Tourism Explained | Benefits Of Tourism | Effects of Tourism | Economics Grade 12 Paper 2 Essay Exam

DISCUSS IN DETAIL THE EFFECTS OF TOURISM ( PAPER 2 ESSAY)

INTRODUCTION

Tourism is the activities of people travelling to and staying in places outside their usual environment for a period of one year or less with the purposes of leisure, business and other purposes. ✓✓

BODY: MAIN PART

1. Gross domestic product (GDP)
Tourism has the biggest impact on the services industry.✓✓
Indirect contribution: It is responsible for 65% GDP in developed economies and 40% GDP in developing economies.✓✓
Direct contribution: Tourism contributes 7,9% of GDP in South Africa.✓✓

2. Employment
Tourism employs 7% of South Africa 's workforce ✓✓
Tourism is the largest provider of jobs.✓✓
Tourism is the largest earner of foreign exchange.✓✓

3. Poverty
Tourism can ease poverty in the following ways:

It distributes resources to rural areas to develop them as Tourist sites.✓✓
Many prime tourist attractions are located in rural areas.✓✓- It increases jobs in rural areas.✓✓

4. Externalities
4.1. Positive externalities:
Tourism attracts large amounts of revenue.✓✓
It leads to an improvement in infrastructure development.✓✓
It can stimulate employment indirectly.✓✓

4.2. Negative externalities:
Tourism can course environmental damage if not managed correctly.✓✓
It can result in a lot of waste and damage to sensitive tourist sites.✓✓
It can lead to increased prices for locals.✓✓

5. The Environment
Tourism can create environmental stress:
Permanent restructuring of the landscape.✓✓
Additional waste products.✓✓
Direct environmental stress.✓✓

6. Investment
Transport infrastructure.( roads and airports)✓✓
Energy infrastructure such as electricity and liquid fuel.✓✓
Basic service infrastructure such as clean water and sewerage system.✓✓

CONCLUSION
If South Africa can attract more tourists , the GDP and economy of the country will improve.✓✓

DISCUSS IN DETAIL THE BENEFITS OF TOURISM.

INTRODUCTION
Tourism refers to activities of people travelling to and staying in places outside their usual environment for not more than one consecutive year and for different reasons.✓✓

BODY: MAIN PART
Households ✓
Households may benefit from an increase in income and opportunities for employment and entrepreneurship. ✓✓
Individuals receive training through programmes established to promote tourism. ✓✓
Households are indirectly involved in tourism as employees in hotel industry, financial institutions etc. ✓✓
They benefit from improved infrastructure created for tourists though local people can use. ✓✓
They acquire skills from that are required by the tourism industry. ✓✓
Income earned is spent in their communities and they can contribute to the local economy. ✓✓
Entrepreneurs from households operate as tour guides ✓✓

Businesses ✓
Formal sector activities are promoted through tourism ✓✓e.g. companies are tasked with building infrastructure such as hotels or roads ✓✓
Tourism benefits local businesses and companies through an increase in expenditure on the goods and services offered by local businesses ✓✓
The informal sector benefits because of trading in traditional products such as crafts and arts ✓✓
Banks employ more tellers, and this leads to higher employment✓✓
The business environment is stimulated in rural and urban areas promoting entrepreneurial opportunities and assisting with BEE ✓✓
Tourist destinations are developed through the public and private partnerships (PPPs) ✓✓

Government ✓
Government benefits because of income it receives from tourists ✓✓
Tourism enables the government to advertise a country tourism potential✓✓
Direct and indirect contributions to the government revenue is made through levies on tourists ✓—these are made for two purposes
o To recover external costs ✓– this assists the host community for providing infrastructure
o To raise revenue ✓–with the growth of tourism many countries levy tourist tax which are used as a source of revenue ✓✓
Income earned can be used to promote tourism in the country ✓✓
Through this the government is enabled to achieve its socio-economic objectives, informal sector growth, BEE and SMME development. ✓✓

Infrastructure development ✓
For any country to be regarded as a tourist destination, physical infrastructure has to be adequate and well maintained. ✓✓
The needs of a large number of tourists in any country for accommodation and infrastructure leads to the construction of hotels and improvement in the existing infrastructure ✓✓
Together with the private sector the government has to develop and upgrade infrastructure to meet the demands and expectations of tourists ✓✓
Locals and tourists benefit from the infrastructure ✓✓
Tourists require social infrastructure e.g. clinics and ambulances. ✓✓

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