CHAPTER 2: ECONOMICS AND THE IMPACT OF

TOURISM

Mr. Lamberti

I. EFFECTS OF HOSPITALITY AND

TOURISM• ECONOMIC EFFECTS OF TOURISM CAN

SUPPORT AN ENTIRE REGION.

• TOURISM EFFECTS SOCIAL AND CULTURAL ENVIRONMENTS AROUND THE WORLD

• ENVIRONMENTAL EFFECTS HAVE BECOME A MAJOR ISSUE WITH TOURISM TODAY.

II. ECONOMIC IMPACT

• PEOPLE’S DESIRE TO TRAVEL AND EXPLORE THE WORLD STIMULATES THE ECONOMIES OF DESTINATION!!!

• THE ECONOMIES ARE IMPACTED IN A VARIETY OF WAYS:

A. ONGOING ECONOMIC IMPACT

NEW BUSINESSES REQUIRE EMPLOYEES AND FOOD AND BEVERAGE SUPPLIERS.

LOCAL AND FEDERAL TAX REVENUE MAY BE USED TO FUND OTHER LOCAL, REGIONAL AND STATE PROGRAMS

B. ECONOMIC MULTIPLIER-

HOW MONEY FILTERS THROUGH THE ECONOMY

1. TOURISTS SPEND MONEY ON HOTELS,

RESTURAUNTS, ATTRACTIONS, AIRLINES ETC.

1. MONEY FROM BUSINESS GOES TO WAGES, OPERATING EXPENSES, AND PURCHASING FOOD AND BEVERAGES

3. EMPLOYEES SPEND THOSE

WAGES BACK INTO ECONOMY

C. LEAKAGE-

TOURISTS DOLLARS SPENT ON IMPORTED PRODUCTS (DIRECTLY/INDIRECTLY)

D. EMPLOYMENT

NEXT TO FEDERAL GOV. H&T ARE LARGEST EMPLOYERS IN THE WORLD.

INCOME ON TRAVEL=7.2 MILLION U.S. JOBS AND OVER $545 B IN TRAVEL

III. GLOBALIZATION AND TOURISM

• IN PAST 50 YEARS TOURISM HAS BECOME MUCH MORE GLOBAL. THE ECONOMIC IMPORTANCE OF H&T IS UNDENIABLE

• BUSINESS AND GOVERNMENT MUST WORK TOGETHER TO CREATE SUSTAINABLE TOURISM WHICH SUPPORTS BOTH LOCAL RESIDENTS AND TOURISTS

IV. SOCIAL AND CULTURAL IMPACT

• IN THE BUSINESS OF H&T THE PRODUCTS ARE THE PLACES PEOPLE VISIT AND RESOURCES AVAILABE TO THEM.

• FAILURE TO PROTECT THE SOCIAL CUSTOMS AND TRADITIONS CAN DESTROY THE APPEAL OF THE PLACE

A. TRADING CULTURAL INFLUENCES

WHEN PEOPLE TRAVEL THEY TAKE THEIR DRESS, BELIEFS, AND BEHAVIOR WITH THEM TO MESH IN WITH THE CULTURES THEY ARE VISITING

B. CULTURAL REVIVAL-

TRAVELRS HAVE DESIRE TO SEE TRADITIONAL CULTURES AND EXPERIENCE ANCIENT CUSTOMS. THIS HAS BROUGHT PRIDE TO VARIOUS CULTURAL TRADITIONS

C. NEGATIVE CULTURAL INFLUENCES-

WEALTHY TRAVELS CAN HAVE A NEGATIVE EFFECT ON POOR AND UNDERDEVELOPED AREAS RESULTING IN CRIME IN COMMUNITY

V. ENVIRONMENTAL IMPACT

• ENVIRONMENT ISSUES IN H&T HAVE BECOME GREAT CONCERNS

• USE OF ENERGY, RAW MATERIALS AND WATER TO BUILD HOTELS, ATTRACTIONS, NEW HIGHWAYS AND TRANSPORTATION CAN DRAIN NATURAL RESOURCES OF A DESTINATION.

A. WATER RESOURCES-

LARGE RESORTS, SPAS AND WATER PARKS CAN LEAD TO WATER SHORTAGES

B. LAND AND AIR RESOURCES-

-AIR POLLUTION

-WETLANDS

-NATURAL HABITIATS

C. WASTE DISPOSAL-

-SEWAGE RUN OFF

-CRUISES-82,000 TONS OF GARBAGE

-WASTE WATER

D. NOISE POLLUTION-

-REC VEHICLES

-BOATS/JET SKIS

MOVE OFF WILDLIFE AND LOCALS

E. VISUAL POLLUTION-

SPOILING OR CONTAMINATION OF

NATURAL BEAUTY AND FEATURES

OF THE ENVIRONMENT

VI. CYCLICAL NATURE OF TRAVEL

• EVERY DESTINATION HAS A LIFE CYCLE:

A. INTRODUCTION AND GROWTH

DESTINATIONS ARE DISCOVERED AND TALKED ABOUT ADDING IN MORE $ AND GROWTH TO THE AREA AND BETTER FACILITIES

B. MATURATION AND DECLINE-

MOST DESTINATIONS WILL HIT A PLATEAU WHERE THEY ARE PROSPEROUS AND HAVE REGULARS

BUT IF NEW DEVELOPMENT IS NOT ADDED THEY WILL EXPERIENCE A DECLINE

C. RENEWAL-

COMPETITION IN H&T IS FIERCE THEREFORE DESTINATIONS NEED TO BE CONSTANTLY UPDATING AND IMPROVING

VII. REASONS FOR TRAVEL

• PEOPLE TRAVEL FOR MANY REASONS…BUSINESS, FAMILY, PERSONAL, AND LEISURE

A. BUSINESS TRAVEL

SOLE PURPOSE IS CONDUCTING BUSINESS

THINGS TO CONSIDER FOR BUSINESS TRAVEL:

-BUSINESS NEEDS

-BUSINESS CHALLENGES

-BUSINESS INCENTIVES

-MEETINGS AND CONFERENCES

B. PLEASURE TRAVEL

THIS IS ALSO CALLED VFR (VISITING FRIENDS AND RELATIVES)

PURPOSE OF TRAVEL IS OBVIOUS AND LIMITED BY BUDGETS AND FREE TIME

C. PURE LEISURE

MASLOW’S HIERCHARY:

SELF-ACTUALIZATION

SELF-ESTEEM

RECOGNITION

SAFTEY

PSYCHOLOGICAL