Examine in detail the benefits of tourism in Economics. Tourism provides several benefits to local economies. It generates new revenue streams by attracting visitors and increasing the amount of money spent in the area. As visitors explore local attractions, they purchase goods and services from local businesses, such as restaurants, hotels, and souvenir shops. This, in turn, creates employment opportunities, which can benefit the residents of the area.
Examine in detail the benefits of tourism in Economics (Tourism)
INTRODUCTION
- Tourism is the activities of people travelling to and staying in places outside their usual environment for no more than one consecutive year for leisure, business or other purposes PP 🗸🗸
[Accept any other correct relevant response]
[Max 2]
MAIN PART
Business sector
- Tourism stimulates business in areas such as accommodation and entertainment 🗸🗸
- The construction industry, in private-public partnership with the government to provide the infrastructure, manufacturing sector and recreation sector all benefits from increased demand due to tourism 🗸🗸
- The previously disadvantaged communities get entrepreneurial opportunities through the black economic empowerment schemes 🗸🗸
- A large number of people get business opportunities in the informal sector e.g. selling of artefacts 🗸🗸
- Local retailers may have an increase in sales (and profits) because of increased demand from tourists 🗸🗸
- Private businesses and government work in partnership to provide the infrastructure needed for tourism 🗸🗸
- This increases the market share of and income of the these businesses 🗸🗸
- Allow existing businesses to improve the quality and variety of their products PP 🗸🗸
- Allow natural monopolies e.g. Table Mountain Cableway to achieve abnormal profits PP 🗸🗸
- The public sector also provides a range of financial incentives for private sector tourism investment (grants, subsidies, loans, tax rebates) PP 🗸🗸
[Max 10]
Infrastructure development
- Adequate and well-maintained infrastructure is essential for tourist destinations PP. 🗸🗸
- Locals share this infrastructure with tourists 🗸🗸
- Government often prioritises economic infrastructure such as ports and beaches 🗸🗸
- In addition to physical and basic infrastructure, social infrastructure is also important for the growth of tourism🗸🗸
- Most of the SDIs and development corridors also have tourism as an important focus PP 🗸🗸
[Max 8]
Households
- Members of households earn income from the tourism sector as tour operators, travel agents etc. 🗸🗸
- Many households are indirectly involved in tourism as employees e.g. in hotels, transport sector. 🗸🗸
- Entrepreneurs from households that operate as curio producers or musicians can earn income from tourism . 🗸🗸
- A large number of households acquire skills in the tourism industry. 🗸🗸
- School curriculum and learnership offer opportunities to acquire these skills . 🗸🗸
- Encourages rural development because many tourist attractions are located in rural areas PP 🗸🗸
[Accept any other correct relevant response]
[Max. 26]
ADDITIONAL PART
Tourism can be successfully marketed in less popular destinations by:
- advertising the firms’ attractions in a variety of media including social media and internet which may reach both local and international potential tourists. 🗸🗸
- focusing on a clear message that concentrates on the strength of the attraction/ uniqueness of the destination. 🗸🗸
- using the indigenous knowledge systems of that particular area where possible PP. 🗸🗸
- describing the service offered in the best possible way to catch the interest of the likely tourist PP E.g. the use of slogans. 🗸🗸
- charging a price that is competitive and money well spent for the service offered. 🗸🗸
- helping the tourist to view the entire service as value for money – deliver a worldclass visitor experience 🗸🗸
- highlighting other places of interest in the vicinity of the attraction as part of a package 🗸🗸
- focusing on proudly South African products/services / Sho’t Left campaign PP 🗸🗸
- help disadvantaged South Africans to benefit from tourist attractions in the less popular destinations PP 🗸🗸
[Accept any other correct relevant response]
[Max. 10]
CONCLUSION
A weaker exchange rate has been a major contributing factor to South Africa’s tourism industry growth over many years. 🗸🗸
[Accept any correct relevant response]
[Max 2]