GG294 – GEOGRAPHY OF TOURISM – MIDTERM 2 REVIEW

GG294 – GEOGRAPHY OF TOURISM – MIDTERM 2 REVIEW Lecture 12 –GG294 – GEOGRAPHY OF TOURISM – MIDTERM 2 REVIEW Lecture 12 – The Economic Impacts of Tourism  Why Study the Economic Impacts of Tourism? o Geography isn’t only about place, space, time and scale o Geography is about how a phenomenon impacts the physical, economic and social environments.  Economic Impacts in Tourism o Most widely researched area of tourism o Several economic/measurement models exist  Economic Impacts Influenced by Five Factors (Mathieson & Wall, 1982) 1) Type of tourist facility and attraction for tourists 2) Volume and level of tourist spending 3) Level of economic development in the region 4) Extent to which tourist spending is maintained and recirculated in the region 5) Extent of the seasonality in the region  But why join the Tourism business when… o No tangible product o Tourists require supporting goods and services o Tourism is fragmented o Elastic product o Perishable product o Subject to unpredictable external influences  Why Tourism? o It’s worth it!!! o Tourism industry generates economic benefits!  But these benefits are uneven o There are positive (gain/benefits) and negative (losses/costs) economic impacts  Tourism is Impacted by economic cycles: o Short – highly visible and predictable (if it is seasonally based) o Medium – over several years (events specific) o Long – 40-50 years – resort cycle of evolution  Economic Benefits of Tourism 1) Direct: a. Direct impacts are those arising from the initial tourism spending 2) Indirect: a. The restaurant buys goods and services (inputs) from other businesses, thereby generating indirect impacts. 3) Induced: a. In addition, the restaurant employees spend part of their wages to buy various goods and services, thereby generating induced impacts  Why Study the Economic Impacts of Tourism? o Geography isn’t only about place, space, time and scale o Geography is about how a phenomenon impacts the physical, economic and social environments.  Economic Impacts in Tourism o Most widely researched area of tourism o Several economic/measurement models exist  Economic Impacts Influenced by Five Factors (Mathieson & Wall, 1982) 1) Type of tourist facility and attraction for tourists 2) Volume and level of tourist spending 3) Level of economic development in the region 4) Extent to which tourist spending is maintained and recirculated in the region 5) Extent of the seasonality in the region  But why join the Tourism business when… o No tangible product o Tourists require supporting goods and services o Tourism is fragmented o Elastic product o Perishable product o Subject to unpredictable external influences  Why Tourism? o It’s worth it!!! o Tourism industry generates economic benefits!  But these benefits are uneven o There are positive (gain/benefits) and negative (losses/costs) economic impacts  Tourism is Impacted by economic cycles: o Short – highly visible and predictable (if it is seasonally based) o Medium – over several years (events specific) o Long – 40-50 years – resort cycle of evolution  Economic Benefits of Tourism 1) Direct: a. Direct impacts are those arising from the initial tourism spending 2) Indirect: a. The restaurant buys goods and services (inputs) from other businesses, thereby generating indirect impacts. 3) Induced: a. In addition, the restaurant employees spend part of their wages to buy various goods and services, thereby generating induced impacts