tourism gateway 3 - economic impacts of tourism

Question 1

what are the economic advantages of tourism?

Answer 1

1. employment opportunities
2. growth in income
3. developments in infrastructure and facilities

Question 2

employment opportunities elaboration

Answer 2

growth of tourism led to growth in number of tourism-related jobs, such as in hotels, transportation and tour agencies.

e.g in 2011, the UNWTO estimated that the tourism industry employed over 235 million people worldwide, accounting for 6-8% of all jobs.

Question 3

growth in income elaboration (advantages, disadvantages, example)

Answer 3

growth in tourism –> growth in income for individuals and countries. This is because when there’s high demand for services, locals will have more income, and the government can collect more money from them through taxes, increasing the revenue for the country.

However, revenue generated from tourism may not remain in the country, especially in LDCs where revenue earned is paid to other countries for the import of goods and services.

e.g local tour companies in the Pamilacan Islands, Philippines, hire fishermen to take tourists on their boats to look for whales and dolphins. They are then paid $80-$100 per trip.

Question 4

developments in infrastructure and facilities elaboration

Answer 4

importance: without sufficient infrastructure and facilities, tourism cannot develop or operate on a large scale.
benefits: developments to infrastructure such as roads, railways etc allow local people better access to places.
e. g, in Athens, Greece and Beijing, China, underground rail systems were expanded in preparations for the Summer Olympic games in 2004 and 2008 respectively.

Question 5

what are the disadvantages of the economic impact of tourism?

Answer 5

1. seasonal unemployment
2. under-use of facilities at certain times of the year
3. shortage of services

Question 6

seasonal unemployment elaboration

Answer 6

certain tourist activities depend on the climate. Such countries may experience a rise in tourist numbers for several months followed by a drop. As a result, people may have to find other sources of income during non-peak seasons.

e.g Sapporo, Japan, receives a large number of tourists from December to February, engaging in winter sports such as skiing and snowboarding.

Question 7

under-use of facilities elaboration

Answer 7

facilities specifically built for events may be underused when the event is over. Such facilities become costly to maintain and may become neglected.

e.g Beijing, China, only a third of the sports venues built for the Olympics managed to break even while the others deteriorated.

Question 8

shortage of services elaboration

Answer 8

tourist infrastructure may require large amounts of land, water and power, leading to a shortage of these services elsewhere. Locals who cannot afford to pay high costs for water and power may suffer from a shortage of these resources.