TOMG 200 Tourism Management & Environment Economic Impacts of Tourism Case Study: The Eden...

TOMG 200 Tourism Management & Environment

Economic Impacts of Tourism Case Study:

The Eden Project, Cornwall, U.K.

Economic characteristics of the tourism industry

Tourism brings economic benefits (TSAs)– Much needed foreign exchange– Generates employment– Improve social and economic benefits in a destination area, esp. if

remote from tourism flow (‘multiplier effect’)

But tourism not like other industries --- more complex– An invisible export industry

No tangible product– Tourists require supporting goods & services

Need infrastructure to access (airports, roads, IT networks) – Fragmented product

Many elements, not coordinated– Highly price- and income-elastic product– Perishable product

If a hotel room not booked one night then that income is lost– Subject to exogenous shocks

Currency fluctuations, politics, wars, SARS, terrorism, carbon tax– Seasonality puts pressure on resource

Tourist Attraction Development: The Eden Project, Cornwall, U.K.

Entrepreneurial activity can stimulate new economic activity

Developed from the vision of one man – Tim Smit, owned by the Eden Trust (reg’d charity)

Located in a former china clay pit to illustrate how degraded environments can be regenerated

An example of sustainable development A living theatre of plants, people, places & possibilities

(“the 8th Wonder of the World”) Opened as a visitor attraction summer 2001 300,000 visitors in first 3 months of opening 80 million UK pound development Its development has caused some controversy (impacts)

Visitor impressions of The Eden Project

Eden: The Inside Story

Individual Discussion Question (1):- What makes a tourist attraction

successful?

- www.edenproject.com

Required readings:

Chapter 3 of required text Chapter 1 in Garrod & Fyall (2011) – “This Other

Eden”

Useful resources:

Economic Impacts of the Rugby World Cup: http://www.3news.co.nz/Sporting-venues---what-we-get-for-our-buck/tabid/1356/articleID/226210/Default.aspx

Tourism Satellite Account (Economic Impact of Tourism Statistics) http://www.stats.govt.nz/browse_for_stats/industry_sectors/Tourism.aspx