ACTIVITY

ONE

SUSTAINABLE TOURISM - TPC102A

CHESKA MAGALONG - BSTM2A

1.) Differentiate the difference among direct, indirect,
induced, and dynamic impacts of tourism in the economy.
Direct effect or impact of tourism in the economy is produced
when a traveler spends for accommodation, transportation,
and attractions. While indirect effect comes from investments,
government spending, and purchase from suppliers. On the
other hand, induced effect is the collective spending by
direct and indirect employees such as food, clothing, and
other goods. Lastly, dynamic effect is the long-term macro-
level effects like enhancement of skills within the economy,
provision of social services, and infrastructure.

2.) What are the benefits and costs of tourism on the

economy?
The beneficial impacts of tourism in the economy are jobs,
livelihood generation, hometown's share of tourism income,
and taxes and fees, while the negative impacts are leakage,
poor quality of jobs, price increase, overdependence, and
opportunity costs.

3.) How can economic benefits from tourism be maximized?

The key to optimizing tourism's economic impact is to
increase the quantity of income and employment created in
the region. Some economic techniques, such as import
substitution, incentives, and foreign exchange, have been
adopted to achieve this goal. We should also expand access
to handicrafts by assessing existing local items, educating
producers, assisting in the development and expansion of
businesses, and assisting in retailing through a craft market
and cooperative outlet.