GEO 802 Lecture Notes - Lecture 5: 5Star, Models 1, Gross Domestic Product
17 Apr 2018
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Geo 802 week 5 february 12, 2018. Tourism industry is an integral part of the service industry. Indirect: additional business revenues which are generated as a result of the spinoff effect of the original tourist expenditure: ex. raw materials. Induced effects: can be either direct or indirect and takes into account the additional profit, proceeds, dividends, wages, and salaries of workers. Foreign exchange earnings: exchange rates, helps companies to provide the venture capital which is needed to stimulate further economic activities. Government revenue: types of taxation: direct and indirect, direct: levied on corporate or business activities, personal income taxes, property taxes, etc. Indirect: levied on goods/services which are purchased by tourists. In other countries it is the value- added tax: value added ta(cid:454) is i(cid:373)posed o(cid:374) the (cid:272)o(cid:373)(cid:373)odit(cid:455) a(cid:374)d (cid:455)ou do(cid:374)"t see the difference, tax is hidden within the price, reciprocal relationship between the two. Infrastructure improvements: government constructs roads, water, electricity, sewers, utilities, etc. for tourism to survive.
