MPTH MIDTERM

Several developing countries have used tourism and hospitality development as an alternative to help economic growth.

(OECD) -  has concluded that tourism and hospitality provides a major opportunity for growth to countries that are at the intermediate stage

of economic development and require more foreign exchange earnings.

• When travelers outside the destination area spend on goods and services within the destination, tourism and hospitality acts as an export industry by bringing in revenues from outside sources.

• Tourist expenditures received as income by businesses such as hotels, restaurants, car rentals, tour operators, and retail shops serving tourists have a direct effect on the economy of the host area.

• effects mean that the money paid by tourists to businesses are, in turn, used to pay for supplies, wages of workers

The term “multiplier” is used to describe the total effect, both direct and secondary, of an external source of income introduced into the economy.

Those concerned with developing the tourism and hospitality industry, whether a government or private individual, would like to know the extent of potential benefits and their costs.

• Some undesirable economic aspects of tourism and hospitality are higher prices and economic instability.

Suggest that tourism and hospitality should be viewed as an important part of a broad-based economy.

• ECONOMIC STRATEGIES

• UNBALANCED GROWTH

• BALANCED GROWTH

• IMPORT SUBSTITUTION

See tourism and hospitality as the spark to economic growth

• UNBALANCED GROWTH

• BALANCED GROWTH

• ECONOMIC STRATEGIES

• INCENTIVES