Close suggestions Search Search. User Settings. Skip carousel. Carousel Previous. Carousel Next. What is Scribd? Uploaded by Evan Husada Sidrap. Did you find this document useful? Is this content inappropriate? Report this Document. Flag for inappropriate content. Download now. TXT For Later. Related titles. Carousel Previous Carousel Next. Jump to Page. Search inside document. Related Interests Nature. Evan Husada Sidrap. Original Preface by Dr. Prior and Dr. Doreal states, still reside in their colony beneath Mt.
The history of the tablets translated in the following pages is. Doreal has translated this Work, and has published through the Brotherhood of the White Temple, a translation of ten of these twelve Tablets.
Doreal, the translator. Dr doreal pdf. The thought impressions of the original the Brotherhood's book will be of those of Thoth, the writer, and Dr. August 25, , re William Chambers Morrow. Send-to-Kindle or Email. Seda I ia, Colorado. Doreal Dr. As a child Dr. Doreal intended. It is estimated that one hundred thousand men were employed twenty years to erect it.
The Book of Thoth will open the way to all of you who seek truth to connect your whole being, to experience the superiority that this connection can give you and open the doors for wisdom to spread on Earth. Arthur Beals A stimulating theosophical interpretation of science, rosicrucian lore, ancient wisdom and teachings. Doreal himself in the s to translate Dr. The largest of the Giza pyramids, often referred to as the Great Pyramid, was built or after the Great Pyramid, on the assumption that the same pair of stars was.
Author : Dr. Doreal in his expedi - tion to the pyramids in South America. David Muris, Dr. Other than Dr. Doreal, Ms. Shasta and commute every three months by strange cigar-shaped airships to an area in the South Pacific in order to check the sealed entrance of the imprisoned Lemurians. As a result, Today, it can be purchased directly from the Brotherhood of the White Temple. Building the Great Pyramid of Gizeh. Doreal claimed years ago that he visited the Lemurians inside their mountain.
Doreal was invited to visit Mt. Merely said, the the emerald tablets of thoth atlantean maurice doreal is universally compatible in the manner of any devices to read. George Adamski through whom I was led to realize the true reality of interplanetary visitors; and, to Dr. Author by : Dr. Doreal has brought the truth and the light out in people. Weise, Dr. The Emerald Tablets of Thoth.
Antonov from the book of Divine Thoth-the-Atlantean discovered by Dr. PDF Dr. Their antiquity is stupendous, dating back some 36, years B. Description : The Spiritual, Occult and Historical significance of the "Emerald Tablets" is almost beyond belief of modern man. Enviar a Kindle o por e-mail. Are we going to dinner? The Emerald Tablets of Thoth is an apocryphal text self-published by a Dr.
The Spiritual, Occult and Historical significance of the "Emerald Tablets" is almost beyond belief of modern man. The Emerald Tablets date back to B. P eople see spacecrafts coming and going from deep within the mountain.
Orsay rencontres. Bagikan dokumen Ini. Most export industries depend on financial, productive and human capital. The tourism industry not only depends on these, but also on natural capital e. Tourism has particular potential in many countries with few other competitive exports. Tourism is a much more diverse industry than many others and can build upon a wide resource base. This diversity results in wider participation of the informal sector, for example a farming household produces and sells local handicrafts.
Tourism is often reported to be more labour intensive than other productive sectors. Data from six countries with satellite tourism accounts does indicate that it is more labour intensive than non- agricultural activities, particularly manufacturing, although less labour intensive than agriculture. Tourism provides various employment opportunities especially to women as compared to some of the other sectors.
In many developing countries, for example South Africa, China, Philippines and India, domestic tourism is growing rapidly and like international tourism brings relatively wealthy consumers to areas where they constitute an important local market. Domestic tourism can be accessed by people with lower budgets and is often equally valuable to the economy.
Foreign private interests drive tourism and it is difficult to maximize local economic benefits due to the high level of foreign ownership, which means that there are high levels of leakages and few local linkages. But that might not be the case many times.
Many small enterprises and individual traders sustain themselves around hotels and other tourism facilities and these small companies are not foreign owned. There is often confusion about levels of foreign ownership as local ownership is often masked by franchise agreements and management contracts. Tourism can impose substantial non-economic costs on the poor.
For example, loss of access to resources particularly beaches , displacement from agricultural land, social and cultural disruption and exploitation.
Many forms of development bring with them disadvantages that need to be managed. The economic and non-economic negative impact needs to be determined and the issues addressed. It is for this reason that the WTO supports a holistic livelihood approach to assessing the impact of tourism-positive and negative — on the poor. Issues like environmental management and planning at local level need to be addressed through the good governance agenda.
Tourism is a vulnerable industry. It reacts immediately to factors like changes in economic conditions in the originating markets, levels of economic activity in tourism in the destination markets. Thereby affecting international visitor arrivals. It is also very vulnerable to civil unrest, crime, political instability and natural disasters in destination countries.
It has been observed that the volatility of export markets for tourism is not significantly greater than other commodities. Many times tourism has the advantage noted above that it is not subject to tariff or other non-tariff barriers and that the destination has some control over civil unrest, crime and political instability 7.
Tourism requires highly sophisticated marketing. International tourism marketing is expensive, although there are more efficient and less costly forms of marketing available today. Many government agencies at the national level, tie ups of domestic hotels and resorts with international participants, word of mouth publicity, target marketing are some of the methods used. Tourism in many developing countries and many LDCs has been growing strongly in recent years and there are strong reasons to think that these trends will continue.
Many developing countries have comparative advantages in tourism where tourism constitutes one of their better opportunities for development. The disadvantages, which are often identified in relation to international tourism in developing countries, are few when tourism is compared with other sectors of the economy.
WTO believes that tourism is considered alongside other industries as a development option and that where tourism presents the best opportunity for local economic development and antipoverty strategies, development banks, bilateral and multilateral development agencies should back it with determination. Leakages take place across national boundaries that can have impact on the balance of payments of the countries.
It results from the economic exchange between the two countries. It also occurs when the local economy is unable to provide reliable, continuous, supplies on the basis of competitive prices of the required product or service and of a consistent quality to meet the market demand. From a tourism and poverty perspective it is generally more productive to focus on the other side of the coin-linkages. When the local economic linkages are weak, the revenue received from tourism in the local economic area leaks out.
In order to reduce such leakages, it becomes necessary to deliver consistently at an appropriate quality and at competitive prices, at the same time, engaging the local suppliers who use local capital and resources. Leakages: From the perspectives of local economic development and poverty reduction, we are not concerned how much a tourist spends outside the country, but how much he is not spending in the local economy, which means, limiting the benefit to local communities and the poor among them.
The last two of these can create more jobs and opportunities for small and medium enterprises SMEs at the same time. Linkages There are many ways in which local communities can be benefitted by these propositions.
The best way is to increase the extent of linkages between formal tourism sector and the local economy. By formal tourism sector we mean hotels, restaurants, lodges, and tour and transport agencies. To the extent linkages to the local economy can be increased, the extent of leakages will be reduced. The increased integration can further develop strong linkages between tourism and other economic sectors.
Not only do agriculture, fisheries, manufacturing, construction and domestic industries get integrated, the auxiliary and ancillary industries are also strengthened. This in turn provides additional revenue and jobs, which reduces the import content and foreign exchange leakages from the tourism industry. Government and development agencies should create local linkages as part of their overall tourism development strategy in the planning, construction and operational phases.
The tour operators at the ground level should integrate these. The critical areas include creating mutually beneficial business linkages between the formal and informal sectors. Small and emerging entrepreneurs are often neglected. Local government should ensure that micro- enterprises and emerging entrepreneurs are promoted while taking local tourism marketing initiatives.
Visitor attractions, parks, cultural sites and hotels should be encouraged to provide information about local products and services provided by the poor. Also, small enterprises to meet the credit needs and marketing needs are also required.
Small enterprises sometimes face difficulties in meeting the requirements of health and safety, licensing and other regulatory requirements.
There is a need to systematically educate and train the poor in such a way that they are able to integrate themselves with the growing requirements relating to regulations. The local market should be geared up to deliver qualitatively reliable and competitive goods and services to tourists. The local business community should be actively involved in the process through partnership approaches. This requires continuous efforts, which is possible through long-term partnership to benefit from linkages.
Tourism can help in diversifying other sectors of the local economy and can create new ones, offering additional community livelihood opportunities.
Local economic benefits and ownership are likely to be greater, if local communities participate in diversified business activities. Now with the growing awareness governments are adopting policies, to encourage and facilitate participation by the local communities.
The participation by the poor in the development of tourism projects may result in increasing employment and growth of complementary products. These benefits can further be maximized through partnerships at the destination level. There is a tremendous possibility of bringing about sustainable development for the local economy if Hotels and tour operators work together with local communities, local government and NGOs.
This can help in reducing poverty and can provide a richer experience to domestic and international tourists. Such partnerships will benefit both the host communities and the tourism industry. This will also help them earn more tourism dollars, euros or pounds without any leakages.
This can further be utilized for community development. Through affirmative policies, enterprises can contribute significantly to economic development, in both their constructional and operational phases.
Some practical strategies for developing local economic linkages are discussed below: 1. Market Access and Enclave Tourism There is practically no link between local people and tourism market.
Tourists are not accessible to the local community when they are within their hotels, coaches, and safari vehicles or inside sites and attractions such as museums.
These are all enclave forms of tourism. They end up hawking and touting at entry points. The problem is still more difficult in case of Cruise ship passengers and tourist on "all inclusive" hotel or resort packages where local entrepreneurs hardly interact with them.
Access to the market plays major role in involving entrepreneurs in the tourism industry. This is particularly true in the case of the informal sector; where the return on local skills and services is often maximized and where the scale of capital investments is low. There is a need to keep this aspect in mind at the time of tourism planning, as access to tourists for the informal sector is often neglected. Some tourists prefer all-inclusive packages, as they do not always feel safe in a new destination and are happier in a protected environment.
They feel protected from the poverty and hassle from beggars, touts and hawkers in some destinations. But there is a way to solve this problem. Local guides can also help in establishing contact between tourists and traders by rotation for which they may have agreement among themselves.
This also requires observing certain code of conduct by the local traders and guide. There should be a design to link the informal sector with formal sector so that poor members of community can be helped and tourist market becomes accessible to them. This can help them gain the economic benefit from it.
There are a number of strategies that can be used to enhance overall economic benefits and can further reduce poverty. Growth and Selection: Attracting more of the most appropriate market Segments It has been observed that the tourism sector in the poorest countries is generally highly dependent on international markets, as they do not have significant domestic markets.
However, it has also been noted earlier that a significant number of developing countries have strong domestic tourism sectors as well as significant outbound tourists. It becomes imperative that the domestic market should always be considered first by the poorest countries, but in order to maximize foreign exchange revenues, the primary focus continues to be on international arrivals.
There is a challenge to attract larger numbers of those international and domestic tourists who are most likely to benefit the poor, those predisposed to visit local markets and to seek first hand experiences of nature, culture and daily life which are most likely to be provided by poor people.
It is worth mentioning the importance of intra-regional tourism in this regard; WTO reported intra-regional tourism as growing in most regions of the world. This opportunity can be grabbed by opening up the roads and improving the modes of transport between countries in Africa, which would greatly enhance the movement of people and contribute in reducing poverty.
Intra-regional tourism is especially valuable for pro-poor tourism and local economic development. This is because of the fact that there is greater likelihood of shared cultural values and familiarity with social systems between the people of neighboring countries.
There is no doubt that there is a case for attracting more visitors in order to increase the economic impact. At the same time we must understand that this strategy will only assist in poverty reduction if the additional tourists can be encouraged to spend in ways that benefit the poor and if it results in overall sustainability. This requires an explicitly pro-poor strategy.
This means that there should be constant growth, which favours poor in a disproportionate way. This results in the development of the product by increasing the numbers of bed nights and the expenditure of tourists on boarding and lodging. There will be a poverty reduction impact, if the additional bed nights can create extra employment or create greater opportunities for the poor to sell goods and services to the tourists or to the tourism industry.
Increasing visitor expenditure: Now-a-days there is a market trend towards more experiential holidays. Tourists want to learn more about the countries they are visiting: the people, their cultures, traditions, cuisine, etc.
It is much more than mere holidaymaking. The trend is towards more active holidays, greater personal involvement and active participation instead of passive relaxation. This again has potential for the diversification and enrichment of the tourism product. There is scope to develop more activities and attractions, with increased demand for interpreters and services of guides and transport necessary for their enjoyment. This increases both expenditure and length of stay. Making more extensive use of natural and cultural heritage, at the same time carefully managing the tourism impacts so as to ensue the conservation of resources, can make an important contribution both to economic development and conservation.
This will increase the propensity of travellers to visit various attractions at the destination and may extend their length of stay and increase their expenditure. This translates into creating more promising opportunities for the development of complementary products that enable the poor to engage in the industry and to profit from it.
This complements the core tourism facilities of transport, excursions and accommodation. The list of complementary effects goes on increasing. These complementary tourism products often provide experiences that are not provided by the tour operators but which enrich their product.
Hoteliers and tour operators can encourage local people to develop tourism products and services and to support them in doing so with training and marketing. This will increase the attractiveness of the destination and increase tourist expenditure in the local economy and will also develop the complementary products.
Local communities can often engage in the provision of complementary products because it requires less capital investment and is therefore less risky. Tourism is often best considered as an additional diversification option for the poor, rather than a substitute for their core means of livelihood.
As an additional source of income or other benefits it can play an important part in improving living standards and raising people above the poverty threshold. The poor can maximize their returns by choosing forms of participation, which complement their existing livelihood strategies. It also helps them earn from their cultural and social assets.
The boat operators also earn their living from fishing and many of the cycle-rickshaw drivers work in town when the tourist season is low. Spreading the benefits of tourism geographically: Tourism destinations are geographically diverse in nature. There are different geographical sites like beaches, mountains and urban attractions and holidaymakers can be encouraged to travel further, beyond established destinations, which can enhance and diversify their experience of particular environmental, cultural or natural heritage attractions.
Heritage Trails and other similar products have been developed to extend length of stay and to spread the advantages of tourism development to new areas and communities.
They can be used as initiatives, which may benefit the poor. It can be argued that natural and cultural heritage sites as the major attractions should be taking a wider view of their potential to contribute to tourism development and the well-being of local communities. These areas otherwise are of no interest to tourists. Changing the way in which tourism is organized in and around attractions can increase the economic development impact. Estimates for average local expenditure at Komodo per visitor demonstrate the importance of minimizing enclave tourism.
The Parks and other major tourism attractions in rural areas can be developed to assist the development of small-scale, locally owned attractions and tourism services. Nature-based tourism and cultural heritage tourism in rural areas can provide significant local markets and economic development opportunities. It contributes to integrated rural development and offers local employment and supplementary income-generating opportunities for poor people.
The development of tourism in such areas can significantly improve incomes for local communities and the poor. For this these flagship attractions can be planned and managed so as to maximize the opportunities for local economic development and poverty reduction. Infrastructure and Planning Gain: The development of infrastructure and tourism development are inter- related. Tourism can contribute to overall socio-economic development through the provision of roads, telephones, and electricity, piped and treated water supplies, waste disposal and recycling and sewage treatment.
Roads developed for tourism provide opportunities for trade and new roads opened to improve trade also bring tourism opportunities if they open access to tourism resources. New economic corridor development projects often create tourism development opportunities for local communities in addition to improving trade linkages.
These facilities enhance opportunities for other forms of local economic development, but more could be done at the local and national level to maximize those benefits, particularly when new projects are licensed. It is possible to maximize the planning gains through appropriate policies by government and tourism planners.
The right policy in the right direction will encourage local economic development and benefit the poor. Benefits can be maximized where the complementarities between different forms of tourism development and their livelihood strategies are given due consideration. Appropriate planning structures can facilitate effective community participation in the tourism development process and provide a mechanism for capturing planning gain through infrastructure, employment and economic linkages.
It is through participation by these local community people whose traditional and local knowledge can be utilized for empowering them. This will also help in maintaining the environmental, social and cultural integrity of destinations. Small and Medium enterprises SMEs development: The increased interest in local tourism experience results in increased opportunities for the development of new locally owned enterprises.
This helps in providing competitive and complementary goods and services. This trend is found in developed country destinations. This can be supported by government policy and SME development strategies. Even in the developed countries they contribute to the largest part of local tourism supply. This requirement is critical in the field of marketing. Providing information, advice and mentoring to small and micro enterprises and emerging entrepreneurs can make a significant contribution to their success.
Reducing seasonality: Seasonality in tourist arrivals is the major cause of seasonal and casual unemployment. There are a number of strategies that can be employed to extend the tourism season. During festivals arranging melas generates curiosity and helps the development of special interest products. Other strategies include developing places for seminars and conventions, and such pricing policies, which specially address senior citizens who have more flexibility to travel in the low season.
These strategies have an overall impact on the local economy. Strategies that reduce seasonality and successfully attract tourists in significant numbers for a larger part of the year, benefit the hotels and tour operators, their employees and those in the destination who earn all or part of their livelihood by direct or indirect sales to tourists or the tourism industry.
Those who benefit from this are most often poor. This helps in maximizing the employment of locals and nationals in tourism, including managerial grades.
Income is also held within the local and national economies and reduces wage and salary leakages. When wages and salaries are remitted or spent outside the local boundaries, it amounts to leakages from the local economy. However, the success of the tourism enterprise will depend upon the delivery of the appropriate level of service, and in this global industry maintaining high levels of training is an important consideration in the economic sustainability of businesses.
One of the ways in which the industry can contribute to poverty reduction is by committing to recruit more local poor people and imparting appropriate training and staff development programmes with the belief that those commitments can be met. Tourism can contribute to poverty alleviation through the creation of employment. Certain changes in existing employment practices can bring desirable developments. Pro-poor employment strategies can be pursued, for example prioritizing the employment of women and youth.
Tourism is a relatively labour intensive industry providing direct employment in hotels and tour companies, and indirect employment in taxis, bars, restaurants and other indirect service suppliers, where a proportion of employee time serves the tourism industry and tourists. Tourism can create jobs, which benefit the poor where specific measures are taken to recruit and train workers from amongst the poor.
Where tourism enterprises make these efforts, proper estimates should be made; records should be maintained of its effects on employment to determine to what extent local people, and particularly the poor, benefit and to ensure that their efforts are acknowledged.
Beyond the hotels, particular efforts should be made to train and employ local guides, artists, performers and craft workers who are able to interpret their heritage and in the process empower youth and women who have considerable control over it. These programmes typically include developing business opportunity awareness, business planning including project feasibility analysis and training in management skills.
Provision of business advisors and mentoring services may be strengthened for emerging entrepreneurs over several years. Many countries already have small business development and credit programmes and tourism SME development can sometimes be attached to these existing programmes. Through the process of trickledown, the magnitude of benefits would be amplified. Local communities would benefit through employment and local economic development generated by the additional spending and the new entrepreneurial opportunities which this would create.
It must be understood that tourism operations need to be profitable in a competitive world market if they are to survive.
There are a number of things, which can benefit the local economy in tourist destinations. Nature walks 3. It has many participants and players. It has some unique characteristics and throws challenges to all governments, due to its snow- balling impact on the whole economy. There is no doubt that tourism directly and indirectly influences national, regional and local economies. There are many examples in practice where tourism has been the main engine of economic growth and development in destination countries and regions.
Tourism brings financial compensation, money and other stimulants into less developed countries and mobilizes their developmental programmes. You have read how tourism aids poverty alleviation and how it impacts the local and national economy of host countries. In the next lesson, you will study some of the impacts, especially economic, that tourism has on the economy of any country.
Domestic market- the commercial market within the geographical boundaries of a country. Remittance-when a foreign national sends money earned back to his home country. Explain 3 Critically examine tourism as a developmental strategy. New Delhi, First edition. Puri M. In the previous lesson, you have also read about the impact that tourism has on the redistribution of income between sectors and companies within the economy and how tourism can be employed as an effective developmental strategy in poverty alleviation.
Tourism impacts various sectors of the economy. An attempt has been made in the current lesson to touch upon the economic impact of tourism to enhance your understanding about the overall importance of tourism in the current world order. The receipts from international tourism are a valuable source of earning for all countries, particularly, the developing. Visitor-spending generates income for both public and private sectors, besides affecting wages and employment opportunities. Although tourism is sensitive to the level of economic activity in the tourist-generating countries, it provides more fixed earnings than primary products.
The income from tourism has increased at a higher rate than primary products. The income from tourism has tended to increase at a higher rate than merchandise export in a number of countries especially in countries having a low industrial base. Tourism, therefore, provides a very important source of income for a number of countries, both developed and developing.
Regarding the number of visitor arrivals, in some countries there were more visitor arrivals than the population. France with a population of 57 million received Similarly Spain with a population of 37 million received Several island countries, like the Caribbean Islands, depend greatly on tourist income resulting from visitor arrivals.
These earnings form a major part of the gross domestic product GDP. Even developed countries like Canada which derived over 13 per cent of its gross domestic product from international visitors in the year , rely heavily on income from tourism. Tourism forms a very important source of foreign exchange, for several countries. Although the quantum contributed in foreign currency per visitor varies from destination to destination, the importance of receipts from tourism in the balance of payment accounts and of tourist activities in the national revenue has become considerable for a number of countries.
The major economic benefit in promoting the tourism industry is in the form of earning foreign exchange. Income from these foreign-exchange earnings adds to the national income and, as an invisible export, may offset a loss of the visible trading account and be of critical importance in the overall financial reckoning.
This is truer in the case of developing countries particularly the small countries, which depend heavily upon primary products such as a few basic cash crops where tourism often offers a more reliable form of income.
In the case of some European countries, namely Spain, Portugal, Austria, France and Greece, the invisible earnings from tourism are of a major significance and have a very strong positive effect on the balance of payments. Tourism is therefore a very useful means of earning the much-needed foreign currency.
It is almost without a rival as an earning source for many developed as well as developing countries. These earnings assume a great significance in the balance of payment position of many countries. Payments and receipts on international account are of three kinds: i The visible balance of trade relating to the import and export of goods ii Invisible items relating to the services such as shipping and Insurance iii Capital transfers.
Because most countries at times have serious problems with their international payments, much attention comes to be focused on tourism because of its potentially important contribution to, and also effect upon, the balance of payments. The receipts from international tourism, however, are not always net. Sometimes expenditures are involved which must be set against them. Net foreign exchange receipts from tourism are reduced principally by the import cost of goods and services used by visitors, foreign exchange costs of capital investment in tourist amenities and promotion and publicity expenditure abroad.
Imports are, to a large extent, essential to the operation of the tourist sector as to that of other sectors. The important question is whether the value added domestically on an item or service in is maximized?
Maximization of import substitution without due regard to the effect on overall tourism receipts i. Also, differences in the pattern and level of reliance on imported goods and services, capital equipment and manpower are very wide, depending upon the level of development of a country. In some cases, this reliance is simply due to a lack of resources that transform into items which are to be sold by the industry. In others, the industry has not yet drawn on such supply potential, for which it may be an important stimulus.
There is a general need for careful programmes of positive import substitution. Without taking into account receipts from domestic tourism, international tourism receipts alone contribute to a great extent. The flow of money generated by tourist spending multiplies as it passes through various sections of the economy. In addition to an important source of income, tourism provides a number of other economic benefits, which vary in importance from one country to another; depending upon the nature and scale of tourism.
The benefits from infrastructure investments, justified primarily for tourism such as airports, roads, water supply and other public utilities, may be widely shared by the other sectors of the economy. This enables us to understand how tourism impacts development in the economy. Tourist facilities such as hotels, restaurants, museums, clubs, sports complexes, public transport, and national parks are also used by domestic tourists and visitors, businessmen and residents, but still a significant portion of the costs are sometimes borne by international tourists.
Tourists also contribute to tax revenue both directly through sales tax and indirectly through property, profits and income taxes. Tourism provides employment, develops infrastructural facilities and may also help regional development.
Each of these economic aspects can be dealt with separately, but they are all closely related and are many times considered together. Let us first look at the income aspect of tourism. Income from tourism cannot be easily measured with accuracy and precision. This is because of the multiplier effect.
The flow of money generated by tourist spending multiplies as it passes through various sections of the economy through the operation of the multiplier effect. The multiplier is an income concept. It is, therefore, concerned with the marginal rather than average changes. Indirect Expenditure: This covers a sum total of inter-business transactions which result from the direct expenditure, such as purchase of goods by hoteliers from local suppliers and purchases by local suppliers from wholesalers.
Included Expenditure: This is the increased consumer spending resulting from the additional personal income generated by the direct expenditure, e. Indirect and induced expenditure together are called secondary expenditure. There are several different concepts of the multiplier. Most multipliers in common use incorporate the general principle of the Keynesian model. The four types of multipliers are intrinsically linked as follows: Sales Transaction Multiplier: This measures the extra business turnover created direct and secondary by an extra unit of tourist expenditure.
Output Multiplier: This is similar to the sales multiplier but it also takes into account inventory changes, such as the increase in stock levels by hotels, restaurants and shops because of increased trading activity.
Income Multiplier: This measures the income generated by an extra unit of tourist expenditure. The problem arises over the definition of income.
Many researchers define income as disposable income accruing to households within the area, which is available to them to spend. However, although salaries paid to overseas residents are often excluded, a proportion of these salaries may be spent in the local area and should therefore be included. Income Multipliers can be expressed in two ways: a the ratio method which expresses the direct and indirect incomes or the direct and secondary incomes generated per unit of direct income; b normal method, which expresses total income direct and secondary generated in the study area per unit increase in final demand created within a particular sector.
Ratio multipliers indicate the internal linkages which exist between various sectors of the economy, but do not relate income generated to extra sales. Hence, on their own, ratio multipliers are valueless as a planning tool. Multipliers can be further categorized by the geographical area which is covered by the research, such as local community, a region within a country or the country as a whole.
The multiplier mechanism has also been applied to tourism and, in particular, to tourist expenditure. The recipients, in turn, use the money they have thus received to meet their financial commitments and so on. Therefore, tourist expenditure not only supports the tourist industry directly but also helps indirectly to support many other industries which supply goods and services to the tourist industry.
In this way money spent by tourists is actually used several times and spreads into various sectors of the economy. The more often the conversion occurs, the greater its beneficial effect on the economy of the recipient country.
Such leakages may occur as a result of importing foreign goods, paying interest on foreign investments, etc. The following are some examples of such leakages: i Payment for goods and services produced outside, and imported into, the area; ii remittance of incomes outside the area, for example, by foreign workers; iii indirect and direct taxation where the tax proceeds are not re-spent in the area; iv savings out of income received by workers in the area i.
Any leakages of these kinds will reduce the stream of expenditure which, in consequence, will limit and reduce the multiplier effect. Income generated by foreign tourist expenditure in countries possessing more advanced economies, which generally are more self-sufficient and less in need of foreign imports which are less self-sufficient and need to support their tourist industries by substantial import.
If the developing countries are desirous of gaining maximum economic benefits from tourism, they should strictly control the imported items for tourist consumption and keep foreign investment expenditure at a reasonable level.
If the leakages are not controlled then the benefits arising from tourism will be greatly reduced or even cancelled. The most important leakage would arise from expenditure on import of agricultural products like food and drink. It is estimated that the major part of these products can be found in those countries, whose economic structure is largely agricultural in character.
In this sense tourist consumption, derived from international flow, can offer an assured outlet to a production which is already active within the domestic economy, without raising problems connected with export of such products and could thus be substituted for imported foodstuffs and a significant saving effected thereafter.
The host country derives maximum economic benefits from the tourism industry as these savings help in increasing the benefits from the tourism multiplier. This aspect of the question is all the more important as the multiplier effect maintains its efficacy and effectiveness as long as no importation takes place.
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