Econ

1
Econ Politics

• Economics
• the social science that seeks to understand the
  choices people make in using their scarce
  resources to meet their wants
• Estimating Tourism Activity
• of visitors times spent per visitor

2
Economic Principles

• Comparative Advantage
• yields higher returns than other industries
• Occurs when
• The area is especially appealing (super/infrastr)
• If there are no other alternatives
• Opportunity Costs
• What you give up, for what you purchase
• you need to maximize return
• Effect of Exchange Rates (ehh?)

3
Multiplier Effect

• Tourism as an export/import
• Adds to 1 economy, deducts from another
• we desire International visitors
• Output multiplier effect
• When new is re-spent in local economy
• Leakage that leaves the economy
• Canada 2.5 Iceland .64

4
Economic Benefits of Tourism

• Tourism s are stable
• Even in recession, people travel
• Economic Diversity (all job levels)
• Economic incentive to improve
• Infrastructure/Superstructure
• Encourages Entrepreneurial Activity

5
Potential Negatives of Tourism

• Over-dependence lack of diversity
• Can hurt the resources that attract!
• Increases local cost of living
• Police, housing, sewage, etc.
• Cost-Benefit Analysis
• Assigning values to benefits/costs of tourism

6
Politics of Tourism

• Politics Power or decisions about Who gets
  what, where, how and why
• Economics Quantity of Life
• Politics Quality of Life
• Role of Government (Why do they care?)
• Jobs are created for tourism employees
• More tax is collected bc of tourism
• Can aid tourism through infrastructure dvlpmt

7
Public/Private Partnerships

• An org whose members include govt officials as
  well as private citizens
• Govt funds infrastructure
• Partners fund superstructure
• Both assist in promoting
• Chambers and CVBs
• Convention Centers

8
Tourism Planning

• Continuous plan
• Determine tourism dvlpmt policies and objs
• Survey and inventory existing situation
• Determine dvlpmt needed to reach objs
• Recommend specific projects
• Implement the projects
• Monitor plan to see if objs need to change
• Modify plan as new objs become important

9
Tugs of War Over Tourism

• Constituent Groups fighting over the finite
  amount of potential resources
• Tourism business owners
• Employees of tourism businesses
• Other business owners/managers/employees
• Govt officials and employees
• Taxpayers
• Local community/region citizens
• Tourists