1. 3.01 Discuss the economic impact of tourism.

2. Tourism Provides… Employment for millions of people.
Profits for businesses and corporations such as airlines, amusement parks, and retail shops.
Income for economically depressed areas.
Tax revenue for local, state, and national governments from the use of services and facilities.
Sole source of export income in some countries that lack cultural and industrial resources.

3. Tourism…
Stimulates export of “place made” products such as clothing or souvenirs.
Provides incentive to improve infrastructure that can be used by residents and tourists.
Provides incentive for entrepreneurial activity.

4. Multiplier effect
Tourists spend money when traveling which puts money into the local economy.
That money is then spent by local businesses to purchase goods, and pay employees.
This re-spending expands the local economy, creating the multiplier effect.

5. Multiplier effect
The more developed the area, the higher the multiplier effect.
Tourism dollars stay in an area and are re-spent rather than go outside the area to purchase goods and services.

6. Leakage
Leakage occurs when tourists’ dollars are used to purchase needed goods or services from outside the area.

7. Leakage
The more imports that are necessary, the higher the leakage will be.
Sometimes a large part of the income from tourism has to be used to pay for imported equipment and materials used to satisfy the needs of tourists.
When an area has the resources to produce all the necessary goods and services, the full amount of tourist spending will remain in the area.

8. Necessary leakage
The cost of promoting a destination abroad; if a destination wants to attract tourists, it must market itself to convince potential customers that it is more appealing than other destinations.

9. 3.01 Vocabulary Terms
Infrastructure: The basic foundations such as sufficient power supply, water supply, roads, public utilities, and sewage disposal needed to support and accommodate tourists.
Multiplier effect: Destination income that is re-spent within the same area.

10. 3.01 Vocabulary Terms
Leakage: Income received in an area but used to purchase needed goods and services from outside the area.
Necessary leakage: The cost of promoting a US destination abroad.

11. NC Tourism Economic Impact Video: Promotional Video:
Promotional Video:
Other State Tourism Videos

12. Impact of Tourism in NC (2002)
$12 billion in revenue
$1.1 billion in state and local tax revenue
Over 44 million visitors
Shopping, visiting beaches, outdoor activities, visiting historical places and museums
Average of 2.2 nights spent
Average household spending per trip $316
Most visit for leisure purposes
Visiting friends and relatives
Travel by car

13. NC Tourism Employment (2002)
Second largest industry in NC
Sixth most visited state behind CA, FL, TX, PA, NY
Employs over 189,000 North Carolinians
Top employers are food service, public transportation, lodging, and entertainment and recreation