10/04/ Basic concepts of tourism 2. Microeconomics 3. Macroeconomics 4. Tourism demand 5. Tourism expenditure 6. Tourism supply Mid-term

Transcription

1 1. Basic concepts of tourism 2. Microeconomics 3. Macroeconomics 4. Tourism demand 5. Tourism expenditure 6. Tourism supply Mid-term 7. Tourism and balance of payments 8. Tourism and national income 9. Tourism and employment 10. Factors affecting balance in tourism 11. Tourism development and sustainability 12. Analysis of World & Turkish tourism 12:27 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 2 Regional tourism Indicators for establishments & organisations Identifying possible business opportunities, assessing the volume and intensity of tourism business Private and public regional tourism networks and clusters Aim: Comparisons of tourism, in terms of visitor numbers, characteristics and expenditure, across regions and between the regional and national levels A national collection framework for tourism statistics A common set of definitions 12:29 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 3 12:53 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 4 Regional tourism: a) Residents from other countries (inbound visitors for the country as a whole), b) Residents from another part of the national territory c) Residents from this region Domestic visitors No exchange of foreign currency Redistribution of domestic income between regions Alleviate developmental differences between regions Increase in government spending (infrastructure) Increase in standard of living High multiplier effect higher economic activity and growth Regional tourism production Import substitution Decrease the need for import & leakages 12:54 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 5 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 6 1

2 Direct tourism income: Inbound & domestic (i.e. internal) tourism expenditure & investments Income for tourism establishments (their production factors) Indirect tourism income: The income earned by production factors is spent within the economy Induced tourism income: The stimulation effect caused by increased economic activity due to tourism Total tourism income > tourist expenditure Individual distribution Distribution of income among individuals & households Functional distribution Shares of factors of production Expenditures through the distribution process flows of income Flows of income / expenditure Flows of goods & services 13:08 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 7 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 8 Flows of Income and Expenditure Product Purchase Households (Consumption of Goods & Services Consumption expenditures Savings Product markets Finance markets Investment Total revenue from sales Product Sales Firms (Production of Goods & Services Flows of Goods and Services Flows of income / expenditure: Income for the next group Alternatives for income: Savings / expenditure mps + mpc = 1 Factor Sales Factor Income Factor Markets Factor Payments Factor Purchases FOREIGN SECTOR 13:20 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 10 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 11 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 12 2

3 REDISTRIBUTION OF INCOME 10/04/2018 TOURISM INCOME EXAMPLE 1 ST STAGE 2 ND STAGE PURCHASES TAXES WAGES (TOURISM) INDUSTRY AGRICULTURE SAVINGS LEAKAGES LEAKAGES The income effect of a $1000 (inbound) tourism expenditure Data: MPC: 0,752 Turnover rate: 5 periods SERVICES 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 13 13:28 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 14 Type of Tourism Consumption % Turnover Period Total Expenditure Accommodation 20, F&B 29, Transportation Shopping 19, Entertainment 15, Total :32 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 15 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 16 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 17 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 18 3

4 The effect of increased income through continuous expenditure, created by the flow of income expenditure The multiplier: The coefficient value that indicates the theoretic and quantitative effect of marginal expenditure on income The ratio of changes in expenditure on the change in GDP MPC MULTIPLIER Wide range of visitor needs Collaboration of numerous industries Numerous suppliers Tourism consumption High rate of expenditure The multiplier effect of tourism is HIGH 14:38 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 19 13:34 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 20 Additional Tourism Imports Upfront leakages Foreign operators / carriers etc. Increasing factors Regional economic volume Industrial collaboration Local resource use Local tourism consumption Decreasing factors Marginal propensity to save MPS Marginal propensity to import MPM Leakages Foreign operators & carriers Neutral effects Geographical size & diversification of the destination Time factor 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 21 14:44 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 22 Direct tourism income R t R t + indirect & induced tourism income = Total tourism income ΔR (total increase in GDP due to tourism) The measurement of indirect & induced tourism income = the multiplier coefficient k k = ΔR / R t k = 1 / mps k = 1 / (1-mpc) In an open economy: Donald E. Lundberg s multiplier formula: k = 1 tpm 1 mpc +mpm tpm: visitors propensity to consume imported products mpm: marginal propensity to import 14:49 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 23 14:50 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 24 4

5 Example: mpc = 0,724 mpm = 0,056 tpm = 0,022 R t : $18b k= 1 tpm / (1 mpc)+mpm = 1 0,022 / (1-0,724) + 0,056 = 2,941 ΔR = $18b * 2,941 = $52,938b 14:51 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 25 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 26 Tourism investment multiplier (k) Increase in investments (ΔI) Increase in income (ΔY) Y =k I 14:54 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 27 The goal of economic activity is to CREATE VALUE The factors of production are subjected to certain production processes to Produce end products That will better satisfy human needs And create higher value than their cost 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 29 15:14 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 30 5

6 The production process Creates value Adds value to the factors of production Total value added Total goods & services produced in a country Indicator of GDP The value added created by tourism is higher than other industries 1. Tourism utilises free goods to create economic value 2. Service production: Labour-intensive 3. Input from other industries 4. Tourism products are end products Induced value added: Tourism development in a region creates a wave of economic development and catalyses other industries 15:15 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 31 15:15 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 32 Harcama türü Harcama (1000 FÜS (Faaliyete göre Ürünlerin İstatistikî Alanın katma Yaratılan USD) Sınıflaması) ekonomik etkinlik alanı değer oranı katma değer 1. Kişisel harcamalar Yeme-içme Oteller ve lokantalar 0, Konaklama Oteller ve lokantalar 0, Sağlık Sağlık işleri ve sosyal hizmetler 0, Ulaştırma (ulusal) Kara taşımacılığı 0, Ulaştırma (uluslararası) Havayolu taşımacılığı 0, Spor, eğitim, kültür Eğlence, dinlenme, kültür ve sporla ilgili faaliyetler 0, Tur hizmetleri Destekleyici ve yardımcı ulaştırma faaliyetleri; seyahat acentelerinin faaliyetleri 0, GSM Posta ve telekomünikasyon 0, Marina Su yolu taşımacılığı 0, Diğer mal ve hizmetler Giyecek ve ayakkabı Giyim eşyası imalatı 0, Hediyelik eşya Diğer iş faaliyetleri 0, Halı, kilim vb Tekstil ürünleri imalatı 0, Diğer harcamalar Başka yerde sınıflandırılmamış üye olunan kuruluşların faaliyetleri 0, Paket tur toplamı (Ülkemize kalan pay) Oteller ve lokantalar 0, Toplam , Increasing international tourism in a developing economy: Increases demand of tourism goods & services Increases demand of factors of production & also imported products Increases inflationistpressures The duration between increase in tourism demand & finalisation of investments increases prices The inflationist pressure caused by tourism development: Increases the prices of tourism goods & services Increases the prices of supplying industries Increases regional prices 15:24 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 34 Income / substitution effect Visitors do not always make rational consumption decisions Vacation habits Regional (comparative / absolute) advantages of tourism establishments Reproduction Changes in consumption patterns Lack of market knowledge Impact of promotion Distance Consumption habits The demand elasticity of domestic & international tourism may depend on prices or (disposable) income If economic cost of domestic tourism = International tourism Rational decision Utility maximisation International tourism As the rate of the cost of travel / consumer s total budget increases: The price elasticity of tourism demand increases Higher income groups Less elastic than lower income groups 15:20 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 35 15:25 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 36 6

7 Direct & indirect income due to tourism activity Taxes, customs etc. Increase public income Public costs of tourism development Promotion, incentives, monetary measures, infrastructure investments, administrative costs etc. Increase public expenditure 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 37 12:40 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 38 Dilts, D. A., Introduction to Macroeconomics, Department of Economics Doermer School of Business and Management Sciences, Indiana-Purdue University-Fort Wayne, 2006 Timur, A., Turizm Ekonomisi ders notları Goeldner, Charles R., J.R. Brent Ritchie, Tourism, Principles, Practices, Philosophies, 11 th Ed. John Wiley & Sons, NY, 2009 Lickorish, Leonard & Carson L. Jenkins, An Introduction to Tourism, Butterworth-Heinemann, Oxford, International Recommendations for Tourism Statistics 2008, UNWTO Toskay, T. Turizm Olayına Genel Yaklaşım, 2. Baskı, Der Yayınları, İstanbul, 1983 Olalı, H. ve Timur, A. Turizm Ekonomisi, Ofis Ticaret Matbaacılık, İzmir, 1988 Kozak, N. vd, Genel Turizm (7. Baskı) İlkeler Kavramlar, Detay Yayıncılık, Ankara, 2008 İçöz, O. (ed), Genel Turizm Turizmde Temel Kavramlar ve İlkeler, Turhan Kitabevi, Ankara, :27 TUR 1018 TOURISM ECONOMICS - ÖZAY YILDIZ 40 7