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M3 L1 MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY
1. Explain the role of tourism and hospitality in economic development.
o The tourism and hospitality has been used as an alternative to help economic growth by
the developing countries . The OECD even concluded that this industry allocate major
opportunity for the growth to countries economic state . Several countries encourages
the development of tourism and hospitality industry for this reasons ; the continuous
demand of international travel , the direct proportion of the increasing income of
developing countries to the demand of tourism and hospitality at a faster rate , and
lastly the need of foreign exchange in their economic development .
Tourism and hospitality plays a vital role in promoting one’s country . It directly and
indirectly affects different aspects or sectors in the society as it is a multifaceted
industry . This includes the involvement of social , cultural and environmental aspects as
this somehow gives opportunity and administer strong viability in showing the pride of a
country . Therefore many countries promotes tourism and hospitality as a means of
increasing foreign exchange currency to produce investment necessary to finance
economic growth . Tourism and hospitality as we know generates income and provide
employment rate . For good measure, it indirectly boosts local industries , preserves
and cultivates cultural heritage and developed the outmost physical ventures of the
country .
2. Describe the undesirable effects of the economic aspects of tourism and hospitality.
o Tourism and hospitality brings both positive and negatives impacts in the economy .
Some undesirable economic aspects of this industry are higher prices which may lead to
economic instability . Tourist and even local residents tend to pay higher prices in the
destination area and is believed due to increased imports or leakages . In tourism and
hospitality industry , it is subject to change over time to give improved services to
tourist . Therefore , an increase of prices may possible . Tourist will be served according
to what they purchased along their vacation . These fluctuations in the venture may
result to economic instability .
3. Identify the strategies which can maximize the economic effects of tourism and hospitality.
o In running a business in tourism and hospitality industry , we need to apply strategies in
order to maximize and effectively assess the growth of the business . There are several
strategies or techniques to maximize the economic effects of tourism and hospitality .
First is the growth theories , this includes the balanced and unbalanced growth theory .
Balanced growth theory states that tourism and hospitality needs the support of other
industries for the goods and services be locally produced . As tourism and hospitality
relates and is interconnected with other industries and also been suggested to be
viewed as an important part of the broad-based economy . While on the other hand ,
unbalanced growth theory sees tourism and hospitality as the spark of economic growth
and emphasizes the need to expand demand . The key in maximizing the economic
effect of this industry is to maximize the amount of revenues and job opportunities and
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that is to practice economic strategies including import substitution , incentives , and
foreign exchange . Import substitution is to regulate or minimize the leakage of money
by imposing quotas on the importation of goods locally . It also grants subsidies and
loans to local industries to encourage the use of local materials . Import substitution
helps the economy by increasing the demand for domestically or locally produced goods
as it advocates in replacing foreign imports with domestic production . Incentive is
another form of strategy in maximizing the growth of the economy . The wise use of
incentives encourages the influx of capital necessary to develop tourism and hospitality
supply . And lastly the foreign exchange strategy , wherein many countries have placed
restrictions and have set limited amount of currency a tourist can bring in and out the
destination. They ensure that a tourist could eventually pays and have enough money to
pay for the services along their stay in the destination before they are permitted to
enter the country . These strategies has potentialities in maximizing the economic
effects of tourism and hospitality industry efficiently and effectively .

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M3 – L1 MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY 1. Explain the role of tourism and hospitality in economic development. o The tourism and hospitality has been used as an alternative to help economic growth by the developing countries . The OECD even concluded that this industry allocate major opportunity for the growth to countries economic state . Several countries encourages the development of tourism and hospitality industry for this reasons ; the continuous demand of international travel , the direct proportion of the increasing income of developing countries to the demand of tourism and hospitality at a faster rate , and lastly the need of foreign exchange in their economic development . Tourism and hospitality plays a vital role in promoting one’s country . It directly and indirectly affects different aspects or sectors in the society as it is a multifaceted industry . This includes the involvement of social , cultural and environmental aspects as this somehow gives opportunity and administer strong viability in showing the pride of a country . Therefore many countries promotes tourism and hospitality as a means of increasing foreign exchange currency to produce investment necessary to finance economic growth . Tourism and hospitality as we know generates income and provide employment rate . For good measure, it indirectly boosts local industries , preserves and cultivates cultural heritage and developed the outmost physical ventures of the country . 2. Describe the undesirable effects of the economic aspects of tourism and hospitality. o Tourism and hospitality brings both positive and negatives impacts in the economy . Some undesirable economic aspects of this industry are higher prices which may lead to economic instability . Tourist and even local residents tend to pay higher prices in the destination area and is believed due to increased imports or leakages . In tourism and hospitality industry , it is subject to change over time to give improved services to tourist . Therefore , an increase of prices may possible . Tourist will be served according to what they purchased along their vacation . These fluctuations in the venture may result to economic instability . 3. Identify the strategies which can maximize the economic effects of tourism and hospitality. o In running a business in tourism and hospitality industry , we need to apply strategies in order to maximize and effectively assess the growth of the business . There are several strategies or techniques to maximize the economic effects of tourism and hospitality . First is the growth theories , this includes the balanced and unbalanced growth theory . Balanced growth theory states that tourism and hospitality needs the support of other industries for the goods and services be locally produced . As tourism and hospitality relates and is interconnected with other industries and also been suggested to be viewed as an important part of the broad-based economy . While on the other hand , unbalanced growth theory sees tourism and hospitality as the spark of economic growth and emphasizes the need to expand demand . The key in maximizing the economic effect of this industry is to maximize the amount of revenues and job opportunities and that is to practice economic strategies including import substitution , incentives , and foreign exchange . Import substitution is to regulate or minimize the leakage of money by imposing quotas on the importation of goods locally . It also grants subsidies and loans to local industries to encourage the use of local materials . Import substitution helps the economy by increasing the demand for domestically or locally produced goods as it advocates in replacing foreign imports with domestic production . Incentive is another form of strategy in maximizing the growth of the economy . The wise use of incentives encourages the influx of capital necessary to develop tourism and hospitality supply . And lastly the foreign exchange strategy , wherein many countries have placed restrictions and have set limited amount of currency a tourist can bring in and out the destination. They ensure that a tourist could eventually pays and have enough money to pay for the services along their stay in the destination before they are permitted to enter the country . These strategies has potentialities in maximizing the economic effects of tourism and hospitality industry efficiently and effectively . Name: Description: ...
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