EMILIO AGUINALDO COLLEGE

Gov. D. Mangubat St., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4341-42 www.eac.edu.ph
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QUALITY MANAGEMENT SYSTEMS

Mini Case Study 7.1

Dominican Tourism Redistributes Poverty

Santo Domingo. A report by the Catalan association Alba Sud, specializing in research

and communication for development, affirms that Dominican Republic’s tourism model,

far from providing development for its population, concentrates wealth and redistributes

poverty.

The study conducted in August funded by the Catalan Cooperation for Development

Agency, notes that, ‘paradoxically,’ the growth of tourism in the country has been

excluding. It based its affirmation on reports from 2005 to 2008 by the UN Development

Program (UNDP), jointly with the university INTEC, interviews with Dominican officials

and officials and visits to poor places of several tourism zones, among them Bavaro,

Punta Cana and Boca Chica.

OFFICIAL OF THE UNPD

‘Though it constitutes an important alternative for the national economy, the tourism

activity hasn’t generated a development that involves the community so that it

contributes to invigorate the productive apparatus,’ said UNPD official Pavel Isa on the

report.

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 EMILIO AGUINALDO COLLEGE
Gov. D. Mangubat St., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4341-42 www.eac.edu.ph
ISO 9001:2015 CERTIFIED
QUALITY MANAGEMENT SYSTEMS

He said the situation’s main factors are a tourism model based on large hotel

complexes not linked to the reality of their social surroundings and the absence of public

policies that bolster social services and the involvement of populations that live near

them. ‘On the one hand, extraordinary growth of tourism and hotels, and on the other,

the massive diffusion of marginal population centers.’

DISCUSSION QUESTIONS

1. It is often argued that tourism is a great redistributor of wealth. Explain how tourism

may in fact result in the redistribution of poverty rather than wealth. Consider the nature

of the tourism business process from booking to the operational issues at the

destination and comment on the resultant effects on wealth distribution at each stage of

the product production chain.

Tourism has become one of the world’s most significant business and one of the fastest

growing segments. On the other hand, it can also be the result in the redistribution of

poverty rather than wealth in order to reduce poverty in developing nations, it is critical

to understand the relationship between tourism and poverty. This article examines the

influence of tourism on poverty reduction and income distribution inequalities in the

Dominican Republic (within the Caribbean Community of Small Island Developing

States). The Ng and Perron test for analyzing time series stationarity and the Auto

Regressive Distributed Lag bounds test were used to determine the existence of long-

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 EMILIO AGUINALDO COLLEGE
Gov. D. Mangubat St., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4341-42 www.eac.edu.ph
ISO 9001:2015 CERTIFIED
QUALITY MANAGEMENT SYSTEMS

term relationships. The short-run dynamic models represented by the Error Correction

Models were also estimated. The results showed that income from tourism has not

alleviated poverty and has clearly failed to reduce inequality in the distribution of wealth.

Finally, management implications are also provided for public and private bodies

wishing to achieve sustainable tourism. Garcia Oviedo Angeles. M. et.al (University of

Seville, Sevilla, Spain, 2018)

2. If the natural market forces are left to their own devices, will tourism result in income

redistribution that works in favor of the poorer segments of the population (nationally or

internationally)?

Tourism provides not only material benefits to the poor, but also cultural pride, greater

awareness of the natural environment and its economic value, a sense of ownership,

and reduced vulnerability through diversification of income sources. It also helps us or

everybody to be a waist man to solve poverty and guide and give us a knowledge.

Tourism is one of the most important industries in the world, as well as one of the

fastest growing. Understanding the relationship between tourism and poverty is critical

for reducing poverty in developing countries. Poverty has commonly been identified

using income or consumption criteria, but more recently the emphasis has shifted.

Consulted about what poverty means to them, poor people emphasize lack of income,

low levels of access to health, education, clean water; and a sense of powerlessness,

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 EMILIO AGUINALDO COLLEGE
Gov. D. Mangubat St., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4341-42 www.eac.edu.ph
ISO 9001:2015 CERTIFIED
QUALITY MANAGEMENT SYSTEMS

insecurity and vulnerability. The sustainable livelihoods approach looks at poverty

holistically recognizing that poor people pursue a range of livelihoods outcomes

including health, security, education and income. Tourism not only provides material

benefits for the poor, but can also bring cultural pride, a sense of ownership and control,

reduced vulnerability through diversification and the development of skills and

entrepreneurial capacity. Tourism should be assessed objectively against other

opportunities for pro-poor

economic growth.

3. What actions could be taken to encourage tourism to assist in redressing income

inequalities without damaging the development of the industry?

In developing countries tourism is the main source and foundation for a country’s

economic growth and development. Tourism revenue increases the exchange rates

generated by international trade in products and services. This sector also contributes

to the growth of the economy's industrial sector by financing capital goods imports.

Alternatively, economic growth in wealthy countries encourages international travel,

which can result in an increase in a country's foreign reserves. The tourism industry can

contribute to the promotion of stability through employment creation, producing revenue,

stimulating economic growth, preserving the natural, and encouraging cultural

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Gov. D. Mangubat St., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
Tel. Nos. (046) 416-4341-42 www.eac.edu.ph
ISO 9001:2015 CERTIFIED
QUALITY MANAGEMENT SYSTEMS

understanding in developing countries. The tourism industry is important to a country's

economic development. It significantly contributes to the country's efforts to develop

opportunities for a large number of people. Tourist can support the development of the

local industry by booking locally owned accommodations, buying local souvenirs, eating

in local restaurants and hiring a local tourist guide.

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