CHAPTER 15 CONSIDER THE FOLLOWING ELEMENTS: - GROSS DOMESTIC PRODUCT - LINKAGES - LEAKAGES - ENCLAVE TOURISM - TOURISM SATELLITE ACCOUNT - IMPACTS OF TOURISM - CARRYING CAPACITY GROSS DOMESTIC PRODUCT GDP - it is the measure of the size and value of goods and services produced in one year. The strength of linkages between sectors in an economy is what determines the size of the impact multiplier; Inter-industrial linkages refer to the cooperation of different segments of the economy; Example: In the tourism industry, interindustrial linkages can include the textile industry delivering bed-linens to hotels. Leakages causes the positive effects on tourism to diminish because the tourism industry makes use of imports; Example: if the linen is not sourced from SA but brought in from France; hence, money then gets paid to France and leaves SA. Leakages are lower in economies where businesses supply each other, rather than import goods; Therefore, smaller economies will have low linkages and high leakages. Refers to tourism development where most of the economic benefits are captured by the tourism business Example : a cruise liner Also known as TSA Is a statistical instrument used to calculate the size of the tourism sector’s contribution to the economy. Contribution to GDP Comparison to other sectors Employment Tax etc. Growth in tourism has positive impacts JOB CREATION IN TOURISM SPREADS TO ACCOMMODATION, TRANSPORT, AGRICULTURE. CONSTRUCTION, MANUFACTURING AND RETAIL GOVERNMENT REVENUE INCREASES INFLATION/ INCREASED LIVING COSTS (on a destination, increase in value property, land and food) OPPORTUNITY COSTS (investing in tourism rather than other sectors) OVER–DEPENDENCE ON TOURISM (drop in demand – crisis?) READ THE FOLLOWING TOPICS 1. ENCLAVE TOURISM 2. SUSTAINABLE TOURISM DEVELOPMENT