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Tourism Development and its role in Local Economic Development (LED) Berman Group www.bermangroup.cz September 2011

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Tourism Development and its role in Local Economic Development (LED) ... A key component is the MICE sector: meetings, incentives, conventions and exhibitions. – PowerPoint PPT presentation

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Title: Tourism Development and its role in Local Economic Development (LED) Berman Group www.bermangroup.cz September 2011


1
Tourism Development and its role in Local
Economic Development (LED) Berman Group
www.bermangroup.cz September 2011
2
Tourism Development (TD)
  • Tourism is one of the fastest growing industries
    worldwide in past two decades
  • TD has multidisciplinary character and
    connecting different economical sectors
  • TD has positive influence mainly to a traffic
    infrastructure, construction industry, banking
    etc.
  • In terms of financial international trade turn
    over is located on the third place (after
    petroleum and cars industry)
  • Economic contribution of tourism captures
    Tourism Satellite Account (TSA)

3
A Tourism Satellite Account
  • Is a statistical accountant framework in the
    field of tourism and measures the goods and
    services according to international standards of
    concepts, classifications and definitions which
    allow valid comparisons from country to country
    in a consistent manner
  • A complete TSA contains detailed production
    accounts of the tourism industry and their
    linkages to other industries, employment, capital
    formation and additional non-monetary information
    on tourism

4
Tourism Development (TD)
  • Build infrastructure contributes to a LED and
    urban infrastructure recovery
  • Creates new jobs
  • TD can be considers as a polarize, induce or
    neutral sector in the region

5
Tourism Development (TD)
  • Polarize (driving) effect direct impact on
    social and regional economic development
  • Induce effect indirect impact on social and
    economic regional development (stimulation of
    regional development)
  • Neutral effect - no direct impact on social and
    regional economic development (only important
    for the region supplement)

6
Main economic benefits of tourism
  • Better balance of payment by state through
    incoming tourism (invisible export)
  • Through taxes and fees increasing local and state
    budget
  • Support of development of small and medium size
    enterprises
  • Increasing of employment
  • Stimulation area of investment in local
    infrastructure ( water supply, sewerage,
    electrification, road and rail network etc.)

7
Benefits of tourism
  • Economic aspects (creation of new jobs, a source
    of capital, increasing competitiveness)
  • Social aspect (improvement of facilities and
    level of public services, revival of the folklore
    and local tradition etc. )
  • Environmental aspect (ensuring of environmental
    stability)

8
Why Tourism in your region?
  • The Economic contribution of tourism to the
    region - creation of added value of purchased
    goods and services in the region
  • Services are
  • - at primary level (accommodation, catering,
    rental, transport etc.)
  • - at secondary level (above standards and
    additional service)

9
Costs associated with TD
  • Infrastructure costs
  • Energy costs
  • Cost of waste disposal

10
Tourism development (TD)
  • Tourism not only an opportunity for the region,
    but also a threat (especially in the sphere of
    social and environmental).
  • Opportunity chance you must use !
  • Threats challenges to be avoided !

11
Investment opportunities in tourism
  • Development of business possibilities in the area
    of basic infrastructure (accommodation and
    catering equipments )
  • Development of tourism services
  • Building and operating of sports and cultural
    facilities
  • Operating of leisure activities etc.

12
How to choose appropriate destination for
investment?
  • Attractiveness of the area / destination-
    proportion of offer and demand - primary
    viewpoint
  • Preparedness of the area / destination
    secondary viewpoint ( industrial zones,
    brownfields etc.)

13
Tourism trends
  • Major Tourism mega trends by World Tourism
    Organization (WTO) 2007
  • globalization x localization
  • polarization of tourist tastes (comfort-based
    demands versus the adventure or education
    oriented)
  • the tourists shrinking world (various
    technological advances helps there will be no
    boundaries to tourism anywhere)
  • electronic technology becoming all powerful
  • fast track travel (passport replaced by the
    computer reading of hands, ticketless travel, use
    of smart cards etc.)
  • customers will can the shots (increasingly
    travel and tourism will be a buyers market with
    the use of technology)

14
  • destination as fashion accessory (monitor the
    perceptions of destination in the market places
    to maximize advantage of this)
  • targeted product market development oriented to
    the three E-s entertainment, excitement,
    education (theme-based products)
  • more destination focus on image
  • everyone chasing the Asian tourist
  • consumer led campaigns for sustainable tourism
  • increased socio-environmental consciousness
    versus the urge for travel consumption

15
Key types of tourism
  • Leisure tourism describes tourism for the main
    purposes of recreation and leisure (residential
    vacation and also day trips) adventure tourism,
    ecotourism, heritage tourism, wine tourism,
    packaged beach vacations.
  • Health tourism traveling for health reasons.
    This includes visits to spas and health and
    fitness centers, as well as traveling to receive
    treatments which require more specific medical
    intervention such as cosmetic or medical surgery.
  • Educational/study tourism traveling to attend an
    academic institution in order to gain
    qualifications or participation in a tour for the
    purposes of learning.
  • Business tourism traveling to attend an activity
    or event associated with business interests. A
    key component is the MICE sector meetings,
    incentives, conventions and exhibitions.
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