Discuss the economic or environmental impacts of tourism on historic towns, using

Windsor as a case study. What can be done to mitigate the negative and accentuate
the positive impacts?

MARKING SCHEME
Research 25%
Use and application of theory 40%
Presentation, structure and use of English 20%
Referencing 15%

Hand in date: Friday 14th May 2010

Word count: 1000

--impacts are closely interrelated, one impact caused by other; destinations place economic benefits
on the first place for pursuing tourism; economic impacts are easier to quantify.economic and other
tourism costs of unregulated tourism tend to outweight its benefits (tourism management).

-destinations with large and diverse economics are most likely to benefit from tourism, since these can
generate the backward linkages that give rise to a strong multiplier effect/ small destinations are more
likely to encounter with the economic costa (tourism management)

2nd paragraph – tourism economy impacts

--according to mathiesan and wall 1982, the magnitude of the economic impacts of tourism is
influenced by 5 factors – the type of tourism facilities and attractions for tourists, the volume and level
of tourist spending, the level of economic development in the region, the extent to which tourists
spending is maintained and recicrulated in the region (multiplier effect), the extent of seasonality in the
region – these 5 factors determine whether economic impacts are positive or negative (tourism
synthesis)

Negative:

-vulnerability to economic change

-- people visiting Windsor and other ities take advantage of the weak pound and increase their
spending pattern///give exmpl from mintel report ‘attitudes and impacts from lecture/// - POSITIVE
--economic downturn – affects Portsmouth, Windsor etc.
--domestic industries can gain from economic downturn as it seems that many tourists choose less
expensive options and remain closer to home when anxious about monetary and employment matters
(managing tourism crises)/south east is popular destinations for overnight domestic trips; south west
(Windsor) is 1st place for domestic trips across England.despite the fact that domestic tourism has
been in decline since 2006 but in lesser rate (report by the royal borought) - Positive

-dependancy

Marketing for hospitality and tourism

--- a growth area with diverse economic base is attractive. Areas based on one industry are often
attractive when that industry is in favour but are highly vulnerable when that industry suffers. This is
equally true when tourism and hospitality are the primary industries / towns should attract people all
year round and measures how to stimulate tourism so to outweight some negative impacts and avoid
seasonality. – Windsor apply some of these masures as well as other historic towns

--the importance of drawing tourists from a range of overseas markets, rather that relying on only a
few, together with the need for domestic promotion (managing tourism crises)

Windsor brochure – there are 3 main challenges for Windsor tourism. How to mitigate some of tthe
negative economic effects of tourism caused by seasonality and dependency – attract first time
visitors, persuade visitors to stay longer, encourage them to return and recommend; innovative
approaches to visitor management, campaigns, take advantage of the emerging markets – china,
india

-tourism is highly vulnerable to changes in weather, fashion, seasonality and other. Diversification in
economy would cushion such impacts as it would with seasonal variations.(tourism management)

-life quality and fiscal costs(direct and indirect)

--car trouble and animals – Windsor as well as coach problems in Windsor – give exmpl ref from
brouchures
-too much costs for the public sector to generate and sustain this intake; tourism requires financial
inputs in order to releise a net benefit

-income
--generated by wages and salaries, interest, rent and profit. Income will be greater in those areas
which generate large number of tourists, where visitors tend to stay longer and spend more and
where destination attract an up-market tourists...exmpl. Cote d’Azur in Fracne, Nice, Cannes, St.
Tropez where high spending tgourist can be relieved from their money + conference and exhibitions.
(business of tourism 7th ed)/// also thats what the Windsor and other plases r trying to achieve – to
attract tourist who spend more/// also weak pound may be in benefit because intl tourists or weekend
tourist from other eu contries could spend more money and r able to stay longer. Positive/negative

--Tourists may be of greater value in those areas where there are few other opportunities for
employment(business of tourism) positive

--Income is also generate from taxation, rent, interest from tourism businesses – rasie the public
income exmpl. Kurtaxe in Austria (on accommodation); VAT on tourist activities – positive and
nnegative – link to mintel about APD positive/negative

--in we took Southampton as an example and examine the multiplier effect generated by tourism,
there is £343,249,000 primary impact (wouthampton brochure) also there are £84,067,000 additional
profit made for the local economy. According to (tourism management – multpl effect a simplified
example) this profit was generated from 1st and 2nd round of indirect impact+inducet impact.

-employment

--Both positine and negative – considerably less contrib. To full-time employment and also
large sums of money spend in effort to increase the tourist season but these jobs are often
being created in areas where there is little alternative employment (business of tourism)
--lots of money spend on tech side of the industry but tourism seeks high level of personal
servie at the destination so tech can not replace many jobs.(business of tourism)

-balance of payments
--

-investment and development

--(business of tourism) inv. In tourism are seen by investors as high risk inv. Investors may be
not interested in investing in the area until a flow o tourist to the area can be demonstrated.
Also to generate tourist flow it is important to show people that there are facilities to attract
them.
--accelerator concept – attraction of these regions to tourists will also attract other industries
which will recognize the benefit to benefit from a large inflow of consumers – exmpl.
Bournemouth, Brighton, Florida resorts, Gold Coast in Queensland.
--Emil- an evidence of that is the difference in approaches of bargate and bounemouth
reveiled by Mr. Soane in class lecture. He says that first there should be good planning and in
order to attract people we should try to attract investors or famous people which will brimng
with thet money and than other people – tourist etc.

--other interesting aspect (Tourism strategy Hampshire 06-10) despite the fact that local
tourism authority services have been under considerable pressure and downsizing through
reductions in personnel and budget, there are significant innovations regional, hotel, visitor
attractions and new festivals. In addition Southampton and Bournemouth Airports have been
substantial growth in passenger numbers and flights. Their attract all major low cost
companies like Ryanair, Easyjet and FlyBe’s. On top of the developing market Southampton
is home of Carnival and Portsmouth of P and O’s cruis companies. Developing of water
sports as well as premiership football in Southampton and Portsmouth has increased day and
staying visitors.

--Sectors of the tourism industry are characterized by the intensity of competition which is
often expressed in terms of price. Minimization of costs is therefore essential. High
competition is beneficial because it will help the market to transform from monopoly to
oligopoly status where there are many players, competing for customers. This will help to
keep prices low.

--Portsmouth citty council also work closely through internal and external consultation in order
to provide benefits for tourists as well as residents./close work with the stakeholders
(Portsmouth council agenda)

--classic example of tourism as a vehicle for regional economic development – 3s tourism

where in unspoiled natural sites and regions possessing little value for most conventional
economic activities have been redefined as valuable resources for the tourism industry –
exmpl ecotourism, wineries, skiing, casinos (usa) (tourism management)
-direct revenue/indirect
--for most destinations this is the most compeling incentive to attract tourism; some of
strategies to increase the direct revenue are – increase number of visitors, avg length of stay,
increase spending by tourists (tourism management 2nd edition
--emil – according to Wason 1998 government usually regard tourism as a revenue
generating ‘cash cow’.
--we can see this in some of the british historical towns as Windsor and almost every other
applying some of these strategies

-economic integration and diversification

-- multiplier effect is closely linked to the idea of backward linkages/revenue leakeges, which
is the goods and services that feed into the tourism industry through indirect impacts
described by the generated ongoing circulation of these expenses within the economy of the
destination. The link occur when these goods and services are obtained from within the
destination rather than through imports.(tourism management)
-- Economy of tourism is crucial for some other industries. Tourism industry is linked through
backwar linkages to agriculture, manufacturing, construction, entertainment, transport etc. In
oreder to maintain healthy balance and profit for both side goods and services can be
supplied from within the destination. (tourism management)
--integrated and long term tourism strategies should try to foster linkages between tourism
and the destination economy, so as the potential for revenue leakage and maximise the
multiplier effect.

-inflation
--where tourism place extra demand on local services at a tourism destination – exmpl New
forest – high cost of properties(tourism impacts, planning and management)
‘Discuss the economic impacts of tourism on historical towns, using Windsor as a case study. What
can be done to mitigate the negative and accentuate the positive impacts?’

Tourism in most places today is well developed and seen by many local or national bodies as a tool to
create more profit on national and international level. Despite the growing importance of the tourism
there is growing awareness which has to be taken under account by everyone developing or running
any form of tourism. Along with the positive side there are many costs, that a destinations pay to
maintain tourism activities which are positive for the business as well as for the society. In today’s
diverse tourism environment developers, stakeholders and communities have to work side by side in
order to lessen the negative and emphasize the positive impacts.

In a destination there is complex environment and every aspect of business, leisure or people live in a
balance. If one of the branches is longer or shorter than the other than the balance will be ruined and
this will cause negative impact on the other branches. In relation with the tourism Weaver (2002)
describes that impacts are closely related and one is triggered by another. Also in most cases
destinations tend to place the economic benefits of tourism on first place because they are easier to
quantify but sometimes the negative outweigh the positive impacts.

If we use certain destination as an example, there are different impacts which can be placed in
different categories. According to Mathiesan and Wall (1982) ‘magnitude of the economic impacts of
tourism is influenced by 5 factors which determine whether economic impacts are positive or
negative. Some of these factors: vulnerability, dependency, investment and development,
employment as well as economic diversification were covered in the next few paragraphs. In modern
world there are many other factors which have to be considered and there is no a perfect model that
can be applied to a destinations and remove the negative impacts.

One of the positive economic impacts of tourism is the investments and the following development of
the region or city. This is common factor for destination that take tourism as a important tool in
attracting investors who wish to pour money in the local economy and benefit from the larg tourist
flow. Nevertheless all aspects must be carefully revised and planned as stated by Soane (2009), all
stakeholders have equal inputs and otputs and the economy of remain healthy. In support of that
according to Tourism South East (2010), Southampton and Bournemouth have significant
improvement in all visitor attraction, festivals, hotels, infrastructure and innovations despite the
reduction of the budget. This has been extremely important in order to attract many companies and
people to spend their money in. Some of these are Ryanair, Easyjet and FlyBe’s and last but not least
both towns are home of Carnival and P&O’s. In addition Holloway ( ) imply that investors see tourism
as a high risk market and sometimes they need a prove that there will be steady flow of tourist and as
well as to show tourist that there are attractions to entertain them. This and the other aspects prove
that tourism has huge economic impact on cities according to investment and development and
everyone involved have to work hand by hand in order to secced.
(include accelerator concept)

Another positive economic impact created by tge tourism is the direct and indirect revenue. This is the
core values for the so called multiplier effect which is valuable tool in order to examine the positive
effect to the local economy. In his work Weaver (2002) reminds that for most destinations this is the
most compelling incentive to attract tourism. Today, Windsor and its area is the second most visited
city and borough in the UK. Tourism is in great importance for the city and local government
undertake some iportnat strategies in order to maximise the direct and idirect revenue of the tourism.
Furthermore again in Weaver’s work and in Windsor (2010) there are some important keys to
accentuate the positive impact. As consequence Windsor has a strategy to increase visitors
expenditure by 12 % in the next few years and also to encourage them to stay longer, spend more
and recoomend the town. And last but not least this strategy to increase the positive impact of the
tourism will be profitable because according to a recent report by Mintel (2010) short brakes within the
UK is not all abandoned and between 2002 and 2012 the value will be increased from 1.314m to
2.686/2.455m.

However the income is also important aspect of the multiplier effect and can be increased by it in the
next several rounds of the process. Also to maximise the income it is not enough to have any number
of tourist, cities must try to increase that number. Although many people refer to it just as income
generated by wages in fact there are many sources of income not just for the individuals but also for
the city or the community. By way of illustration, Halloway ( ) income can be generated also by rents,
interests and taxation on tourism businesses. In addition he implies that Income will be greater in
those areas which generate large number of tourists, where visitors tend to stay longer and spend
more and where destination attract an up-market tourists. As an example places such as Cote d’Azur
in Fracne, Nice, Cannes, St. Tropez where high spending tgourist can be revelived from their money.
In the case of Windsor, that’s what the local tourism board is trying to include in their strategy to
attract more pople for longer periods of time and if possible tourists with money. This is relevant and
for almost every other tourism destination – New Forest, Bounemouth etc. A clear example of how the
income was increased Southampton ( ) and examine the multiplier effect generated by tourism, there
is £343 mil. primary impact (wouthampton brochure) also there are £84 mil. additional profit made for
the local economy generated only from the indirect and the induced impacts.

Although the positive factors for the economies there are many negative impacts. Tourism is heavily
vulnerable to economic changes and dependant on all kind of factors from seasonality to fashion.
Henderson states that areas based on one industry are often attractive when that industry is in favour
but are highly vulnerable when that industry suffers.
References:

Weaver, D. And Lawton, L. (2002) Tourism Management. 2 nd ed. Australia, John Wiles and sons
Australia Ltd.

Page, S., and Connel, J. (2006) Tourism: A modern Synthesis. 2 nd ed. Lonson. Thompson