Wednesday, January 17, 2007

TOURISM : Good or Bad

In general, increased tourism is economically beneficial to the residents of an area. However, there are some important factors to consider.




A HUGE INDUSTRY




According to Smith [2], travel and tourism is the largest industry in the world in terms of employment, and ranks in the top two or three industries in almost every country by nearly every measure.



For example:

• Travel and tourism employs 101 million people around the globe - one of every 16 workers.


• Travel and tourism employment, investment and value-added exceed those of such major industries as steel, automobiles, textiles, and electronics in virtually every country.


• Consumers in developed countries spend as much on travel and tourism as on clothing or health care.





BENEFITS OF INCREASED TOURISM




In well-developed areas, tourism enriches the community by providing additional shops, theaters and restaurants, and the permanent resident is offered options which were previously unavailable.




As a service industry, tourism is able to create a large number of jobs in a short period of time for little cost. The general logic behind local government initiatives to promote their region as a tourism center is lying on the assumption that local residents will benefit from the employment, income, and tax revenue generated from tourism.









TOO MUCH TOURISM



The other side of the coin is that too much tourism can have negative effects: over-commercialization might lead to frustration and resentment. There are limits to the tolerance of local residents to the negative externalities imposed by the tourism industry. Increased tourism may result in overcrowding and congestion on streets and highways, parking lots, public transit, shopping facilities, amusement, entertainment, and sports venues, and other attractions.




A PARK FOR THE LOCAL PEOPLE / DESIGNED BY LOCAL PEOPLE




Successful tourism development must focus on balancing the level of tourism activity,
which produces maximum revenue against the costs (both financial and emotional) generated by the tourism effort.




In other words,   we must design a park that satisfies the needs of the permanent residents while at the same time attracts the outside tourist dollar which, if it remains in the local economy, will act as a stimulant.




HOW OUTSIDE TOURISM APPLIED TO WHALOM IN THE PAST




When I worked at Whalom Park in the early 1980’s on a typical summer weekday my boss at the Penny Arcade, Roger Perkins, would go to the park office and enquire how many busses would be arriving that day for a company picnic, or just coming for a day trip from the Boston area (city kids on a summer program) for a recreational outing.




The park would be empty, but when the busses (usually between five and eight, but sometimes a record FOURTEEN!) began arriving, our arcade would suddenly experience a real rush. This was because they usually arrived before the rides opened and needed a place to spend their money (besides, the Penny Arcade was air-conditioned).




Most of the tourist dollars on these days came from outside of the local area. At the end of the day, the 'city kids' and company employees got back on the busses and left. They never did any local shopping, or interacted with the local residents.




Weekday evenings and weekends certainly were different; there were many more familiar faces from the area, and people would make the drive down from neighboring communities for a night at Whalom Park. Nobody stayed overnight, of course – but sometimes they would go to Searstown or a local restaurant; so they were injecting ‘foreign dollars’ into the local economy.




WHAT ARE WE TRYING TO SAY?




The point is: A new amusement park would benefit the residents of Central Massachusetts. The advantages far outweigh the disadvantages.






References:




[1] The economic impact of theme parks on regions, 1999/2000, Michael Braun, Available [Online] http://iir-hp.wu-wien.ac.at/neurus/braun.pdf




[2] Smith, Alan D. (1998): “Tourism – The Underestimated World’s Industry”, published
by: Beckman Company, Chicago.






Ted Ollikkala




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