6.1.4

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).
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1

Geography Skills

1.1

Mapping

1.1.1Map Making1.1.2OS Maps1.1.3Grid References1.1.4Contour Lines1.1.5Symbols, Scale and Distance1.1.6Directions on Maps1.1.7Describing Routes1.1.8Map Projections1.1.9Aerial & Satellite Images1.1.10Using Maps to Make Decisions
1.2

Geographical Information Systems

1.2.1Geographical Information Systems1.2.2How do Geographical Information Systems Work?1.2.3Using Geographical Information Systems1.2.4End of Topic Test - Geography Skills
2

Geology of the UK

2.1

The UK's Rocks

2.1.1The UK's Main Rock Types2.1.2The UK's Landscape2.1.3Using Rocks2.1.4Weathering
2.2

Case Study: The Peak District

2.2.1The Peak District2.2.2Limestone Landforms2.2.3Quarrying
3

Geography of the World

3.1

Geography of America & Europe

3.1.1North America3.1.2South America3.1.3Europe3.1.4The European Union3.1.5The Continents3.1.6The Oceans3.1.7Longitude3.1.8Latitude3.1.9End of Topic Test - Geography of the World
4

Development

4.1

Development

4.1.1Classifying Development4.1.2GDP4.1.3Evaluation of GDP4.1.4The Human Development Index4.1.5Population Structure4.1.6Developing Countries4.1.7Emerging Countries4.1.8Developed Countries4.1.9Comparing Development
4.2

Uneven Development

4.2.1Consequences of Uneven Development4.2.2Physical Factors Affecting Development4.2.3Historic Factors Affecting Development4.2.4Human & Social Factors Affecting Development4.2.5Breaking Out of the Poverty Cycle
4.3

Case Study: Democratic Republic of Congo

4.3.1The DRC: An Overview4.3.2Political & Social Factors Affecting Development4.3.3Environmental Factors Affecting the DRC4.3.4The DRC: Aid4.3.5The Pros & Cons of Aid in DRC4.3.6Top-Down vs Bottom-Up in DRC4.3.7The DRC: Comparison with the UK4.3.8The DRC: Against Malaria Foundation
4.4

Case Study: Nigeria

4.4.1The Importance & Development of Nigeria4.4.2Nigeria's Relationships with the Rest of the World4.4.3Urban Growth in Lagos4.4.4Population Growth in Lagos4.4.5Factors influencing Nigeria's Growth4.4.6Nigeria: Comparison with the UK
5

Weather & Climate

5.1

Weather

5.1.1Weather & Climate5.1.2Components of Weather5.1.3Temperature5.1.4Sunshine, Humidity & Air Pressure5.1.5Cloud Cover5.1.6Precipitation5.1.7Convectional Precipitation5.1.8Frontal Precipitation5.1.9Relief or Orographic Precipitation5.1.10Wind5.1.11Extreme Wind5.1.12Recording the Weather5.1.13Extreme Weather5.1.14Weather Hazards - Statistical Skills
5.2

Climate

5.2.1Climate of the British Isles5.2.2Comparing Weather & Climate London5.2.3Climate of the Tropical Rainforest5.2.4End of Topic Test - Weather & Climate
5.3

Tropical Storms

5.3.1Formation of Tropical Storms5.3.2Features of Tropical Storms5.3.3The Structure of Tropical Storms5.3.4Tropical Storms Case Study: Katrina Effects5.3.5Tropical Storms Case Study: Katrina Responses
6

The World of Work

6.1

Tourism

6.1.1Landscapes6.1.2The Growth of Tourism6.1.3Benefits of Tourism6.1.4Economic Costs of Tourism6.1.5Social, Cultural & Environmental Costs of Tourism6.1.6Tourism Case Study: Blackpool6.1.7Ecotourism6.1.8Tourism Case Study: Kenya
7

Natural Resources

7.1

Rocks

7.1.1What are Rocks?7.1.2Types of Rock7.1.3Fuel7.1.4The Rock Cycle - Weathering7.1.5The Rock Cycle - Erosion7.1.6What is Soil?7.1.7Soil Profiles7.1.8Water7.1.9Global Water Demand
7.2

Fossil Fuels

7.2.1Introduction to Fossil Fuels7.2.2Fossil Fuels7.2.3The Global Energy Supply7.2.4Oil7.2.5What is Peak Oil?7.2.6End of Topic Test - Natural Resources
8

Rivers

8.1

River Processes & Landforms

8.1.1Overview of Rivers8.1.2The Bradshaw Model8.1.3Erosion8.1.4Sediment Transport8.1.5River Deposition8.1.6Landforms8.1.7River Profiles: Long Profiles8.1.8River Profiles: Cross Profiles8.1.9Waterfalls & Gorges8.1.10Interlocking Spurs8.1.11Meanders8.1.12Floodplains8.1.13Levees8.1.14Case Study: River Tees
8.2

Rivers & Flooding

8.2.1Flood Risk Factors8.2.2Flood Management: Hard Engineering8.2.3Flood Management: Soft Engineering8.2.4Flooding Case Study: Boscastle8.2.5Flooding Case Study: Consequences of Boscastle8.2.6Flooding Case Study: Responses to Boscastle8.2.7Flooding Case Study: Bangladesh8.2.8Flooding Case Study: Bangladesh - Consequences8.2.9End of Topic Test - Rivers8.2.10Rivers Case Study: The Nile8.2.11Rivers Case Study: The Mississippi
9

Coasts

9.1

Formation of Coastal Landforms

9.1.1Weathering9.1.2Erosion9.1.3Headlands & Bays9.1.4Caves, Arches & Stacks9.1.5Wave-Cut Platforms & Cliffs9.1.6Waves9.1.7Longshore Drift9.1.8Coastal Deposition9.1.9Spits, Bars & Sand Dunes
9.2

Coast Management

9.2.1Management Strategies for Coastal Erosion9.2.2Case Study: The Holderness Coast9.2.3Case Study: Lyme Regis9.2.4End of Topic Test - Coasts
10

Glaciers

10.1

Overview of Glaciers & How They Work

10.1.1Distribution of Glaciers10.1.2Types of Glaciers10.1.3The Last Ice Age10.1.4Formation & Movement of Glaciers10.1.5Shaping of Landscapes by Glaciers10.1.6Glacial Landforms Created by Erosion10.1.7Glacial Till & Outwash Plain10.1.8Moraines10.1.9Drumlins & Erratics10.1.10End of Topic Tests - Glaciers10.1.11Tourism in Glacial Landscapes10.1.12Strategies for Coping with Tourists10.1.13Case Study - Lake District: Tourism10.1.14Case Study - Lake District: Management
11

Tectonics

11.1

Continental Drift & Plate Tectonics

11.1.1The Theory of Plate Tectonics11.1.2The Structure of the Earth11.1.3Tectonic Plates11.1.4Plate Margins11.1.5Tectonics - Statistical Skills
11.2

Volcanoes

11.2.1Volcanoes & Their Products11.2.2The Development of Volcanoes11.2.3Living Near Volcanoes
11.3

Earthquakes

11.3.1Overview of Earthquakes11.3.2Consequences of Earthquakes11.3.3Case Study: Christchurch, New Zealand Earthquake
11.4

Tsunamis

11.4.1Formation of Tsunamis11.4.2Case Study: Japan 2010 Tsunami
11.5

Managing the Risk of Volcanoes & Earthquakes

11.5.1Coping With Earthquakes & Volcanoes11.5.2End of Topic Test - Tectonics
12

Climate Change

12.1

The Causes & Consequences of Climate Change

12.1.1Evidence for Climate Change12.1.2Natural Causes of Climate Change12.1.3Human Causes of Climate Change12.1.4The Greenhouse Effect12.1.5Effects of Climate Change on the Environment12.1.6Effects of Climate Change on People12.1.7Climate Change Predictions12.1.8Uncertainty About Future Climate Change12.1.9Mitigating Against Climate Change12.1.10Adapting to Climate Change12.1.11Case Study: Bangladesh12.1.12Climate Change - Statistical Skills
13

Global Population & Inequality

13.1

Global Populations

13.1.1World Population13.1.2Population Structure13.1.3Ageing Populations13.1.4Youthful Populations13.1.5Population Control13.1.6Mexico to USA Migration13.1.7End of Topic Test - Development & Population
14

Urbanisation

14.1

Urbanisation

14.1.1Rural Characterisitcs14.1.2Urban Characteristics14.1.3Urbanisation Growth14.1.4The Land Use Model14.1.5Rural-Urban Pull Factors14.1.6Rural-Urban Push Factors14.1.7The Impacts of Migration14.1.8Challenges of Urban Areas in Developed Countries14.1.9Challenges of Urban Areas in Developing Countries14.1.10Urban Sustainability14.1.11Case Study: China's Urbanisation14.1.12Major UK Cities14.1.13Urbanisation in the UK14.1.14End of Topic Test- Urbanisation14.1.15End of Topic Test - Urban Issues14.1.16Urban Issues - Statistical Skills
15

Ecosystems

15.1

The Major Biomes

15.1.1Distribution of Major Biomes15.1.2What Affects the Distribution of Biomes?15.1.3Biome Features: Tropical Forests15.1.4Biome Features: Temperate Forests15.1.5Biome Features: Tundra15.1.6Biome Features: Deserts15.1.7Biome Features: Tropical Grasslands15.1.8Biome Features: Temperate Grasslands
15.2

Case Study: The Amazon Rainforest

15.2.1Interdependence of Rainforest Ecosystems15.2.2Nutrient Cycling in Tropical Rainforests15.2.3Deforestation in the Amazon15.2.4Impacts of Deforestation in the Amazon15.2.5Protecting the Amazon15.2.6Adaptations of Plants to Rainforests15.2.7Adaptations of Animals to Rainforests15.2.8Deforestation - Statistical Skills
16

Life in an Emerging Country

16.1

Case Studies

16.1.1Mumbai: Opportunities16.1.2Mumbai: Challenges
17

Analysis of Africa

17.1

Africa

17.1.1Desert Biomes in Africa17.1.2The Semi-Desert Biome17.1.3The Savanna Biome17.1.4Overview of Tropical Rainforests17.1.5Colonisation History17.1.6Population Distribution in Africa17.1.7Economic Resources in Africa17.1.8Urbanisation in Africa17.1.9Africa's Location17.1.10Physical Geography of Africa17.1.11Desertification in Africa17.1.12Reducing the Risk of Desertification17.1.13Case Study: The Sahara Desert - Opportunities17.1.14Case Study: The Sahara Desert - Development
18

Analysis of India

18.1

India - Physical Geography

18.1.1Geographical Location of India18.1.2Physical Geography of India18.1.3India's Climate18.1.4Natural Disasters in India18.1.5Case Study: The Thar Desert18.1.6Case Study: The Thar Desert - Challenges
18.2

India - Human Geography

18.2.1Population Distribution in India18.2.2Urbanisation in India18.2.3The History of India18.2.4Economic Resources in India
19

Analysis of the Middle East

19.1

The Middle East

19.1.1Physical Geography of the Middle East19.1.2Human Geography of the Middle East19.1.3Climate Zones in the Middle East19.1.4Oil & Natural Gas in the Middle East19.1.5Water in the Middle East19.1.6Population of the Middle East19.1.7Development Case Studies: The UAE19.1.8Development Case Studies: Yemen19.1.9Supporting Development in Yemen19.1.10Connection to the UK19.1.11Importance of Oil19.1.12Oil & Tourism in the UAE
20

Analysis of Bangladesh

20.1

Bangladesh Physical Geography

20.1.1Location of Bangladesh20.1.2Climate of Bangladesh20.1.3Rivers in Bangladesh20.1.4Flooding in Bangladesh
20.2

Bangladesh Human Geography

20.2.1Population Structure in Bangladesh20.2.2Urbanisation in Bangladesh20.2.3Bangladesh's Economy20.2.4Energy & Sustainability in Bangladesh
21

Analysis of Russia

21.1

Russia's Physical Geography

21.1.1Russia's Climate21.1.2Russia's Landscape
21.2

Russia's Human Geography

21.2.1Population of Russia21.2.2Russia's Economy21.2.3Energy & Sustainability in Russia

Practice questions on Economic Costs of Tourism

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

  1. 1
    What is export leakage?Fill in the list
  2. 2
    Which of the following statements about import leakage are correct?True / false
  3. 3
    What is a negative effect on transport infrastructure with the increasing growth of tourism?Multiple choice
  4. 4
    All inclusive hotels are a very popular attraction for the UK tourism market. What is a negative economic effect of this tourism?Multiple choice
  5. 5
    What is a negative economic consequence having a country's incomes dependent on the tourism industry?Multiple choice
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Benefits of Tourism

Social, Cultural & Environmental Costs of Tourism