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Economic impacts of tourism : - Coggle Diagram
Economic impacts of tourism :
Positive impacts
Employment Opportunities
Tourism industry is
labour intensive
Creates
large number and wide range of employment opportunities
for people of
varying skills
Jobs created can be categorised into
:
Formal employment
and
Informal employment
Income generation
Tourism
generates income for locals
and
governments
in
tourist destination regions
When
tourists spend money
on
consumer goods
and
services
offered by locals , they can
increase the income
for these locals
Taxes on tourism spending
, provide
governments
with considerable
revenues
These can be used to
invest in improving infrastructure
and
pay for education
and
health services
,
Increasing
countries
standard of living
Negative Impacts
Economic leakages
(revenue generated by tourism in the destination region is lost to economies of other countries)
Government will have
less revenue
to
improve the country's standard of living
when
tourists businesses
in the destination region
pay for the imports of goods and services to support the tourism industry
, this
reduces revenue
from tourism,
minimising
the income earned
Overdependence on tourism
Vulnerable to a
sudden fall in tourism numbers
, due to unexpected events
Natural Disasters
:
damage to tourism , infrastructure in destination and generating countries.
People may postpone their trip for their safety
2.
Unfavourable Political situations
:
riots
and
protest
in the country. leading to
hotels and tourist attractions closing down.
for safety reasons people may choose to postpone their trip . Government may choose to
close off or discourage travelling to affected areas
to ensure safety , reducing the number of tourist arrivals
3
. Economic Downturn
: Economies are negatively affected . Companies will attempt to cut costs . People may l
ose their jobs or experience pay cuts leading to lesser disposable incomes
. People will choose to save instead of travel
4.
Outbreak of diseases
: People may cancel or postpone out of fear for their safety. Close off affected areas / issue travel advisories to discourage travelling to affected areas , reducing tourists arrivals