Tourism as Capitalism

Mass tourism – best? Mass tourism may be best for development Problems may be ineffective policies and management Mass tourism in Cyprus results: 3 rd highest standard of living; too much accommodation is a problem

Capitalist Endeavor Tourism is a capitalist endeavor Provides employment, profit and opportunity to: generating markets economies destination markets economies *Mass tourism, any tourism, should be promoted (sustainably)

Link of Tourism and Capitalism 3 defining elements: 1. Private Ownership of Property Areas of land may be: used (by tourists) – mountain for hiking; beach for swimming – money spent locally developed (by company or state) – leased or sold to develop – direct profit and money spent locally

Link of Tourism and Capitalism 3 defining elements: 2. Pursuit of Profit (at individual and corporate level) *Profit maximization and growth 2 problems: - Businesses cut corners (socially and environmentally) to cut costs - Excessive exploitation of resources and hence waste

Link of Tourism and Capitalism Pursuit of Profit (cont) Tourism as a sector directly reflects drive for profit Destination also wants profits for growth (for ex: thru taxes and employment)

Link of Tourism and Capitalism 3 defining elements: 3. Markets and Market Forces Exchange of goods based on supply and demand - too many rooms means lower tourist receipts (Cyprus) - limited access means higher prices (Bhutan)

Link of Tourism and Capitalism *Destinations must try to: - maximize benefits of tourism for destination community - be competitive in the marketplace

Tourism Destination Capitals *Those resources or assets that can be exploited to maximize benefits for the destination *There are six productive assets of any tourism destination!

Tourism Destination Capitals Socio-cultural capital Openness, adaptability, cultural characteristics and practices of the community Cultural capital may be tangible (art) or intangible (festivals) *Creates value thru community action

Tourism Destination Capitals Human capital Supply and capability of workforce (tourism development policy should reflect destination needs) Environmental capital Natural and built environments (that enable positives or negatives for destination)

Tourism Destination Capitals Financial capital Availability of money to own, develop, and trade other capitals Technological capital Ownership and skill to use technology to interface with tourism marketplace

Tourism Destination Capitals Political capital Power relationships with external actors that allow self-determined tourism development Power relations in the destination to allow participation and growth

Tourism Destination Capitals Destination capitals are inter-connected and understanding them may help maximize benefits for the destination!

Homework Read Cyprus Case Study – text pp Read article on website: Sustainability Profitability Trade-off