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Tourism and the Economy

Tourism and the Economy. Impact in the Caribbean. Marketing Tourism. Tourism destinations use marketing to increase the number of tourists that visit Sandals Caribbean Resorts Why? Tourists bring money!. Tourism in the Caribbean.

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Tourism and the Economy

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  1. Tourism and the Economy Impact in the Caribbean

  2. Marketing Tourism • Tourism destinations use marketing to increase the number of tourists that visit Sandals Caribbean Resorts Why? • Tourists bring money!

  3. Tourism in the Caribbean • Tourism is a HUGE industry here, and a lot of money is spent to attract tourists • Tourism represents between 15% - 30% of the Gross Domestic Product (GDP) of Caribbean nations • There are two economic benefits to tourism • Tourists spend their money (inject foreign money into the economy) • Tourism creates jobs for locals • The economic benefit is greater than the amount of money spent by a tourist

  4. Atlantis Mega-Resort, Bahamas

  5. The Multiplier Effect • Money injected into an economy creates repeating benefits as it is spent over and over again • A tourist spends $100 at their hotel • How does that $100 get spent by the hotel? • Follow the money on our mind map… "where's Willy?"

  6. Different Impacts of Tourist Money Direct Impact • The tourists initial spending, direct revenue • Tourists spending money at their hotel Indirect Impact • The first round of re-spending • The hotel uses that money to pay employees salaries Induced Impact • The secondary (and later) processes of re-spending • Employees spend their salaries on food, clothing, housing etc.

  7. How does it end? Leakages • Removal of money from the economy Where does it leak out to? • Foreign owned vacation companies/travel agencies • Club Med (France) - Bahia Principe (Spain) • Carnival (USA, UK) • International advertising • Importing goods to the country • 70% of meat consumed in Caribbean is imported

  8. Leakage in Canada and Caribbean • Tourist money in Canada can go through 13-14 rounds of spending • Tourist money in Caribbean often has fewer than 10 rounds before leakage Why is there a difference? 42% of tourist spending stays in the Caribbean; 58% leaks out to other countries -Caribbean Tourism Research and Development Center

  9. The Positive Economic Cycle of the Multiplier Effect

  10. In-Class Activity On your mind map, identify the three different rounds of tourist spending • Circle examples of the Direct Impact of tourist spending in GREEN • Circle examples of the Indirect Impact of tourist spending in RED • Circle examples of the Induced Impact of tourist spending in ORANGE Due next class, 10 application marks

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