Negative Effects of Tourists’ Expenditure
Tourism expenditure is a very significant factor in the economic growth of every country. In other words, the more the tourists spend the better it is for the economy. Thailand is also known for having a very high demand in tourism, as it is cheap and very convenient to many travelers. However this sometimes causes negligence and over-utilization of tourism resources and this can have a negative impact on Thailand’s economy (Naewmalee, 2005). For example if a tourist travels to Thailand and his/her expenditure is fixed with every following visit then this does not generate the revenue that is expected because their expenditure is not increasing (Naewmalee, 2005). “Recently, the tourists’ daily expenditure in Thailand, which is a direct measurement of revenue per tourist, shows a declining trend due to the falling of relative price” (Pongsirirushakun, 2003).
Table 2 (Naewmalee, 2005) Table 2 (Naewmalee, 2005)
The information on the charts was taken from the Tourism Authority of Thailand (Naewmalee, 2005). Table 2 shows that throughout the years tourism in Thailand is increasing which is a positive thing. However the chart below shows us that even though tourism was increasing, the daily expenditures were decreasing. According to Dr. Apichat, a research specialist and Mr. Kiratipong who is also a researcher in TDRI economics program, the daily expenditure per tourist is low compared to their length of stay. Even though the
Tourism is perceived as one of the leading industries in the world. “The World Travel and Tourism Council (2001) indicated that tourism creates more than ten percent of the global economic output and 1 in 10 jobs worldwide.”
Thailand has a big profit from tourism; the tourism in Thailand, especially in Phuket economically benefits local people, but the negative impact that tourism leaves on the environment and economy stand out more. Alone in 2016, tourism created 2,313,500 jobs, such as transportation, entertainment, attractions and accommodation’ and is supposed to rise to 2,458,500 jobs in 2107, also “lodging and food and beverage services; retail trade; transportation services; cultural, sports and recreational services”. Thailand has expectations to attract up to 35,527,000 tourists in 2017 (World Travel & Tourism Council 6,8). One of Thailand’s most visited places is Phuket. The economy benefits by having more jobs for local people. And the majority of them work in the new hotel industry business. Others operate souvenir shops or are food producers for local restaurant and hotels. Though, not every local person has the opportunity to get a job, the wealth gap between the local citizens and developers is huge (Impacts
number of tourists from Asian countries in last 10 years has been growing up. More, the stronger of foreigner currency is also one of the factor of increasing in number of tourist.
Over the last 60 years, tourism has benefited from continuous growth and diversification, becoming one of the largest as well as the fastest growing world’s economic sectors. Tourism becomes one of the major categories of global trade in services. Nowadays, 7% of global goods and services exports are contributed by international tourism, and for the last four years, it has grown faster than the general global trade.[ Exports from international tourism rise 4% in 2015, (2016, May 6). Retrieved from http://media.unwto.org/press-release/2016-05-03/exports-international-tourism-rise-4-2015]
Tourism trend within selected country 2 Thailand: even if with the political instability within Thailand, the Thai locals manage to do well within their tourist industry. This includes both inbound and outbound travelling and the main sources of tourists for both inbound and outbound tourists are from those ASEAN countries such as Malaysia, Singapore, Hongkong and Indonesia etc. due to the new entrant of low cost carrier such as Thai Lion Air, more frequent and regular travelling will help to bring international and domestic tourists in and out of Thailand. The growing trends and prospects for Thailand travelling industry is very good and
Figure 1.3 Percentage of Conference Expenditure Against Total Tourist Expenditure 2002 – 2007. (Visitors Guide Malaysia c.2008, p.2)
Tourism plays a vital role in economic development in most countries around the world. The industry has not only direct economic impact, but also significant indirect and influential impacts. There is agreement among experts that the travel and tourism sector is the fastest growing of global economy. According to the latest UNWTO World Tourism Barometer, international tourism receipts surpass US$ 1 trillion in 2011, growing about 3.8%up from 2010 (WTO, 2012).
Tourism & hospitality is one of the world’s rapidly growing industries as income is generated through the expenditure of goods & services required by tourists. The tourist is therefore very important to the wellbeing of many countries.
Although some countries and the democracy leader Aung San Suu Kyi have both made statement to people do not to visit Myanmar due to many reasons such as the culture & human rights protection, political fights and terrorist attack, the tourism became open to the world again. The National Democratic League has boycott the activity of “Visit Myanmar year 1996” because they thought tourism was only financially benefited the regime, but NLD made a new statement in 2011, 15 years later, replaced of revenging the government revenue by stopping tourism, they stated that tourism development affects Myanmar’s nature, local culture and local population of Myanmar. However, they also made acknowledge of responsible tourism can act as an important role in the country’s economy and
Thailand is located in Southeast Asia and occupies the western half of the Indochinese Peninsula and the northern two-thirds of the Malay Peninsula. Its government is a constitutional monarchy which is much similar to the government of the United Kingdom. The economic system of Thailand is considered to be a mixed system with the combination of market capitalist and socialist. It is an export-oriented country and owns a number of Asia’s largest industries such as shrimp and rice. Its economy is slowing down due to the political instability. This paper is going to demonstrate some main aspects of Thailand including its historical and cultural background, political system, the role of government, financial and educational sector, economy and so on.
Thailand may be overcrowded with tourists, but it has thousands of fascinating locations that make it the perfect holiday destination. When you say Thailand, you automatically think about beachside bungalows, luxury spa retreats, white sand beaches, and crystal clear water. However, this country means more than that. Thailand is about wild nature, diversity, tuk tuks, monks, temples, communism, astonishing views, markets, craziness, diving, street vendors, giant Buddhas and the list can easily go on.
Measuring the economic impact of tourist expenditure is no easy task. Every year the WTO publishes annual tourist stats for countries in the world. These statistics only include data that relate to tourist outflow and it wouldn't be correct to relate
The tourism industry has grown exponentially over the previous twenty years, it is now a worldwide industry, both in terms of tourists and host destinations, and ‘is no longer confined to the developed countries that traditionally provided the demand for world travel’ (Page & Connell, 2006, pp.4). World leaders have long been recognising the huge economic advantages that a booming tourism industry can bring to their nations, and vast amounts of money have been invested set up the infrastructure to support such an industry. However, aside from the large economic advantages to the industry, there are inevitably negative impacts to the host nation and the world as a whole. These negative impacts usually materialise in the form of
The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized. The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weight age to the tourism industry in their national development agenda. Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international tour operators. Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry
Our industry, the Global Hotels and Resorts, experienced strong growth over the five years to 2015. Over the five-year period, both consumers and businesses became more confident about their finances and spent freely on luxuries, including travel. This culminated in a substantial increase in travel rates and hotel room and occupancy rates, two indicators of a hotel 's performance. Travel spending has also picked up quickly, especially in emerging economies where tourism is on the rise. Global tourist arrivals are expected to increase an annualized 4.8% over the five years to 2015 to reach 1.2 billion. As a result of these positive trends, industry revenue is expected to increase an annualized 4.6% over the five years to 2015 to reach