The economic advantages and disadvantages of tourism in LEDC's

the economic advantages and disadvantages of tourism in LEDC's

?

The economic advantages and disadvantages of tourism in LEDC's

Advantages

  • tourism benefits other sectors of the economy- the multiplier effect
  • tourism plays an important role in the balence of payments between nations
  • tourism can provide employment in rural areas and decrease rural to urban migration and the associated impacts on a urban area
  • tourism provides governments with considerable tax revenues
  • tourism development can act as a growth pole which stimulates the economy of the larger area
  • it can provide oppertuinity for small businesses
  • it can support many jobs in the informal sector

Disadvantages

  • economic leakage- 60-70% of the money paid for package holiday stays in the developed country
  • money is borrowed for capital investment- this increases national debt
  • tourism is labour intensive providing lots of jobs but many of these are low paid, menial tasks and these are seasonal positions. management positions are often filled by people from MEDC's
  • a location can become over dependent on tourism which can lead to problems if visitor numbers fall asa a result of external shock
  • tourism might not be the best use of local resources
  • all inclusive deals do not encorage tourists to spend money in local communities
  • international trade agreements e.g. general agreement on trade in services (GATS) allow global companies to set up in most countires- even if the host government would rather support local investors, they cannot prevent this.

Evaluation

Tourism can create many economic oppertunites and bring much needed employment and money into poorer areas, however most of this money is controlled by international companies in MEDC's meaning the full benefits do not often reach those living in LEDC's

Comments

Mr A Gibson

Report

This definitely covers the main points of tourism in LEDCs. You will need some case studies obviously, but the theory is all here.

Emily Ether

Report

If you are a casinos enthusiast and would like to earn some quick money, the chiefcasinos offers you one of the easiest and secure options. You can buy lottery sambad as part of a purchase one, receive one for free. This is the most common way to utilize them. Another method to make use from https://chiefcasinos.com/review/classic-casino/ site is to buy them in bulk and sell them on the internet. It is also possible to use them to make a profit by selling them to businesses.