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Economic Impact of Tourism Strategies

This document discusses the economic impacts of tourism. It provides examples of direct, indirect, and induced economic effects from tourist spending. Specifically, it notes that tourist spending increases economic activity through multiplier effects, as each dollar spent is re-spent multiple times in the local economy. It also discusses potential negative impacts like tourism leakage if profits leave the local community. The document uses the Philippines as an example, noting the large drop in tourism revenue from 2019 to 2020 due to travel restrictions, but hopes for a rebound with a new government initiative to boost tourism safety. However, economists question the high costs of this initiative given uncertainties from the pandemic.

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MARITONI MEDALLA
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0% found this document useful (0 votes)
111 views5 pages

Economic Impact of Tourism Strategies

This document discusses the economic impacts of tourism. It provides examples of direct, indirect, and induced economic effects from tourist spending. Specifically, it notes that tourist spending increases economic activity through multiplier effects, as each dollar spent is re-spent multiple times in the local economy. It also discusses potential negative impacts like tourism leakage if profits leave the local community. The document uses the Philippines as an example, noting the large drop in tourism revenue from 2019 to 2020 due to travel restrictions, but hopes for a rebound with a new government initiative to boost tourism safety. However, economists question the high costs of this initiative given uncertainties from the pandemic.

Uploaded by

MARITONI MEDALLA
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1

1. How can wildlife and nature conservation economically impact tourism?


Money from tourism and eco-friendly federal agencies provide funding for natural environmental
resources.
Wildlife and nature conservation organizations give money to tourists to spend and boost the
economy.
An association to a conservation organization provides discounts to local attractions.
Donations to preservation programs allow tourists to enter certain tourist attractions at no charge.
2. Expansion of infrastructure and public services will be passed on to property owners through increased:
Lodging tax
Local sales tax
Property tax
National debt
3. Which of the following activities has the lowest economic impact in terms of mass arrivals and
departures?
Gabriel staying at a small hostel in the city.
Sid eating at a 10-seater authentic restaurant owned by a local.
Andrea rode a one-seater 10 pesos fare motorcycle to the nearest hotel in the city.
Aga rode an airplane to the another city.
4. Higher incomes may give tourists:
Greater understanding of community values.
Lower social impact to the community.
Greater access to environment.
Lower impact to the economy.
5. Which of the following activities has the greatest economic impact in terms of length of stay?
Ariel from Bacolod, stayed in Lakawon island for a week.
Linda from Silay City went to Ruins and stayed for the whole day.
Anna went on a 3-day trip to Mambukal.
Cathy Talisay attended an International Tourism Convention in L’fisher hotel.
6. What tourism destination factor affects tourist behavior?
The amenities and facilities offered by the local community.
The information they get from other tourists who visited the place.
The marketing and advertising conducted by tourism business.
None of the above.
7. Which of the following activities of tourists reduces transportation congestion?
Dane uses his electric powered vehicle on travelling.
Andrew avoids using big cars during peak hours.
Elena uses bus as an alternative transportation on travelling.
Simon travels during off peak hours.
8. What is the tourism impact of an environmentalist visiting an eco-tourism site?
2

Lands are more developed to generate more income to accommodate recreational activities of
visitors.
Environments are preserved, protected and kept from further ecological decline.
They seek emotional and spiritual connections with nature.
None of the above
9. What keep profits from leaving the community?
Local ownership of tourism businesses.
Integration of correct tourism planning.
Planning of tourism development in the community.
Both A & C.
10. How can troubled economies benefit from tourism?
It provides a means and an incentive for investment in infrastructure such as roads, rail networks,
and local medical and education facilities.
It can provide economic incentives for a place to preserve, maintain, and regenerate the
environment in both urban and rural settings.
It promotes international connections which can bring more business and cultural collaborations in
the long term.
All of the above.
11. Improper use or overuse of environment:
Natural landscape and open space can be lost.
Generate more waste and pollution.
Degrade landscapes, historic sites, and monuments.
All of the above.
12. Which of the following is not a way that the economy impacts tourism?
Wildlife and nature conservation
Job creation
Transportation
Changing public opinion
13. Which of the following are negative impacts of mass tourism?
Most profit were kept by travel company, seasonal tourist jobs, tourists may be poorly behaved.
Bad behavior of tourists, income from tourists reinvested into environment and local community
projects 
Seasonal tourist jobs, increased sewage, money brought to local economy.
Traffic congestion, improved roads, income increased for tourist industry.
14. What geographical factor affects tourist behavior?
The amenities and facilities offered by the local community.
The information they get from other tourists who visited the place.
The marketing and advertising conducted by tourism business.
None of the above.
15. Which of the following is an example of economic impact of tourism?
3

Non – local owners and corporations may export profits out of the community.
Influxes of tourists bring diverse values to the community and influence behaviors and family life.
Tourists income makes it possible to preserve and restore historic building and monuments.
Traditional services may be forced out due to competition with tourists’ interests.
16. “Demonstration Effect” of Tourists.
Ability to speak local language makes more meaningful connections with local people & culture.
Recreational activities may have greater impact on the environment.
Local residents copying the behavior of tourists can add dimensions to local culture.
None of the above.
17. What social factor affects tourist behavior?
The amenities and facilities are offered by the local community.
The information they get from other tourists who visited the place.
The marketing and advertising are conducted by tourism businesses.
None of the above.
18. The following are socio-psychological motives of intrinsic tourists, except:
Self – exploration
Relaxation
Escape
Education
19. Tourism is an invisible export.
Money spent by tourists are hard to trace.
Foreign currencies of tourists are usually exported after being received, and disappear.
Tourism constitutes non-merchandise/tangible transactions.
Most tourism businesses never see the money they are earning.
20. Which of the following best describes tourist expenditures?
They are narrowly distributed within the economy.
They are received mainly by hotels and restaurants.
They benefit mainly tourism business suppliers.
They benefit everyone in the community.
21. The taxes paid by the businesses from the purchases made by tourists can help the provision of better
social services, and infrastructure of a country.
Dynamic effect
Indirect effect
Direct effect
Multiplier effect
22. Tourism does not only create jobs in the tertiary sector but also encourages growth in the primary and
secondary sectors of industry.
Dynamic effect
Indirect effect
Direct effect
Multiplier effect
23. It is the portion of each extra money of a household's income that's saved.
MPS
MPC
Multiplier
Income Spending
24. It is a negative economic effect where people depend on the tourism and hospitality industry as the main
source of income.
Tourism dependence
Economic dependency
4

Incapacitated Tourism
Local income literacy
25. It is earned from foreign currency spent by foreign tourists in our country.
Foreign exchange
Dollar
Travel Tax
Tourism Revenue
26. Financial aid that is given by the government to industry.
Economic Development Incentives
4Ps
Tourism Financial subsidy
None of the answers are correct
27. Tourism from Cambodia to the Philippines is ____________.
An export for the Philippines.
An export to Cambodia.
An import to Philippines.
Not an example of export or import.
28. What is the formula to compute the MPS?
MPS= 1/1 – MPS
MPS =1-MPS
MPS = MULTIPLIER/MPS
MPS =MPC/1-MPS
29. The multiplier of tourist spending.
It widely distributes the total economic impact of tourist spending.
It increases the economic impact of tourist spending.
It has little effect on our economy.
It has no effect on the local economy due to leakage.
30. It takes place when revenues from tourism economic activities are not available for reinvestment or
consumption of goods and services within the same destination.
Tourism leakage
Tourism export
Globalization
Tourism dependence

PROBLEM:
Our country earned an estimated 81.40 billion in 2020 from tourism. It is an 83.12% drop from the
previous year's P482.16 billion. The government had barred travel to the Philippines for leisure. Only
foreigners with official business, spouses of Filipino citizens, and dual citizens, among others, were allowed
to enter the country. This is why we have a huge decrease in revenue last year. On the other hand, tourist
spending increase by an estimate of 87% for every peso spent on tourism expenditures.
With targets unlikely to be met shortly due to the global pandemic, the DOT launched their "We Go As
One For Tourism" project. To guarantee the visitors' primary concern for safety, the DOT will introduce
several programs like retraining of tourism practitioners, distribution of hygiene kits to tour participants,
mandatory temperature checks at airports, hotels, and other attractions, and ensuring food safety, among
others. This project has an estimated 71.5% probability of success. However, economists are not in favor of
this project considering that it costs 27,432,000,000.00 with only a 64% probability of keeping the budget to
that amount.
Determine the MPS ( 2 pts), MPC ( 2 pts), Multiplier ( 3 pts), and BCR. (3 pts)
Instructions:
Write your answers on a clean sheet of paper. Make sure that the formulas, computation, and solutions are
legible. Put your final answers in a box or highlight them. Then, take a clear picture and upload it in google
form. You are only allowed to submit a maximum of 5 pictures that should not exceed 100MB.
5

Common questions

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Government policies are crucial in mitigating negative environmental impacts by setting regulations that protect natural landscapes and reduce pollution. These include incentives for sustainable practices, enforcing limits on the number of visitors, and investing in infrastructure that minimizes ecological footprints . Without such policies, tourism can lead to degraded landscapes and historic sites due to overuse .

Local ownership of tourism businesses ensures that more of the profits from tourist activities remain within the community, fostering economic development. This contrasts with scenarios where profits are exported out by non-local entities, which can hinder local economic growth and sustainability .

Tourism acts as an export by bringing foreign currency into the local economy through spending by international visitors. This inflow of money boosts local business revenues and can help offset trade deficits, but it also implies that dependency on tourism makes the economy vulnerable to fluctuations in international travel trends and conditions .

Financial incentives provided by the government, such as economic development subsidies, can stimulate economic growth by encouraging investment in the tourism industry, which leads to job creation and infrastructure development . However, if not well-planned, these incentives could lead to increased economic dependency on tourism .

Marketing and advertising significantly influence tourist behavior by shaping perceptions of a destination and highlighting its attractions and amenities. Well-targeted campaigns can draw attention to unique offerings of a location, thereby influencing tourists' destination choices by emphasizing what sets the place apart from others .

Wildlife and nature conservation can positively influence tourism economies by attracting tourists interested in eco-friendly experiences, thus providing additional funding to natural resources. Additionally, associations with conservation organizations can offer tourists discounts, enhancing their attraction, while donations to preservation programs allow free entry to certain attractions, thereby boosting local spending .

The multiplier effect in tourism refers to how tourist spending spreads throughout the economy, benefiting various sectors beyond just hotels and restaurants. It implies that every peso spent by tourists can lead to additional economic activity, thereby increasing the overall economic impact of tourism spending on the local economy .

Improper use or overuse of environmental resources leads to the depletion and degradation of natural landscapes, historic sites, and monuments, eventually reducing the appeal and sustainability of tourist destinations. This degradation can result in decreased tourist arrivals over time, undermining the economic viability of relying on tourism .

Mass tourism can lead to increased pollution and waste generation, strain on local infrastructure, and environmental degradation, which impacts both the local environment and economy negatively. Economically, it often creates seasonal jobs and encourages revenue leakage when profits are held by larger external corporations, not reinvested locally .

Intrinsic tourists are motivated by factors like self-exploration, relaxation, and education. Escape is also commonly included as a socio-psychological motive; however, education is not always considered a primary intrinsic motive compared to the others .

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