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    Tourism Impacts On The Economy

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    queenie esguerra
    The document discusses the impacts of tourism on the economy. It notes that tourism is an important industry for the Philippine economy. It then outlines the direct, indirect, and dynamic positive impacts tourism can have through visitor spending, investment, and supply chain effects. However, it also notes potential negative impacts such as leakage of spending outside the local economy, poor quality jobs, price increases, overdependence on tourism, and large infrastructure costs. The overall impacts of tourism on the economy are mixed, with both positive and negative effects.

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    Tourism Impacts On The Economy

    Uploaded by

    queenie esguerra
    115 views4 pages
    The document discusses the impacts of tourism on the economy. It notes that tourism is an important industry for the Philippine economy. It then outlines the direct, indirect, and dynamic positive impacts tourism can have through visitor spending, investment, and supply chain effects. However, it also notes potential negative impacts such as leakage of spending outside the local economy, poor quality jobs, price increases, overdependence on tourism, and large infrastructure costs. The overall impacts of tourism on the economy are mixed, with both positive and negative effects.

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    Tourism Impacts on the Economy

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    Tourism Impacts on the Economy

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    The document discusses the impacts of tourism on the economy. It notes that tourism is an important industry for the Philippine economy. It then outlines the direct, indirect, and dynamic positive impacts tourism can have through visitor spending, investment, and supply chain effects. However, it also notes potential negative impacts such as leakage of spending outside the local economy, poor quality jobs, price increases, overdependence on tourism, and large infrastructure costs. The overall impacts of tourism on the economy are mixed, with both positive and negative effects.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    115 views4 pages

    Tourism Impacts On The Economy

    Uploaded by

    queenie esguerra
    The document discusses the impacts of tourism on the economy. It notes that tourism is an important industry for the Philippine economy. It then outlines the direct, indirect, and dynamic positive impacts tourism can have through visitor spending, investment, and supply chain effects. However, it also notes potential negative impacts such as leakage of spending outside the local economy, poor quality jobs, price increases, overdependence on tourism, and large infrastructure costs. The overall impacts of tourism on the economy are mixed, with both positive and negative effects.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Sustainable Tourism

    Tourism Impacts on the Economy

    Topic: Tourism Impacts on the Economy

    Get ready to be challenged...


    Learn something new everyday by adapting the
    “New Normal”
    I. INTRODUCTION

    The importance of tourism on the economy cannot be over-emphasized. It is one of very few
    industries that have identified as a cornerstone of the Philippine economy. Under Section 2 of
    Republic Act 9593, also known as the Tourism Act of 2009, the Philippines declares “tourism as an
    indispensable element of the national economy and an industry of national interest and importance,
    which must be harnessed as an engine of socio-economic growth and cultural affirmation to
    generate investment, foreign exchange and employment.”

    II. OBJECTIVES
    At the end of this module, you will be able to:
    Differentiate direct, indirect, induced, and dynamic impact of tourism on the economy;
    Identify the positive and negative impacts of tourism on the economy.

    Before you proceed to the main lesson, test yourself in this


    III. PRELIMINARY ACTIVITY
    Before you proceed to the main lesson, test yourself in this activity.

    __
    Sustainable Tourism
    Tourism Impacts on the Economy

    GREAT!!!
    You may now proceed to the main lesson.

    IV. LESSON PROPER


    LET’S BEGIN

    ➢ Direct, Indirect and Dynamic Impacts of Tourism on the Economy


    Direct impacts. Are produced when tourists spend for such commodities such as accommodation,
    transportation, entertainment and attraction. Visitor exports refers to spending by international
    tourists in a country. Such spending is considered as export because the visitors who are from
    other countries spend for goods and services that are produced in the country being visited.
    Indirect impacts. Comes in the form of investments in tourism, government spending in tourism,
    and the effect of purchase from suppliers. Non-tourism suppliers could be farms for food products,
    utility companies for water and electricity, and schools for human resource needs.
    Induced effects. Are the collective spending by direct and indirect employees on food and
    beverage, recreation, clothing, housing, and household goods.
    Dynamic effects. Infrastructure can stimulate non-tourist growth and redistribution to “yellow brick
    road” to export diversification. Tourism often pays a significant share of tax.
    ➢ Positive impacts of tourism on the Economy
    Jobs. Tourism generates jobs, with the most optimistic estimate being one job created for every
    tourist received by the country. There are many jobs available in the tourism industry.
    Livelihood Generation. Farming communities can venture into agri-tourism, offering farm-related
    experiences to tourists. Income from tourism can help the farmers’ families tide it during the lull
    period between planting and harvesting seasons.
    Hometown’s share of tourism income. The tourists’ places of origin and transit routes, which
    include areas used as pit stops by travelers, take sizable chunk of travel and tourism-related
    expenditure. Whenever people travel, their hometowns share the benefits.
    Taxes and fees. These include passport processing fee, fees for Philippine Statistics Authority
    (PSA), certificates required for securing a passport, travel tax, travel tax, documentation fee for
    travel tax exemption, airport terminal fee, airport space rental fees, and parking fee. The
    government also collects value-added tax from tourism related business establishments.
    ➢ Negative impacts of tourism on the Economy
    Leakage. Tourists look for products that they have been accustomed to consuming or using. Many
    such products and services cannot be sourced locally. Examples are wine, certain cheeses, some
    Sustainable Tourism
    Tourism Impacts on the Economy
    fruits like kiwi, certain vegetables like Brussels sprout, wagyu beef, and many more.
    Poor quality jobs. The job to tourist ratio has been put as high as 1:1. By that measure, there
    should be about 4.8 million workers in the tourism industry. Assuming that this is true, critics of
    tourism argue that workers in tourism suffers from low wages, unpaid overtime pay, lack of security
    of tenure, and seasonality.
    Price increase. Tourists represent additional demand for goods and services available in a
    destination. When tourists come too suddenly, the local economy is not able to respond by
    augmenting the supply of goods and services. This creates a situation of shortage, which results in
    price increase.
    Overdependence. Tourism, because of its attractiveness as a business venture, tends to
    encourage investment in tourism-related business, sometimes causing a shift from livelihood
    activities to tourism. Over time, because tourism is highly profitable, the local economy becomes
    monolithic or reliant on a single economy, one which is dependent on tourism.
    Opportunity cost. Another dark side to tourism is that investing in tourism development requires
    billions of pesos for infrastructure alone, such as airports, roads, and terminals.

    We just finished the discussion!


    Let’s now go to a higher level of activities that will bring
    out your potential skills and knowledge of what you have
    learned! ☺
    Sustainable Tourism
    Tourism Impacts on the Economy

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