The Economic Value of Tourism
· Direct Impacts:
o Tourist $ spent on easily identifiable transactions, with ______economic benefits.
§ Ex. ______, food, and souvenirs
· Indirect Impacts:
o ______transactions that are made as a result of tourism; less easy to identify.
§ Ex. Transportation, ______, ______
Foreign Investment and Leakages
· Many smaller, poorer countries simply do not have enough $ (______) to build ______on their own; therefore, to spur tourism and ______, they encourage multinational corporations, eg. Club Med, to build resorts.
· Problem?
o Superstructure: including hotels, places for entertainment, shopping centres, and restaurants.
§ With luck, the destination remains ______with tourists long enough for these ______and for the destination to show a ______.
§ During the period of decline, there is little ______and the existing facilities ______– making them even less ______to tourists.
Success Factors
· Unfortunately, despite local enthusiasm, some places are still not able to establish ______industries.
· The key factors to a successful tourism region are:
Economic Dependence on Tourism
Top 15 countries with the highest % of their GDP tied to tourism / Top 15 countries with the highest total earnings from travel and tourism
Rank / Country / % of GDP / Rank / Country / % of GDP
1 / Maldives / 37.3 / 30 / Spain / 7.6
2 / British Virgin Is. / 34.6 / 52 / United States / 5.1
3 / Anguilla / 32.5 / 53 / Austria / 5.1
4 / Carman Islands / 24.1 / 54 / Italy / 4.9
5 / Saint Lucia / 22.1 / 56 / Greece / 4.8
6 / Aruba / 21.1 / 58 / United Kingdom / 4.7
7 / Bahamas / 20.8 / 60 / Canada / 4.6
8 / Malta / 20.3 / 69 / France / 4.4
9 / Virgin Islands / 20.2 / 99 / Czech Republic / 3.2
10 / Cypress / 17.5 / 114 / Germany / 2.6
11 / Antigua & Bermuda / 16.8 / 115 / Mexico / 2.6
12 / Barbados / 14.6 / 123 / Russian Republic / 2.5
13 / Mauritius / 13.8 / 125 / China / 2.4
14 / Jordan / 12.5 / 128 / Hungary / 2.3
15 / Belize / 12 / 132 / Poland / 2.2