Ciencias Sociales

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Universidad del Este

School of Professional Technical Studies

Class 3 Impacts of tourism

The role of tourism in economic development

Tourism has become one of the sources of income most important of modern times. In developed countries are three outlined arguments for that to happen. First, the demand for international travel has increased. Specifically to Europe, NorthAmerica, and Asia. Second to the extent that increase revenues from tourism income per capita rises. And third countries need income from abroad to move its own economy and to justify the increase in its own population. When the tourism industry when compared with others such as agriculture, mining and deforestation we realize that price controls which sold more that than buy. According to theOrganization for economic cooperation and development (OECD) tourism provides the best opportunities for growth in a developing economy.

The economic impact of tourism

Tourism impacts basically three areas:

It increases the foreign exchange earnings

Many countries forced tourists to spend X amount of money daily, while in others the leakage, that is when the money leaves of the hands of thedestination. Ex. In Australia the Japanese are the tourists that most spend, however, not necessarily that more money accrue you to Australia because all expenses do Japanese companies. As Agency travel, hotels, restaurants, etc. This type of leakage occurs at least in 6 factors.

1. for the purchase of goods and services to be done to satisfy a demand X
2. for the purchase of raw materials forinfrastructure
3. by the commissions that sometimes pay to attract some tourists
4. in expenditure on promotion, advertising and public relations that is invested to attract that client
5. by buying that sometimes make the tourists in their own country for services they can offer at the destination
6. purchases with credit card and traveler’s checks

It increases revenue

There are two waysto determine the income:

The ad hoc or simple multiplier - includes three types of income: direct, such as accommodation, food, drink, entertainment, clothing, pictures, tours; indirect, such as wages, tips, commissions, water, light, and indirect, such as gardeners, electricians, plumbers, clerks, makers of signs, in short everything that somehow benefited from tourists.

The input-Outputanalysis –It's seen how sales increase in a period determined by the increase of tourists. Ex. How rum is sold in PR from November to February (high season) vs. low season.

It increases employment

There are direct jobs such as employees of hotels, restaurants, tour guides and the indirect ones such as construction, agriculture, manufacturing jobs.

The employment/output ratio = number ofworkers employed divided by the contribution of tourism to the national income.

More tourism, more infrastructure, more jobs

Cost/benefit is a technique used to determine which is the sector that produces more benefit in terms of foreign exchange, employment, income. It refers to all that benefit generated vs the inverted cost.

The maximization of impact of tourism

The key to maximizethe impact of the tourism in the economy is a question of increasing the currencies, the income, work places. How?

Creating incentive programs in the industry either seeing how it went in other countries, to evaluate the needs of potential investors, designing keys of investment and setting targets to
tracking.
The multinationals sometimes turn into negative impact, because they bring their ownpeople and rules.

The social impact or cultural can be positive or negative depending on the destination and of the traveller. (Ex. The CUNA indians of Panama)

The environmental impact

negative - change in land use (Paseo Caribe), congestion of vehicles and people, environmental pollution, deterioration of the natural sites

Positive - the protection of endangered species for...