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13.3 - The development of international tourism - content
13.3 - The development of international tourism - content
Reasons for, and trends in, the growth of international tourism.
The impacts of tourism on the environments, societies and economies (local and national) of tourist destinations.
Carrying capacity and the tourism multiplier effect.
Recent developments in different types of tourism (including ecotourism).
Candidates should be able to critically evaluate the life cycle model of tourism.
Global Interdependence - 13.3 The development of international tourism.pptxThe Multiplier Effect (Tourism)
The Multiplier Effect (Tourism)
Tourism not only creates jobs in the tertiary sector, it also encourages growth in the primary and secondary sectors of industry. This is known as the multiplier effect which in its simplest form is how many times money spent by a tourist circulates through an areas (or country's) economy.
Money spent in a hotel helps to create jobs directly in the hotel, but it also creates jobs indirectly elsewhere in the economy. The hotel, for example, has to buy food from local farmers, who may spend some of this money on fertiliser or clothes. The demand for local products increases as tourists often buy souvenirs, which increases secondary employment.
The multiplier effect continues until the money eventually 'leaks' from the economy through imports - the purchase of goods from other countries.
Leakage
Leakage
A study of tourism 'leakage' in Thailand estimated that 70% of all money spent by tourists ended up leaving Thailand (via foreign-owned tour operators, airlines, hotels, imported drinks and food, etc.). Estimates for some L/MICs range from 80% in the Caribbean to 40% in India.
Reasons for the Growth of Tourism
Reasons for the Growth of Tourism
A greater amount of paid holidays
HICs, and most MICs have increased the number of holidays a person can expect to receive by law. A hundred years ago a person would be lucky to receive one day for a summer holiday - even luckier - to have this as a paid holiday. Today, as a result of stronger economies, unions and changes in society people can expect to receive a minimum four weeks paid holiday across much of the world. As people have more time there is a greater chance that they will use some of that time in the tourism industry. The likelihood that they will go on holiday is generally proportionate to income.
Globalisation
It now takes just 24 hours to reach countries on the other side of the world, and the cost of flights, with budget airlines such as Air Asia and Ryanair, has reduced considerably. National, and international, motorway network has increased the ease and speed with which regional travel can occur too. Thirty years ago, Cairns (North East Australia) was a small seaside town. Today it is a major city and international tourist destination. This can be attributed in part to the building of an airport.
The more the transport network develops and the cost of fuel drops (fuel costs have generally decreased relative to inflation and wage growth) the more affordable it becomes to be a tourist. This is one driver of the growth in tourism.
Development
Tourists spend money, this generates revenue for Governments and provides employment, foreign currency earnings and a more diversified the economy. Governments of countries at all levels of development are keen to maximise the potential of tourism, and so many invest considerable time, effort and finances to encourage tourism.
In the UK, most major cities have looked to tourism as a tool of regeneration. In Bristol, GBP98 million has been spent regenerating the harbour-side to provide a range of tourist attractions including a new IMAX cinema and hands-on science museum.
In Zimbabwe, Operation Campfire sells hunting licenses to tourists to control animal populations and uses the profits to build schools and hospitals for the rural population. The growth of tourism in the LICs is a very significant part of the world market.
Aging populations
The numbers of retired people in the HICs is higher than ever before. They often have disposable income and are living longer with a greater healthy life expectancy (HALE). Early retirement, pensions and better health care has meant that the "grey dollar" is a very important influence in the growth of tourism. The nature of the activities older tourist engage in has also changed. AJ Hackett (the first company to run a commercial bungee jump operation) lets pensioners jump for free!
Society & income
After World War II many people realised there was more to life than work. Many men had been stationed overseas and came back with experiences of new places, culture and cuisine. Women had worked in traditionally 'male jobs' and society changed forever. The additional income generated by working women increased a typical family's income, thereby making foreign holidays more affordable. People in HICs and many upper MICs now consider a holiday as an essential, not a luxury. As wages have grown prices are comparatively cheaper. Consequently, many people have a greater disposable income than ever before. The reduction in air-fares, in part due to larger, wide-bodied aircraft, and cheaper package holidays have also had a considerable impact.
Communication and technology
The communications revolution has had a major impact on tourism. Not only can tourists now easily apply for visas for travel to many countries online but companies like Air B'n'B, Expedia, and Trip Advisor make arranging holidays considerably easier. Tourists can view hotel facilities online, check reviews of a venue and compare prices all on their phone or computer. This is also typically faster and cheaper than using a traditional travel agent. Technology and the growth of internet banking, in addition to the advent of companies like Revolut, have made currency exchange considerably easier.
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