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    examBoard: Cambridge
    examType: IGCSE
    lessonTitle: Case Study - Tourism Example
    
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Changing Economies » Case Study - Tourism Example

What you'll learn this session

Study time: 30 minutes

  • The importance of tourism as a growth industry
  • Different types of tourism and their impacts
  • The Butler Model of tourism development
  • A detailed case study of tourism in Jamaica
  • Positive and negative impacts of tourism on local economies
  • Sustainable tourism approaches and management strategies

Introduction to Tourism as an Economic Activity

Tourism is one of the world's fastest-growing economic sectors and has become a vital part of many countries' development strategies. It involves people travelling to and staying in places outside their usual environment for leisure, business, or other purposes.

Key Definitions:

  • Tourism: The activities of people travelling to and staying in places outside their usual environment for leisure, business, or other purposes.
  • Mass tourism: Large numbers of people visiting popular holiday destinations for package tours, typically seeking sun, sea and sand.
  • Ecotourism: Responsible travel to natural areas that conserves the environment and improves the welfare of local people.
  • Multiplier effect: How tourist spending circulates through the local economy, creating additional rounds of income and employment.

🏜 Why Tourism Matters

Tourism contributes about 10% of global GDP and creates 1 in 10 jobs worldwide. For many developing countries, it's the main source of foreign exchange and investment. Tourism can help diversify economies that previously relied on traditional industries like agriculture or manufacturing.

🗺 Types of Tourism

Tourism comes in many forms including beach tourism, cultural tourism, adventure tourism, ecotourism, medical tourism and business tourism. Each type attracts different visitors and has different impacts on local communities and environments.

The Butler Model: Understanding Tourism Development

The Butler Model (or Tourism Area Life Cycle) helps us understand how tourist destinations develop over time. It shows that destinations typically go through several stages of development.

🚀 Exploration

Small numbers of adventurous tourists discover an unspoilt area. Limited facilities and infrastructure exist.

🏥 Development

Large numbers of tourists arrive. Major hotel chains and tour operators move in. Local control decreases.

📊 Stagnation

Tourist numbers peak. Environmental, social, or economic problems may emerge. The destination may become less fashionable.

After stagnation, destinations can either decline as tourists move elsewhere, or rejuvenate through new attractions or sustainable approaches.

Case Study: Tourism in Jamaica

Jamaica Tourism Overview

Jamaica is a Caribbean island nation with a population of about 2.9 million people. Tourism directly contributes about 10% of Jamaica's GDP and employs approximately 25% of the workforce when including indirect employment.

Tourism Development in Jamaica

Jamaica has been a tourist destination since the 1950s, but mass tourism really took off in the 1970s. The north coast, particularly Montego Bay and Ocho Rios, has been developed extensively with large resort complexes, often owned by international hotel chains.

💰 Economic Benefits

  • Tourism brings in about $3 billion annually to Jamaica
  • Creates jobs in hotels, restaurants, transport and entertainment
  • Stimulates infrastructure development (airports, roads, utilities)
  • Provides opportunities for local entrepreneurs (craft markets, tour guides)
  • Generates foreign exchange crucial for importing goods

Economic Challenges

  • Leakage: 70% of tourism revenue leaves Jamaica through foreign-owned hotels
  • Seasonal employment creates job insecurity
  • Overdependence on tourism makes the economy vulnerable
  • Economic benefits often don't reach poorer communities
  • Rising land prices can make housing unaffordable for locals

All-Inclusive Resorts: A Double-Edged Sword

Jamaica is famous for its all-inclusive resorts where tourists pay one price for accommodation, food, drinks and activities. While these resorts create jobs and attract visitors, they can limit the economic benefits to the wider community since tourists have little reason to venture outside and spend money locally.

Leakage in Tourism

Leakage refers to the portion of tourist spending that leaves the destination country. In Jamaica, this happens through imported goods (food, drinks, furniture), foreign-owned hotels sending profits overseas and foreign tour operators. Studies suggest that for every $100 spent by tourists in Jamaica, only about $30 stays in the local economy.

Sustainable Tourism Initiatives in Jamaica

Recognising the challenges of mass tourism, Jamaica has been developing more sustainable approaches:

🌲 Community Tourism

Villages like Treasure Beach on the south coast offer small-scale, locally-owned accommodation and experiences that directly benefit communities.

🌏 Ecotourism

The Blue and John Crow Mountains National Park offers hiking, birdwatching and cultural experiences while protecting natural habitats.

🏠 Local Linkages

The Tourism Linkages Network connects farmers and craftspeople with hotels to increase local purchasing and reduce imports.

The Tourism Enhancement Fund (TEF)

Jamaica has established the Tourism Enhancement Fund, which collects a fee from every tourist arrival. This money is used to improve infrastructure, train tourism workers, restore heritage sites and fund environmental projects. This helps ensure tourism contributes to broader development goals.

Comparing Jamaica with Other Tourism Models

🌴 Costa Rica: Ecotourism Leader

Costa Rica has positioned itself as an ecotourism destination, protecting 25% of its land as national parks while developing tourism. Unlike Jamaica's focus on beach resorts, Costa Rica attracts tourists interested in rainforests, wildlife and sustainable practices. This approach has reduced leakage and spread benefits more widely.

🏖 Bali: Cultural Tourism

Bali has developed tourism around its unique culture and traditions. While it faces challenges with overdevelopment in some areas, cultural tourism has helped preserve traditions and crafts that might otherwise have disappeared as the economy modernised.

Future Challenges and Opportunities

Jamaica and other tourism-dependent economies face several challenges:

  • Climate change: Rising sea levels, coral bleaching and more frequent hurricanes threaten beach tourism.
  • Competition: New destinations constantly emerge, requiring continuous innovation.
  • Changing tourist preferences: Younger travellers often seek authentic experiences rather than traditional package holidays.
  • Economic resilience: The COVID-19 pandemic showed the vulnerability of tourism-dependent economies.

However, these challenges also create opportunities for more sustainable and inclusive tourism models that:

  • Diversify tourism offerings beyond beaches
  • Increase local ownership and participation
  • Protect natural and cultural assets
  • Integrate tourism with other economic sectors

Exam Tip: Case Study Knowledge

For the iGCSE Geography exam, you should be able to discuss specific facts and figures about Jamaica's tourism industry, explain both positive and negative economic impacts and evaluate strategies for sustainable tourism development. Use specific place names and examples to demonstrate detailed knowledge.

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