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Instead Of Small Scale Of Tourism, We Need To Develop More Large Resorts. Critically Evaluate This Assertion, Focusing Upon The Role Of Tourism In Economic Development In Your Answer.

1330 words - 5 pages

1 INTRODUCTION.It can be seen that after World War II, with the impact of advanced technology, shorter working hours, greater individual prosperity and many other elements like these, millions of people are enjoying an increasing amount of leisure time in both the developed and developing countries of the world, which has led to a booming of tourism industry to a worldwide extent. Nowadays, tourism, as a sector of relatively recent development in many economies, is still showing a generic growth in most countries. From backpackers' "meet the locals" experiences through business trading and convention centres to segregated exclusive up-market resorts, the tourism industry is affecting our modern lives in many aspects, thus it is considered to have an integral potential force in the economic development of the world.This essay focuses on the tourism development from an economics point of view, by analysing the role of government in tourism management, the economic advantage of large tourism resource development and the multiple effects of tourism, to evaluate the significance of developing tourism with large resorts.2 GOVERNMENT PARTICIPATION IN TOURISM DEVELOPMENTOne of the most vital differences between large and small-scale tourism is the extent of government participation in tourism management and planning. The economic role of government can be stated as follows:2.1 GOVERNMENT INVESTMENT AND ITS EFFECTSGovernment can stimulate the construction of needed tourism infrastructure, access roads, communications, airport facilities, and many other demanding fixed capital investment. These investments attract not only a large number of tourists, but also huge mounts of foreign investment to the development of local tourism industry, which means considerable contributions to GDP, thus large-scale of government investment can brings about much more profits.2.2 FINANCIAL INTERVENTIONGovernment always intervenes tourism industry by financial means. Financial incentives are often given to tourism developers in many cases in forms of easy credit, tax holidays, and exemptions, free-enterprise zones, loan guarantee, and other fiscal incentives for particular tourism projects. These incentives are considered to have the same effects as government investments, which have been mentioned previously in this essay.2.3 ECONOMY LINKAGETourism has high intermediate effects as well as direct effects and therefore has important linkage or carry-over effects with the rest of the economy such as demand for local produced food and handicraft, etc. Tuner (1992) mentioned that anticipated difficulties in achieving the desired rate of return from tourism development depend on the extent of the involvement of government. One of the difficulties is to reach the desired profits from tourism: Leakage from each stage of the income generation process occurs in the form of payments for imports, saving, taxation, national insurance, and remittances. Government involves in tourism...

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