MULTIPLIER EFFECTS OF TOURISM INDUSTRY

• Multiplier effect: Income from tourism and hospitality, both local and international, is injected into the local economy
• World Tourism Council estimates that travel and tourism provide employment for more than 100 million people worldwide
• Diversification: Making the local economy less reliant on traditional bases
• Opportunities for business: Establishment of new products, facilities, and services, and expansion of existing businesses
• Preservation of the environment and heritage: Proper management ensures preservation of the environment, heritage, and inherent character of an area
• Catalyst for residential development: Visitors who initially traveled for tourism may relocate to those areas for a better quality of life
• Improved transport services: Tourism can stimulate the establishment of new and improved transport services within a regional area
• Broader social outlook: Tourism provides opportunities for residents to interact with other people and cultures, bringing new ideas into the community
• Economic benefits of tourism:

  • Jobs: Employment directly associated with tourism such as tour guides or managerial positions
  • Economic impact: Tourism provides a source of income, employment, and foreign exchange
  • Increased spending: Tourism business can promote the viability of local businesses
  • Economic diversification: Tourism offers an additional means of income, supporting communities during financial pressures
• Economic benefits of tourism:

  • Foreign exchange earnings: Export and import of all related income to the host
  • Employment generation: Creates local jobs and business opportunities
  • Contribution to government revenue: Direct and indirect contributions through taxes on incomes and goods and services supplied to tourists
  • Stimulation of infrastructure investment: Creating public transport networks to improve residents' quality of life and facilitate tourism
  • Contribution to local economies: Tourism can directly contribute to the conservation of sensitive areas and habitats
• Economic benefits:

  • Helps diversify and stabilize the local economy
  • Provides governments with extra revenues
  • Creates local jobs and business opportunities
• Infrastructure:

  • Public places improved through tourism activity
• Social benefits:

  • Community identity and pride generated through tourism activity in a region
• Environmental benefits:

  • Tourism, especially ecotourism, focuses on the conservation of natural resources and contributes to the quality of life and environmental enhancement
• Conservation of important natural areas:

  • Mountains, caves, and coral reefs visited and appreciated by visitors
  • Biological conservation: Tourism protects plant and animal species
  • Improvement of environmental quality and infrastructure: Successful tourism brings appropriate infrastructure and increases environmental awareness
• Benefits in making community engagement work:

  • Working with local communities to build win-win partnerships
• Infrastructure:

  • Provision and maintenance of public facilities like toilets, visitor information centers, roads, and public parks
• Tourism assistance database provides:

  • Information on funding programs and grants for tourism-related industries
  • Advice on submitting funding applications
• Impacts of tourism to the economy:

  • Providing financial support for the conservation of the local environment enhances the reputation of tourism businesses
  • Economic leakages: Foreign ownership, import needs, and international marketing management fees can lead to economic benefits leaving the community
• Economic cost:

  • Tourism development infrastructure can be costly for local governments
• Tourism multiplier effect:

  • Money spent by tourists circulates through a country's economy, creating direct and indirect jobs
• Benefits and impacts of tourism:

  • Multiplier effect: Service or amenity creating further wealth or positive effects in an area
  • Employment opportunities: Tourism creates job opportunities for various workers
  • Diversification: Making the local economy less reliant on traditional bases
  • Opportunities for business: Tourism creates opportunities for new products, facilities, and services
• Prevention of the environment and heritage:

  • Tourism highlights the need for proper management to preserve the environment, heritage, and inherent character of an area
• The catalyst for residential development:

  • Visitors who initially traveled for tourism may relocate to those areas to become residents for a better quality of life
• Improved transport services:

  • Tourism can stimulate the establishment of new and improved transport services within a regional area
• A broader social outlook:

  • Tourism provides opportunities for residents to interact with other people and cultures, bringing new ideas into the community
• How tourism benefits communities:

  • Redistributes wealth by moving money into local economies from other parts of the country and overseas, bringing income that would not otherwise be earned
• Supporting the local community:

  • Purchase locally whenever possible, employ local residents, host community functions, and sponsor local events
• Negative impacts of tourism:

  • Biodiversity effect, resource base depletion, pollution, erosion and physical damage, visual structural change
• Positive impacts of tourism:

  • Biodiversity conservation, erosion and physical damage mitigation, resource base development, visual structural change improvement, pollution cleaning programs