Economic & Sociocultural Impacts

Economic & Sociocultural Impacts

1. Economic Impacts

   • Effective or Actual Demand
     • ▪ The number of people participating in tourism, commonly expressed as the number of travelers. ▪ This is normally measured by tourism statistics which is normally the amount of departures of a country and arrivals to destination.
   • Suppressed Demand
     • Potential Demand
       • This is when a person who will travel at a future date if they experience a change in their circumstances. This is basically referring to that if they will go through a natural disaster within their country then they would travel before or after it has happened.
     • Deferred Demand
       • ▪ Is a demand postponed Because of a problem in the supply environment.
         • Example : lack of capacity in accomodation or maybe terrorist activity.
     • ▪ This refers to the population of persons that were unable to travel because of circustances. There are also two types of demand which is potential demand and deffered demand.
       • Example: Lack of purchasing power or limited holiday entitlement
   • No Demand
     • ▪This is a category for the population who do not wish to travel and the one unable to tavel because of family commitment or illness.
   • ▪ Examines the effect of an event on the economy in a specified area, ranging from a single neighborhood to the entire globe worldwide.
   • ▪ It usually measures changes in business revenue, business profits, personal wages, and/or jobs.
   • ▪ An Economic impact starts to be made from a person, family makes reservation and they are called a tourist demand, which is the amount of tourists travelling.

2. The Economic Impacts of Travel and Tourism

   • Positive Impacts
     • ▪ provides people with jobs which provides people with a source of income
     • ▪ Local tribe make money by making and selling handmade souvenir
     • ▪ Foreign exchange earnings
     • ▪ Contribution to government revenues
   • Negative Impacts
     • ▪ Opportunity Costs
     • ▪ Displacement which is when people depend to much on tourism
     • ▪ Seasonally which is the amount of tourists which come to the country which also bring income to the country There are 3 types of seasons which are High Season, Low season and Peak season. This is a Disadvantage because its not everytime that tourists are viditing our country.
       • High season: which occurs in November - April A high amount of people visit during this time but not alot like Peak season
       • Low season: which occurs in May - October . This can affect some workers where they would be given a break and only called when its busy at work.
       • Peak Season: Is when most tourist come which happens in December -January
   • These are the problems which arise due to the spending of the tourists. This brings both advantages and disadvantages to people.