旅游英语课件 Economic Impact of Tourism.doc

Unit2 Economic Impact of TourismUnit2 Economic Impact of TourismThe travel and tourism industry is an industry of relatively recent development in many countries. Many countries have now recognized the importance of this industry. It definitely has a significant impact on a countrys economy. Tourism provides benefits for both tourists and host country through the economic benefits it can bring to the region.Tourism can provide many economic incentives for development. The development of tourism, especially in a developing country, requires the existence of infrastructure of roads, electricity and water supplies, communication networks, and perhaps, airports, as well as hotel accommodations, and other facilities specific to tourism.Tourism gives significant contribution to a countrys regional and national economies in terms of the capacity to attract investment, create employment, generate foreign exchange earnings, improve balance of payments, and create multiplier effects throughout the economy.The economic benefits of tourism will always bring economic benefits, as there are economic problems and costs. The greater the overall reliance on tourism as a dominant industry, the greater the overall reliance on tourism as a dominant industry, the greater the risks and costs are to the economy of a country. Developing countries may be more vulnerable to the boom-and-bust characteristics of the travel and tourism industry than locality must undertake its own analysis and assess whether or not tourism will have a positive influence on their economy.The Multiplier Effects of TourismThe economic impact of tourism is both direct and indirect. The direct effect comes from the actual money spent by tourists at a destina tion. It is obvious that there is marked increases in revenue in areas where tourism is promoted, such as the accommodation sector, the transportation sector, and the catering sector. However, one must remember that other industries also benefic indirectly from tourism.Tourists spend money on hotels and other forms of accommodation. They patronise local shops and restaurants; they buy local tours; they purchase local handicrafts and souvenirs; and they use local transportation and other services.The inflow of revenue generates additional turnover, household in come, employment and government revenue. A multiplier effect is set in motion as the business establishments respend the money which they have received from tourists. The providers of services use the money to purchase capital equipment, to pay their employees wages and salaries, to pay rent, interest and taxes, and to pay suppliers for goods and services. The second recipients, both business establishments and individuals, respend part of this revenue, and further rounds of expenditure occur as the tourist dollars continue to change hands.The money as it filters through the economy, will continue to be spent and be respent until “leakage” occurs. This happens when the money is saved by the individual and is taken out of circulation as far as the generation of income is concerned. Some employees who are not local residents may send moneyhome. In other cases, companies who have their head offices in their home countries may send money back to the head office.Also “leakage” occurs when money is used o pay for imported goods and services. For example, when tourists form Australia travel to china, they may demand items they are used to at home, they may want steaks. If China does not have beef of a suitable quality, it has to import steads to satisfy the tourists. When a hotel in Beijing pays for steaks imported form Australia, the economic impact is felt in Australia and not in China.The more that a country can cut down on imports resulting from tourism, the greater will be the economic impact of tourism in that coun-try. In other words, the more a country can have the tourists buy souvenirs made locally, eat food produced locally, and stay in hotels coun-try. In other words, the more a country can have the tourists buy souvenirs made locally, eat food produced locally, and stay in hotels constructed of local materials, the more the tourist money will stay in the country.An an example, a tourist who comes from the United States pays 900 yuan in a Beijing hotel for his room and food, the hotel owner takes too 900 yuan and uses some of it to pay the food supplier, and some of it to pay the wages of the employees. The food supplier, in turn, will pay the farmer for the vegetables while the employee spends yuan is increased. The benefits have been passed onto the agricultural and the clothing industries.This process continues through successive rounds of spending until the multiplier has worked its way through the system. For a developed country it takes longer time for the “rounds” of activity to permeate throughout the economy. It has been estimated in the U.S. economy, it takes 13 to 14 rounds of transactions before the money disappears, and that probably no more than five of six of those rounds takes place within the first year. On the other hand, in the Bahamas and Bermuda, the initial injection of money disappears within half a year with no more than five or six rounds of transactions.Another factor that might influence the multipliers value is the type of tourist received by the host country. Different types of tourists have different spending patterns. Business executives, for example, may spend a greater proportion of their total expenditures on accommodations than backpackers.If the hotel where the delegates stayed is a foreign investment, the multiplier value is high in employment, put low in income. A final multiplier will then be the weighted total of the multipliers for each tourist segment.The size of the tourism multiplier depends upon the extent to which the tourist sectors have developed their backward linkages to the local industries in construction.Developing countries tend to buy few goods and services from the domestic sectors, and as a result have a high propensity to import. In this case, the multiplier effect is relatively smaller in these countries than in other countries where these sectors are more closely intgrated into the local economy.the size of the tourist multiplier and the magnitude of the impact made by tourism on an economy can be increased if the existing linkages between the travel and tourism industry and the rest of the economy are strengthened.Generally, more develped countries exhibit lower leakages due to the existing infrastructure, labor skills, and technology. In Switzerland, there is a low leakage due to a high degree of local ownership and controls on foreign investors. Less developed countries exhibit the highest keakage due to low levels of control and the returning of profits back to foreign countries.Economic BenefitsThe following exonomic benefits have been identified:l improving balance of payment,l creating employment,l generating income,l encouraging small business developmentWorks incentive something which encourages one to greater activity刺激；鼓励infrastructure the system or structures which are necessary for the operation of a country or an organization基础结构；基础设施reliance dependence依靠，依赖vulnerable (of a place or thing) weak; able to be easily attacked脆弱的，易受攻击的bust a complete failure完全失败facet any of the many parts of a subject to be considered; aspect（事物的）一个方面locality a particular neighborhood, place, or district地区revenue income, esp. that which the government receives as tax收入；（尤指）国家税收cater to provide what is needed or wanted by 为提供服务inflow the act or process of flowing in or into, something that flows in or into流入；流入量turnover the amount of business bone in a particular period, measured in money, the rate at which a particular kind of article is sold（某一时期的）营业额；成交量，售出额recipient someone who receives or is receptive接受者leakage the act or an instance of leaking漏泄permeate to spread or pass through or into every part（常与into，through连用）渗入；透入backpacker someone who hike while carrying a backpack背着背包徒步旅行者propensity （for doing/to do sth）(fml文)inclination or tendency倾向；习性Additional ReadingText A Economic MultipliersDirect EffectIn addition to the direct impact of tourism expenditures on an areas, there are also indirect impacts. The indirect or multiplier impact comes into play as visitor spending circulates and recirculates. The direct effects are the easiest to understand as they result from the visitors spending money in tourist enterprises and providing a living for the owners and managers and creating jobs for employees.Indirect EffectThis visitor expenditure gives rise to an income that, in turn, leads to a chain of expenditure-income-expenditure and so on, until leakages bring the chain to a halt. Consequently, the impact of the initial income derived from the tourists expenditure is usually greater than the initial income, because subsequent rounds of spending are related to it. For example, a skier purchases a lift ticket for $ 30. This money received by the ski area will be used to pay the wages of the lift operators. The lift operator spends the money on groceries; the grocer uses the money to pay part of his rent to the local landlady; the landlady uses it to pay for her dry cleaning; the dry cleaner spends it in a restaurant for a dinner; the restaurant owner spends it for steaks shipped in from Kansas City; and the cycle stops as the money is lost to the local economy. This last transaction is known as “leakage” from the economy.The combination of the direct and indirect effects of an expenditure pattern determines the impact. In a typical situation not all of the income generated in each round of expenditure is espent. Some portion tends to be saved, and some portion tends to be spent outside the local economy. The greater the proportion of income spent locally, the greater will be the multiplier.The degree to which a local area is able to retain tourist income depends on how self-sufficient the local economy is. If the local economy is able to produce the goods and services buy, the greater will be the multiplier effect. The more goods that have to be imported from outside the region, the smaller the multiplier will be.From the discussion, it is clear that when a tourists spending injects funds into the economy of a host area, an economic effect occurs that is a specified number of times what was originally spent. Initially, this effect is thought of as an income multiplier, as tourist expenditures become in come directly and indirectly to local people. However, there are additional economic phenomena. Increased spending necessitates more jobs, which results in an employment multiplier. Because money changes hands a number of times during a year there is a transactions multiplier. This is of particular interest to governmental tax officials where sales taxes are imposed. As business grows in a tourist destination area, more infrastructure and superstructure are constructed. This results in a capital multiplier, examples are provided here of how an employment multiplier and income multiplier were determined.Employment MultiplierThis multiplier varies from region to region depending on its economic base. In a study entitled Recreation as an industry, by Robert R. Nathan Associates, county employment multipliers calculated for the Appalachian region provide a good illustration of what typical multipliers are and how they work.The multipliers estimated in this study were based on county employment data. They repre sent the approximate measure of the direct and indirect employment associated with each addition of direct employment to the export of a county. There are 375 counties and 3 independent cities for which multipliers were estimated. The smallest multiplier was 1.13 and the highest was 2.63. Thus the county with the smallest multiplier value would provide other employment opportunities for approximately 0.13 person for each person directly employed in servicing export demand, and the county with the highest multiplier value would provide other employment opportunities for approximately 1.63 persons for each person directly employed in servicing export demand. In general, county employment multipliers vary directly with the population or total employment size of the counties: as county population size grows, so does the multiplier value. This relationship is as might be expected, insofar as import leakages would tend to be less where diversity of occupations is greater, and diversity is positively associated with county population or total employment.Income MultiplierJobs mean income, which stimulates the economy of the area in which the development occurs. How much stimulation depends on several factors. Using a hotel as an example, the management takes one or two actions concerning the revenue earned-it either spends the money on goods and services, or it saves part of such funds. Economists refer to such action as MPC (marginal propensity to consume) or MPS (marginal propensity to save-removing funds from the local economy). Such removal of these marginal (extra) funds can be made in two ways: (1) they can be saved and thus not loaned to another spender, or (2) they can be used to purchase imports. In either case, so doing removes the funds and thus does not stimulate the local economy.Economic research is needed in a tourist destination area to determine what these income relationships are. If the results of such economic research were made available, many beneficial results might be possible, governmental bodies might be more inclined to appropriate additional funds for tourism promotion to their areas if they knew about the income that was generated by tourist expenditures. Also, improved and added developments of facilities to serve tourists might be more forth-coming if prospective investors could have more factual data upon which to base decisions.To understand the multiplier, we must first make some approximation as to what portion of the tourist dollars that are received in a community are spent (consumed) and saved (leakage). To illustrate this, suppose that we had a total of $1000 of tourist spending in a community and that there was an MPC of 1/2. The expenditure pattern might go through seven transactions in a year. These are illustrated in Table 2.1.The other formula for the multiplier is 1/MPS. This is a simpler formula, as it is the reciprocal of the marginal propensity to save. If the marginal propensity to save were 1/3, the multiplier would be 3. This is shown in Table 2.2.Leakage, as defined, is a combination of savings and imports. If we spend the money out side our country for imports, obviously it does not stimulate the economy locally. Also, of it is put into some form of savings that are not loaned to another spender within a year, it also has the same effect as imports-not stimulating the economy. Thus, to get the maximum benefits economically from tourist expenditures, we should introduce as much of the tourist funds as possible into the local economy or goods and services rather than save the proceeds or buy a large amount of imports. Here, also, more economic research is needed. Some studies have indicated that the multiplier might be as high as 3 in some areas, but economic research in other localities indicates that it may be more typically lower than this. Multiplier=WhereM=marginal (extra)P=propensity (inclination)C=consume (spending) MPCS=savings (money out of circulation) MPSSuppose $1000 of tourist expenditure and an MPC of 1/2. Then $1000.001/201000500.00(1/2)11000250.00(1/2)21000125.00(1/2)3100062.50(1/2)4100031.25(1/2)5100015.63(1/2)610007.81(1/2)710000$2000.oo(approx.)Multiply:1 *$1000=$2000Thus, the original $1000 of tourist expenditure becomes $2000 of income to the communityTable 2.1 Formula for the Multiplierwhere Savings=not loaned to another spender Imports=spending on tourism needs in sources outside country (state)Multiplier=MPS=1Multiplier=Multiplier=3Table 2.2 “Leakage”Text B Economic ImportanceToday, the authoritative World Travel and Tourism Council (WTTC) has declared that tourism is the worlds largest industry, surpassing autos, steel, electronics, and agriculture. In 1944 this global industrys gross output of goods and services reached $3.4 trillion (U.S.). During the same year, $665 billion in taxes were paid in corporate, personal, and other forms. The WTTC also estimated that tourism created employment for 204 million men and women-1 in 9 workers worldwide. Their estimates expect 1994 tourism jobs will account for $1.7 trillion or 10.3 percent of employee wages and salaries globally. Tourism also accounts for 11 percent of consumer spending. During 1991 the tourism industry invested $613 billion in new capital. This represents 11.2 percent of worldwide capital investment.The economic figures cited show that tourism has grown to be an activity of worldwide importance and significance. For a number of countries, tourism is the largest commodity in international trade. In many others it ranks among the top three industries. Tourism has grown rapidly to become a major social and economic force in the world.As tourism has grown, it has moved from being the province of the rich to accessibility to the masses, involving millions of people. The world tourism organization (WTO) attempts to document tourism