Summary Global Interdependence Theory and Case Studies

Tourism
Key words
 Multiplier effect
→ tourism not only creates jobs in the tertiary sector, it encourages growth in the primary
(farming) and secondary (manufacturing souvenirs) sectors
→ increases the number of times money spent by a tourist circulates through the country’s
economy
 Economic leakage
→ when revenue generated by tourism is lost to other countries’ economies, it may be so
significant that it partially neutralises the money generated by tourism (eg 70% in Thailand)
→ tour operators, hotels, imported foods that are foreign owned/produced
→ tourist taxes can get around this (eg Spain)
 Carrying capacity
→ the max number of people that can visit a tourist destination at the same time without causing
the destruction of the physical, economic, and socio-cultural environment or an unacceptable
decrease in the quality of visitor satisfaction

Why has tourism increased?
 demand factors (more disposable income, more paid leave, living longer – grey tourism, cheaper
holidays)
 supply factors (more charter flights, package holidays)
 facilitating factors (electronic communication, advertising, media, globalisation, education –
language module in KS3)

Butler Resort Life Cycle Model




1. Exploration
 the place gets very few tourists
 small groups of people discover it as a holiday destination and tell their friends about it
 these people start to go there as well
 eg Bhutan