1 Introduction
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Learning outcomes
• By the end of this session students will be able
to:
– understand the scope of recreation, leisure and
tourism and their interrelationship
– explain the basic economic concerns of scarcity,
choice and opportunity costs
– outline the allocation of resources in different
economic systems
– explain the methodology of economics
– understand the use of models in economics
– understand the use of economics to analyse issues in
recreation, leisure and tourism
– access sources of information
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Definition and scope of recreation,
leisure and tourism
• Leisure = discretionary
time
• Recreation = pursuits
undertaken in leisure time
• Tourism = visiting for at
least one night for leisure
and holiday, business and
professional or other
tourism purposes
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Definition, scope and methodology
of economics 1
• The nature of economics
– Resources and wants
– Scarcity and choice
– Opportunity cost
– Allocative mechanisms
– Macroeconomics and microeconomics
– Marginal analysis
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Production Possibility Frontier
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Allocative Mechanism
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The McDonald’s Golden Arches
in Beijing, China
• An early example
of private sector
activity in China
• Contrast with
state-run
enterprises
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Definition, scope and methodology
of economics 2
• The methodology of economics
– The ‘science’ of social science
– The ‘social’ of social science
– Economic models
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Scientific
testing
of
theories
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The economics of recreation,
leisure and tourism
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Scarcity and choice
Demand, supply and markets
Work vs. Leisure
Government intervention
Economic impacts
Growth and development
Externalities and the environment
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Review of key terms
• Leisure
– discretionary time.
• Recreation
– pursuits undertaken in leisure time.
• Tourism
– visiting for at least one night for leisure and holiday, business
and professional or other tourism purposes.
• Economic problem
– scarcity and choice.
• Leisure and tourism sector organizations
– organizations producing goods and services for use in leisure
time, and organizations seeking to influence the use of leisure
time.
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Review of key terms
• Opportunity cost
– the alternatives or other opportunities that have to be foregone to
achieve a particular thing.
• Free market economy
– resources allocated through price system.
• Centrally planned economy
– resources allocated by planning officials.
• Mixed economy
– resources allocated through free market and planning
authorities.
• Microeconomics
– study of household and firm’s behaviour
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Review of key terms
• Macroeconomics
– study of whole economy.
• Marginal analysis
– study of effects of one extra unit.
• Positive statement
– based on fact.
• Normative statement
– based on opinion.
• Ceteris paribus
– other things remaining unchanged
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1 Introduction
The End
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