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Economic Imapacts Of Tourism

A Seminar on

ECONOMIC IMPACTS OF TOURISM

PRESENTED IN THE SECOND REFRESHER COURSE
IN MANAGEMENT

AT

UGC Academic staff College
Osmania University, Hyderabad

By

Fr. Roy Abraham P
Lecturer in Management
Marian College Kuttikkanam
Kerala, 685531, India

Contents

ECONOMIC IMPACTS OF TOURISM

A. INTRODUCTION

B. NEGATIVE ECONOMIC IMPACTS OF TOURISM

i. LEAKAGE

a. Import leakage

b. Export leakage

ii. ENCLAVE TOURISM

iii. OTHER NEGATIVE IMPACTS

a. Infrastructure cost
b. Increase in prices
c. Heavy dependence on tourism by large population
d. Seasonal character of jobs

IV. OTHER INDUSTRY IMPACTS AFFECTING TOURISM

C. POSITIVE ECONOMIC IMPACTS OF TOURSIM

i. Foreign exchange earnings
ii. Contribution to government revenues
iii. Employment generation
iv. Stimulation of infrastructure investment and improvements in the quality of life of residents
Vi Contribution to local economies
vii. Income for the people of lower economic strata.
D. KEY ISSUES IN TOURISM PROJECTS
E. SUGGESTIONS AND CONCLUSION

ECONOMIC IMPACTS OF TOURISM

A. INTRODUCTION

Tourism is frequently cited as the world’s fastest growing economic sector, currently the world’s largest employer and soon to be the world’s largest industry. The tourism industry generates substantial economic benefits to both host countries and tourists' home countries. Especially in developing countries, one of the primary motivations for a region to promote itself as a tourism destination is the expected economic improvement. As many developing countries have a comparative advantage in forms of tourism which value a wide range of unspoiled natural environments, tourism is promoted for its potential revenue benefits and as a means of attracting foreign direct investment. In some developing countries, especially small island states, it is now the dominant economic sector. However, the economic impact of tourism varies enormously. As with...