Tourism 2.2

Question 1

how does tourism impact the economy

Answer 1

Positive: Creates employment opportunities in formal and informal tourism sectors

Income generation from the tourists’ spending on consumer goods and services

Negative: Economic leakages, Overdependence

Question 2

What are the positive impacts brought about by tourism?

Answer 2

Creates employment
- Tourism is labour intensive, it creates large and wide ranges of employment (Accommodation, transport)

Income generation
- Tourism generates income for locals (through services offered by locals) and the government (through taxes on tourism spending)

The revenue generated could be used to improve infrastructure for education and health services and alleviate poverty

Question 3

negative impacts on the economy from tourism

Answer 3

Economic leakages: When revenue is lost to the economies of other countries, when DR pay for imports of goods and services
Reduced revenue earnt to improve the governments SOL

Overdependence: when tourism is overdependent for employment and income, unexpected events could cause tourism to fluctuate and effect people

Question 4

what are unexpected events that might affect the economy of a country

Answer 4

Natural disasters: It can cause significant damage to country’s infrastructure. People may fear for their safety and postpone or cancel their trips

Unfavourable political events: Can lead to riots and protests in a country, leading to closure of hotels and tourist attractions

Economic downturn: People may lose their jobs, reducing their disposable income

Outbreak of diseases; Postpone or cancel in fear of their safety
government want to close off affected areas