Name:___________________________________
Mr. Nero – CGG3O1
Economics of Tourism
The Economic Value of Tourism
 Direct Impacts:
o Tourist $ spent on easily identifiable transactions, with _________________
economic benefits.
 Ex. _________________________________, food, and souvenirs

Indirect Impacts:
o ________________________ transactions that are made as a result of
tourism; less easy to identify.
 Ex. Transportation, ____________, ___________________________
Foreign Investment and Leakages
 Many smaller, poorer countries simply do not have enough $ (________________)
to build _______________________________ on their own; therefore, to spur tourism
and _______________________, they encourage multinational corporations, eg. Club
Med, to build resorts.
 Problem?
o Superstructure: including hotels, places for entertainment, shopping
centres, and restaurants.
 With luck, the destination remains ________________ with tourists
long enough for these ___________________________________ and for
the destination to show a _________________.
 During the period of decline, there is little ______________________
and the existing facilities ____________ – making them even less
________________________ to tourists.
Success Factors
 Unfortunately, despite local enthusiasm, some places are still not able to
establish __________________________ industries.
 The key factors to a successful tourism region are:
Appropriate physical
environment
Supportive
Government
Efficient Transportation
Tourism
Success Factors
Nearby source of tourists
Strong Marketing
Effective Developers &
Entrepreneurs
Ample Capital
Skilled Workers
Broad Public Support
Name:___________________________________
Mr. Nero – CGG3O1
Economic Dependence on Tourism
Travel and Tourism Industry as a Percent of GDP, 2000
Top 15 countries with the highest %
Top 15 countries with the highest
of their GDP tied to tourism
total earnings from travel and
tourism
Rank
Country
% of GDP Rank
Country
% of GDP
1
Maldives
37.3
30
Spain
7.6
2
British Virgin Is.
34.6
52
United States
5.1
3
Anguilla
32.5
53
Austria
5.1
4
Carman Islands
24.1
54
Italy
4.9
5
Saint Lucia
22.1
56
Greece
4.8
6
Aruba
21.1
58
United Kingdom
4.7
7
Bahamas
20.8
60
Canada
4.6
8
Malta
20.3
69
France
4.4
9
Virgin Islands
20.2
99
Czech Republic
3.2
10
Cypress
17.5
114
Germany
2.6
11
Antigua & Bermuda
16.8
115
Mexico
2.6
12
Barbados
14.6
123
Russian Republic
2.5
13
Mauritius
13.8
125
China
2.4
14
Jordan
12.5
128
Hungary
2.3
15
Belize
12
132
Poland
2.2