Economic
Tourism expenditures generate income to the host economy by exporting and importing all related goods and services.
Foreign Exchange Earnings
Tourists appreciating the culture of a host community gives the residents a renewed sense of pride.
Renewal of Cultural Pride
Tourism can encourage local environmental awareness, especially in places where the residents have limited interest and concern about the natural environment and its conservation.
Increased Environmental Awareness
how many times money spent by a tourist circulates through a country’s economy
tourism multiplier effect
The act of money leaving the host country and ending up elsewhere (Stainton, 2020). The indirect and induced impacts of the first round of transactions lead to second-round effects, and so on.
Economic leakage
It refers to the cost of engaging in tourism instead of other forms of economic activity.
Opportunity Costs
This impact results when there are visible differences between tourists and residents. It is common in many developing countries where behavioral changes occur in the resident population by simply observing tourists.
Demonstration Effect
Tourism can help clean the environment by controlling air, water, and noise pollution, littering, and other environmental problems.
Improvement of Environmental Quality
The impact on the economy from tourism spending is experienced either...
directly, indirectly, or induced
The resources collected by the government through direct (paid by individuals) and indirect taxes leave circulation, reducing the purchasing power of individuals and businesses.
Taxes
Opportunity costs result in overdependence on tourism. Some countries become so dependent on tourism revenue that any change in demand will lead to a major economic crisis.
Tourism Overdependence
Concerned with studying the impacts of tourism on the people in groups, including the residents of tourism areas usually referred to as hosts and the tourist themselves.
social impact aspect of tourism
Overuse of the natural environment by tourists can lead to ecological damage.
Ecological Disruption
Effects of this revenue are experienced by the providers of tourist goods and services, generating income for various economic agents and directly increasing a country’s gross domestic product (GDP).
direct
Part of the income of workers and business owners is saved and is not used to consume goods and services. This money leaving circulation decreases the induced effects of tourism spending.
Savings
Defined as the process or system by which goods and services are produced, sold, and bought in a country or region
Economy
Concerned with the impacts of tourism on the culture of the host population and the culture of visitors themselves
cultural impact aspect of tourism
a mutual dependence between tourism and the environment
symbiotic
For example, a hotel employee who spends part of their salary paying for their children’s school fees generates income for the economic agents involved in the educational activity.
induced
a portion of companies’ and individuals’ expenditures is allocated for purchasing imported goods and services.
Imports
The number of times money spent by tourists circulates through a country’s economy
Multiplier effect
Occurs when two(2) cultures come in contact for any length of time and an exchange of ideas and products take place, that through time, it produces various levels of convergence between the cultures that they become similar.
Acculturation
five (5) aspects of the environment
natural environment, wildlife, farmed environment, built environment, natural resources
The multiplier effect is a concept in economics introduced by?
British economist John Maynard Keynes
Due to the international nature of the tourism industry, along with the world becoming increasingly globalized and monopolized by the...
multinational corporations (MNCs)