Economics and the Impact of Tourism 1 Impacts of Tourism Lecture 5

Economics and the Impact of Tourism 2 Effects of Hospitality & Tourism Travel, tourism, and hospitality have numerous effects on the world. Section 2.1 Economic Social and Cultural Environmental

Economics and the Impact of Tourism 3 Economic Impact The development of infrastructure that supports the needs of travelers helps to create jobs. infrastructure the physical components of a destination, such as hotels, restaurants, roadways, and transportation, that support tourism Section 2.1

Economic Impact Section 2.1 $ Tourist Dollars Infrastructure Business Growth Jobs Tax Revenue $ $ $ $ $ 4

Economics and the Impact of Tourism 5 Economic Impact The economic multiplier depends on how much money tourists spend per year and how much leakage there is offshore. economic multiplier the process of how money filters through a local economy and is spent and re-spent, creating income for other businesses Section 2.1 leakage tourists dollars spent on imported goods so that revenue ends up in foreign economies

Economics and the Impact of Tourism 6 Social and Cultural Impact Failure to protect unique cultures and established social customs can destroy the appeal of a destination. Section 2.1

Economics and the Impact of Tourism 7 Social and Cultural Impact Tourists help cultures by trading cultural influences and creating interest in exploring cultures. Tourists can harm a culture by inadvertently creating unrealistic expectations of wealth. Section 2.1

Economics and the Impact of Tourism 8 Environmental Impact Negative impacts from tourism occur when visitors’ use of a resource is greater than the destination’s ability to handle that usage. Section 2.1

Environmental Impact Section 2.1 Water Resources Land Resources Waste Disposal Noise Pollution Visual Pollution 9

Economics and the Impact of Tourism 10 Environmental Impact Tourism development can cause aesthetic pollution. aesthetic pollution the spoiling or contamination of the natural beauty and features of an environment due to poor planning and design of tourism projects Section 2.1

Economics and the Impact of Tourism 11 Environmental Impact Tourism can also affect an environment positively. Revenues generated from park entrance fees and similar sources can help pay for the protection and management of sensitive environments. Section 2.1

Cyclical Nature of Travel Section 2.1 Introduction 12 Growth Maturation Decline Sometimes Renewal

Economics and the Impact of Tourism 13 Cyclical Nature of Travel During the introduction stage of the destination life cycle, tourists begin to discover a new destination and word quickly spreads among the venturers of the world. venturers travelers who tend to be the first to discover a new, unspoiled destination Section 2.1

Economics and the Impact of Tourism 14 Cyclical Nature of Travel A destination in the mature stage of the life cycle is visited by dependables. dependables travelers who prefer familiarity and creature comforts and seldom try anything new or different Section 2.1

Economics and the Impact of Tourism 15 Continuing Hospitality & Tourism Influences Renewal and reinvestment can help prolong and continue the positive or negative effects of travel, tourism, and hospitality on destinations. Section 2.1

Economics and the Impact of Tourism 16 The Reasons for Travel The most common reasons for travel are: Section 2.2 Business commitments Family occasions Leisure Hospitality and tourism professionals study these reasons in order to adapt products and services to their customers’ needs.

Economics and the Impact of Tourism 17 Business Travel Business travel usually occurs during the week, not on the weekend, and can involve multiple destinations and methods of travel. business travel travel for the sole purpose of conducting an individual’s or company's business Section 2.2

Economics and the Impact of Tourism 18 Business Travel Challenges of business travel include: Section 2.2 Stress Time changes Long absences from home Language or cultural barriers

Economics and the Impact of Tourism 19 Business Travel Incentives for business travel include: Section 2.2 Frequent-flyer miles Travel in business or first class on airlines Favored treatment at car rental companies and hotels

Economics and the Impact of Tourism 20 Business Travel A branch of business travel is meeting and incentive travel. meeting and incentive travel business travel by employees to attend a business meeting or as a reward for having met or exceeded company goals Section 2.2

Economics and the Impact of Tourism 21 Business Travel A meeting planner has a variety of responsibilities: meeting planner a person who organizes and plans a meeting Section 2.2 Find a site for a meeting Make travel arrangements Coordinate meeting space, hotel rooms, and meals Schedule speakers and multimedia services Handle registration

Economics and the Impact of Tourism 22 Pleasure Travel When traveling for pleasure, some people engage in VFR travel. VFR travel travel for the purpose of visiting friends or relatives Section 2.2 The needs of people who engage in leisure travel can be more complex. leisure travel travel for the sole purpose of enjoyment