HBM 235 1st Edition Lecture 15 Outline of Last LectureI. Sustainable Tourism II. Economic Implications of Tourism Outline of Current LectureI. Categories of economic impacts continued II. Sociocultural Impacts of Tourism Current LectureI. Categories of economic impacts continuedA. Increasing foreign exchange earnings1. Get $ into system and keep it there 2. Strategies for doing this-Prevent leakages-Local ownership/staffing -Use local products-Strong linkages in economy-Foreign investment paradox: the foreign investment needed to generate foreignexchange earnings criticized for not providing enough to local economy B. Increasing Income1. Income Multiplier- amount of local income generated per unit of visitor expenditure2. Low multiplier- means high leakages 3. High multiplier- means money circulating well around economy C. Three levels of income:1. Direct: the first round of spending by visitors in the destination area2. Indirect: the second round of expenditures by businesses who receive first round of visitors spending3. Induced: the third (and subsequent) rounds of expenditures after the second round -Moral of the story: strong local linkages (buy local) in an economy will prevent leakages and lead to high income D. Increasing employment1. Direct: front desk employees, tour guides, drivers, housekeepers, hotel managers, etc.2. Indirect: construction, farmers, mechanics, etc. E. Employment issues in tourism/hospitality:1. Seasonal2. Fluctuating demand3. Mostly non-management jobs for locals in developing countries 4. Service industry-Host/guest dynamics-Subservient nature of guest services-Resentment II. Sociocultural Impacts of Tourism A. Interface of different:1. Cultures2. Religions3. Lifestyles4. Socioeconomic status5. Languages B. Negative and Positive aspects 1. Negative: friction over use of local resources (beaches, parks, rivers, etc.)-Income disparity (& resulting crime)-Prostitution and disease -Loss of land -Higher prices-Overcrowding at historical sites -Cultural commodification (pg. 57)2. Positive: cultural revival, preservation and affirmation -Skills, music, art, danceCultural
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