As one grows so does the other – but which is the CAUSE and which the EFFECT? There is a positive correlation between economic development and the growth of tourism

As economic development takes place, leading to raising living standards and disposable incomes, the demand for tourism and foreign travel appears to increase proportionately. Positive Correlation

How is Development Measured? Human Development Index Life Expectancy Literacy GDP per capita

Human Development Index 2011 The world’s poorest countries with an HDI less than 0.5 have little demand for international tourism Countries with a medium HDI have a higher demand for tourism but average spending per person remains low at US$30-40 per year. Most of the world’s tourists originate from countries with an HDI above 0.75

As the economy develops… Domestic tourism (people who live in that country) increases. Most tourists are from MEDCs like the UK. Numbers of these tourists won’t grow much in future. However in NICs like India, China and Brazil there has been a sudden rise in people (growing numbers of the middle classes) with disposable income to spend on holidays. The effect of this…

Demand for holidays creates… Spending on hotels/ accommodation, food and drink, souvenirs, entry into attractions, cost of activities Clothes and equipment for holidays

Model of cumulative causation – tourism Establishment of hotels and other tourist facilities Improvement of physical and cultural infrastructure Higher business and personal tax base increases local government spending power Substantial rise in per capita income Inflow of business and capital to satisfy increased local demand Expansion of local job opportunities and population

Effect – if economic development increases in NICs (e.g China) there will be… More disposable wealth More leisure time – with improved pay and conditions meaning more paid holidays and less time at work Improved transport Fewer political controls on travel More access to media and interest in foreign travel

The effect of tourism in LEDCs Tourism in 46 LEDCs is the primary source of foreign exchange earnings saw an 8% rise in tourist arrivals in these LEDCs The United Nations World trade organisation (UNTWO) sees tourism as having real potential to reduce poverty in countries like… Cuba, The Gambia, Belize, Morocco, Thailand, Vietnam, Mexico…

Effect – if tourism increases in LEDCs (e.g Cuba) there will be… More foreign money coming into the country (also leading to more foreign investment in the resort areas and more widely in the country). More employment – direct and indirect Improved transport More cosmopolitan attitude of locals (open to other cultures) Growth of industries supplying tourists e.g. farming and construction

Group work Task Use the information in the Dove books and the worksheet provided PLUS extra research to produce a PPT on either the U.K. or China, to show how economic development affects tourism within the country. Your presentation should include the following: 1.History of tourism in your country 2.How tourism has played a part in the economic development of your country 3.The pattern of outbound/inbound and domestic tourists. 4.Which regions are most popular and how this contributes to regional economies 5.Why your country is attractive as a tourist destination 6.Facts and figures 7.Pictures and maps 8.Advantages and disadvantages that tourism brings to your country