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Positive And Negative Impacts Of Tourism On Economy
Positive And Negative Impacts Of Tourism On Economy
What is the role of transportation in economic development
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ANALYSE THE FACTORS AFFECTING ACCOMODATION, LOCATION DECISION AND THE EFFECTIVENESS OF TRANSPORT AND DISTRIBUTION SYSTEMS
The selection of location is influenced by a number of factors, which can be broadly classified as market related factors such as closeness to market, tangible or cost factors as transportation availability.
Availability of amenities locations with good external amenities such as housing and community services, for instance personal transport system like bus and train service is considered very important. Market closeness locating facilities close to the market helps firms not only reduce transportation costs, but also serve their customers better. Site cost the management of the firm. Ensure that the cost of the site is
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As well as its direct economic impacts, the sector also has significant indirect and induced impacts. Tourism has been source to remarkable in the increase of the National Gross Domestic Product as well as increases in employment creation. One of the most sensible and important impact of tourism on the economy is it increases the national gross domestic product, which is the broadest quantitative measure of a nation’s total economy activity. Precisely, it represents the monetary value of all goods and services produced within a nation’s geographic borders over s stipulated period of time. The tourism sector however on this aspect has been found increasing the National GDP as tourists tend to increase. Tourists trade with the service in monetary value and resultantly the GDP increases( traveltips, 2017).
Also employment creation has also been an impact from the tourism sector. It creates job through direct employment and indirect as well in sectors such as retail and transportation. An effect called ‘multiplier effect’ that creates jobs is derived from he people who spend their wages on goods and services of the tourism sector. It also provides opportunities for a small scale business enterprise. It generates extra tax revenues such as airport and hotel taxes.
Below is a table showing the contribution of tourism to the economy of Zimbabwe in
According to Government of South Australia (2014), the right location is influenced to the successful business in particular retail businesses, but the wrong location determination is tough for the business growth. In 2015, Masters has 56 stores around Australia (Woolworths, 2015), and most of them were set up nearby its competitor who is Bunnings that make more difficult in the market competition. For example, there are 6 Masters stores in Brisbane; Everton Park, Tingalpa, Parkinson, Richlands, Bundamda and Springfield areas, and there are Bunnings store in the same areas where are not far away from Masters stores. Furthermore, the wrong location decision is affected to the demographic problem which is the target customers. Masters sets up its stores in the second rate areas which are the growth-belt suburbs, and consumers who live in the areas do not have the spending power that influence to the company
Some of the things to consider are of economic impact, as a starting point, the amount of capital people pay to get from one location to another beyond a horse and carriage is an appealing lure that accounts for the entire 5.4% of the United States GDP (Investing Insights, 2015). Some top growth factors from the FAA reported by Investing Insights, (2015):
Place is another important element in marketing mix strategies and it significantly influence on customer purchasing decision. Basically, place represents the location where a product can be purchased. It is often referred to as the dist...
Tourism impacts can be generally classified into seven categories with each having both positive and negative impacts. These impacts include; economic, environmental, social and cultural, crowding and congestion, taxes, and community attitude. It is essential for a balance on array of impacts that may either positively or negatively affect the resident communities. Different groups are concerned about different tourism impacts that affect them in one way or another. Tourism’s benefits can be increased by use of specific plans and actions. These can also lead to decrease in the gravity of negative impacts. Communities will not experience every impact but instead this will depend on particular natural resources, development, or spatial patterns (Glen 1999).
It is the economic effects of tourism which bring the most benefit to the host nation. Tourism is a low import user which means more of the money earned here stays here. The government is earning money through tourist taxes such as the airport tax, increased export earnings and income tax revenue from people employed by the industry. A balance must be struck between these benefits and associated negative impacts on the community and the environment.
home, the amount used can run up to 440 liters a day. This is almost
A good location can have a significant impact in attracting potential customers, thus improving sales. Especially in the case of a supermarket, location is more important than other business sector. Customers never drive long distances to only buy daily necessities. Moreover, favorable location gives efficiency to company’s logistics because unnecessary moving cost can be cut down. So, we can say that it is important factor for the successful operation of the supermarket.
Tourism is often associated with traveling to places away from home. Tourism has a big impact on the economic growth of some countries, which define the shape of their cities by producing different sectors like historic districts, convention centers, museums, malls, hotels, restaurants, and the list can be endless. Furthermore, tourism elements have been developed by cities for a variety of reasons including: situating themselves in the world by drawing a positive image and attracting visitors and for their money.
The economy can be clearly identified as the most beneficial aspect of tourism. “According to recent statistics, tourism provides about 10% of the world’s income and employs almost one tenth of the world’s workforce” (Mirbabayev, 2007). In Australia alone, Tourism contributed $87.3 billion in 2012, and employed 908,434 (7.9%) people (Kookana & Duc Pham, 2013). Tourism is “one of the most profitable and rapidly developing industries in the world” (Popushoi, 2004). Every year the number of tourists increase dramatically and consequently the revenues from tourism will increase substantially.
Tourism is the one of economic and social activities that increasingly vital. Number of travellers domestic and international is increasing. In fact, several countries in present world develop tourism sectors as primary sector which generate national income. According to Salah Wahab and Cooper (2003). Tourism is also sector which involves role that mutually link between government, private sector and also public.
Firstly, tourism has positive and negative impact on the economy of the local community. It can create jobs and mitigate the numbers of unemployment. For example: one
In the more economically developed countries (MEDCs), synonymous mainly with the industrialised countries of the northern hemisphere there, has been an explosion in the growth of leisure and tourism industry, which is now believed to be the worlds second largest industry in terms of money generated. In order to differentiate between leisure and tourism it should be recognised that leisure often involves activities enjoyed during an individual’s free time, whereas tourism commonly refers to organised touring undertaken on a commercial basis. Development in the two areas could be attributed to changing patterns in working lives within the last four decades. Generally, people now have more disposable wealth, work shorter hours, receive longer, paid annual leave, retire earlier and have greater personal mobility. In addition, according to Marshall & Wood (1995), the growth of the tourist industry per se can be associated, in part, with the concentration of capital; the emergence of diversified leisure based companies, sometimes within wider corporate conglomerates and often associated with particular airlines. Furthermore, the development of tourism can generate employment both directly, in jobs created in the hotels, restaurants etc, and indirectly, through expenditure on goods and services in the local area. Nevertheless, although the tourist industry is competitive, which essentially keeps down the cost of foreign travel, the success of tourism in any one area can be ‘influenced by weather, changing consumer tastes, demographics, economic cycles, government policy, not to mention international terrorism and other forms of conflict.’(1) Although such factors may have a detrimental affect on the economy of a popular tourist destination (or even tourism in general, in light of September 11th 2001), the consequence of tourism in general is often three fold: environmental, social and cultural, which in turn has prompted a search for new ‘friendly’ approaches that are less destructive.
At the present time, one of the inseparable parts of the economic growth is considered as tourism industry. Commonly, tourism is the movement of people to other places for business or leisure purposes as well as covers their activities. Holloway and Humphreys defines that the places where tourists come and spend their money are called as “tourist destinations” in other words “receiving areas”. Many countries have been improving tourism to overcome economic difficulties since it is growing fast. The industry activities have been demonstrated a general positive trend in the economy and it has already become the inherent part of economic development. In host countries, tourism has led to such positive consequences as the improved infrastructure,
When people travel to a destination, they sure have some motivation to motivate them to make the decision. ‘Motivation’ is the key term that will make the tourist to consider the reason to travel around. During the decision making process, people will consider some of the reasons before they confirm travel to a destination. The research that has conducted in The Netherland found out a remarkably high propensity to travel, 70% of the populations are taking one holiday per year and 24% was taking two holidays per year for holiday. Some of the people will affect their decision making by looking at destination image or some of the impact advertising. On the internet, business people will use image and advertising to attract tourist to travel to the destination by using image that they edit before. This is part of the marketing to promote their country to tourist. For family traveler, they will consider the distance and transportation travel to the destination. When go for travel, tourist will bring the whole family to travel. Then, they will consider old people who travel long journey are very hard for them. If one of the family members are senior citizen, they need to consider their healthy. Some of the senior citizen cannot take long journey, such as they have sickness. Bring children go for holiday also need to be consider. Some of the children will afraid of the highest in the plane, so they will feel uncomfortable. There is plenty of reason need to consider before making any decision to travel. For understanding tourist motivation and decision making is for two main reason, planning consideration and economic consideration. (Page & Connell, 2009) Before the tourist travel to a destination, they need to think about culture, climat...
Hence not only the size of city, the other parameters included while deciding the type of technology ( transit system ) used also depends upon density, population, location of CBD and its area, existing transport links, per capita income, ridership share etc.