The Economics of
Tourism and
Hospitality
The Role of Tourism
and Hospitality in
Economic
Tourism and hospitality plays a crucial role in
the economy of many countries. Its sectors are
pivotal to economic development as they drive
revenue through tourism expenditures,
generate employment opportunities, and
provide indirect support to related industries
such as transportation, food and beverage, and
retail. Furthermore, these sectors contribute to
infrastructure development and also play a role
in preserving and promoting cultural and
natural heritage. In addition, they have a
positive multiplier effect, as tourist spending
generates additional income for the local
Economic
Impacts of
Tourism
Four Economic
Impacts of Tourism
1. Infrastructure
Development
2. Cultural Preservation
3. Natural Resources
4. Small Business Growth
Infrastructure
Development
•Tourism provides the government and
private sector with the revenue to
invest in the infrastructure required for
tourism activities.
Cultural Preservation
•Tourism also plays a role in preserving
historical sites and cultural traditions.
Natural Resources
•Tourism can provide incentives for
protecting and preserving natural
resources and ecosystems.
Small Business
Growth
•The influx of visitors to a destination
can also stimulate the growth of small,
locally-owned businesses
Destinations as
a Market Place
Destination marketing can be invaluable
for anyone who makes money by
increasing the number of people
traveling to a location. This includes local
and national governments, airlines,
travel agents, entertainment venues,
tourist attractions, and operators of
hotels and resorts. In this article, you will
learn more about some of the destination
marketing strategies that can help to
attract more visitors.
Destination marketing is a form of
marketing in which a destination is
promoted to potential visitors to
increase the number of people who
travel to that location. The
destination can be fairly specific, as
with town or city marketing, or much
broader, as with region or country
marketing.
Why Is Destination
Marketing
Important?
To attract travelers to a certain destination,
the plus points of that destination must be
highlighted. This is especially crucial when
one destination competes with another for
the same tourists or visitors. An example
would be the Caribbean and the Great Barrier
Reef, offering excellent diving experiences.
Most destination marketing aims to promote
your destination as superior to alternatives
by highlighting the things that make it
unique or a desirable place to travel to.
Successful destination marketing can then
greatly benefit the local tourism industry,
Who is Responsible
for Destination
Marketing?
Responsibility for destination
marketing typically falls on a
dedicated destination marketing
organization (DMO) or tourist
board. These organizations
represent the promoted community
or destination and attempt to drive
interest in the region amongst
travelers by using various
marketing techniques.
15 Destination
Marketing
Strategies to
Several different marketing
strategies can be used for
destination marketing purposes,
helping to boost overall awareness
of a destination and increase the
number of people who visit. Below,
you will find more information
about 15 strategies and how
destination marketing
1. Define the Unique Selling 11. Work With Influencers
Points 12. Promote Your
2. Define Target Audience & Destination On
Market Travel Websites
3. Utilize Data for Analytics 13. Online Advertising
4. Brand Your Destination Strategies
5. Involve All Stakeholders 14. Offline Promotional
6. Create An Amazing Destination Strategies
Website 15. Start Blogging!
7. Search Engine Optimization
8. Experience Marketing
Undesirable Economic
Aspects of Tourism
• Higher prices
• Economic instability
• Because of additional demand and/or
increased imports, tourist purchases may
result in higher prices in a destination area.
This would mean that local residents would
also have to pay more for products and
services.
• Since pleasure travel is a discretionary item,
it is subject to changes in prices and
income.These fluctuations may result in
How to
Maximize
the Economic
E ff e c t o f
To u r i s m a n d
Hospitality
1. Growth
Theories
Some economic growth theories
have been proposed to maximize
the economic eff ect of tourism
and hospitality within a
destination area. These are the
theory of balanced growth and
the theory of unbalanced
growth.
Theory of Balanced Growth
• They emphasized
on supply
management.
Theory of Unbalanced Growth
• They emphasize the
need to expand
demand .
1.Economic
Strategies
2.Import
Substitution
3.Incentives
Thank You
for Listening
Presented by:
Xander Espenilla
Catherine Cariño
Jamilla May Padua
Jamielle Joyce
Maceda
