1. Tourism: Economy and Government

2. What Is Economics? Definition? How are economies judged? Why?
Strongest economies in the world?
Government impact?

3. Tourism Figures Gross Domestic Product 277+ million jobs (1 in 11)
10% globally
277+ million jobs (1 in 11)
Growing faster than the rest of the economy

4. Economics?
Science– wants vs. scarcity
Wants
Scarcity
Resources

5. Factors of Production Land— Rent Labor— Wage Capital— Interest
Entrepreneurship– Profit
Tourism– sells what it doesn’t own?

6. Demand Willingness and ability of buyers Shifting Demand
Elastic Demand
Inelastic Demand
Willingness and ability of buyers
Law of Demand
Shifting Demand
Income
Preferences
Prices of Related Goods

7. Supply Willingness and ability of sellers Shift in Supply Curves
Law of supply– not always true
Shift in Supply Curves
Prices
Technology
Taxes
Quotas
Elastic Supply
Inelastic Supply

8. Supply and Demand Land Costs/ Rents

9. Supply and Demand Everest
Government action?

10. Income Affects Tourism
Manifold increase in income in 100 years
Titanic first class: $3,000/ $127,000

11. Economic Leakages– High v. Low Options

12. Externalities

13. Government Influence Why tourism? Economic/ Environmental Impact
Paid holidays
England– Bank Holiday
France– 12 days paid vacation
Incentives
Grants and loans, low interest rates
Relaxed import duties
Tax breaks
Free Trade Zones (FTZs)
Boycotting travel-- protest

14. Examples
Malaysia
South Africa
China

15. Sources
Arnold, Roger A. Economics in Our Times. Revised ed. Cincinatti, OH: West Educational, Print.
Holden, Andrew. Environment and Tourism. Second ed. London: Routledge, Print. Routledge Introductions to Environment Ser.
McLaren, Deborah. Rethinking Tourism and Ecotravel. Bloomfield, CT: Kumarian, Print.