Tourism can lead to a multiplier effect. What is meant by the term multiplier effect?

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Will Yates        Human Geography        27/01/03

A2 Tourism

Question Sheet 2

A.

(i) Tourism can lead to a multiplier effect. What is meant by the term multiplier effect? (4)

The term multiplier effect refers to the resulting effect of a service or amenity creating further wealth or positive effects in an area. For example, tourism in an area will create jobs in an area, therefore the employees of the tourism industry will have some extra money to spend on other services, and therefore improving these other services in that area, allowing further employment in the area.

(ii) Explain with examples how tourism can lead to a variety of employment types, at the point of origin or destination. (9)

In any area, tourism will require people to create the tourism experience and enhance the visitor’s enjoyment of the location. Firstly, the origin of the traveller, for example, the UK, will create its own employment opportunities even before reaching the destination. The travel agent which books the holiday is only the first step. The bank or finance service with which the individual obtains the money from in order to fund the holiday will also play a major role in the process, whilst also creating jobs at home. For the security and safety of the passenger, medical services and insurance will also be required to make sure the trip is not disrupted to a great extent should illness or theft, for example, be an occurrence on their excursion. Secondly, the employees of the destination’s airport or sea port allowing the transition from transport to forwarding destination goes as smoothly as possible. After this the hoteliers, caterers, porters and cleaners at the hotel will be needed to encourage a further visit to the area, as if the stay in the hotel is favourable, many people will be enticed to return on future holidays, therefore generating further revenue for the hotel and local services.

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During their stay the tourists will require entertainment, an opportunity to sample the local food and possibly see the sights the area has to offer by taking a guided tour or coach tour of the surroundings, all of which require people (hopefully local to avoid leakage of revenue back to MEDCs) to man the activities and therefore will create employment in the local area. The need for personal service, such as being waited upon, or having a personal tour guide means that the tourism industry is likely to employ many people during the course of the high season. This ...

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