Week 9 Review

) Nuclei
– Main attraction
– Core, inviolate belt, contiguous (closure) zone
– Attraction
A i iinventory
The Impact of Tourism – Attraction mix and hierarchy
) Marker
– Items of information received by a tourist about
7209HSL Tourism Management nucleus of attraction

Week 9 Review ☺Must Know☺

) Attractions develop in identifiable phases
X The naming phase
X Framing and elevation phase ) Attractions comprise:
X Enshrinement phase 1. Tourist
X Duplication
up c o phase
p se
2. Nucleus
) Natural/Cultural Site/Event
3. Marker
) Attraction attributes
) Elements of success
) The future

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Lecture Format
) Economic Impacts
– Benefits
– Costs
) Social
i l andd Cultural
l l Impacts
– Benefits
Tourist Attractions – Costs

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7209HSL_Lecture Week 10_2011 1

 Impacts of Tourism
) Difficult to disentangle the effects of tourism from
the effects of human existence
) Open system – therefore tourism impacts on the
environment
) Impacts include:
– Economic Impacts
Economic Impacts
– Social & Cultural Impacts
– Environmental Impacts (physical environment)

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Economic Characteristics of
Economic Benefits
Tourism Industry
) Tourism is an invisible export 1. Revenue
) Tourism requires supporting goods and services 2. Employment
) Tourism is a fragmented product
3. Regional Development
) Tourism is a highly price and income elastic
product
) Tourism is a perishable product
) Tourism is subject to unpredictable external
influences

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Revenue (Earnings) Revenue (Earnings)

) Tourism stimulates economic activity in a destination and ) Income
increases the economic status of that country ) – GDP – Gross Domestic Product
) 2009; International Tourism generated $852b (UDS) in – Direct Revenue
export earnings X Departure taxes
) Balance of Payments
y X Bed sales and bed taxes
– Injection of Foreign Exchange into the economy X Visas
– Record of all imports and exports X Entry charges (e.g. national parks)
– Amt spend by OS visitors to your country vs. the amt spent by X Number of visitors/ Length of stay/ expenditure per day
your residents OS
– Indirect Revenue
– Tourism can improve BoP by bringing in foreign currency to the
local economy X Multiplier Effect
X How much income or employment is generated by tourism
spending

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7209HSL_Lecture Week 10_2011 2

 Tourism employment Regional Development
) Tourism Employment ) Suitability of certain types of tourism to
– Worldwide in 2009 = 2.36 Million (full – time areas where economic options are limited or
equivalents) in decline
– Highly numbers of casual and part time – 3S tourism
t i
– employees in the workforce – Vacation farms
– Often unskilled or low skills – Nature-based & cultural tourism
– Often in the informal sector – Casinos

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Economic Costs Economic Costs

1. Inflation 4. Seasonality
– Inflationary effect on local community – land, property and goods
5. Income and employment
2. Opportunity cost
– Forgo
g effort, time and expenditure
p into other industries
– Less prestigious jobs to local
– Tourism competes for resources with other industries 6. Leakage
3. Dependency – Foreign exchange generated by tourism activity
– Heavy reliance on a single industry may not actually benefit the economy of the
– Concentration index =
destination
– Tourist arrivals from primary markets x 100
All tourist arrivals

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The Economic impact of tourism in a locality and leakage effect

Economic Costs - Leakages

) Leakage
– Foreign exchange generated by tourism activity may
not actually benefit the economy of the
destination

– Multinational corporations (MNCs) control

accommodation, travel and tour organizations
etc. and therefore gain much of the foreign
investment

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7209HSL_Lecture Week 10_2011 3

 Economic Costs - Leakages
) Leakage occurs through:
– Repatriation of profits generated from foreign capital
investment
– Not sourcing services and foods locally
– Payment for holidays made in the generating country
– Ownership of transport (eg: national airline) and other Social & Cultural Impacts
sectors (eg: accommodation)

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Social & Cultural impacts Social & Cultural Benefits

) Two main arguments: 1. Promotion of cross-cultural understanding
1. Tourism results in the transformation of cultural events – Belief that personal contacts between tourists
into commercialized products or spectacles which are
and residents help to combat stereotypes
devoid of all meaning. Culture may be trivialized by
t i in
tourism i an attempts
tt t to
t makek it a product
d t for
f ttourists
it – View that tourism functions as a force for
to consume – cultural commodification world peace
2. Tourism results in the preservation and revitalization of
traditional cultural practices by providing financial
support and engendering community pride. This is seen
as positively contributing to the goals of sustainable
tourism

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Social & Cultural Benefits Social & Cultural Benefits

2. Incentive to preserve culture and heritage
– Tourism stimulates the preservation or
restoration of historic buildings and sites (‘pull
factor )
factor’)
– appreciation of their own heritage
– preservation or revitalization of ceremonies or
traditions
3. Fostering of social wellbeing and stability
– Tourism promotes economic development =
increased political stability & prosperity of a
destination
– Need to maintain tourist arrivals provides an
incentive for the host community to minimize
crime & offer other services (e.g. police, health
care)
X residents also benefit from these measures

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7209HSL_Lecture Week 10_2011 4

 Social & Cultural Costs Social & Cultural Costs
1. Commodification ) Frontstage and backstage
– The authentic culture is initially shared with – Host community recognizes areas within the destination
that are for tourism purposes and places where they
tourists and gradually becomes more
perform authentic cultural performances away from the
commercialized and contrived over time t it
tourists
– Includes: ) Servility Theory
X Frontstage & backstage – Involves the presentation and exploitation of the people
X Servility theory themselves as a commodity, as demonstrated in
X Prostitution advertisements and imagery that degrade and stereotype
local people

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Social & Cultural Costs Social & Cultural Costs

) Prostitution 2. The Demonstration effect
– Sociocultural stereotypes and sexual imagery are – Local people try to imitate tourist lifestyles
frequently used because of their effectiveness in selling
an attractive destination image to certain tourist market – Locals may resort to crime to achieve this
segments.
t lifestyle

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FACTORS WHICH MAKE TOURISTS POTENTIAL

Social & Cultural Costs CRIME TARGETS

3. Crime
– Tourism lends itself to being a ‘scapegoat’ for
other ills in society, since the tourism crimes
are highly publicised
– Tourism growth is usually accompanied by
growth in residential population; hence,
increases in crime may simply reflect the
increases in population

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7209HSL_Lecture Week 10_2011 5

 Issues Exacerbating Costs Issues Exacerbating Costs
) Extensive inequality in wealth between ) High proportion of tourists relative to the
tourists & residents local population
) Cultural and behavioural differences ) Rapid growth of tourism
b t
between t i t andd residents
tourists id t ) Dependency of the local economy on
) Overly intrusive or exclusive contact tourism
– Doxey’s Irridex ) Different expectations with respect to
– Paradox of Resentment authenticity
X Local annoyed at tourists whether dispersed or
concentrated (enclaves)
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Summary
Tutorial Week 11
) Economic Benefits
– Revenue; Employment; Regional Development
) Economic Costs
– Inflation; opportunity cost; dependency; seasonality;
Case Study:
income & employment; leakages
Lo Cost Carriers
Low
) Social & Cultural Benefits
– Promotion of cross-cultural understanding; Incentive to
preserve culture and heritage; Fostering of social
wellbeing and stability
) Social and Cultural Costs
– Commodification, the Demonstration effect; crime
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