ECONOMIC DILEMMA OF TOURISM

DEVELOPMENT IN
DEVELOPING COUNTRIES

Presented By:
Kyi Cin Shwe
MHTM I- 4
2nd Batch
MHTM Programme
22 September 2022
CONTENTS

 Introduction

 Economic Dilemma in Developing Countries

 Ways to reduce Economic Dilemma
 INTRODUCTION
o World's fastest growing industries
o Important source of foreign exchange and employment
o Help promoting to peace and stability in developing countries
o Third-largest export industry of Global Economy
o 10.4% of global GDP (USD 9.2 trillion)
o 10.6% of all jobs (334 million)
o USD 1.7 trillion in 2019 (6.8% of total exports, 27.4% of
global services exports).
 INTRODUCTION
o Primary motivation to promote itself as Tourism Destination
– expected Economic Improvement.
o Hidden cost to Host Community
o Rich Countries more profit than Poor Countries
o Urgent need for income, employment and general raise of
living standard to Host Community in many developing
countries
o Large-scale transfer of Tourism Revenue
o Exclusion of Local Business
ECONOMIC DILEMMA IN DEVELOPING
COUNTRIES

o Economic Leakage (80%)

o Import Leakage and Export Leakage

o Loss of traditional jobs

o Seasonal Unemployment
o Enclave Tourism (trickle-down effect)
o Fiscal costs to the government
o Increasing price of Goods and Services
WAYS TO REDUCE ECONOMIC DILEMMA
o For Economic Leakage
o Book your holiday through a local tour operator
o Use independently, locally owned accommodations, such as
Airbnb
o Use local transport options (i.e. take a taxi instead of
booking a transfer before you leave home)
o Buy from local shops
o Buy local produce
o Don’t purchase imported goods
o Don’t buy products made from endangered species,
hardwoods, shells or ancient artifacts
WAYS TO REDUCE ECONOMIC DILEMMA
o For Loss of traditional jobs and Seasonal
Unemployment
o Government and main stakeholders from tourism fields
should promote the tourism in the low seasons.
o Government should do policies for employments in tourism
sectors and welfare plan for their future.
o Develop the Green, Agricultural, Farm tourism in rural
areas.
WAYS TO REDUCE ECONOMIC DILEMMA
o For the Fiscal costs to government
o Enhance the atmosphere for private investment in nature and
heritage tourism
o Improve investment incentives.
o Negotiate the transfer of limited control over natural and
historic areas in return for entrepreneurship and capital.
WAYS TO REDUCE ECONOMIC DILEMMA

o For Enclave Tourism and Increasing Price

o Limiting the number of all-inclusive hotels
o Use different pricing strategies for local and tourists
o Employ more local people to increase their income
o Encouraging to purchase local products and services
THANK YOU