LESSON 2 (week 4-5) Flashcards
are production changes associated with the immediate effects of changes in
tourism expenditures.
Direct effects
It is an increase in prices of land, houses and food that can occur as a result of tourism
Inflation
When a place becomes over-dependent on tourism that other industries are abandoned. Over-reliance on tourism carries risks to tourism-dependent economies.
Dependency
One of the major disadvantages in tourism, Its effect to jobs, investments and tourism-related enterprises according to Abbas (2012).
Seasonality
is used to refer to the amount spent on importing goods and services to meet the guests needs
Leakage
When tourists remain for their entire stay at the same cruise ship or resort, which provides everything they need and where they will make all their expenditures, not much opportunity is left for local people to profit from tourism.
Enclave Touris
- In tourism it is how many times money spent by a tourist circulates through a
country’s economy.
Multiplier Effect
describe the relationships between industries
Linkages
is the study of society and is concerned with people in groups, their interaction, their attitudes and their behavior.
Sociology
is about how people interact as observed through social interaction, social relations, and material artifacts. Characteristics of a particular group of people, defined by everything from
language, religion, cuisine, social habits, music and arts.
Culture
The economic characteristic of tourism industry by (Burkart and Medlik, 1974)
- The tourist product is an amalgam
- Tourism is a service activity
- Tourism products are perishable
- The seasonality of tourism demand
According to Burkart and Medlik (1974), “The tourist product is an______ of what he does at the destination and the services he uses to make it possible, the attractions, accessibility, amenities at the destination and many intangible elements are the components of the amalgam, and these components complement each other”
The tourist product is an amalgam
Middleton and Clarke (2001), mentioned “tourism has all the characteristics of services, all tourism services are intangible. In terms of international trade and balance of payments, inbound and outbound tourism are invisible exports and imports respectively” (p.11).
Tourism is a service activity
Production and consumption take place on the premises or in the equipment of the producer (e.g. aircraft), and not in the residence of the tourist.
Tourism is a service activity
As a consequence, the staff of the tourism suppliers have some consumer contact and are seen by the tourists to be an ___________ of the service product.
an inseparable aspect
Whereas commodities can be tested and guaranteed, and _____________ can be enforced by consumer protection laws, this is much more difficult with tourism services.
product performance
The performance in an aircraft or a hotel is determined by the _____________ , and normal guarantees or legal enforcement cannot be expected
attitude of the staff
The inseparability has direct consequences not only for tourism marketing but also in managing the _________________- of a tourism provider or destination. Indeed, the attitude of the staff (e.g. friendliness, helpfulness) is often a vital element in delivering tourism products
competitive position
According to Burkart and Medlik (1974), “the production capacity that is not sold on a particular day is lost and can never be recovered
Tourism products are perishable
A hotel with 100 rooms has a production capacity of 100 rooms for rent every day, and the hotelkeeper will try to sell this full capacity every day. On most days of the year he will not be successful. Unlike goods, the hotel keeper cannot save the unsold rooms in stock for the next day or week, and nor can he reduce the capacity.
Tourism products are perishable
Supply in tourism is relatively inflexible, and rooms that are not rented on the day of the performance are totally lost - or ______________
‘perishable’.
Demand for tourism products is characterized by an unequal temporal distribution.
The seasonality of tourism demand
Annually, there are weeks and months with a great demand and others with a low demand. This temporal peaking pattern is called
seasonality
The relationship between ‘seasonality’ and ‘perishability’ is _______________-
quite evident.
Stynes, (n,d) states that “tourism has a variety of economic impacts”
- Tourists contribute to sales, profits, jobs, tax revenues, and income in an area.
The most direct effects occur within the primary tourism sectors -lodging, restaurants, transportation, amusements, and retail trade. - Through secondary effects, tourism affects most sectors of the economy. The tourism industry, in turn, buys goods and services from other businesses in the area, and pays out most of the income as wages and salaries to its employees. This creates secondary economic effects in the region.
- Tourism industries are labor and income intensive, translating a high proportion of sales into income and corresponding jobs.
- Changes in prices. tourism can sometimes inflate the cost of housing and retail prices in the area, frequently on a seasonal basis.
- Changes in the quality and quantity of goods and services. Tourism may lead to a wider array of goods and services available in an area (of either higher or lower quality than without tourism).
- Changes in property and other taxes. Taxes to cover the cost of local services may be higher or lower in the presence of tourism activity. In some cases, taxes collected directly or indirectly from tourists may yield reduced local taxes for schools, roads, etc. The total economic impact of tourism is the sum of direct, indirect, and induced effects within a region. Any of these impacts may be measured as gross output or sales, income, employment, or value added. (p.5)
_____________ contribute to sales, profits, jobs, tax revenues, and income in an area.
Tourists (belong sa economic)
The most direct effects occur within the primary tourism sectors -lodging, restaurants, transportation, amusements, and retail trade.
economic impacts
Through secondary effects, tourism affects most sectors of the economy. The tourism industry, in turn, buys goods and services from other businesses in the area, and pays out most of the income as wages and salaries to its employees. This creates secondary economic effects in the region.
economic impacts
Through ____________ , tourism affects most sectors of the economy. The tourism industry, in turn, buys goods and services from other businesses in the area, and pays out most of the income as wages and salaries to its employees.
secondary effects ( economic impacts)
Tourism industries are _________ and ________ translating a high proportion of sales into income and corresponding jobs.
labor and income intensive,( economic impacts)
_________ tourism can sometimes inflate the cost of housing and retail prices in the area, frequently on a seasonal basis.
Changes in prices. (economic impacts)
The tourism industry, in turn, buys goods and services from other businesses in the area, and pays out most of the income as wages and salaries to its employees. This creates secondary economic effects in the region.
Through secondary effects, tourism affects most sectors of the economy (economic impacts)
The most direct effects occur within the primary tourism sectors -lodging, restaurants, transportation, amusements, and retail trade.
Tourists contribute to sales, profits, jobs, tax revenues, and income in an area. (economic impacts)
the primary tourism sectors
direct effects ,, -lodging, restaurants, transportation, amusements, and retail trade. (economic impacts)
the secondary effects sectors
buys goods and services from other businesses in the area, and pays out most of the income as wages and salaries to its employees. (economic impacts)
Tourism may lead to a wider array of goods and services available in an area (of either higher or lower quality than without tourism).
Changes in the quality and quantity of goods and services. (economic impacts)
______ to cover the cost of local services may be higher or lower in the presence of tourism activity. In some cases, , ________ collected directly or indirectly from tourists may yield reduced local taxes for schools, roads, etc.
Taxes
The total economic impact of tourism is the sum of ________,______,______ effects within a region. Any of these impacts may be measured as gross output or sales, income, employment, or value added. (p.5)
direct, indirect, and induced
Taxes to cover the cost of local services may be higher or lower in the presence of tourism activity. In some cases, taxes collected directly or indirectly from tourists may yield reduced local taxes for schools, roads, etc. The total economic impact of tourism is the sum of direct, indirect, and induced effects within a region. Any of these impacts may be measured as gross output or sales, income, employment, or value added.
Changes in property and other taxes.
- are production changes associated with the immediate effects of changes in tourism expenditures
Direct effects
- are the production changes resulting from various rounds of re-spending of the hotel industry’s receipts in other backward-linked industries (i.e., industries supplying products and services to hotels).
Indirect effects
are the changes in economic activity resulting from household spending of income earned directly or indirectly as a result of tourism spending. For example, hotel and linen supply employees, supported directly or indirectly by tourism, spend their income in the local region for housing, food, transportation, and the usual array of household product and service needs.
Induced effects
The sales, income, and jobs that result from household spending of added wage, salary, or proprietor’s income are ________-
induced effects.
By means of ________- and ________-effects, changes in tourist spending can impact virtually every sector of the economy in one way or another.
indirect and induced
describe the relationships between industries.
Linkages
is a method by which job opportunities and wealth are created by attracting new industry into an area.
Multiplier Effect
. In tourism it is how many times money spent by a tourist circulates through a country’s economy. Money spent in a hotel helps to create jobs directly in the hotel, but it also creates jobs indirectly elsewhere in the economy.
Multiplier Effect
are used to explain the relationships between industry and the creation of wealth in an area.
- Linkages and multiplier effects
it is hoped that industries ‘linked’ to that industry will follow and increase the amount of job opportunities and wealth of those people with the resulting jobs.
- By introducing a new industry
- The hotel, for example, has to buy food from local farmers, who may spend some of this money on fertilizer or clothes. The demand for local products increases as tourists often buy souvenirs, which increases ______________
secondary employment.
continues until the money eventually ‘leaks’ from the economy through imports - the purchase of goods from other countries.
- The multiplier effect
is used to refer to the amount spent on importing goods and services to meet the guest’s needs.
Leakage
occurs when tourists’ money is used to purchase needed goods or services from outside the area.
Leakage
- The more imports that are necessary, the higher the __________ will be.
Leakage
goes to negligible in a self-sustaining Economy.
Leakage
POSITIVE TOURISM IMPACTS
Foreign Exchange Earnings
Infrastructure Investment
Contribution to Government Revenues
Generate income to the host economy and can stimulate the investment necessary to finance growth in other economic sectors. Accelerate this growth by requiring visitors to bring in a certain amount of foreign currency for each day of their stay.
Foreign Exchange Earnings
Contribution to Government Revenues
- Direct contributions
- Indirect contributions
Tourism can induce the local government to make infrastructure improvements such as better water and sewage systems, roads, electricity, telephone and public transport network. This can improve the quality of life for residents as well as facilitate tourism.
Infrastructure Investment
NEGATIVE TOURISM IMPACTS
Inflation
Dependency
Seasonality
Leakage
Enclave Tourism
As stated by Abbas (2012), It is an “increase in prices of land, houses and food that can occur as a result of tourism”
Inflation
Article by Abbas (2012) explain =________________ occurs when “a place becomes over-dependent on tourism that other industries are abandoned.
Dependency
Over-reliance on tourism carries risks to tourism-_________________
dependent economies”.
One of the major disadvantages in tourism, Its effect to jobs, investments and tourism-related enterprises according to Abbas (2012).
Seasonality
Goes out of the local economy to pay for imported items, expatriate salaries or franchise fees. (Abbas, 2012)
Leakage
“When tourists remain for their entire stay at the same cruise ship or resort, which provides everything they need and where they will make all their expenditures, not much opportunity is left for local people to profit from tourism. (Abbas, 2012)
Enclave Tourism
is the study of society and is concerned with people in groups, their interaction, their attitudes and their behavior.
Sociology
is about how people interact as observed through social interaction, social relations, and material artifacts
Culture
Characteristics of a particular group of people, defined by everything from language, religion, cuisine, social habits, music and arts.
Culture
arise when tourism brings changes in value systems and behavior and thereby threatens indigenous identity. Furthermore, changes often occur in community structure, family relationships, collective traditional life styles, ceremonies and morality.
SOCIO-CULTURAL IMPACTS
Tourism can also generate positive impacts as it can serve as a supportive force for peace, foster pride in cultural traditions and help avoid urban relocation by creating local jobs. (Burns and Holden, 1995).
SOCIO-CULTURAL IMPACTS
described here are the effects on host communities of direct and indirect relations with tourists, and of interaction with the tourism industry.
For a variety of reasons, host communities often are the weaker party in interactions with their guests and service providers, leveraging any influence they might have. These influences are not always apparent, as they are difficult to measure, depend on value judgments and are often indirect or hard to identify”.
SOCIO-CULTURAL IMPACTS OF TOURISM
Different cultures impact the host nation differently. Although, the danger of cultural differences always in the pipeline, but on the positive side these repeat visits and the interest of tourist slowly and gradually build up the destination as a brand.
SOCIO-CULTURAL IMPACTS OF TOURISM
theorizes that by simply observing tourists will lead to behavioral changes in the resident population. Local people will note the superior material possession of the visitors and aspire for them.
Demonstration effect
Demonstration effect
“may encourage residents to adopt more productive patterns of behavior”
positive
Demonstration effect
“locals may become resentful because they are unable to obtain the goods and lifestyle demonstrated by the visitors”
negative
Socio - cultural benefits of Tourism
1) Tourism as a force for peace
2) Strengthening communities -
3) Facilities developed for tourism can benefit residents
4) Revaluation of culture and traditions
5) Encourages civic involvement and pride
can contribute to positive developments, not just negative impacts. It has the potential to promote social development through employment creation, income redistribution and poverty alleviation.
Tourism
involving the local population is essential.
positive consequences of tourism
A community involved in ______ and ________ of tourism has a more positive attitude, is more supportive and has a better chance to make a profit from tourism than a population passively ruled - or overrun - by tourism.
planning and implementation
Negative Socio-Cultural Impacts from Tourism
- Change or loss of indigenous identity and values
- Culture clashes
- Physical influences causing social stress
- Commodification
- Standardization
- Adaptation to tourist demands
Change or loss of indigenous identity and values
- Economic inequality
- Irritation due to tourist behavior
- Job level friction
Culture clashes
Depriving local people of access
Ethical issues
- Crime generation
- Child labor
Physical influences causing social stress
Visitor are welcome and there is little planning.
Euphoria
Visitors are taken for granted and contact becomes more formal.
Apathy
- Saturation is approached and the local people have misgivings. Planners attempt to control via increasing infrastructure rather than limiting growth.
Annoyance
- Open expression of irritation and planning is remedial, yet promotion is increased to offset the deteriorating reputation of the resort.
Antagonism
is a process of reviewing and evaluating the impact of any tourism related activity.
Impact assessment
used to identify and implement limits to the number of visitors to specific destinations or attraction.
Tourism Carrying Capacity Assessment
encompasses with economic, social, and environmental impacts of tourism.
Triple Bottom Line Approach
determines the level of physical impacts that are acceptable at a destination.
Physical Carrying Capacity
look at the situation from the tourists’ point of view, related to how they perceived the quality of the destination.
Perceptual Carrying Capacity
focuses on the social and cultural changes due to tourism increase.
Social or Sociocultural Carrying Capacity
the destination’s possibility to cater the demand without crowding out other local economic activities.
Economic Carrying Capacity
concerned with how the local, political, and administrative bodies can cope with tourism and to what extent it is needed to put limits on tourism inflow.
Political or Administrative Carrying Capacity
the capability of an area to endure the maximum level of development from tourism, agriculture, industry and infrastructure.
Carrying capacity
is a process of reviewing and evaluating the impact of any activity (such as construction of tourist facilities: hotels, lodges, public beaches, highway, etc., on the coastal environment or on the natural resources, culture, economy, etc.) Without knowing and being aware of negative environmental effects it would be impossible to plan and take any effective, reasonable measures aimed at protecting the quality of the coastal environment and human life.
Impact assessment
It forces planners and developers to foresee what could possibly go wrong and take precautions to prevent such unfortunate consequences from happening.
Tourism Impact Assessment and its Importance
It compels the parties involved in tourism development to participate in a consultative process to iron out kinks prior to the actual implementation of a project.
Tourism Impact Assessment and its Importance
______ and ________ would be able to identify actions that could prevent or mitigate the impacts.
Planners and developers
concerned with how the local, political, and administrative bodies can cope with tourism and to what extent it is needed to put limits on tourism inflow.
- Political or Administrative CC
used to identify and implement limits to the number of visitors to specific destinations or attraction.
Tourism Carrying Capacity Assessment
- Constitution and Existing Laws
- Land Use Plans and Spatial Planning
- Zoning Laws, Zones of tourism value
- Regulations on Tourism Investments, Tourism Enterprise Zones, and Tourism Enterprises.
- Building Code (various permits, standards for various
- types of structures)
- Business Registration Requirements
- Requirements for public consultation
- Protected Area Laws
- Indigenous People’s Rights, Including their rights to ancestral domains
- Gender and Development Provision
- Minimum Wage Laws
- Labor Laws
- Environmental Laws
- Tourism Policy Act
- Critical Habitat Areas
What to consider in Tourism Impact Assessment
the destination’s possibility to cater the demand without crowding out other local economic activities.
- Economic CC
Encompasses with Economic, Social, and Environmental impacts of tourism.
Triple Bottom Line Approach
Types of Carrying Capacity Assessment According to Lundberg
- Physical CC
- Perceptual CC
- Social or Sociocultural CC
- Economic CC
- Political or Administrative CC
focuses on the social and cultural changes due to tourism increase.
- Social or Sociocultural CC
Tourism Impact Assessment and Its Tools
- Tourism Carrying Capacity Assessment
- Triple Bottom Line Approach
The analysis of the carrying capacity is used in environmental planning to guide decisions about land use allocation.
Assessing carrying capacity
determines the level of physical impacts that are acceptable at a destination.
- Physical CC
look at the situation from the tourists’ point of view, related to how they perceived the quality of the destination
- Perceptual CC
What to consider in Tourism Impact Assessment?
- Constitution and Existing Laws
- Land Use Plans and Spatial Planning
- Zoning Laws, Zones of tourism value
- Regulations on Tourism Investments, Tourism Enterprise Zones, and Tourism Enterprises.
- Building Code (various permits, standards for various
- types of structures)
- Business Registration Requirements
- Requirements for public consultation
- Protected Area Laws
- Indigenous People’s Rights, Including their rights to ancestral domains
- Gender and Development Provision
- Minimum Wage Laws
- Labor Laws
- Environmental Laws
- Tourism Policy Act
- Critical Habitat Areas
It is a basic technique, widely used to define the capability of an area to endure the maximum level of development from tourism, agriculture, industry and infrastructure.
Assessing carrying capacity
The three most common carrying capacity for tourism according to McGahey, (2015) are:
- Physical Carrying Capacity
- Social Carrying capacity
- Environmental carrying capacity
These apply to quality, quantity, and type of interactions between tourists, the people and destinations they visit.
The carrying capacity
_______________- of a destination, is the total of the carrying capacities of its various attractions, facilities, and infrastructure.
The carrying capacity
The ________________________ of a destination addresses its size limits, which dictate the number of visitors that can be accommodated at any one time. Once these limits are reached, there is simply no more space available.
physical carrying capacity
the ________________________- also serves as a visitor management tool.
physical carrying capacity
A destination’s _______________________ concerns both tourists and locals. For tourists, it’s the number of visitors, an area can accommodate, before it gets too crowded for a specific activity, and the satisfaction level drops. For locals, it’s the number of tourists a destination can absorb before they begin to overwhelm, and adversely affect, the local culture.
social carrying capacity
it’s the number of visitors, an area can accommodate, before it gets too crowded for a specific activity, and the satisfaction level drops.
FOR TOURIST “social carrying capacity”
it’s the number of tourists a destination can absorb before they begin to overwhelm, and adversely affect, the local culture.
FOR LOCALS “social carrying capacity”
AKA the ecological, or, biological carrying capacity.
The environmental carrying capacity
It’s the number of visitors, and everything that is developed to attract and service them that an area can accommodate, before its ecological system begins to suffer irreversible damage, due to overuse.
The environmental carrying capacity
To avoid exceeding _______________________ , it’s important to establish indicators, monitor variances, and make the necessary changes to adjust, a destination’s ecological footprint.
The environmental carrying capacity
Physical-ecological component
Examples of the level of capacity for the physical-ecological component
- Acceptable level of congestion or density in key areas/spatial units such as parks, museums, city streets, etc.;
- Maximum acceptable loss of natural resources (i.e. water or land) without significant degradation of ecosystem functions or biodiversity or the loss of species;
- Acceptable level of air, water and noise pollution on the basis of tolerance or the assimilative capacity of local ecosystems;
- Intensity of use of transport infrastructure, facilities and services;
- Use and congestion of utility facilities and services of water supply, electric power, waste management of sewage and solid waste collection, treatment and disposal and telecommunications;
- Adequate availability of other community facilities and services such as those related to public health and safety, housing, community services, etc.
Acceptable level of congestion or density in key areas/spatial units such _________________
as parks, museums, city streets, etc.;
(i.e. water or land) without significant degradation of ecosystem functions or biodiversity or the loss of species;
- Maximum acceptable loss of natural resources
on the basis of tolerance or the assimilative capacity of local ecosystems;
- Acceptable level of air, water and noise pollution
__________ of use of transport infrastructure, facilities and services;
Intensity
Use and congestion of utility facilities and services of water supply, electric power, waste management of sewage and solid waste collection, treatment and disposal and telecommunications;
DUMDUMI (wala nakuy ma question kay sumpay sila tanan)
Socio-demographic component
Examples of the level of capacity for the socio-demographic component
- Number of tourists and tourist/recreation activity types which can be absorbed without affecting the sense of identity, life style, social patterns and activities of host communities;
- Level and type of tourism which does not significantly alter local culture in direct or indirect ways in terms of arts, crafts, religion, ceremonies, customs and traditions;
- Level of tourism that will not be resented by a local population or pre-empt their use of services and amenities;
- Level of tourism (number of visitors and compatibility of types of activities) in an area without unacceptable decline of experience of visitor.
Adequate availability of other community facilities and services such as those________________
related to public health and safety, housing, community services, etc.
which can be absorbed without affecting the sense of identity, life style, social patterns and activities of host communities;
Number of tourists and tourist/recreation activity types
which does not significantly alter local culture in direct or indirect ways in terms of arts, crafts, religion, ceremonies, customs and traditions;
Level and type of tourism
that will not be resented by a local population or pre-empt their use of services and amenities;
Level of tourism
(number of visitors and compatibility of types of activities) in an area without unacceptable decline of experience of visitor.
Level of tourism
Political-economic component
Examples of the level of capacity for the political-economic component (EC, 2002):
- Level of specialization in tourism;
- Loss of human labor in other sectors due to tourism attraction;
- Revenue from tourism distribution issues at local level;
- Level of tourism employment in relation to local human resources.
- Level of specialization in tourism;
- Loss of human labor in other sectors due to tourism attraction;
- Revenue from tourism distribution issues at local level;
- Level of tourism employment in relation to local human resources.
Political-economic component
a tool for monitoring, managing, and enhancing tourism destination sustainability
European Tourism Indicator System
European Tourism Indicator System
Triple Bottom Line Approach
