Tourism Impacts On Economy.pptx

TOURISM IMPACTS ON ECONOMY BY: LUMANTA, VENNICE RIVERA, JERAMIE GONZALES, DANICA DUCLAYAN, ERFZ

Introduction  The

importance of tourism on the economy cannot be overemphasized. It is of very few industries that has been identified as a cornerstone of the Philippine economy.

Objectives: At the end of this lesson, you are expected to: 

Differentiate the differences among direct, indirect, induced and dynamic impacts of tourism on the economy;



Explain the concept of Tourism Satellite Account, and the reason for its adoption;

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Provide examples of the industries that benefit from the tourism in the home community, transit zones, and the destinations;



Identify the positive and negative impacts of tourism on the economy;

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Discuss the factors that determine the direction and degree of economic impacts; and



Suggest ways to maximize the economic benefits from tourism, and minimize its costs.

Direct, Indirect, Induced and Dynamic Impacts According to the WTTC (2015)… Direct Effects are produced when tourists spend for such commodities as accommodation, transportation, entertainment, and attractions. Indirect Contribution of tourism to the economy comes in the form of investments in tourism, government spending in tourism, and the effect of purchase from suppliers (WTTC 2015).

Induced Effects are the collective spending by direct and indirect employees on food and beverage, recreation, clothing, housing, and household goods (WTTC 2015). Dynamic Effects refer to the longer-term macro-level effects, such as general enhancement of skills within the economy, provision of better social services (health, education, security), and infrastructure (roads, airports, Internet).

Tourism and the Philippine Economy Tourism is an important sector for Philippine economy. In 2015, the travel and tourism industry contributed 10.6% to the country's GDP. Its beaches, heritage towns and monuments, mountains, rainforests, islands and diving spots are among the country's most popular tourist destinations. The Philippine Tourism Satellite Accounts (PTSA) provides a set of information on tourism that facilitates its analysis in the context of macroeconomic accounts.

How the Government earn from the tourism? There are several resources of tourism-related revenue for the government: 

Passport processing fee



Fees for National Statistic Office (NSO)



Certificates required for securing: o

Passport

o

Travel tax

o

Documentation fee (for travel tax exemption)

o

Airport terminal fee

o

Airport space rental fees

o

Parking area fee

How the Government earn from the tourism? Government collects value-add tax from the tourism-related business establishments: 

Business permit fees



Barangay Clearance



Tax paid (by employees in Tourism establishment)

The Government also collect value-added tax from tourism-related business: establishment, business permit fees, barangay clearance, and taxes paid by employees in tourism establishments.

Factors that determine the direction and degree of economic impacts 

Other factors that determine a nation’s economic performance include the level of corruption, openness of capital markets, competitiveness of financial system and flexibility of prices.

Positive and Negative impacts of tourism on the economy Positive impacts 

Contribution to government revenues.

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Employment generation.

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Direct contribution are generated by taxes on incomes from tourism businesses.

Positive and Negative impacts of tourism on the economy Negative Impacts 

Tourisms drawbacks lie in leakages, opportunity costs, poor quality of jobs, overdependence on tourism , inflation of ; price and food ,land , houses, and service



Seasonality and underemployment.

Beneficial impact of tourism on the economy According to swarbrooke (1999), the main beneficial impacts of tourism on the economy are job creation, livelihood generation, tax revenues , and economic regeneration. 

Job

Tourism generates jobs, with the most optimistic estimate being one job created for every tourist receive by the country. For example in hotel, entry level jobs include front desk clerks, porter, concierges, room attendants, waiters or waitresses, and kitchen staff. 

Livelihood Generation

Tourism provides economic opportunities for other industries. Farming communities can venture into agritourism, offering farm-related experiences to tourist.Income from tourism can help the farmers families tide it over during the lull period between planting and harvesting seasons.

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