Geography Coursework Effects Tourism

Tourism Multiplier Effect

Tourism not only creates jobs in the tertiary sector, it also encourages growth in the primary and secondary sectors of industry. This is known as the multiplier effect which in its simplest form is how many times money spent by a tourist circulates through a country's economy.

Money spent in a hotel helps to create jobs directly in the hotel, but it also creates jobs indirectly elsewhere in the economy. The hotel, for example, has to buy food from local farmers, who may spend some of this money on fertiliser or clothes. The demand for local products increases as tourists often buy souvenirs, which increases secondary employment.

The multiplier effect continues until the money eventually 'leaks' from the economy through imports - the purchase of goods from other countries.

A study of tourism 'leakage' in Thailand estimated that 70% of all money spent by tourists ended up leaving Thailand (via foreign-owned tour operators, airlines, hotels, imported drinks and food, etc.). Estimates for other Third World countries range from 80% in the Caribbean to 40% in India.
Source: Sustainable Living

Environmental Costs

�  Up to 2,000 people visit the Machu Picchu citadel every day, with visitor numbers growing at 6 percent a year. The site is being slowly eroded by tourists' feet.

�  Machu Picchu is located among steep slopes that are constantly being eroded by heavy rains and landslides are common. Although the recovery of the original terraces, many of which are still buried under the vegetation, helps to stabilise the slopes and ensure conservation, it is a costly undertaking.

�  Timber has been cut along the Inca trail for fuel for cooking and forest fires in the vicinity have threatened Machu Picchu on several occasions.

�  Until now, the influx of visitors has been kept under control to the extent that the only way of reaching the site was by railway. But plans to build a road from Cuzco and a cable car running from the valley to the top of Machu Picchu could lead to irreparable harm being done.

�  The number of people hiking along the Inca Trail rose from 6,000 in 1984 to 82,000 in 2000. The trail is being eroded and tea bags and water bottles litter the route, where campsites are scarce.

�  Unorganized urban growth in the area with human waste pumped direct into the Urubamba river. Aguas Calientes has mushroomed in size as more hotels and restaurants have been built to accommodate the needs of tourists, and the burden is evident in the heaps of garbage piled along the banks of the Urubamba river.

�  Helicopters have been allowed to fly in tourists and operate low-flying tours, thereby disturbing not only the peaceful quality of the ruins, but potentially damaging them. Peru's Institute of Natural Resources said those flights led to the disappearance of a rare species of orchid and the Andean Condor from the area.

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