Economic impacts of Tourism Flashcards
1
Q
Advantages
A
Growth in income
Employment opportunities
Development in transport and infrastructure
2
Q
Disadvantages
A
Seasonal unemployment
Under-use of facilities at certain times of year
Shortage of services
3
Q
Growth In income
(Pamilacan island)
(7 pts)
A
- more tourism, more income for individuals, country
- Pamilacan Island Philippines, local companies hire fishermen to take domestic and international tourists on boats
- paid > average, US$80-100 per boat
- swim, looks for whale sharks and dolphins
- more demand for fishermen service, additional income on top of fishing livelihood
- tour companies more revenue
- overall revenue for country increases thru tax collected from fishermen and tour companies
4
Q
Growth in income: Revenue
A
- tourism receipts generate large revenue for many countries
- e.g. 2011 worldwide tourism >US$1 trillion
5
Q
Growth in income:Leakage
A
- money generated from tourism doesn’t always remain in country where tourist spend money in
- occurs when revenue earned from tourism is paid to other countries (import of goods&services to meet tourists needs)
6
Q
Growth in income ; Leakage example
A
- eg travelers may fly to Phuket on a non-local airline, stay in foreign-owned hotel, eat imported food
- tourism receipts contribute to paying for imported items
- profits made by hotel, rental companies, fast food restaurants sent to another country
- tourism receipts may not stay in local country, bring few benefits to local businesses and workers
7
Q
Employment opportunities
A
- work performed for wage/salary (mainly cash)
- tourism industry= service sector of economy
- more tourism, more tourism related jobs
- industry offer many employment opportunities e.g hotels ,transportation, souvenir shops, tour agencies
- directly: travel agents, tour guides, hotel staff (cater to tourists needs)
- indirectly: taxi drivers, shop owners (while tourists travel and consume goods)
8
Q
Employment opportunities: example
A
- in 2011, UNWTO estimated that tourism industry employed >235 million ppl worldwide (6-8% of jobs worldwide)
9
Q
Development in infrastructure and facilities: Meaning
A
- the construction of transport & communication networks, electrical frameworks, systems for water and waste disposal
- tourism cannot develop and operate on a large scale w/o sufficient infrastructure and appropriate facilities
10
Q
Development in infrastructure and facilities: Benefits both Locals and Tourists
A
- e.g roads that link airports, cities and tourist sites allow access for tourists to local attractions
- locals also have better access to markets, healthcare,education,jobs
- infrastructure built enhances tourism and benefits locals
11
Q
Development in infrastructure and facilities: Sports venues
A
- sports venues and other infrastructure built for major sporting events e.g. Olympics, World Cup
- venues improve sporting infrastructure of host countries
- useful after key events
- eg. in both Athens (Greece) and Beijing (China), underground rail systems expanded to accommodate large crowds during Olympics
- both rail systems continue to serve local populations and tourists
- Singapore Sports Hub
12
Q
Seasonal Unemployment
A
- experienced by tourist industries by some countries
- certain tourist activities depend on climatic conditions
- countries might experience a rise in tourist numbers hen a drop for a few months
- people with tourism-related jobs need to find other sources of income when tourism job is temporarily unavailable
13
Q
Seasonal unemployment: European countries example
A
- e.g. many European countries surrounding the Mediterranean like France, Greece, Italy
- hotel stays mainly during summer season (Jul-Sept)
- increase in summer visits (warm weather)
- range of activities like going to beach or hiking
- employment in hotels and restaurants across European Union reaches peak for the year
14
Q
Seasonal Unemployment: Sapporo example
A
- Sapporo, Japan
- large no. of visitors (Dec-Feb)
- winter sports like skiing, snowboarding
- mountain ski resort operations employ many ppl to cater to high tourist demand
15
Q
Seasonal employment: other sources of income and how country is affected
A
- in others time of the year, those employed in tourism industry find other sources of income
- may return to other jobs eg farming
- move away temporarily until next tourist season
- affects economy of country
