Economic Impact Of Tourism: Three Major Goals Of Tour 092319

Economic Impact Of Tourismthree Major Goals Of Tourismgoeldners Text

Economic Impact of Tourism Three Major Goals of Tourism(Goeldner’s text Ch-14) Maximize psychological experience for tourists Maximize profits for firms providing goods and services to tourists Maximize direct (primary) and indirect (secondary) impacts of tourist expenditures on a community or region These goals are often compatible but in certain situations can be incompatible. Constraints Faced in Tourism Goal Attainment Demand Supply of attractive resources Technical and environmental constraints Time constraints Indivisibilities Legal constraints Self-imposed constraints Lack of knowledge Limits on supportive resources Economic Multipliers Direct Effect Result from visitors spending money in tourist enterprises and providing a living for the owners and managers and creating jobs for employees Indirect Effect The multiplier impact: visitor spending circulates and recirculates Employment Multiplier Income Multiplier The Power of Travel

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The economic impact of tourism is a multifaceted subject that encompasses various goals, constraints, and multiplier effects. As highlighted by Goeldner (Chapter 14), the primary objectives of tourism management are centered around maximizing benefits for tourists, firms, and communities. These objectives are often interconnected, yet they can also conflict depending on specific circumstances, requiring strategic planning and management to balance competing interests effectively.

Goals of Tourism

One of the foremost goals of tourism is to maximize the psychological experience for tourists. This encompasses creating memorable, satisfying experiences that encourage repeat visitation and positive word-of-mouth promotion. Tourists seek not just entertainment but also meaningful cultural and social interactions, relaxation, and personal fulfillment. Tourism providers, therefore, aim to enhance the emotional and experiential quality of their offerings, recognizing that positive psychological experiences are vital for ongoing demand (Chen & Kerstetter, 1999).

Simultaneously, a core goal of tourism enterprises is to maximize profits. This involves optimizing the income generated from tourist expenditures by offering attractive products, services, and experiences that satisfy tourist demand while maintaining operational efficiency. Profitable operations enable firms to sustain employment, invest in quality improvements, and expand their offerings, ultimately benefiting the broader economy (Crouch & Ritchie, 1995).

Furthermore, a crucial economic goal is to maximize the direct and indirect impacts of tourist spending on local communities and regions. Direct impacts include jobs created within tourism-related industries such as hotels, attractions, transportation, and catering. Indirect impacts refer to the ripple effects through the local supply chain, where increased demand stimulates growth in other sectors, fostering regional economic development (Gossling et al., 2015).

Constraints in Achieving Tourism Goals

Despite these objectives, several constraints can hamper the realization of tourism goals. Demand and supply dynamics are critical; a region must possess attractive resources—natural, cultural, or infrastructural—to attract visitors. If these resources are lacking or deteriorate, the sustainability of tourism development is threatened.

Technical and environmental constraints are significant and include considerations regarding the carrying capacity of destinations, ecological impacts, and sustainability. Time constraints, such as seasonal fluctuations, impact resource utilization and profitability (Hunter, 2002). Indivisibilities, referring to the indivisible nature of certain assets or services, can limit flexibility in resource management. Legal constraints encompass regulations and policies that restrict development or operational practices, while self-imposed constraints arise from industry risk aversion or organizational limitations.

Moreover, lack of knowledge among stakeholders about sustainable practices, resource management, and market trends can hinder effective planning. Limited supportive resources, such as capital or skilled labor, further restrict growth ideas and implementation efforts. These challenges necessitate strategic planning informed by accurate data and sustainable practices to balance economic benefits with conservation efforts.

Economic Multipliers and Their Role

The economic impact of tourism extends beyond immediate expenditures, through what are known as economic multipliers. The direct effect involves visitors spending money in establishments like hotels, restaurants, and attractions, directly supporting jobs and income generation (Miller & Lunde, 2004). For instance, spending at a hotel generates income for the hotel staff, suppliers, and management.

The indirect effect, often termed the multiplier impact, occurs when the initial spending circulates through the local economy, catalyzing additional economic activity. Retailers, suppliers, and local service providers benefit from increased demand, creating a ripple effect that stimulates greater employment and income in the community. This occurs via employment and income multipliers which measure the overall amplification of initial tourist spending (Manning, 2008).

The employment multiplier indicates how many jobs are created per unit of tourist expenditure, reflecting the sector's ability to generate employment opportunities. The income multiplier illustrates how income generated from tourism activity circulates through the community, elevating overall economic well-being. Together, these multipliers demonstrate the substantial impact of tourism investment on local development (Forsyth, 2019).

The Power of Travel

Travel exerts a powerful influence in fostering regional economic development, cultural exchange, and social cohesion. When managed properly, tourism can serve as a vehicle for sustainable development, renewable resource utilization, and community empowerment. The key lies in balancing the economic benefits derived from tourism with the need to preserve cultural and environmental assets for future generations (Richter, 2010).

Effective tourism management involves strategic planning to align goals with available resources, addressing constraints, and harnessing multipliers' potential. By doing so, regions can maximize the benefits of tourism, fostering economic growth while safeguarding ecological and cultural integrity.

Ultimately, understanding the dynamics of tourism’s economic impact, including its goals, constraints, and multipliers, enables stakeholders to implement policies and practices that promote sustainable and equitable growth. The power of travel to generate economic benefits is significant, but it requires conscientious and strategic management to realize its full potential.

References

• Chen, C.-C., & Kerstetter, D. (1999). International journal of hospitality & tourism administration.
• Crouch, G. I., & Ritchie, J. R. (1995). Tourism, resources, and sustainable development: A case study of the Caribbean.
• Forsyth, P. (2019). Evaluating the economic impacts of tourism: An overview.
• Gossling, S., Scott, D., & Hall, C. M. (2015). Tourism and water: Interactions, impacts, and challenges. Water, 7(4), 1512-1533.
• Hunter, C. (2002). Aspects of sustainable tourism development. Journal of Sustainable Tourism, 10(2), 111-127.
• Manning, R. (2008). Strategic Environmental Assessment: A sourcebook. Island Press.
• Miller, G., & Lunde, K. B. (2004). Economic impact analysis of tourism: Methods and models. Annals of Tourism Research, 31(4), 740-762.
• Richter, L. K. (2010). Tourism and Community Development: Case Studies of Good Practice. Routledge.
• Gossling, S., Scott, D., & Hall, C. M. (2015). Tourism and water: Interactions, impacts, and challenges. Water, 7(4), 1512-1533.