© John Tribe

1 Introduction

© John Tribe

© John Tribe

Learning outcomes• By the end of this session students will be able

to:– understand the scope of recreation, leisure and

tourism and their interrelationship– explain the basic economic concerns of scarcity,

choice and opportunity costs– outline the allocation of resources in different

economic systems– explain the methodology of economics– understand the use of models in economics– understand the use of economics to analyse issues in

recreation, leisure and tourism– access sources of information

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Definition and scope of recreation, leisure and tourism

• Leisure = discretionary time

• Recreation = pursuits undertaken in leisure time

• Tourism = visiting for at least one night for leisure and holiday, business and professional or other tourism purposes

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Definition, scope and methodology of economics 1

• The nature of economics– Resources and wants– Scarcity and choice– Opportunity cost – Allocative mechanisms– Macroeconomics and microeconomics– Marginal analysis

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Production Possibility Frontier

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Allocative Mechanism

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The McDonald’s Golden Arches in Beijing, China

• An early example of private sector activity in China

• Contrast with state-run enterprises

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Definition, scope and methodology of economics 2

• The methodology of economics– The ‘science’ of social science– The ‘social’ of social science– Economic models

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Scientific testing

oftheories

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The economics of recreation, leisure and tourism

• Scarcity and choice

• Demand, supply and markets

• Work vs. Leisure

• Government intervention

• Economic impacts

• Growth and development

• Externalities and the environment

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Review of key terms• Leisure

– discretionary time.

• Recreation– pursuits undertaken in leisure time.

• Tourism– visiting for at least one night for leisure and holiday, business

and professional or other tourism purposes.

• Economic problem– scarcity and choice.

• Leisure and tourism sector organizations– organizations producing goods and services for use in leisure

time, and organizations seeking to influence the use of leisure time.

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Review of key terms

• Opportunity cost– the alternatives or other opportunities that have to be foregone

to achieve a particular thing.

• Free market economy– resources allocated through price system.

• Centrally planned economy– resources allocated by planning officials.

• Mixed economy– resources allocated through free market and planning

authorities.

• Microeconomics– study of household and firm’s behaviour

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Review of key terms• Macroeconomics

– study of whole economy.

• Marginal analysis– study of effects of one extra unit.

• Positive statement– based on fact.

• Normative statement– based on opinion.

• Ceteris paribus– other things remaining unchanged

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1 Introduction

The End