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.

Illustrative background for Export leakageIllustrative background for Export leakage ?? "content

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.
Illustrative background for Import leakageIllustrative background for Import leakage ?? "content

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.
Illustrative background for Other economic costsIllustrative background for Other economic costs ?? "content

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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1Geography Skills

2Geology of the UK

3Geography of the World

4Development

5Weather & Climate

6The World of Work

7Natural Resources

8Rivers

9Coasts

10Glaciers

11Tectonics

12Climate Change

13Global Population & Inequality

14Urbanisation

15Ecosystems

16Life in an Emerging Country

17Analysis of Africa

18Analysis of India

19Analysis of the Middle East

20Analysis of Bangladesh

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