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Economics paper 2 > Tourism > Flashcards

Tourism Flashcards

1
Q

Define a Domestic tourist

A

South African citizens travelling within the borders of South Africa

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2
Q

What is the Department of Tourism?

A

Ensures and accelerates the delivery of tourism benefits

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3
Q

Define Foreign tourist

A

A person who visits a foreign country as a destination

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4
Q

What is an Inbound tourist?

A

Tourists from other countries (foreign tourists) who stay for more than one day

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5
Q

Define an Outbound tourist

A

South African citizens travelling abroad. They have the same effect as imports on the balance of payments

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6
Q

Define Tourism

A
  • The activity of people travelling to places outside their usual environment (for less than one year) for business, leisure or other purposes - without any remuneration.
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7
Q

What is a transit tourist?

A

Tourists travelling through South Africa using air, road, rail and sea transport to get to another destination

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8
Q

An activity is seen as tourism if it fits in with the following criteria:

A
  • There is a purpose for the visit or activity.
  • There is no remuneration (money) earned in the place visited.
  • A minimum length of stay is one night.
  • A maximum length of stay is one year.
  • There is a travelling distance of more than 160 km from the tourist’s home environment.
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9
Q

The purposes (types) of tourism?

A
  • Leisure and recreation: Tourists come to South Africa on holiday, to play sport, to visit friends, and to see the tourist attractions
  • Cultural tourism: Tourists come to visit museums and art galleries, e.g. Robben Island and the Apartheid Museum.
  • Ecotourism: Tourists visit undisturbed natural areas, e.g. the Richtersveld Cultural and Botanical Landscape, the Cape Floral Region Protected Areas and the Kruger National Park.
  • Business and professional: Tourists visit for business meetings and conferences.
  • Other: For studies, or medical reasons.
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10
Q

Explain Measuring tourism
(define)

A

Tourism consists of different activities that should comply with the following:
* There should be a purpose for the visit e.g. camping, business or studies.
* No remuneration should be earned at the tourist destination.
* A minimum length of stay should be one night.
* The maximum length of stay should not exceed one year.
* The travelling distance should exceed 160 km from a person’s
residence.

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11
Q

What are the reasons for growth of the Tourism industry?

A
  • Increased disposable income.
  • Less working hours
  • Awareness of leisure and recreation.
  • Improved transport, communication and accommodation facilities.
  • Increased advertising and promotion.
  • Enjoying the benefits of holidays and travel.
  • Easily obtainable foreign exchange.
  • International: tourism is much more evident in the developed than developing world, but tourism is growing faster in developing countries
  • Locally:
    – Foreign arrivals: foreign tourists who visit the country as their destination.
    – Those who are stopping over, are called transit tourists or same-day travellers.
    – Foreign tourists: come for the experience – visit friends, game
    farms, enjoy the different cultures, heritage spots or sports activities and events.
    – Domestic tourism: South Africans are free to travel locally (domestic tourists) or abroad (outbound tourists). Outbound tourists have the same effect on the Balance of Payments as imports.
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12
Q

What are the effects of tourism?
PIGEEE

A

P – Poverty
I – Infrastructure
G – GDP
E – Employment
E – Environment
E – Externalities

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13
Q

Discuss employment in regards to tourism

A
  • Tourism is the largest provider of jobs because it:
    – Is labour intensive.
    – Employs many different kinds of skills, e.g. tourist guides, hotel staff.
    – Provides immediate employment.
    – Provides entrepreneurial opportunities.
  • Tourism is the largest earner of foreign exchange because:
    – Foreign tourists pay for services in foreign exchange.
    – Foreign tourists usually spend more than local tourists.
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14
Q

What is Gross domestic product (GDP) in regards to tourism

A
  • Tourism has the biggest impact on the services industry.
  • Indirect contribution: Responsible for 65% of the GDP in developed economies and 40% in developing countries.
  • Direct contribution: Tourism contributes 7,9 % of GDP in South Africa
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15
Q

Explain Poverty in regards to tourism

A

Poverty is most evident in rural areas due to a lack of job opportunities. Tourism can alleviate (ease) poverty in the following ways:
* Tourism is a fast and effective mechanism for distributing resources to rural areas to develop them as tourist sites.
* Many prime tourist attractions are located in rural areas.
* Tourist developments in rural areas increase the number of available jobs in areas where there aren’t many jobs.
* Tourism promotes a balanced and sustainable form of development.
* People are able to earn a living in their home areas, resulting in a reduction in urbanisation and a more balanced population distribution.

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16
Q

Explain Externalities in regards to tourism

A

Tourism results in both:
Positive externalities:
* Tourism attracts large amounts of revenue.
* Tourism leads to an improvement in infrastructure development.
* Tourism can stimulate employment indirectly.
* Tourism can help conserve cultural and natural assets and alleviate poverty, but needs to be carefully planned.
Negative externalities:
* Tourism can cause environmental damage if not managed correctly.
* Tourism can result in a lot of waste and damage to sensitive tourist sites.
* The infrastructure at tourist sites can come under pressure to cater for increased tourist numbers.
* Tourism can lead to increased prices for locals.

17
Q

Discuss the environment in regards to tourism

A

Tourism can create environmental stress. It can result in:
* Permanent restructuring of the landscape, e.g. construction work on highways.
* Additional waste products, e.g. biological and non-biological waste.
* Direct environmental stress, e.g. the loss of wildlife species due to safari hunting.
* Effects on population dynamics, e.g. migration and changes in
population density in response to the needs of tourist sites.

18
Q

Describe Investment in regards to tourism

A

Tourist destinations require adequate physical infrastructure. This includes:
* Transport infrastructure, e.g. improved roads are needed to access tourist sites.
* Communication infrastructure, e.g. hotels need telephone lines to take bookings at tourist sites.
* Energy infrastructure, e.g. tourists need electricity at tourist sites.
* Basic services, e.g. clean water and refuse removal.

19
Q

What are the benefits of tourism?

A

H – Households
B – Businesses
I – Infrastructure
G – Government

20
Q

Describe tourism as a benefit to Households.

A

Tourism benefits a household’s wealth in three ways:
* More people earn salaries and wages because of additional job opportunities.
* Infrastructure built for tourists is available both for tourists and local people’s use.
* Skills: A variety of skills is required in the tourism industry.

21
Q

Discuss tourism as a benefit to businesses

A

Tourism has many benefits for the business sector:
* The economic infrastructure for tourism is provided by the public sector.
* Tourism needs superstructure, which consists of businesses that provide accommodation, transport, built attractions, retailing and recreation services.
* Superstructure is normally supplied by the private sector, and the building and running of the superstructure make profits.
* Public and private sector partnerships (PPPs) are used to develop tourist destinations.
* Other work opportunities become available for the previously disadvantaged. These include:
– Employment opportunities in entertainment, laundry and transportation.
– Business opportunities in car rental, arts, craft and curio sales.

22
Q

Discuss tourism as a benefit to government

A
  • The main benefit to government is charging of taxes.
    This has two purposes:
  • To recover external costs: To compensate the host community for providing infrastructure.
  • To raise revenue: Tourists are seen as part of the overall tax base
    (e.g. airport departure taxes and hotel tourism levies increase the amount of taxes collected).
23
Q

Discuss Infrastructure development as a benefit to tourism

A
  • Residents and visitors enjoy adequate and well-maintained physical and basic services infrastructure.
  • The Department of Transport prioritises economic infrastructure.
  • Tourists require social infrastructure – ambulances, medical clinics, police protection services and information services – that becomes a national asset.
24
Q

Name World heritage sites:

A
  • Mapungubwe (Limpopo)
  • Vredefort Dome (Free State and North West)
  • Sterkfontein caves
  • Robben Island
  • Richtersveld Cultural and Botanical Landscape
25
Q

Name Environmental World Heritage Sites:

A
  • Victoria Falls
  • Great barrier reef
26
Q

Tourism policy suggestions?
TIM . D has suggestions.

A
  • Taxation
  • Infrastructure
  • Marketing
  • Directing tourists’ spatial distribution
27
Q

Explain marketing as a tourism policy suggestion

A
  • Nationally: SA Tourism persuades South African citizens to travel in their own country.
  • Internationally: Marketing initiatives try to ensure South Africa is selected as a tourist destination.
  • Foreigners visit our country for the following reasons:
    – Value for money
    – The world in one country
    – The climate
    – The friendliness of South Africa’s people
    – The cleanliness and tranquility of our tourist destinations
28
Q

Explain Directing tourists’ spatial distribution as a tourism policy suggestion

A

Three approaches are followed to distribute tourists effectively to the many tourist sites:
* Create representative bodies: Tourist-based industries are linked to form representative bodies where tourists can then easily access knowledge about all tourist destinations.
* Improve marketing: Tourists receive accurate product descriptions and information about competitive prices. (Less well-known
destinations are aggressively marketed.)
* Improve supporting services: The standards of transport, accommodation and other amenities

29
Q

Explain Taxation as a tourism policy suggestion

A

Growth in tourism results in increased tourist taxes. Guidelines for levying taxes are:
* Equity: Taxes must be fair, e.g. taxes on air tickets.
* Efficiency: Nature and game reserves charge entry taxes to regulate tourist flows.
* Simplicity: A flat tax rate is used to ensure taxes are easy to pay and administer.

30
Q

Explain Infrastructure as a tourism policy suggestion

A

Tourism requires:
-economic infrastructure (roads),
-social infrastructure (ambulances)
-basic services (clean water):
* Infrastructure is maintained for the benefit of domestic and foreign tourists, as well as local citizens.
* The basic considerations are:
– More infrastructure is required, e.g. water supplies.
– Existing infrastructure must be upgraded, e.g. upgrade dirt roads to tarred roads.
– Use new technology to extend the infrastructure, e.g. build the Gautrain.

Economics paper 2 (8 decks)

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