The societal and economic impacts of travelling and tourism, are therefore an important consideration in national, regional, state and community planning of economic development. Economic impacts are also important factors in marketing and management decisions. Communities therefore need to understand the relative importance of economic, business and recreational travels.
A variety of methods, ranging from pure guesswork to complex mathematical models, are used to estimate travelling and tourism’s economic and societal impacts. Studies vary extensively in quality and accuracy, as well as which aspects of travelling and tourism are included. Technical reports often are filled with economic terms and methods, that non-economists do not understand. On the other hand, media coverage of these studies tend to oversimplify and frequently misinterpret the results, leaving decision makers and the general public with a sometimes distorted and incomplete understanding of travels and tourism economic effects.
How can the average person understand these studies sufficiently, to separate good studies from bad ones, and make informed choices? The purpose of this preamble is to present a systematic introduction to economic impact concepts and methods.
There are several other categories of economic impacts, that are not typically covered in this volume, at least not directly. For example:
1. Changes in prices – travelling and tourism can sometimes inflate the cost of housing and retail prices in any area, frequently on a seasonal basis.
2. Changes in the quality and quantity of goods and services – travels and tourism may lead to a wider array of goods and services available in an area.
3. Changes in property and other taxes – taxes to cover the cost of local services may be higher or lower in the presence of travels and tourism activity. In some cases, taxes collected directly or indirectly from tourists may yield reduced local taxes for schools, roads, etc. In other cases, locals may be taxed more heavily to cover the added infrastructure and service costs. The impacts of travelling and tourism on government, individuals and corporate costs and revenues are addressed more fully in a fiscal impact analysis.
4. Economic dimensions of “social” and “environmental” impacts – There are also economic
consequences of most social and environmental impacts that are not usually addressed in an
economic impact analysis. These can be positive or negative. For example, traffic congestion will increase costs of moving around for both households and businesses. Improved amenities that attract tourists may also encourage retirees or other kinds of businesses to locate in the area.
5. Finally, Purity Travels And Tours Nig. Ltd, will ensure provision of efficient customer service to our clients satisfaction.