HBM 235 1st Edition Lecture 14 Outline of Last Lecture I II III IV V Levels of Positioning SWOT Analysis Ch 15 The Geography of Tourism Tourist Geography Accessibility Revisited Outline of Current Lecture I II Sustainable Tourism Economic Implications of Tourism Current Lecture Ch 2 I Sustainable Tourism A Making sure local people benefit B Maximize profits and multiplier effect C Ensure visitor satisfaction D Protect natural resources E Protect social cultural resources II Economic Implications of Tourism A World s largest industry 1 Collection of all different industries 2 Typically focus has been on economic bottom line AKA profit B The invisible export 1 What is being exported 2 Destinations export experiences to tourists 3 Experiences is created at the experience and then goes with the tourist home becomes apart of them C Economic benefit of tourism attractive 1 Esp to developing nations 2 Exports HUGE part of economic development formula D Three pro tourism arguments for developing nations 1 Demand for international travel continues to increase UNWTO arrivals to emerging destinations increasing at double the rate of developed destinations 2 Increasing incomes in the developed world means increased travel and expenditures Income elasticity of demand 3 Developing nations need foreign expenditures to satisfy increasing expectations of residents Demonstration effect when local residents exposed to foreign goods tastes styles and begin demanding those goods for themselves Trade deficit imports greater than exports not a good economic benefit Either increase exports to generate money or Import substitution substitution of local products for imported E Economics of developing nations 1 Agriculture 2 Textiles Manufacturing 3 Fisheries 4 Logging mining Problems Economies of scale not sustainable For many developing nations tourism is only industry in which they may have a comparative advantage Comparative advantage situation in which a country individual company or region can produce a good at a lower opportunity cost than a competitor Opportunity cost the cost of an alternative that must be forgone in order to pursue a certain action Many developing nations have the raw materials required to be an attractive destination F Three categories of economic impacts 1 Increasing foreign exchange earnings Get into system and keep it there Strategies for doing this Market to high end travelers Daily spending limits Prevent leakages money that leaks out of the economy when it gets in Local ownership staffing Use local products Strong linkages in economy Foreign investment paradox
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