Economic impacts of tourism


After studying this chapter, you should be able to:

  1. name the top destination countries in terms of tourism revenue earnings, compare these with the top stayover-receiving countries, and explain any discrepancies

  2. outline the main positive and negative economic impacts of tourism and describe how each negative impact acts as a counterpoint to one or more of the positive impacts

  3. explain the concept of the tourism multiplier effect and describe the circumstances under which a high or low multiplier effect is likely to occur

  4. describe how tourism can function as a propulsive activity within a growth pole strategy

  5. differentiate between the informal and formal sectors and describe the positive and negative implications of each for destination management

  6. identify the circumstances under which a destination is more likely to experience negative rather than positive economic impacts from tourism

  7. discuss the negative consequences of revenue leakages for a destination and explain where and why they occur226

  8. explain the fluctuating patterns of demand that characterise tourism and the economic implications of these fluctuations for destinations

  9. indicate the circumstances under which tourism can move from a competitive relationship with agriculture to a complementary one

  10. discuss employment-related problems that are associated with tourism.


Marketing, as discussed in chapter 7, is a pervasive process which includes attempts ...

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