Tourism Industry Economic Impacts

The video discusses the economic impacts of tourism, highlighting both positive and negative aspects. It covers the global significance of tourism, its contribution to GDP, employment, and exports. The positive impacts include foreign exchange earnings and the multiplier effect, while negative impacts involve economic leakage, infrastructure costs, and over-reliance on tourism. The video emphasizes the need for sustainable tourism management and provides resources for further learning.

What is the primary reason for the growth of the travel and tourism industry in recent years?

• Reduction in travel restrictions

• Rise of low-cost airlines and emerging economies

• Increase in global oil prices

• Decrease in global population

Which of the following is a direct contribution to the economy from tourism?

• Tourists buying local crafts

• Tourists using public transportation

• Departure taxes

• Tourists dining at local restaurants

How does the multiplier effect benefit the local economy?

• By reducing the cost of living

• By creating economic benefits from spending in one area

• By decreasing the need for local employment

• By increasing the number of tourists

What is a significant challenge posed by multinational corporations in tourism?

• They improve local infrastructure

• They reduce the number of tourists

• They contribute to economic leakage

• They increase local employment

Why might a destination choose to limit multinational organizations?

• To increase foreign investment

• To prevent economic leakage and support local businesses

• To increase the cost of living

• To reduce the number of tourists

What is a potential negative impact of tourism on local infrastructure?

• Decreased need for public services

• Increased government revenue

• High costs for development and maintenance

• Improved local transportation

How can over-reliance on tourism be risky for a destination?

• It can cause economic instability if tourism declines

• It can increase the local population

• It can reduce the need for local businesses

• It can lead to a decrease in tourist numbers

What is one way to mitigate the negative economic impacts of tourism?

• Reducing the number of local employees

• Increasing the number of all-inclusive hotels

• Encouraging foreign ownership

• Promoting the purchase of local products

Why is it important to manage tourism sustainably?

• To eliminate the need for local businesses

• To increase the number of tourists

• To reduce the cost of travel

• To maximize positive impacts and minimize negative ones

What is a common issue with foreign-owned tourism businesses?

• They often employ only local staff

• They usually reinvest all profits locally

• They may not prioritize local community needs

• They always offer the lowest prices