© John Tribe 1 Introduction

© John Tribe

Learning outcomes By the end of this session students will be able to: –understand the scope of recreation, leisure and tourism and their interrelationship –explain the basic economic concerns of scarcity, choice and opportunity costs –outline the allocation of resources in different economic systems –explain the methodology of economics –understand the use of models in economics –understand the use of economics to analyse issues in recreation, leisure and tourism –access sources of information

© John Tribe Definition and scope of recreation, leisure and tourism Leisure = discretionary time Recreation = pursuits undertaken in leisure time Tourism = visiting for at least one night for leisure and holiday, business and professional or other tourism purposes

© John Tribe Definition, scope and methodology of economics 1 The nature of economics –Resources and wants –Scarcity and choice –Opportunity cost –Allocative mechanisms –Macroeconomics and microeconomics –Marginal analysis

© John Tribe Production Possibility Frontier

© John Tribe Allocative Mechanism

© John Tribe The McDonald’s Golden Arches in Beijing, China An early example of private sector activity in China Contrast with state-run enterprises

© John Tribe Definition, scope and methodology of economics 2 The methodology of economics –The ‘science’ of social science –The ‘social’ of social science –Economic models

© John Tribe Scientific testing of theories

© John Tribe The economics of recreation, leisure and tourism Scarcity and choice Demand, supply and markets Work vs. Leisure Government intervention Economic impacts Growth and development Externalities and the environment

© John Tribe Review of key terms Leisure –discretionary time. Recreation –pursuits undertaken in leisure time. Tourism –visiting for at least one night for leisure and holiday, business and professional or other tourism purposes. Economic problem –scarcity and choice. Leisure and tourism sector organizations –organizations producing goods and services for use in leisure time, and organizations seeking to influence the use of leisure time.

© John Tribe Review of key terms Opportunity cost –the alternatives or other opportunities that have to be foregone to achieve a particular thing. Free market economy –resources allocated through price system. Centrally planned economy –resources allocated by planning officials. Mixed economy –resources allocated through free market and planning authorities. Microeconomics –study of household and firm’s behaviour

© John Tribe Review of key terms Macroeconomics –study of whole economy. Marginal analysis –study of effects of one extra unit. Positive statement –based on fact. Normative statement –based on opinion. Ceteris paribus –other things remaining unchanged

© John Tribe 1 Introduction The End