Unit 2: Resources in Tourism

Economics Fifth Semester Notes
Composition of the tourism industry and its product: suppliers’ and tourists’ views
The tourism industry is composed of a wide range of products and services that are designed to cater to the needs and preferences of tourists. These products and services can be classified into two main categories: tangible and intangible.

Tangible products in the tourism industry include transportation, accommodation, food and beverages, souvenirs, and other merchandise. These products are often provided by suppliers such as airlines, hotels, restaurants, and local vendors.

Intangible products in the tourism industry include experiences, emotions, and memories that tourists take away from their travels. These products are often created through interactions with local people, cultural events, and natural landscapes.

From a supplier’s perspective, the tourism industry is an opportunity to provide services and products that meet the needs of tourists. Suppliers aim to create a positive experience for their customers, which can lead to repeat business and positive word-of-mouth recommendations.

From a tourist’s perspective, the tourism industry is an opportunity to explore new places, experience different cultures, and create lasting memories. Tourists expect high-quality products and services that meet their needs and preferences.

Concept of free and scarce resources in tourism
The concept of free and scarce resources is relevant to the tourism industry because tourism products and services rely on the availability of various resources, including natural, cultural, and man-made resources.

Free resources are those that are available to tourists at no cost or little cost, such as beaches, public parks, and cultural events. These resources are not owned by any specific entity and are available for anyone to use. However, while these resources may be free to use, they may still be subject to regulations and restrictions to ensure their sustainability and protection.

Scarce resources,on the other hand, are those that are limited in availability and may be owned or controlled by specific entities. Examples of scarce resources in tourism include hotel rooms, flights, and attractions with limited capacity. Scarce resources may also include cultural and natural resources that are sensitive to overuse or misuse, such as historical landmarks or endangered wildlife.

The availability of free and scarce resources can impact the tourism industry in various ways. For instance, destinations that have abundant free resources, such as natural attractions or cultural events, may have a competitive advantage over other destinations that rely on scarce resources. However, destinations that rely on scarce resources may also have the opportunity to create unique and exclusive experiences that attract high-spending tourists.

Controlling and rewarding resource use
Controlling and rewarding resource use are crucial strategies for ensuring sustainable tourism development and management.

Controlling resource use involves setting regulations and policies to ensure that natural, cultural, and man-made resources are used in a responsible and sustainable way. For example, regulations may be put in place to limit the number of visitors to sensitive natural areas to prevent overuse and degradation. Similarly, regulations may be implemented to limit the construction of new buildings or limit the expansion of existing structures to protect cultural heritage sites.

Rewarding resource use involves incentivizing tourism businesses and visitors to engage in sustainable practices. For instance, tourism businesses may be rewarded for implementing sustainable practices, such as reducing energy and water consumption or reducing waste. Tourists may also be rewarded for engaging in sustainable behaviors, such as using public transportation or participating in eco-friendly tours.

Both controlling and rewarding resourceuse require collaboration among various stakeholders, including governments, tourism businesses, local communities, and visitors. Governments can play a crucial role in setting regulations and policies, while tourism businesses can implement sustainable practices and educate their customers about responsible resource use. Local communities can also be involved in tourism planning and decision-making to ensure that their cultural and environmental values are respected.

Interrelationship between tourism and other sectors of the economy
Tourism is an industry that has a significant interrelationship with other sectors of the economy. It can both positively and negatively impact various sectors, including agriculture, transportation, construction, and retail.

Agriculture is one sector that can benefit from tourism. Tourists often seek out local and unique food experiences, which can create demand for local agricultural products. This can lead to increased sales for farmers, as well as opportunities for agritourism, such as farm stays or food tours.

Transportation is another sector that is closely linked to tourism. The availability and affordability of transportation options, such as air, road, and rail, can have a significant impact on the tourism industry. Conversely, tourism can also impact transportation, as destinations with high levels of tourist arrivals may require additional transportation infrastructure, such as airports, roads, and public transportation.

Construction is another sector that can be impacted by tourism. As destinations seek to develop and improve their tourism infrastructure, construction activity may increase, creating jobs and economic growth in the construction industry. However, overdevelopment can also lead to negative impacts on the environment and local communities.

Retail is another sector that can benefit from tourism. Tourists often spend money on souvenirs, gifts, and other products, which can support local businesses and create jobs. Additionally, tourism can also create demand for specialty retail, such as adventure gear or outdoor equipment.

However, tourism can also have negative impacts on various sectors, such as the environment, local culture, and infrastructure. For example, overuse of natural resources, such as water or energy, can impact local communities and ecosystems. Similarly, overcrowding can negatively impact local culture and quality of life for residents.

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