CHAPTER 2: ECONOMICS AND
THE IMPACT OF TOURISM
Mr. Lamberti
I. EFFECTS OF HOSPITALITY
AND TOURISM
• ECONOMIC EFFECTS OF TOURISM CAN
SUPPORT AN ENTIRE REGION.
• TOURISM EFFECTS SOCIAL AND CULTURAL
ENVIRONMENTS AROUND THE WORLD
• ENVIRONMENTAL EFFECTS HAVE BECOME A
MAJOR ISSUE WITH TOURISM TODAY.
II. ECONOMIC IMPACT
• PEOPLE’S DESIRE TO TRAVEL AND EXPLORE THE
WORLD STIMULATES THE ECONOMIES OF
DESTINATION!!!
• THE ECONOMIES ARE IMPACTED IN A VARIETY
OF WAYS:
A. ONGOING ECONOMIC IMPACT
NEW BUSINESSES REQUIRE EMPLOYEES AND
FOOD AND BEVERAGE SUPPLIERS.
LOCAL AND FEDERAL TAX REVENUE MAY BE
USED TO FUND OTHER LOCAL, REGIONAL AND
STATE PROGRAMS
B. ECONOMIC MULTIPLIER-
HOW MONEY FILTERS THROUGH THE ECONOMY
1. TOURISTS SPEND MONEY ON HOTELS,
RESTURAUNTS, ATTRACTIONS, AIRLINES ETC.
1. MONEY FROM BUSINESS GOES TO WAGES,
OPERATING EXPENSES, AND PURCHASING FOOD
AND BEVERAGES
3. EMPLOYEES SPEND THOSE
WAGES BACK INTO ECONOMY
C. LEAKAGE-
TOURISTS DOLLARS SPENT ON IMPORTED
PRODUCTS (DIRECTLY/INDIRECTLY)
D. EMPLOYMENT
NEXT TO FEDERAL GOV. H&T ARE LARGEST
EMPLOYERS IN THE WORLD.
INCOME ON TRAVEL=7.2 MILLION U.S. JOBS AND
OVER $545 B IN TRAVEL
III. GLOBALIZATION AND
TOURISM
• IN PAST 50 YEARS TOURISM HAS BECOME MUCH
MORE GLOBAL. THE ECONOMIC IMPORTANCE
OF H&T IS UNDENIABLE
• BUSINESS AND GOVERNMENT MUST WORK
TOGETHER TO CREATE SUSTAINABLE TOURISM
WHICH SUPPORTS BOTH LOCAL RESIDENTS AND
TOURISTS
IV. SOCIAL AND CULTURAL
IMPACT
• IN THE BUSINESS OF H&T THE PRODUCTS ARE
THE PLACES PEOPLE VISIT AND RESOURCES
AVAILABE TO THEM.
• FAILURE TO PROTECT THE SOCIAL CUSTOMS
AND TRADITIONS CAN DESTROY THE APPEAL OF
THE PLACE
A. TRADING CULTURAL INFLUENCES
WHEN PEOPLE TRAVEL THEY TAKE THEIR DRESS,
BELIEFS, AND BEHAVIOR WITH THEM TO MESH
IN WITH THE CULTURES THEY ARE VISITING
B. CULTURAL REVIVAL-
TRAVELRS HAVE DESIRE TO SEE TRADITIONAL
CULTURES AND EXPERIENCE ANCIENT CUSTOMS.
THIS HAS BROUGHT PRIDE TO VARIOUS CULTURAL
TRADITIONS
C. NEGATIVE CULTURAL INFLUENCES-
WEALTHY TRAVELS CAN HAVE A NEGATIVE
EFFECT ON POOR AND UNDERDEVELOPED
AREAS RESULTING IN CRIME IN COMMUNITY
V. ENVIRONMENTAL IMPACT
• ENVIRONMENT ISSUES IN H&T HAVE BECOME
GREAT CONCERNS
• USE OF ENERGY, RAW MATERIALS AND WATER
TO BUILD HOTELS, ATTRACTIONS, NEW
HIGHWAYS AND TRANSPORTATION CAN DRAIN
NATURAL RESOURCES OF A DESTINATION.
A. WATER RESOURCES-
LARGE RESORTS, SPAS AND WATER PARKS CAN
LEAD TO WATER SHORTAGES
B. LAND AND AIR RESOURCES-
-AIR POLLUTION
-WETLANDS
-NATURAL HABITIATS
C. WASTE DISPOSAL-
-SEWAGE RUN OFF
-CRUISES-82,000 TONS OF GARBAGE
-WASTE WATER
D. NOISE POLLUTION-
-REC VEHICLES
-BOATS/JET SKIS
MOVE OFF WILDLIFE AND LOCALS
E. VISUAL POLLUTION-
SPOILING OR CONTAMINATION OF
NATURAL BEAUTY AND FEATURES
OF THE ENVIRONMENT
VI. CYCLICAL NATURE OF
TRAVEL
• EVERY DESTINATION HAS A LIFE CYCLE:
A. INTRODUCTION AND GROWTH
DESTINATIONS ARE DISCOVERED
AND TALKED ABOUT ADDING IN
MORE $ AND GROWTH TO THE
AREA AND BETTER FACILITIES
B. MATURATION AND DECLINE-
MOST DESTINATIONS WILL HIT A
PLATEAU WHERE THEY ARE
PROSPEROUS AND HAVE REGULARS
BUT IF NEW DEVELOPMENT IS NOT
ADDED THEY WILL EXPERIENCE A
DECLINE
C. RENEWAL-
COMPETITION IN H&T IS FIERCE
THEREFORE DESTINATIONS NEED
TO BE CONSTANTLY UPDATING
AND IMPROVING
VII. REASONS FOR TRAVEL
• PEOPLE TRAVEL FOR MANY
REASONS…BUSINESS, FAMILY, PERSONAL, AND
LEISURE
A. BUSINESS TRAVEL
SOLE PURPOSE IS CONDUCTING BUSINESS
THINGS TO CONSIDER FOR BUSINESS TRAVEL:
-BUSINESS NEEDS
-BUSINESS CHALLENGES
-BUSINESS INCENTIVES
-MEETINGS AND CONFERENCES
B. PLEASURE TRAVEL
THIS IS ALSO CALLED VFR (VISITING FRIENDS
AND RELATIVES)
PURPOSE OF TRAVEL IS OBVIOUS AND LIMITED
BY BUDGETS AND FREE TIME
C. PURE LEISURE
MASLOW’S HIERCHARY:
SELF-ACTUALIZATION
SELF-ESTEEM
RECOGNITION
SAFTEY
PSYCHOLOGICAL