The document discusses various approaches to studying tourism including institutional, product, historical, managerial, economic, sociological, geographical, and interdisciplinary approaches. It also discusses the economics of tourism, including the economic benefits such as foreign exchange earnings, government revenues, employment opportunities, and infrastructure investment. Some of the economic costs of tourism mentioned include inflation, opportunity costs, dependency, seasonality, leakage, enclave tourism, seasonal jobs, and the underground economy. The concept of the tourism multiplier is also introduced.

1. The study of
Tourism:
Disciplinary
Approaches
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2. Basic Approaches
• Institutional Approach
• Product Approach
• Historical Approach
• Managerial Approach
• Economical Approach
• Sociological Approach
• Interdisciplinary approaches
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3. Institutional Approach
• Considers the various intermediaries and
institutions that perform tourism activities.
• Gives emphasis to institutions.
• Requires an investigation of the
organization.
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4. Product Approach
• Involves the study of tourism products
and how they are produced, marketed and
consumed.
• Creation until consumption assessment
• Repeated to each tourism product until
one gets the entire picture.
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5. Historical Approach
• Involves an analysis of tourism activities
and institutions from an evolutionary
angle.
• Early beginnings until current state.
• searches for the cause of innovation,
growth or decline and shift in interest.
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6. Managerial Approach
• Firm oriented. Focuses on the
management activities necessary to
operate a tourist enterprise.
• Focuses on planning, research, pricing,
advertising, control and the like.
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7. Economic Approach
• Focus on supply, demand, balance of
payments, foreign exchange, employment,
expenditures, development multipliers, and
other economic factors.
• Useful in providing a framework for analyzing
tourism and its contributions to a country’s
economy.
• Doesn’t pay too much attention to the
environment, cultural, psychological,
sociological and anthropological factors.
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8. Sociological Approach
• Tourism IS A Social Activity.
• Analyzes the tourism behavior of
individuals and groups of people and its
impacts to society.
• Examination of social classes, customs and
habits of both hosts and guests.
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9. Geographical Approach
• Sheds light on the tourist areas, the
movements of people created by tourism
locales, the changes that tourism brings to
the landscape in the form of tourism
facilities, dispersion of tourism
development, physical planning and
economic, social and cultural problems.
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10. Interdisciplinary Studies
• Tourism embraces all aspects of our
society.
• Because of this tourism can also be
studied via:
– Anthropology
– Physiology
– Political Science
– Legal Approach
– Transportation Apporach
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11. Interdisciplinary Studies
• Tourism is so complex, you need different
approaches to study this field.
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12. Sociology
Sociology of
Tourism
Tourism Studies
Recreation
Parks and
Department
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Source: adapted from Jafar Jafari, University of Wisconsin-Stout, Study of Tourism: Tourism Course
Choices of Discipline and Approach.

13. Systems Approach
• System: a set of interrelated groups
coordinated to form a unified whole and
organized to accomplish a set of goals
• Integrate different approaches in order
deal with both macro and micro issues.
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14. THE ECONOMICS OF TOURISM
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15. The Economics of Tourism
• The role of tourism in economic
development
– Using tourism as an alternative to help
economic growth.
• Due to continuous demand for travel
• Income in developed countries increases- demand
for tourism increases in a faster rate.
• Developing countries need foreign exchange to aid
their economic development.
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16. The role of tourism in economic
development
• Using tourism as an alternative to help
economic growth.
– Due to continuous demand for travel
– Income in developed countries increases-
demand for tourism increases in a faster rate.
– Developing countries need foreign exchange
to aid their economic development.
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17. The role of tourism in economic
development
• The Organization for Economic
Cooperation and Development concluded
that tourism opportunities for countries in
the intermediate stage of economic
development to grow.
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18. The role of tourism in economic
development
• Tourism is seen as an invisible export.
– Consumer collects the product from the
exporting country.
– Demand for pleasure or vacation travel is
largely depended on non economic factors.
– Tourism is a mutli-faceted sector that directly
affects several sectors in the economy.
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19. Economic Benefits of Tourism
• Foreign Exchange Earnings
– Travel and Tourism expenditures
– Generate income to the host economy and
can stimulate the investment necessary to
finance growth in other economic sectors.
– accelerate this growth by requiring visitors to
bring in a certain amount of foreign currency
for each day of their stay.
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20. Economic Benefits of Tourism
• Foreign Exchange Earnings
– Tourism is one of the top five export
categories for as many as 83% of countries
and is a main source of foreign exchange
earnings for at least 38% of countries.
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21. Economic Benefits of Tourism
• Contribution to Government Revenues
– Direct contributions
– Indirect contributions
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22. Economic Benefits of Tourism
• Generation of Employment Opportunities
– Direct Employment
– Indirect Employment
– Induced Employment
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23. Economic Benefits of Tourism
• Infrastructure Investment
– Tourism can induce the local government to
make infrastructure improvements such as
better water and sewage systems, roads,
electricity, telephone and public transport
network
– This can improve the quality of life for
residents as well as facilitate tourism.
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24. Economic Costs of Tourism
• Inflation
– Increase in prices of land, houses and food
that can occur as a result of tourism.
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25. Economic Costs of Tourism
• Inflation
– Increase in prices of land, houses and food
that can occur as a result of tourism.
– Lies heavily on the demand.
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26. Economic Costs of Tourism
• Opportunity Costs
– the cost of engaging in tourism rather than
another form of economic activity.
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27. Economic Costs of Tourism
• Dependency
– a place becomes over-dependent on tourism
that other industries are abandoned.
– Over-reliance on tourism carries risks to
tourism-dependent economies.
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28. Economic Costs of Tourism
• Seasonality
– One of the major disadvantages in tourism
– Its effect to jobs, investments and tourism-
related enterprises
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29. Economic Costs of Tourism
• Leakage
– Goes out of the local economy to pay for
imported items, expatriate salaries or
franchise fees.
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30. Economic Costs of Tourism
• Leakage
– occurs through;
1. Repatriation of profits generated from
foreign capital investment;
2. Vertical integration;
3. Not sourcing goods and services locally.
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31. Economic Costs of Tourism
• Enclave Tourism
– Remain for their entire stay at the same
cruise ship or resort, which provides
everything they need and where they will
make all their expenditures, not much
opportunity is left for local people to profit
from tourism.
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32. Economic Costs of Tourism
• Seasonal Character of Jobs
– Job (and therefore income) insecurity
– No guarantee of employment from one
season to the next
– Difficulties in getting training, employment-
related medical benefits, and recognition of
their experience
– Unsatisfactory housing and working
conditions.
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33. Economic Costs of Tourism
• Prostitution and the Underground
Economy
– Sex Sector, prostitution, which many regard
as a by product of tourism, has been
estimated to contribute between 2%-14% of
the GDP of Indonesia, Malaysia, Thailand and
the Philippines.
– 2% - earnings of the prostitute themselves
– 14% - incomes of people indirectly benefiting
from prostitution
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34. Tourism Multiplier
• Describes the total effects of an external
source of income introduced to the economy.
• Also Called the Multiplier effect.
• Describes how an initial expenditure in a
destination ripples down to other
businesses.
• Relates the way secondary and tertiary
industries benefit from the primary tourism
industry.
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35. Tourism Multiplier
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