3.2.9

The Economic Costs of Tourism

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Economic Costs of Tourism

There are several economic costs of tourism, including export and import leakage, and other harms to the local economy of a tourist destination.

Export leakage

Export leakage

  • Some MNC/TNC big chain companies that have resorts or hotels in LICs employ only people from the HIC in their manager positions.
    • These managers are paid in the HIC where the company headquarters are, which means that the wage money does not enter the LIC at all.
  • If people book through travel agents in HICs, to travel to a LIC, the travel agent keeps up to 60% of the profits, so the LIC doesn’t see much of the money.
Import leakage

Import leakage

  • Tourists from HICs are often ignorant and want to only have food and drink from their own country because they trust it more.
  • So, LICs are forced to provide international brands, rather than supplying local foods and drinks.
  • This means that local companies earn a lot less money.
Other economic costs

Other economic costs

  • A lot of tourists do not leave their holiday resorts and so they do not help to improve the local economy.
  • Jobs in the tourism industry are often hard work and lowly paid (maid, waiter) and many jobs are only seasonal (skiing resorts).
Jump to other topics
1

Physical Geography

1.1

River Environments

1.1.1Weathering1.1.2Mass Movement1.1.3Erosion1.1.4Transportation1.1.5Deposition1.1.6River Landforms: Waterfalls & Gorges1.1.7River Landforms: Interlocking Spurs1.1.8River Landforms: Flood Plains1.1.9River Landforms: Point Bars1.1.10River Landforms: Levees1.1.11River Landforms: Meanders1.1.12River Landforms: Oxbow Lakes1.1.13River Landscape Changes: Long Profile1.1.14River Landscape Changes: Cross Profile1.1.15Vertical & Lateral Erosion1.1.16Flood Risk Factors1.1.17Human Activities on Rivers1.1.18River Management: Hard Engineering1.1.19River Management: Soft Engineering1.1.20Case Study: The River Eden - Landforms1.1.21Case Study: The River Eden - Climate1.1.22Case Study: The River Eden - Geology1.1.23Case Study: The River Eden - Management1.1.24Case Study: The River Eden - Human Activity1.1.25End of Topic Test - River Environments
1.2

Coastal Environments

1.2.1Weathering1.2.2Mass Movement1.2.3Erosion1.2.4Deposition1.2.5Longshore Drift1.2.6Sediment Transportation1.2.7Wave Action on Coasts1.2.8Other Factors Influencing Coasts1.2.9Coastal Landforms: Wave-cut Platforms & Cliffs1.2.10Coastal Landforms: Headlands & Bays1.2.11Coastal Landforms: Caves, Arches & Stacks1.2.12Coastal Deposition1.2.13Spits, Bars & Sand Dunes1.2.14Human Activity on Coasts1.2.15Coastal Defences: Hard Engineering1.2.16Coastal Defences: Soft Engineering1.2.17Coastal Defences: Managed Retreat1.2.18Case Study: Holderness Coast Overview1.2.19Case Study: Holderness Coast Management1.2.20Case Study: Holderness Coast Defences1.2.21End of Topic Test - Coastal Environments
1.3

Hazardous Environments - Tropical Cyclones

1.3.1Characteristics of a Tropical Cyclone1.3.2Structure of a Tropical Cyclone1.3.3Physical Hazards of Tropical Cyclones1.3.4The Impacts of Tropical Cyclones1.3.5Responses to Tropical Cyclones1.3.6Vulnerability to Tropical Cyclones1.3.7Preparing for Tropical Cyclones1.3.8Case Study: Katrina1.3.9Case Study: Nargis
1.4

Hazardous Environments - Earthquakes & Volcanoes

1.4.1Earthquakes1.4.2Features of an Earthquake1.4.3Types of Earthquake1.4.4Case Study: L'Aquila1.4.5Case Study: Chile1.4.6Case Study: Japan & Pakistan - Planning1.4.7Volcanoes1.4.8Types of Volcanoes1.4.9Volcanic Eruptions
2

Human Geography

2.1

Economic Activity & Energy

2.1.1Increasing Energy Consumption2.1.2Non-Renewable Energy - Nuclear2.1.3Non-Renewable Energy - Fossil Fuels2.1.4Renewable Energy - Solar2.1.5Renewable Energy - Water & Bio2.1.6Renewable Energy - Hydro2.1.7Energy - Statistical Skills
2.2

Rural Environments

2.2.1Rainforests2.2.2Temperate Forests2.2.3Characteristics of a Temperate Forest2.2.4Goods & Services in Temperate Forests2.2.5Deserts2.2.6Tundra
2.3

Urban Environments

2.3.1Urbanisation in Different Countries2.3.2Causes of Urbanisation2.3.3Consequences of Urbanisation2.3.4Sustainable Urbanisation2.3.5Case Study: Rapid Urbanisation in Mexico City2.3.6End of Topic Test - Urbanisation
3

Global Issues

3.1

Fragile Environments & Climate Change

3.1.1Natural Causes of Climate Change3.1.2Effects of Climate Change on the Environment3.1.3Effects of Climate Change on People3.1.4Impacts of Deforestation3.1.5End of Topic Test - Climate Change3.1.6Increasing Water Supply3.1.7Sustainable Rainforest Management
3.2

Globalisation & Migration

3.2.1Globalisation - Transport3.2.2Globalisation - Communication Networks & Banking3.2.3Push & Pull Factors3.2.4TNCs & Globalisation3.2.5Tourism Landscapes3.2.6The Growth of Tourism3.2.7The Economic Benefits of Tourism3.2.8The Social & Cultural Benefits of Tourism3.2.9The Economic Costs of Tourism3.2.10The Social & Cultural Costs of Tourism3.2.11Managing Tourism - Sustainability3.2.12Managing Tourism - Quotas & Tourism Hubs
3.3

Development & Human Welfare

3.3.1Ways of Defining Development3.3.2Different Ways of Measuring Development3.3.3Environmental Factors Causing Uneven Development3.3.4Historical Factors Causing Uneven Development3.3.5Economic Factors Causing Uneven Development3.3.6Patterns of Development3.3.7How Can we Reduce the Global Development Gap?3.3.8Top-Down & Bottom-Up Development

Practice questions on The Economic Costs of Tourism

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  1. 1
    What is export leakage?Fill in the list
  2. 2
    Which of the following statements about import leakage are correct?True / false
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The Social & Cultural Benefits of Tourism

The Social & Cultural Costs of Tourism