L13_Economic Impacts of Tourism

L13_Economic Impacts of Tourism - + Lecture 13 Economic...

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+ Lecture 13 Economic Impacts of Tourism THM1311 Introduction to Tourism and Hospitality
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+ Chapter 2 Tourism Impacts on the Economy Chapter Objectives 1. To understand the concept of economic impact on destination areas and how impacts are measured 1. To describe the strategies to maximize the economic impact of tourism
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+ World Travel & Tourism is expected to generate US$5,751 billion of economic activity in 2010, growing to US$11,151 billion by 2020.
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+ The Role of Tourism in Economic Development The increasing fascination with tourism worldwide in the past 40 years has been motivated largely by its potential economic benefits for communities of all sizes. Tourism is one of several alternative development options available to a destination area to promote economic growth and diversification.
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+ The Role of Tourism in Economic Development Tourism is a powerful economic force providing employment, foreign exchange earnings, tax revenue, etc. The economic impact of tourism spending is a function of the numbers of domestic and international visitors and their expenditures. New economic generator replacing declining activity in agriculture and manufacturing
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+ The Contributions and Native Effects of Tourism Positive Economic Impacts of Tourism Foreign exchange earnings Contribution to government revenues Employment generation Stimulation of infrastructure development Contribution to local economies Negative Economic Impacts of Tourism Leakage Enclave tourism (e.g., entire stay at the same cruise ship or resort) Infrastructure costs Increase in prices Seasonal character of jobs Economic dependence of the local community on tourism Other industry impacts affecting tourism
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Economic Impact 1: Increasing Foreign Exchange Earnings Leakage – the value of goods and services that must be imported to serve the needs of tourism. This money spent leaks from the destination’s economy and must be subtracted from foreign exchange earnings to determined the true impact. The extent to which a destination can minimize leakage will
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L13_Economic Impacts of Tourism - + Lecture 13 Economic...

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