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Discuss about the Economy of Clipper Bay.



Clipper Bay is a small town consisting of 5000 people, which is located at the tip of Peninsular. The town is situated by the sea and it has abundant marine life. Therefore, the economy of this town has always been revolved around fishing industry and other business related to fishing industry. In this way, limited industrial development has actually limited economic growth of Clipper Bay. Rest of the Country has already taken their initiatives towards revitalizing their economy through using their options. Therefore, this town has also been granted with a budget of $50m to invest for revitalizing their economy. The town has abundant source of cultural heritage, forest, sea, marine life, beautiful hills and many more. Therefore, tourism has been suggested in this study for revitalizing the economy of Clipper Bay. Tourism can develop economic, socio-cultural and environmental condition of a country or region (Lee, 2013).

This study will provide a plan for revitalizing the economy of Clipper Bay. The study will describe the best way of revitalizing the economy of Clipper Bay. The study will analyze the comparative analysis for supporting tourism industry to be established in this town. Furthermore, different infrastructure, superstructure and other components of the suppliers will be discussed in this study, which will support sustainable approach of tourism. Moreover, the study will also describe the potential economic, socio-cultural and environmental advantage and disadvantage of tourism at Clipper Bay.

Best Way of Revitalizing Economy

The economy of Clipper Bay has always been revolved around fishing and other businesses, which support only this industry. The town has never been involved in any other types of industries, which can revitalize the economic condition of the town. Rest of the county has become engaged in modernizing and diversifying their economic activities towards revitalizing their economic condition. Therefore, the local government of Clipper Bay has decided to revitalize their economic condition through considering their options.

While considering the options, it can be seen that Clipper Bay is located at the foot of series of hills. It also has beautiful beach, which can be special attraction for the tourists. On the other hand, the land of this town is quite unfertile for any kind of agriculture. Therefore, there is no scope of forming profitable agricultural industry. However, there is small portion of land just off the beaches having forest being stretched broadening the town, which can again be the attraction for the tourists (Stylidis et al., 2014). On the other hand, the government is also concerned about developing the transportation condition of the town. It can enhance the accessibility of the town to the tourists. All these options are indicating that tourism development would be the best way for Clipper Bay towards revitalizing their economic condition. There are adequate numbers of tourist attractions in this town, which can attract both domestic as international tourists. Furthermore, the associated businesses of tourism development would actually revitalize the economic condition of the tow


Comparative Advantage

According to Woo et al., (2015), comparative advantage can be defined as the ability of country to produce products and service at lesser cost than other countries. In the case study, it has been seen that the economy of Clipper Bay can be based on natural resources, exploration of cultural heritage and marine and fisheries. The town is already served by 2 roads; a narrow road; 2 way coastal roads and a second less developed road, which actually comes over nearby the hills. Therefore, it can be said that Clipper Bay has quite advanced transportation system, which can add to the success of tourism development in this town. Moreover, a new highway is also being built further the inland. Such transportation development is actually presenting the opportunity for increased accessibility, which can help in tourism development in this town.

On the other hand, the town is also having natural resources like marine life and wild life, which can develop the tourism industry in this town with minimum cost. Apart from that, the people of Clipper Bay are having only fishing as their profession. Moreover, they do not have numerous options to choose as their profession. In such situation, the tourism industry will be an effective career option for these people. Moreover, the tourism industry would get wide availability of a pool of labor for performing tourism activities (Woo et al., 2015). The women folk of this town are highly skilled in weaving and they make fresh and tasty sea foods. Therefore, the hotel sector can easily hire such women for serving their cooking purpose. In this way, development of tourism industry would actually revitalize the economic condition of the town with increased earning people, income from local as well as foreign tourists and income from associated businesses of tourism.

Tourism Stakeholder Model and Sustainable Approach

While considering the economic development of Clipper Bay, it is prominent that development of ecotourism will be the best option for sustainable approach. Sinclair-Maragh et al., (2015) pointed out that ecotourism relates the involvement of undistributed natural areas and visiting the pristine and fragile components of the nature. Similarly, Clipper Bay is comprised of exclusive natural beauty such as hills, limestone caves, plenty of rock-pool foundations and the beautiful beach.

According to Ma and Hassink, (2013), the tourism stakeholder model is comprised of local resident, tourists, public sector and government, tour operators, tourism activity and suppliers.

Figure 1: Tourism Stakeholder Model

(Source: Nunkoo, 2015)

On the other hand, Carlisle et al., (2013) highlighted that tourism infrastructure is comprised of physical, cultural, service and governance components, as depicted in figure 2.

Figure 2: Tourism Infrastructure Model

(Source: Saufi et al., 2014)

Considering the above figure, it can be identified that physical components indicate the suppliers for a tourism sector. Considering Clipper Bay, supplies will mostly come from locality. This will be beneficial in supporting the economy of both fishermen and weavers including the local farmers. At present the number of hotels and motels are quite less, however economy will raise once the attraction of tourist increases. Restaurants will be supporting the attraction aspect of tourists who are coming from abroad by offering great taste of freshly produced local and culturally eminent food items.

On the other hand, water and electricity are the main two supplies, which must be supported by the government for supporting tourism (Ruhanen, 2013). For Clipper Bay, these supplies will be supported by peninsular government. Also, subsidies will be allowed through Pubic Private Partnership (PPP) initiatives involving local hotels and state level public accommodations. Finally, as described by Bunakov et al., (2015), transport and communication amenities are next most important factors for tourists just after water and electricity. Therefore, for Clipper Bay, transport facilities will be developed by new local transport system authority. Also, Government subsidy will be needed for development.

According to viewpoint of Bojanic and Lo, (2016), opinions, ideas, culture, institutions and laws within the infrastructure that is confined in one geographical location, indicates the superstructure component. Similarly, while considering the tourism infrastructure model, it is evident that the culture, service and government components construct the superstructure of Clipper Bay. Therefore, while being particular about the culture, it can be said that there is very less variety and diversity in Clipper Bay population. Occupation is mostly related to fishing and skilled weaving. Local art and music is prevalent traditionally, which will surely satisfy the tourists through cultural programs. Tourist guides and travel agencies will be introduced as a form of partnership with local tourism venture. However, banking and insurance agencies are lacking within the locality, which need to be developed with progress of time. Finally, considering the governance, it can be said that customs and immigrations have increased in Clipper Bay due to less economic opportunity. However, with enhanced tourism opportunity more job prospects will be open for third generation and adulthood who will aid in service related vacancies for hotels, motels, restaurants and transportation.


Economic Advantage and Disadvantage

According to Torres-Delgado and Saarinen, (2014), tourism industry is associated with several other industries like transportation and local cottage industry, food and beverage industry, hotel and restaurant industry and many others. Moreover, the development of tourism industry can also proportionately develop these industries. In this way, tourism industry can have multiplier effect on Clipper Bay through the economic development of several other industries. Furthermore, Graci, (2013) opined that tourism can also expand the town’s money supply across the countries. In this way, tourism can develop the economic condition of the country. On the other hand, Ndivo and Cantoni, (2016) argued that tourism industry always needs to be dependent on the quality of security, communication system and road condition of a town. Therefore, such infrastructural development can bear the cost from the tax revenue of the town.

According to Ellis and Sheridan, (2014), Balance of Payment (BOP) summarizes the economic transaction with rest of the countries for a particular period of time. BOP incorporates all the transactions between country’s residents and non-residents involving income, goods and services, transfers of gifts, financial claims and liabilities to rest of the world. Moreover, successful BOP alleviates poverty through focusing on poor towards making them producer of any good and contributing to the overall economy of the country. Tourism in Clipper Bay would provide scope to the poor people towards to develop their own business in relation to tourism needs. Therefore, such poor people will also be able to contribute to the overall economy of the town. In this way, Clipper Bay will be able to enhance its economic condition. However, Rasoolimanesh et al., (2017) argued that money borrowed for the tourism development can actually increase the debt of this town having economical disadvantage.

As per Rivera et al., (2016), tourism development can actually enhance the opportunities of return on investment for this town. Therefore, apart from local entrepreneur, international entrepreneurs can also be interested in investing in the tourism industry of this town. Therefore, the increasing scope of foreign direct investment (FDI) will ultimately revitalize the overall economy of Clipper Bay. Moreover, FDI will also enhance some more domestic entrepreneurs towards investing the tourism development. In this way, increasing investment in the economy of the country would ultimately revitalize the economic condition of Clipper Bay. However, Samimi et al., (2013) argued that FDI often discourage the local entrepreneurs with their enhanced tourism facilities. It can actually negatively impact the economic development of local entrepreneurs.

According to Timothy, (2014), tourism can provide ample job opportunities to the unemployed people of a country or town. In case of tourism at Clipper Bay, the unemployed people will get ample job opportunities in the sectors like hotels, restaurants, garments, art and craft and many others. In this way, tourism will enhance the earning level of the people, which will in turn enhance the overall economic condition of the town. Moreover, the tax collected from such employed person will increase the tax revenue of the town, which will revitalize the economic condition of Clipper Bay.

Socio-Cultural Advantage and Disadvantage

Tourism development at Clipper Bay can also be associated with some socio-cultural advantage and disadvantage. According to Gabdrakhmanov et al., (2016), tourism development can encourage the local government for preserving the cultural heritage of any region. In this way, tourism development at Clipper Bay would also encourage the local government of Clipper Bay towards preserving their cultural heritages. On the other hand, tourism can also encourage the local festival to be organized at seasonal basis for the attraction of the tourists. In this way, tourism can actually enhance the social values and norms of the town. However, Ndivo and Cantoni, (2016) opined that tourism can enhance the population density of the town, which can enhance the potentiality of health harm for the people. As per Bojanic and Lo, (2016), foreign tourists can be interested in buying the local art and craft of Clipper Bay. Moreover, tourism can enhance the demand for the local art and craft of the Clipper Bay. In this way, the local people can take interest in making and arts and crafts for the tourists, which can also provide the scope of earning. In this way, it can enhance the social value of some people through their own crafting and designing.


According to Samimi et al., (2013), tourism can drive cross cultural collaboration in a particular region or country with having tourism from different countries and regions. In case of Clipper Bay, tourism development will welcome tourists from different countries and region having different cultural values and norms. The demonstration effect can encourage the local people at Clipper Bay to copy the rich lifestyle of the rich tourists from developed countries or regions. In this way, tourism can foster cross cultural appreciation in this town, where the local people of this town can develop their social value and norms as per the developed social norms of other culture. However, Saufi et al., (2014) argued that tourism can also lead to increasing crime rate in the town, while the local people want to make their life style like the rich tourists with having much money with them. Moreover, the increasing urge of being rich like rich tourists in shortest period can make them more inclined towards making crime. In this way, it can actually lead to erosion of social value among the people at Clipper Bay.

Tourism can develop ample job opportunities at Clipper Bay, which can enhance the earning opportunities of the people. In this way, the development of tourism can ultimately develop the life-style of the local people in this town with increasing economical strength. On the other hand, Torres-Delgado and Saarinen, (2014) opined that tourism development can also promote increased education in the society. Moreover, in order to promote sustainable tourism, the tourism sectors need highly educated people. Therefore, tourism will promote better education system in the society as per the needs of the tourism sectors.

Environmental Advantage and Disadvantage

Tourism can also have some environmental advantage and disadvantage associated with the tourism activities. According to Rivera et al., (2016), tourism can assist in protecting the natural resources of a country or region. Likewise, tourism can also encourage the local government of Clipper Bay towards preserving the natural resources like forest and marine life. They can be encouraged to protect and preserve these natural resources for enhancing the attraction of the tourists. In this way, tourism can actually preserve the natural resources of the town through protecting them from environmental damage. On the other hand, Bojanic and Lo, (2016) opined that tourism can enhance the pollution in the environment like air, water, and noise pollution. The tourism facilities and activities can emit pollutant materials in the environment, which can damage the balance of natural resources in the environment. Waste disposal of the tourism activities can destroy the fertility of the land.

Timothy, (2014) pointed out that tourism can also generate the funding for protecting the natural resources of a country or region. Likewise, the local government of Clipper Bay can generate adequate money for protecting the natural resources like marine life and forest. In this way, the local government will take active initiatives towards protecting the natural resources. In order attract more numbers of tourists; the government will give more emphasis on overall beatification of the surrounding environment. Moreover, they can give more emphasis on planting of tree and landscaping for increased tourist attraction through making the town more aesthetic. Furthermore, towards tourism development, government can also make huge investment in improving the facilities like sitting areas, proper sanitation and others, which can also prevent environmental damage.

On other hand, Ma and Hassink, (2013) opined that tourism development leads to developed transportation system, which can have huge negative impact on the environment. Moreover, increased transportation system at Clipper Bay for developing tourism can actually enhance the carbon emission rate and noise pollution in the environment. In this way, tourism development can also be directly associated with the environmental damage. Apart from that, towards building attractive hotels and resorts for developed tourism, the government can be engaged in deforestation of the town. In this way, deforestation can lead to ecological imbalance at the town, which can also lead to environmental damage in the town. However, towards proper tourism development, the government can take positive initiatives towards preserving the scarce natural resources of the town, which can be special attraction for the tourists.



While concluding the study, it can be said that the economy of Clipper Bay has been revolved around Fishing and other business related to the fishing. The town is not engaged in any other types of business and industry. Therefore, there has been limited economic growth with limited scope of businesses. Rests towns of Peninsular have also been engaged in revitalize their economy through using their options. Likewise, Clipper Bay has also been allocated with certain amount of budget for revitalize their economy. Clipper Bay is located at the foot of series of hills and has access to beautiful sea beaches, which can be great attractions to the tourists. Therefore, tourism has been selected as the best way of revitalizing the economy of the town. The advancing transportation system, huge natural resources and pool of labor will provide high level of comparative advantage to the town towards developing tourism.

The infrastructure component of tourism like hotels, motels, restaurants, transportation and others enhance economic development to the town. On the other hand, the suppliers can also provide environmentally sustainable components for adjusting with sustainable approach of tourism. Furthermore, the superstructure components also add to the high level of satisfaction of the tourists. In this way, such components will ensure sustainable profit level of the industry. Tourism industry can in turn develop other business like food and beverage industry, local cottage industry and hotel and restaurant industry. In this way, it will ultimately develop the economic condition of the town through multiplier effect. Tourism can also develop the socio-cultural life of the people of this town through demonstration effect. Moreover, tourism can foster cross cultural collaboration within the town, which can enhance the social norms and values. Furthermore, tourism can also preserve the local heritage and natural resources of the town, which is environmentally sustainable



Bojanic, D. C., & Lo, M. (2016). A comparison of the moderating effect of tourism reliance on the economic development for islands and other countries. Tourism Management, 53, 207-214.

Bunakov, O. A., Zaitseva, N. A., Larionova, A. A., Chudnovskiy, A. D., Zhukova, M. A., & Zhukov, V. A. (2015). Research on the evolution of management concepts of sustainable tourism and hospitality development in the regions. Journal of Sustainable Development, 8(6), 39.

Carlisle, S., Kunc, M., Jones, E., & Tiffin, S. (2013). Supporting innovation for tourism development through multi-stakeholder approaches: Experiences from Africa. Tourism Management, 35, 59-69.

Ellis, S., & Sheridan, L. (2014). A critical reflection on the role of stakeholders in sustainable tourism development in least-developed countries. Tourism Planning & Development, 11(4), 467-471.

Gabdrakhmanov, N. K., Rubtzov, V. A., Baybakov, E. E., Somaeh, H. S., & Nugaev, F. S. E. (2016). Tourism and sustainable development. Academy of Strategic Management Journal, 15, 21.

Graci, S. (2013). Collaboration and partnership development for sustainable tourism. Tourism Geographies, 15(1), 25-42.

Lee, T. H. (2013). Influence analysis of community resident support for sustainable tourism development. Tourism management, 34, 37-46.

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