3.2.9
The Economic Costs of Tourism
Economic Costs of Tourism
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).
1Physical Geography
1.1River Environments
1.1.1Weathering
1.1.2Mass Movement
1.1.3Erosion
1.1.4Transportation
1.1.5Deposition
1.1.6River Landforms: Waterfalls & Gorges
1.1.7River Landforms: Interlocking Spurs
1.1.8River Landforms: Flood Plains
1.1.9River Landforms: Point Bars
1.1.10River Landforms: Levees
1.1.11River Landforms: Meanders
1.1.12River Landforms: Oxbow Lakes
1.1.13River Landscape Changes: Long Profile
1.1.14River Landscape Changes: Cross Profile
1.1.15Vertical & Lateral Erosion
1.1.16Flood Risk Factors
1.1.17Human Activities on Rivers
1.1.18River Management: Hard Engineering
1.1.19River Management: Soft Engineering
1.1.20Case Study: The River Eden - Landforms
1.1.21Case Study: The River Eden - Climate
1.1.22Case Study: The River Eden - Geology
1.1.23Case Study: The River Eden - Management
1.1.24Case Study: The River Eden - Human Activity
1.1.25End of Topic Test - River Environments
1.2Coastal Environments
1.2.1Weathering
1.2.2Mass Movement
1.2.3Erosion
1.2.4Deposition
1.2.5Longshore Drift
1.2.6Sediment Transportation
1.2.7Wave Action on Coasts
1.2.8Other Factors Influencing Coasts
1.2.9Coastal Landforms: Wave-cut Platforms & Cliffs
1.2.10Coastal Landforms: Headlands & Bays
1.2.11Coastal Landforms: Caves, Arches & Stacks
1.2.12Coastal Deposition
1.2.13Spits, Bars & Sand Dunes
1.2.14Human Activity on Coasts
1.2.15Coastal Defences: Hard Engineering
1.2.16Coastal Defences: Soft Engineering
1.2.17Coastal Defences: Managed Retreat
1.2.18Case Study: Holderness Coast Overview
1.2.19Case Study: Holderness Coast Management
1.2.20Case Study: Holderness Coast Defences
1.2.21End of Topic Test - Coastal Environments
1.3Hazardous Environments - Tropical Cyclones
1.3.1Characteristics of a Tropical Cyclone
1.3.2Structure of a Tropical Cyclone
1.3.3Physical Hazards of Tropical Cyclones
1.3.4The Impacts of Tropical Cyclones
1.3.5Responses to Tropical Cyclones
1.3.6Vulnerability to Tropical Cyclones
1.3.7Preparing for Tropical Cyclones
1.3.8Case Study: Katrina
1.3.9Case Study: Nargis
2Human Geography
2.1Economic Activity & Energy
2.2Rural Environments
3Global Issues
3.1Fragile Environments & Climate Change
3.2Globalisation & Migration
3.2.1Globalisation - Transport
3.2.2Globalisation - Communication Networks & Banking
3.2.3Push & Pull Factors
3.2.4TNCs & Globalisation
3.2.5Tourism Landscapes
3.2.6The Growth of Tourism
3.2.7The Economic Benefits of Tourism
3.2.8The Social & Cultural Benefits of Tourism
3.2.9The Economic Costs of Tourism
3.2.10The Social & Cultural Costs of Tourism
3.2.11Managing Tourism - Sustainability
3.2.12Managing Tourism - Quotas & Tourism Hubs
3.3Development & Human Welfare
3.3.1Ways of Defining Development
3.3.2Different Ways of Measuring Development
3.3.3Environmental Factors Causing Uneven Development
3.3.4Historical Factors Causing Uneven Development
3.3.5Economic Factors Causing Uneven Development
3.3.6Patterns of Development
3.3.7How Can we Reduce the Global Development Gap?
3.3.8Top-Down & Bottom-Up Development
Jump to other topics
1Physical Geography
1.1River Environments
1.1.1Weathering
1.1.2Mass Movement
1.1.3Erosion
1.1.4Transportation
1.1.5Deposition
1.1.6River Landforms: Waterfalls & Gorges
1.1.7River Landforms: Interlocking Spurs
1.1.8River Landforms: Flood Plains
1.1.9River Landforms: Point Bars
1.1.10River Landforms: Levees
1.1.11River Landforms: Meanders
1.1.12River Landforms: Oxbow Lakes
1.1.13River Landscape Changes: Long Profile
1.1.14River Landscape Changes: Cross Profile
1.1.15Vertical & Lateral Erosion
1.1.16Flood Risk Factors
1.1.17Human Activities on Rivers
1.1.18River Management: Hard Engineering
1.1.19River Management: Soft Engineering
1.1.20Case Study: The River Eden - Landforms
1.1.21Case Study: The River Eden - Climate
1.1.22Case Study: The River Eden - Geology
1.1.23Case Study: The River Eden - Management
1.1.24Case Study: The River Eden - Human Activity
1.1.25End of Topic Test - River Environments
1.2Coastal Environments
1.2.1Weathering
1.2.2Mass Movement
1.2.3Erosion
1.2.4Deposition
1.2.5Longshore Drift
1.2.6Sediment Transportation
1.2.7Wave Action on Coasts
1.2.8Other Factors Influencing Coasts
1.2.9Coastal Landforms: Wave-cut Platforms & Cliffs
1.2.10Coastal Landforms: Headlands & Bays
1.2.11Coastal Landforms: Caves, Arches & Stacks
1.2.12Coastal Deposition
1.2.13Spits, Bars & Sand Dunes
1.2.14Human Activity on Coasts
1.2.15Coastal Defences: Hard Engineering
1.2.16Coastal Defences: Soft Engineering
1.2.17Coastal Defences: Managed Retreat
1.2.18Case Study: Holderness Coast Overview
1.2.19Case Study: Holderness Coast Management
1.2.20Case Study: Holderness Coast Defences
1.2.21End of Topic Test - Coastal Environments
1.3Hazardous Environments - Tropical Cyclones
1.3.1Characteristics of a Tropical Cyclone
1.3.2Structure of a Tropical Cyclone
1.3.3Physical Hazards of Tropical Cyclones
1.3.4The Impacts of Tropical Cyclones
1.3.5Responses to Tropical Cyclones
1.3.6Vulnerability to Tropical Cyclones
1.3.7Preparing for Tropical Cyclones
1.3.8Case Study: Katrina
1.3.9Case Study: Nargis
2Human Geography
2.1Economic Activity & Energy
2.2Rural Environments
3Global Issues
3.1Fragile Environments & Climate Change
3.2Globalisation & Migration
3.2.1Globalisation - Transport
3.2.2Globalisation - Communication Networks & Banking
3.2.3Push & Pull Factors
3.2.4TNCs & Globalisation
3.2.5Tourism Landscapes
3.2.6The Growth of Tourism
3.2.7The Economic Benefits of Tourism
3.2.8The Social & Cultural Benefits of Tourism
3.2.9The Economic Costs of Tourism
3.2.10The Social & Cultural Costs of Tourism
3.2.11Managing Tourism - Sustainability
3.2.12Managing Tourism - Quotas & Tourism Hubs
3.3Development & Human Welfare
3.3.1Ways of Defining Development
3.3.2Different Ways of Measuring Development
3.3.3Environmental Factors Causing Uneven Development
3.3.4Historical Factors Causing Uneven Development
3.3.5Economic Factors Causing Uneven Development
3.3.6Patterns of Development
3.3.7How Can we Reduce the Global Development Gap?
3.3.8Top-Down & Bottom-Up Development
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