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Leakage and Multiplier Analysis

Leakage and Multiplier Analysis

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Published by: sol.loredo1705530 on Apr 29, 2012
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01/20/2014

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1
Leakage and Multiplier Analysis
Dr Jan Mosedale
Economic Development andTourism
Tourism has been seen as an important form of economic development.
It also promoted as an agent of an economic andsocial change
A service based industry capable of creatingemployment and income.
An important form of economic activity
The impact and role of tourism will vary fromregion to region.
Destinations can rise and fall in popularity.
Economic benefits
Foreign exchange earnings and the balance of payments
Economic benefits
Foreign exchange earnings and the balance of payments
Generation of income
Economic benefits
Foreign exchange earnings and the balance of payments
Generation of income
Generation of employment
Economic benefits
Foreign exchange earnings and the balance of payments
Generation of income
Generation of employment
Improvement of infrastructure
 
2
Economic benefits
Foreign exchange earnings and the balance of payments
Generation of income
Generation of employment
Improvement of infrastructure
Encouragement of Entrepreneurialactivity
Economic benefits
Foreign exchange earnings and the balance of payments
Generation of income
Generation of employment
Improvement of infrastructure
Encouragement of Entrepreneurialactivity
Stimulation of regional economies and mitigation of regional economic disparities
 
Economic Cost of Tourism
Incidental costs
Economic Cost of Tourism
Incidental costs
Opportunity cost
Economic Cost of Tourism
Incidental costs
Opportunity cost
Overdependence on tourism
 
3
Economic Cost of Tourism
Incidental costs
Opportunity cost
Overdependence on tourism
Inflation and land values
Economic Costof Tourism
Incidental costs
Opportunity cost
Overdependence ontourism
Inflation and landvalues
Leakage
Economic Cost of Tourism
Incidental costs
Opportunity cost
Overdependence on tourism
Inflation and land values
Leakage
Seasonality
Economic Cost of Tourism
Incidental costs
Opportunity cost
Overdependence on tourism
Inflation and land values
Leakage
Seasonality
Cost of tourism management (development,
marketing, operations…)
 
Using tourism as tool foreconomic development
Developing nations - foreign exchange
Developed nations - post industrial development
Regional economies - economic transition
Urban economies - rejuvenation
Remote economies - economic survival
Rural economies - diversification and reversingpopulation trends
Multiplier inversely related toleakage
Leakage
Common sources of leakage-Overseas promotion- Import of materialsfor construction- Consumables- Repatriation- Foreign loans

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