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CHAPTER 6:ECONOMIC DIMENSION 🤵📈, The Consumption of Resources,…
CHAPTER 6:ECONOMIC DIMENSION
🤵📈
The Economic Costs and Benefits of Tourism💸
Cost-Benefit Analysis
Not always easy to evaluate short-term vs longer-term impacts.
Not usually sophisticated enough to take account of the fact that the costs and benefits
Benefits 😁💸
Job creation
Tour Guide Perhentian Island
Helping keep local business viable
Seafood Restaurant at beach
Stimulates inward and industrial investment
Build new resort and Spa
Costs 💦
Opportunity costs ex money invested in tourism that cannot be used
Banana Bot and Jet breakdown during Monsoon
Congestion
Many tourist in one attraction
Many job are low paid
RM100 per day (Tour Guide Island)
The Economic Impacts of Tourism :warning:
Tourist expenditures💸 (Hotel)
Households (Salaries as Housekeeping)
Primary Sector (Buying Fish and rice)
Secondary sector(Hotel rent)
Tertiary Sector (Room Service)
Types of economies in Tourist Areas✏
urbanized, service- based, diversified
Urbanized, tourism- dependent economies
Urbanized, manufacturing
Semi-urbanized economies based on small and medium sized enterpirses
Large rural economies with agriculture and craft production
Largely rural economies with traditional industries like agriculture in decline
Large, rural or subsistence economies
The Multiplier Effect 👍
Tourist spend for: ✈
Entertainment🎪
National Zoo
Food 🍜
Nasi Lemak Pak Nasir Chain
Beverages🥤
ABC drink
Second round of expenditure
Tips & gratuities
Wages
Payroll Fees
Ultimate beneficiaries
Casher
Bakers
Accountants
The Ethics of government support for the tourism industry 🏰⛩
Contribute to improving a country balance of payments situation
Cash flow
Provide employment
Hotel Employees
Bring income to local communities
Salary
Leakage👀
High Leakage
Areas is developing countries with economies like agriculture
Hire manager operation from Canada for handle the operation system plant program
Low Leakage
Well-established major tourist destinations in developed countries
Hire local people in hotel sector
Tourists Taxes🤑
Use of public money to subsidize private sector tourism interests, such promote weekend breaks
Tour operators may have to be forced to pay the fair price to their supplier
Resources by travel and tourism🛒🚵♀️
In generating areas
Consumer incomes
Consumer times
Labour for selling
In destination areas
Land
Property
Foodstuffs
Foodcourt
Resort
Beach
The roles government in tourism 🏛😎
Remove money (tax)
Free shopping in Langkawi Island
Regulate (licenses, planning, wages regulations)
Free training for Batik craft under Kraftangan Malaysia
Inject money (Investment)
Petrol allowance to cruise boat owners
Seasonality and Sustainability
🚵♂️😥
Lead to the under-use of infrastrcuture which is economically
Allow over-used resources a period of time during which they can recover before next season
Monsoon Season
Abandoned Resort
Economic Trends- Friend or Foe?🧐
Control over tourist markets and tourist flows
Competition with locally owned
Control over the structure and development
Towards More Economically Viable Forms of Tourism
Making sure that the tourist pays a fair price for their experience
Protecting local business from unfair competition from larger, externally owned enterprises
Reducing leakages from the local economy
The Consumption of Resources
NURHAYATI BINTI ABD RAHMAN
(2018225528)
🙋♀️
Income for supplies
Taxes to government
Income to employees
Income to Hotel Industry