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Discuss the positive and negative economic impacts of tourism in Mallorca.

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Introduction

Discuss the positive and negative economic impacts of tourism in Mallorca. Introduction The tourism industry generates substantial economic benefits to both host countries and tourist's home countries. Especially in developing countries, one of the primary motivations for a region to promote itself as a tourism destination is the expected economic improvements. As with other impacts, this massive economic development brings along both positive and negative consequences. 'According to the World Tourism Organisation, 698 million people travelled to a foreign country in 2000, spending more US$ 478 billion. International tourism receipts combined with passenger transport currently total more than US$ 575 billion making tourism the worlds number one export earner, ahead of automotive products, chemicals, petroleum and food. [www.uneptie.org] Tourists spend their money on a wide variety of goods and services. Tourists purchase food and beverage, transport, communications, entertainment and services, goods from retail outlets, tour/travel services and accommodation. This money may be seen as an injection of demand into the host economy. Tourism in Mallorca To make Mallorca economically successful it needs to attract tourists who are going to spend money. ...read more.

Middle

As the environment is a basic component of the tourism industry's assets, tourism revenues are often used to measure the economic value of protected areas. Economic benefits may be induced from tourism spending which directly benefits the tourism environment. While it is accepted that spending to a greater or lesser extent assists in local economic development, more refined ways of ensuring a flow of money to specific development projects is a more innovative approach. Much discussion about introduction of tourist taxes exists but there is a little consensus as to the desirability of such a policy. Mallorca has taken up the idea of taxes in the form of the Eco tax. Tourist expenditure has a cascading effect throughout the host economy in this case Mallorca. It starts with tourist's spending money in 'front-line' tourist establishments, such as hotels, restaurants and taxis, and then permates throughout the rest of the economy. It can examined by assessing the impact at three different levels - the direct, indirect and induced levels. The establishments that directly receive the tourist expenditure also need to purchase goods and services from other sectors within the local economy, for example hotels will purchase the services of builders, accounts, banks, ...read more.

Conclusion

Conclusion The economic impact of tourism on a host economy is generally positive but also carries with it some negative aspects. Most of the literature on this topic is biased towards the positive aspects of economic impacts. Tourism is a major global industry that provides huge opportunity for economic growth, foreign exchange earnings as well as employment and income generation. It has been seen that tourism results in a range of economic impacts, both positive and negative, depending on the location and socio-economic foundation of a destination. All too often , a critical awareness of the true economic costs of tourism to host communities and regions are obscured or glossed over in attempts to develop employment in declining regions or cities as well as in the less developed world. Yet for tourism to reach its full potential, developing a tourism product and visitor industry based on the ability of the local economy and environment to support tourism-related growth needs careful planning and management and in this respect, the economic aspects of tourism cannot be seen in isolation from the wider economic growth and development of countries, regions and places since they need to be carefully integrated into the economic structures and existing social and cultural structures. ...read more.

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