Download
1 / 12
120 likes | 209 Views
Is Tourism good for Development?. Why have LEDC’s become popular?. How has this become possible?. Leakage. In most all-inclusive package tours, about 80% of travellers' expenditures go to the airlines, hotels and other international companies, and not to local businesses or workers.
E N D
Leakage • In most all-inclusive package tours, about 80% of travellers' expenditures go to the airlines, hotels and other international companies, and not to local businesses or workers. • Estimates for LEDW - 80% in the Caribbean, 70% in Thailand & 40% in India.
Leakage Import leakage • LEDW - food and drinks often imported - local products often not up to the hotel's (i.e. tourist's) standards or the country simply doesn't have a supplying industry eg Scotch whiskey. • Average import-related leakage - 40-50% of gross tourism earnings for small economies and between 10% and 20% for most advanced and diversified economies. Export leakage • TNC's significant in export leakage. • Have necessary capital to invest in the construction of tourism infrastructure and facilities.
"all-inclusive" • All-inclusive - largest amount of revenue but smaller impact on economy per dollar of revenue than other accommodation types. • All-inclusives also import more and employ fewer people per dollar of revenue than other hotels. • Non-river cruises carried some 8.7 million international passengers in 1999. • Guests encouraged to spend most of their time and money on board, and opportunities to spend in some ports are closely managed and restricted. • Smaller trickle-down effect on local economies.
Dependence economies • Diversificationin an economy is a sign of health. • Gambia - 30% of the workforce depends directly or indirectly on tourism. • In small island developing states, percentages can range from 83% in the Maldives to 21% in the Seychelles and 34% in Jamaica. • Over-reliance on tourism carries risks to tourism-dependent economies.Economic recession, the impacts ofnatural disasterssuch as tropical storms andchanging tourism patternscan all have a devastating effect.
Foreign exchange earnings • An important indicator of the role of international tourism is its generation of foreign exchange earnings. • Tourism can generate income forinfrastructural improvementssuch as better water and sewage systems, roads, electricity, telephone and public transport networks • Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.
Contribution to government revenues • Direct contributions - taxes on incomes from tourism employment & businesses and by direct levies on tourists such as departure taxes. • Indirect contributions come from taxes and duties levied on goods and services supplied to tourists. • The WTO estimate - worldwide contribution was over US$ 800 billion in 1998 - a figure it expects to double by 2010.
Employment generation • Thehotelaccommodation sector alone provided around11.3 million jobsworldwide in 1995. • Tourism can generate jobsdirectlythrough hotels, restaurants, nightclubs, taxis, and souvenir sales, andindirectlythrough the supply of goods and services needed by tourism-related businesses. • Tourism supports some7%of the world's workers.
A sustainable future from tourism? Make note of the following: • Background of an LEDC. • Facts & figures about tourism. • How does the organisation of tourism (typical of an LEDC) result in costs outweighing benefits? • Economic (leakage, cruises, all inclusive, employment). • Social (cultural dilution, demonstration effect). • Environmental. • Political.
