Tourism - blessing or curse?

The development of air travel and growing competition between airlines has reduced the cost of flying in recent years. This has also led to an increase in travel to long-haul destinations, bringing many LEDCs within range of the tourist. Many LEDCs have used tourism to develop their economies. In many ways tourism is an ideal economic activity, however it can also create many problems.

The Multilpier Effect demonatrates how tourism can help economies to develop e.g.
New hotel built
Tourists come
Tourists spend money
More jobs created. Local shops and businesses make more money
Spending power of local people increases
Leisure facilities developed
New airport and water and electricity facilities improve
Transport facilities improved
More hotels built
More tourists come

But, tourism can also cause problems for people living in LEDCs. Some of these problems are on this sheet.

Spot the difference between a mass tourist and a sustainable tourist here:



Homework question
Many LEDCs have used tourism as a way of developing their economy.
1. Name an LEDC you have studied where tourism has been used as a route to development.
2. Describe the positive and negative effects of the development of tourism on the quality of life for people living there.
3. Overall, so you think tourism has benefited your chosen country?

Tourism in an MEDC

Using Benidorm as a case study, you will look into tourism in an MEDC and the cycle that it has followed.

4 key questions

Why did Benidorm develop as a mass tourist destination?

What were the impacts (social, economic and environmental) of this growth?

Why did it decline?

What has been done to rejuvinate the tourism industry in Benidorm?

The Tourism Cycle shows how a resort such as Benidorm has changed over time. Download the worksheet here:

TNCs in LEDCs

TNCs (or Transnational Corporations) are large companies which which have offices or factories in several countries and are global because they operate across national boundaries. Examples of TNCs include Nike, Wal-mart, Microsoft, BP, McDonald's and many many more.

Why do they choose to locate in LEDCs?
Most TNCs have their headquarters in MEDCs such as Nike who ares based in Oregon in the USA. However, many TNCs are now choosing to locate branches in LEDCs - why is this? All we need to do is compare the average wages of people in different countries to see why this might be!

TNCs can be huge! Some make more money in a year than some countries do! They often find that by choosing the locate in LEDCs, they can;
(a) manufacture goods for sale more cheaply and,
(b) be near to large markets (places with large populations where goods can be sold).

Are TNCs good or bad?
There are a number of advantages and disadvantages to LEDCs of having a TNC locate in their country. You can download this list as a Word document by using the control below.

Homework question

To what extent can investment from TNCs help LEDCs to develop?