HBM 235 1st Edition Lecture 14 Outline of Last LectureI. Levels of PositioningII. SWOT AnalysisIII. Ch. 15 The Geography of Tourism IV. Tourist GeographyV. Accessibility RevisitedOutline of Current LectureI. Sustainable Tourism II. Economic Implications of Tourism Current LectureCh. 2I. Sustainable TourismA. Making sure local people benefitB. Maximize profits and multiplier effect C. Ensure visitor satisfaction D. Protect natural resourcesE. Protect social/cultural resourcesII. Economic Implications of TourismA. World’s largest industry1. Collection of all different industries 2. Typically, focus has been on economic bottom line-AKA profitB. The “invisible export”1. What is being exported?2. Destinations export experiences to tourists3. Experiences is created at the experience and then goes with the tourist home (becomes apart of them)C. Economic benefit of tourism attractive1. Esp. to developing nations2. Exports HUGE part of economic development formulaD. 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 destinations2. 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 nations1. Agriculture2. Textiles/Manufacturing3. Fisheries4. 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 impacts1 Increasing foreign exchange earnings-Get $ into system and keep it there -Strategies for doing thisMarket 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
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