Sustainable Tourism _ Handout 3

defined as “the state of a country or region in terms of the production and consumption of goods and services and the supply of money” (Oxford, n.d.).

What is the Act that declares tourism as “an indispensable element of the national economy and an industry of national interest and importance, which must be harnessed as an engine of socio-economic growth and cultural affirmation to generate investment, foreign exchange, and employment.”

“the revenue generated by inbound tourism that flows into a country, region, or location which injects new resources into the economy” (Santos, 2017).

The three (3) pathways of Tourism multiplier effect

• Direct

• Segway

• indirect

• dynamic

This effect is caused by tourist expenditures in commodities such as accommodation, transportation, food, and attractions. These spending activities are beneficial to industries that are directly involved with the said commodities. The main sources of tourism spending are domestic travel and visitor exports or international travel spending. (e.g., tourists booking flights and hotel accommodations and visitors purchasing tickets for transportation)

What is the another pathway that the World Travel and Tourism Council (WTTC) included?

This comes in the form of tourism investments, government spending for tourism development, and purchase made from suppliers of the commodities used for tourism. The examples of suppliers are farms for food and delicacy products, industrial and utility companies for electricity and water, and training centers for human resource needs. (e.g., restaurants buying fresh milk from farms for supply)

This refers to the long term and large scale effects of tourism such as skill enhancements for better chances of landing a job, availability of better social services (health, education, and security), and infrastructure development (airport, roads, and railways). (e.g., increase of job opportunities in hotels and airports and construction of public restrooms and sidewalks due to the increasing number of visitors)

It refers to the broader contribution of tourism through the expenditure of people who are directly and indirectly employed by the tourism industry such as food, beverage, clothing, and recreation. (e.g., hotel staff purchasing food from nearby restaurants for lunch and airline employees buying new clothes using money from their salaries)

Tourism has a wide job market ranging from entry-level positions (e.g., hotel front desk staff, room attendants, servers, concierge, and airline ground staff) to more advanced positions (e.g., supervisory and managerial positions, executive chef, and flight purser). Other positions include administrative duties and back office positions such as auditors, clerks, and support systems staff.