier effect.

Question 12

What is the multiplier effect in tourism?

Answer 12

The multiplier effect refers to the number of times tourism income is re-spent across sectors within the local economy.

Question 13

What are the positive impacts of tourism on the economy according to Swarbrooke?

Answer 13

The main beneficial impacts of tourism on the economy are job creation, livelihood generation, tax revenue, and economic regeneration.

Question 14

How does tourism generate jobs?

Answer 14

Tourism generates jobs, with the most optimistic estimate being one job created for every tourist received by the country.

Question 15

What does the tourism value chain refer to?

Answer 15

The tourism value chain refers to the suppliers of needed inputs for tourism operations and other entities that benefit indirectly from tourism development.

Question 16

How can farming communities benefit from tourism?

Answer 16

Farming communities can venture into agritourism, offering farm-related experiences to tourists and generating income during off-seasons.

Question 17

What is the hometown share of tourism income?

Answer 17

Tourism’s economic impact is not restricted to the destination alone; tourists’ places of origin and transit routes also benefit from travel-related expenditure.

Question 18

What are some sources of tourism-related revenues for the government?

Answer 18

Sources include passport processing fees, travel tax, airport terminal fees, and parking fees.

Question 19

What are some negative impacts of tourism on the economy?

Answer 19

Negative impacts include leakages, opportunity costs, poor quality of jobs, overdependence on tourism, and inflation of prices.

Question 20

What is the impact of poor quality jobs in tourism?

Answer 20

Poor quality jobs arise from an employment ratio that leads to low-quality job acceptance by the government.

Question 21

How does tourism lead to price increases?

Answer 21

Tourists create additional demand for goods and services, leading to shortages and subsequent price increases.

Question 22

What factors influence the extent and intensity of tourism’s economic impact?

Answer 22

Factors include economic diversification, strength of linkages, seasonality, quality of human resources, and women agency.

Question 23

What is the role of micro-entrepreneurs in tourism?

Answer 23

Micro-entrepreneurs can reap more financial rewards through access to micro-credit, market mentoring, and other support.

Question 24

What is agglomeration in tourism?

Answer 24

Agglomeration refers to businesses clustering in certain areas due to shared infrastructure, which can lead to uneven distribution of tourism benefits.

Question 25

What are the two schools of thought concerning carrying capacity in tourism?

Answer 25

One emphasizes the capacity of the destination to absorb tourism before negative impacts are felt by the host community, while the other emphasizes the capacity to attract and satisfy tourists.