TOURISM CONTEXT NOTES
TOCO
CHRISTOPHER FILIPPOU
APRIL-MAY 2021
, CHRISTOPHER FILIPPOU
Table of Contents
Economic Impacts ................................................................................................................................... 3
Social and cultural impacts ..................................................................................................................... 9
Environmental Impacts ......................................................................................................................... 14
The challenge of sustainability.............................................................................................................. 18
Concept List........................................................................................................................................... 26
P for Planet........................................................................................................................................ 27
P for Profit ......................................................................................................................................... 29
P for People ....................................................................................................................................... 31
Cultural awareness................................................................................................................................ 35
2
, CHRISTOPHER FILIPPOU
Economic Impacts
Chapter 16
Justification: tourism development focuses on the potential for positive economic impacts and
tourism has flourished across the world because of its perceived benefit (world’s largest industry).
Tourism generates:
• 9,1% of gross domestic product.
• 254 – 260 million jobs.
• 8% of total employment.
Economic impacts of tourism are influenced by:
• The type of tourism facility and attraction.
• The volume and level of tourist spending.
• The level of economic development in the region.
• The extent to which tourist spending is maintained.
• The extent of seasonality.
These factors determine whether the economic impacts are positive or negative.
Economics: is the study of methods of allocating scarce resources and distributing the product of
those resources, and the study of the consequences of these methods of allocation and distribution.
Economics (2): is a social science concerned with the production, distribution, and consumption of
goods and services. It studies how individuals, businesses, governments, and nations make choices
about how to allocate resources.
Resources in terms of:
• Natural resources (land).
• Labour (human resources).
• Capital.
To produce commodities, which can be divided into:
• Goods (tangible products)
• Services (intangible items)
Microeconomics: the study of individual decisions and the interactions of the decisions.
consumers' decisions on what to buy.
firms’ decisions on what to produce.
3
, CHRISTOPHER FILIPPOU
Concern Issues:
• The firm
• The consumer
• Production and selling
• The demand for goods
• The supply of goods
Macroeconomics: the entire economy and the interactions within it (population, income, total
unemployment, the average rate of price increases (inflation rate), etc.
Concern issues:
• How the national economy operates.
• Employment and unemployment
• Inflation (rise in prices)
• National production and consumption
• The money supply in a country
Demand:
Economists have examined the demand for travel and tourist products as the effective demand for
goods or services. The income has an important effect on tourism demand, and it is known as
elasticity of demand.
Elasticity of demand: percentage change in tourism demand
percentage change in disposal income
The demand for luxury items (holiday, pleasure travel) is variable or elastic. Fluctuations in demand
due to income or price.
Price elasticity: to assess the impact of price on the demand. The greater the price, the less the
demand due to limited disposable income.
Price elasticity: percentage change in the quantity of tourism products demanded
percentage change in the tourism product price
Cross-elasticity: needs to be considered as destinations tend to be considered substitutes when they
are in a similar area or offer a similar product.
4
TOCO
CHRISTOPHER FILIPPOU
APRIL-MAY 2021
, CHRISTOPHER FILIPPOU
Table of Contents
Economic Impacts ................................................................................................................................... 3
Social and cultural impacts ..................................................................................................................... 9
Environmental Impacts ......................................................................................................................... 14
The challenge of sustainability.............................................................................................................. 18
Concept List........................................................................................................................................... 26
P for Planet........................................................................................................................................ 27
P for Profit ......................................................................................................................................... 29
P for People ....................................................................................................................................... 31
Cultural awareness................................................................................................................................ 35
2
, CHRISTOPHER FILIPPOU
Economic Impacts
Chapter 16
Justification: tourism development focuses on the potential for positive economic impacts and
tourism has flourished across the world because of its perceived benefit (world’s largest industry).
Tourism generates:
• 9,1% of gross domestic product.
• 254 – 260 million jobs.
• 8% of total employment.
Economic impacts of tourism are influenced by:
• The type of tourism facility and attraction.
• The volume and level of tourist spending.
• The level of economic development in the region.
• The extent to which tourist spending is maintained.
• The extent of seasonality.
These factors determine whether the economic impacts are positive or negative.
Economics: is the study of methods of allocating scarce resources and distributing the product of
those resources, and the study of the consequences of these methods of allocation and distribution.
Economics (2): is a social science concerned with the production, distribution, and consumption of
goods and services. It studies how individuals, businesses, governments, and nations make choices
about how to allocate resources.
Resources in terms of:
• Natural resources (land).
• Labour (human resources).
• Capital.
To produce commodities, which can be divided into:
• Goods (tangible products)
• Services (intangible items)
Microeconomics: the study of individual decisions and the interactions of the decisions.
consumers' decisions on what to buy.
firms’ decisions on what to produce.
3
, CHRISTOPHER FILIPPOU
Concern Issues:
• The firm
• The consumer
• Production and selling
• The demand for goods
• The supply of goods
Macroeconomics: the entire economy and the interactions within it (population, income, total
unemployment, the average rate of price increases (inflation rate), etc.
Concern issues:
• How the national economy operates.
• Employment and unemployment
• Inflation (rise in prices)
• National production and consumption
• The money supply in a country
Demand:
Economists have examined the demand for travel and tourist products as the effective demand for
goods or services. The income has an important effect on tourism demand, and it is known as
elasticity of demand.
Elasticity of demand: percentage change in tourism demand
percentage change in disposal income
The demand for luxury items (holiday, pleasure travel) is variable or elastic. Fluctuations in demand
due to income or price.
Price elasticity: to assess the impact of price on the demand. The greater the price, the less the
demand due to limited disposable income.
Price elasticity: percentage change in the quantity of tourism products demanded
percentage change in the tourism product price
Cross-elasticity: needs to be considered as destinations tend to be considered substitutes when they
are in a similar area or offer a similar product.
4
