unit 4

• Economics

  Concerned with the production, consumption, and transfer of wealth

  Deals with the production, distribution and consumption of goods and services
• The government encourages tourism development because…

  ...there is a continuous demand for travel

  ... income increases

  ...countries need foreign exchange (international travel)
• Tourist Arrivals

  -       Pertains to the number of visitors in the area.
• A database should be maintained to carefully study the behavior of arrivals in terms of the...

   

  …number of travelers if FIT or GIT

  ...demographics of the traveler

  ...psychographics and purpose

  ...place to visit

  ...season

  ...means of arrival
• Visitor (Tourist) Expenditures

  -       As the total consumption expenditure made by a visitor or on behalf of a visitor for and during his/her trip and stay at a destination
• Three Kinds of Employment Tourism Brings

  1.    Direct

  2.    Indirect

  3.    Induced
• Tourist Receipts

  -       Earned by a destination country from inbound tourism and cover all tourism receipts resulting from expenditure made by visitors from abroad, on for instance lodging, food and drinks, fuel, transport in the country, entertainment, shopping, etc.
• Disposable Income

  -       Money left after paying taxes and other essentials, such as food and housing, wherein the recipient has complete discretion where to use its portion
• Purchasing Power

  -       The ability of people to buy goods and services

  -       The value of money considered as the amount of goods and services it could buy
• Standard of Living

  Refers to the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class or geographic area
• Multiplier Effect

  which an increase in spending produces an increase in national income and consumption greater than the initial amount spent
• Negative Impacts Tourism Brings to the Economy

  -       Inflation

  -       Overdependence in the industry

  -       Leakage

  -       Imbalance of government earnings to its expenditures
• Cost-Benefit Ratio

  A measure that weighs the potential profit or benefit an investment is expected to generate against its original costs

  Remember that the benefit should outweigh the cost
• Nature of Sociocultural Impacts

  Relates to changes in societal value systems, individual behavior, social relationship, lifestyles, modes of expression, and community structures.

  The focus of the impacts tends to be the host community

  States that sociocultural impacts are about the effects on the people of host communities, of their direct and indirect associations with tourist.

  The tourist-host encounters provide both social and cultural impacts
• Sociocultural perspective

  The development of tourism as a vehicle for economic modernization and diversification almost invariably leads to changes and developments in the structure of society.

  Tourist inevitably takes on holiday their own beliefs, values, and behavioural modes, which may be termed as cultural baggage, mixing it with the cultures of the host community.
• Sociology

  studies human societies, their interactions, and the processes that preserve and change them.

  study of human social relationships and institutions.
• Social Effects of Tourism

  Social Relation between people who would not normally meet

  Acceptance of Cultures - language, lifestyles, beliefs

  Behavior of People Released from their usual environment

  Behavior of the Host Population which has to reconcile with the visitors
• Displacement

  There are many instances where local people being moved away from their place of residence to make way for tourism development .  This is termed as “Spatial Displacement”.  The land is taken for various reasons such as construction of infrastructure.
• Tourism By-Products

  - Something produced in the process of making something else

  - An incidental or secondary product made during the course of tourism development or the activities engaged in.
• Effects of Travel on the Environment

  • Fastest-growing emission sector as it creates air pollution, including nitrous oxides and particulates, and is a significant contributor to global warming through the emission of carbon dioxide
  • Transportation has a Bio-Security Risk
  • By subsector, road transport is the largest contributor to global warming because of the ozone reduction causing acid rain that slowly eradicates life
  • The air-conditioning unit used by vehicles produces CFCs that cause ozone layer depletion
• Tourism Destination Development

  • strategic planning and advancement of defined areas to support the evolution of desirable destinations for travelers, with a sole focus on the supply side of tourism, by providing compelling experiences, quality infrastructure, and remarkable services to entice repeat visitation
• Infrastructural Requirements

  • Construction of infrastructures like roadways and ports need large spaces therefore cutting trees, shrinking agricultural areas, and even covering waterways
• Habitat Fragmentation

  • Something produced in the process of making something else
  • An incidental or secondary product made during the course of tourism development or the activities engaged in.
• Zoning Issue and Noise

  • Zoning refers to municipal or local laws or regulations that dictate how real property can and cannot be used in certain geographic areas
  • Zoning is a method in which the government divides land into areas within which certain land uses are permitted or prohibited.
• Inappropriate Development

  • Development could rob the natural features of the environment as a result of poor planning.
  • Obstructing views, encroaching public property, unneeded infrastructure, environmental degradation
• Tourism associated activities

  -       Overcrowding

  -       Traffic Congestion

  -       Pollution (Noise, Air, Water, Waste)

  -       Inappropriate tourism provision

  -       Loss of atmosphere

  -       Unmanaged tourism activities