economic impacts of tourism
Tourism can have a wide range of impacts, and as an extremely large export industry, the impacts that it can have on the economy are quite substantial. The economic impacts that tourism can be positive or negative as outlined in table 6 and table 7 below.
Types of economic impacts:
The economic impacts of tourism are quite vast, and for this reason, they can be categorized into two different categories of impacts of tourism. These categories are primary and secondary impacts. Primary impacts can be described as the direct consequences of tourist spending, for example, souvenirs purchased by a tourist. Alternatively, secondary impacts of tourism can be divided into two categories; firstly there are indirect impacts that are the impacts that are generated from the re-spending of tourist generated revenue through local business transactions. An example of this may be a hotel paying a contractor to repair the televisions in the rooms. The second type of secondary economic impact of tourism is induced impacts that can be described as the additional income generated from further consumer spending of the initial tourist spending. For example, the repairman buying a new refrigerator from the money he made repairing televisions at the hotel.
Multipliers:
A tourism multiplier can be described as a coefficient of how much income is generated in an area by one additional unit of spending, that is, a measure of the total effects that result from the additional spending of tourists (Archer, 1982). While this value can sometimes be deceiving, this numerical value can be used by local governments to help establish how effectively the tourist dollar is benefiting the region and how much additional income is being generated by an addition unit of tourist spending.
The economic impacts of tourism are quite vast, and for this reason, they can be categorized into two different categories of impacts of tourism. These categories are primary and secondary impacts. Primary impacts can be described as the direct consequences of tourist spending, for example, souvenirs purchased by a tourist. Alternatively, secondary impacts of tourism can be divided into two categories; firstly there are indirect impacts that are the impacts that are generated from the re-spending of tourist generated revenue through local business transactions. An example of this may be a hotel paying a contractor to repair the televisions in the rooms. The second type of secondary economic impact of tourism is induced impacts that can be described as the additional income generated from further consumer spending of the initial tourist spending. For example, the repairman buying a new refrigerator from the money he made repairing televisions at the hotel.
Multipliers:
A tourism multiplier can be described as a coefficient of how much income is generated in an area by one additional unit of spending, that is, a measure of the total effects that result from the additional spending of tourists (Archer, 1982). While this value can sometimes be deceiving, this numerical value can be used by local governments to help establish how effectively the tourist dollar is benefiting the region and how much additional income is being generated by an addition unit of tourist spending.
example
After visiting the Gold Coast earlier this year, I have become aware of the huge economic impact tourism can have on an area. For example, the sheer number of souvenir shops astounded me, yet it is clear that all of these shops survive merely because of tourism and the main benefit resulting from this is all of the employment and jobs that so many shops can offer.