Discuss about the Tourism System for Case Study of Clipper Bay.
Clipper Bay is a small place located at the tip of a peninsula. The economy of the town is based on the abundant supply from the marine life by the means of fishing and other related businesses. The town has a unique feature of the presence of limestone caves with numerous rocks forming pools inside. The land is unfertile and does not support any agriculture and thus, the economic activity remains confined within the tourism activity only (Phua, Berkowitz & Gagermeier, 2012). The coastal roads and a highway built across the road presents an inland accessibility to reach the nearby hills. This facilitates the connection between the land, sea and the hills. In fact, recent approaches towards building better roads and communication networks will increase the opportunity of accessibility to different locations.
The region also has its unique cuisine to offer to people visiting the place. The food items are basically confined to fish and other sea foods. The women folk are not only highly skilled in cooking but in weaving as well (Henderson, 2014). Each summer, people mark the time as the beginning of fishing season. This festival is characterised by the customary and heritage linked religious and cultural rituals accompanies by a one week long feast. These are some of the important features that can be regarded as important features to attract tourists to the region. The aim of the report is to develop the economy of the place in a sustainable manner by understanding the socio-cultural and the environmental elements of the region. The aim of the report is to find the best possible way to create an economic activity for the particular region on the budget give for the improvement of Clipper Bay.
Suitable Economic Activity for Clipper Bay:
In order to boost the economy of the region, tourism can be the best possible option for the particular region. In the view point of Fodness, (2016), tourism depends on a number of factors that influences the particular region. These factors include location of the place, climate of the region, availability of a number of resources like food and water. It can be said that Clipper Bay is an ideal region for tourism because some of the beneficial factors that support the tourism activities are available in the particular region. The region is populated with local people of the region who can act as good guide for the tourists (Hardy et al., 2014). In fact, the people of the region celebrate unique festivals that could be one more reason to attract tourist at that particular time. In addition to these facts, it has been found that the region has infertile soil that does not support any kind of vegetation or farming activity. Therefore, it is suggested that tourism activity is the best suitable activity of this region.
Sustainability Approach of Tourism:
Idea of tourism is no longer confined to visiting places and enjoying the moment, but tourism has become an important means of evaluating places (Lee, 2013). Sustainability is one of the major approaches that have been gaining importance in shaping the economy of a region. Sustainable tourism is the concept of visiting a place and creating a positive impact on the environment and the economy. Tourism activities have been greatly influenced by the sustainability approach of the environment. Therefore, any activity carried on keeping this perspective in mind will help to prosper the economy.
- Idea of developing ecotourism: Ecotourism can be developed at Clipper Bay. As stated by Edgell Sr, (2016), that ecological issues have been integrated in the tourism activities. Tourism related areas that are near nature have greater scope of developing ecotourism activities. As it has been observed that Clipper Bay is located at a confluence of sea and mountain, there is a great scope of developing ecotourism at Clipper Bay.
- Coastal and Mountain sustainable tourism: As pointed out by Waligo, Clarke & Hawkins, (2013), coastal environment are often first to experience detrimental effect in the environment. Therefore, it is important to invest into tourism activities to make sustainable approach. Mountain tourism attracts many mountaineers. Places like Mount Everest in Nepal, Tibet are famous because of the presence of mountain there. Mountain tourism is the primary activity of these regions (Ta?nase et al., 2013).
Comparative Advantage of the Place:
Fletcher et al. (2013) stated that it is by the use of competitiveness and the availability of certain resources at a particular region, a level of competitive advantage becomes evident. Competitive advantage of tourism of a place depends on the availability of resources, quality of infrastructure and the ability of the place to deal with sustainability. Some factors that add comparative advantage to Clipper Bay can be discussed here:
- Availability of labour: It has been observed that the people at Clipper Bay are not engaged in any kind of other forms of economic activities. In fact, three generations of people are depended on the regular activities that are carried on in the region (Mason, 2015). Therefore, there is a good scope of the availability of labour for tourism activities at Clipper Bay. The tourism activity is definitely going to improve the local ob opportunity and economic condition of the people in the region.
- Easy access to the available resources: Basic resources required for attracting tourists makes the tourism activity easy for the particular place. As pointed out by Korstanje, (2014), that tourism is developed in those places where there is the availability of scenic beauty. Other resources like food or water are also available that would supply the necessary things to the visitors or tourists. The region has an abundant supply of marine products like fish and other sea food items that can meet the food expectation level of the people easily (Szytniewski, Spierings & van der Velde, 2016).
- Availability of natural attractions: It is been found that Clipper Bay has the location where both sea and mountain are available. Therefore, the region can attract tourists of both the categories who like to visit the mountain or the sea (Board, 2013). These are the major attractive things that this place has this could be the best possible reason to gain comparative advantage over other regions.
Economic Aspect of Tourism:
- Economic advantage of tourism activities: Tourism can bring great advantage to the economy of a region. Tourism gives job opportunities to the people of the place and thus, provides a significant generation of income to the economy of the country. In addition to this, tourism also increases the business activities of the local hotels, shops and restaurants as well. Henderson, (2014) pointed out that tourism gives an opportunity to the particular region to show itself and increase the profile of the particular place. Therefore, the place becomes evident globally that can attract more tourists to the particular region. Another important advantage of tourism has been pointed out by Board, (2014), that if the particular place is liked by the visitors, then it is seen that they praise about the place that automatically increases the popularity of the place and increases the tourism activity of the place.
- Economic disadvantage of tourism: Tourism activities also show a number of disadvantages as well. Te most common detrimental effect of tourism is the damage that is caused due to increased level of pollution. Ill behaves activities of tourists’ cause major damage to nature and the place. It might also result in damage of heritage and culture of the region. An important thing has been pointed out by Getz (2013), that tourism is mainly seasonal and does not support a constant flow of economy for the region. Sometimes, the money earned from the tourism activities is ultimately used to improve the situation for more tourists. Thus, there does not remain any kind of balance to be served for the benefits of the country or the region (Warnick, Bojanic & Cartier, 2016). Again, the hotels and restaurants that are owned by foreign companies when benefitted do not add any kind of advantage to the economy of the country.
- Multiplier effect theory: According to the multiplier theory, with the injection of new demand in the circular flow of business activities, the economy of the particular places shows a multiplier effect. By the multiplier effect it means to create extra income. This income will perhaps boost the spending capability of an individual. Again, it has been pointed out that someone’s spending is actually the income of other (Webster & Ivanov, 2014). Multiplier effect in open economy is higher. A part of the marginal propensity is usually deposited to the government as well. This concept is used in any situation where something new is injected in the industry (Dincer, Dincer & Ustaoglu, 2015). It has been observed that a budget of $50 million has been provided for revitalization of the local economy at Clipper Bay. Therefore, it is expected that with the budget provided for the improvement of the locality, it shall bring prosperity to the place.
Another important point can be mentioned here that the place does not depend on any particular season or time and thus, it opens the opportunity for tourism throughout the entire year of time. Therefore, there is a great opportunity of regular flow of income that will ultimately help in prosperity of the economy of the place.
- Balance of payment: Balance of payment is the record of the economic transaction between the residents of the country and rest of the world. As stated by Jules-Rosette, (2013), these transactions are made by individuals, business firms or government bodies. Balance of payment actually provides detailed information of the demand and supply of the currency of the particular country. It is expected that if the complete tourism activity is carried on keeping the needs and the demands of the people, there is a good return of the payment (Boley, Magnini & Tuten, 2013). It can be estimated that at least the return of the balance will be double of the investment.
- Advantage of increased employment: With the increasing aspect of the tourism activities at the particular region of Clipper Bay, it can be assumed that the existing people will participate in the tourism activities that will automatically increase the employment opportunity of the people in that region. With the increase in the employment opportunity, there will be increase in the GDP of the country. Another important factor has been pointed out by Warnick, Bojanic and Cartier, (2016), that when people from other countries having greater denomination value spends in countries that does not have higher value of money, then the host country gets benefitted from the value of money. Therefore, if people spend in dollars and euros then the value of return automatically increases by many folds (Getz, 2013).
- Impact of FDI and entrepreneurship: There should be the scope and opportunity for foreign direct investment into the tourism activity at the Clipper Bay. When a certain amount of investment is allocated to the particular region for further improvement in the activity, there lays greater possibility of betterment in the situation. In fact, there are many cases when major business men take the opportunity of carrying out entrepreneurship by considering tourism as a means of business activity (Dincer, Dincer & Ustaoglu, 2015). Therefore, it can be said that some part of the tourism activities can be considered as a part of entrepreneurship. This way, in order to increase the profitability of the business, the business person will focus on the business and the process will be conducted in a more profitable manner.
Analysis of Socio-Cultural Aspect of Tourism:
- Advantage and disadvantage of socio-cultural aspect of tourism: As opined by Ta?nase et al. (2013), that at times tourism activities turn the local culture into commoditisation that results in reconstruction of ethnicity of the region. It has been observed that Clipper Bay has a group of ethnic people who have their own identity. In case, if the region is turned into a tourism spot, there is a great possibility that the region will lost its relevance.
- Preservation of heritage: Sustainability approach of tourism also requires preservation of the heritage. It is important to preserve the heritage of the place by taking care of the monuments and other things that are available in the particular region (Fletcher et al., 2013).
- Generation of interest in local art and craft: There are no such evidences of local art and craft in the region of Clipper Bay. The region is has a good infrastructure of natural beauty that can attract tourists to this place.
- Cross-cultural impact: It has been observed that the region is populated with people belonging to cross culture. This factor promotes diversity in the region and attracts more tourists from different parts of the world (Szytniewski, Spierings & van der Velde, 2016). Therefore, there is a better chance of better tourism activities in the region. Cross cultural impact as attracted man tourists from many regions of the world. Singapore is a place of tourist hub where tourists from different parts of the world like China, India, US and other European countries as well (Warnick, Bojanic and Cartier, 2016). Therefore, there is a better opportunity for the Clipper Bay to attract more tourists.
- Demonstration effect: An individual’s effect on behaviour that is caused by the action and observation of the behaviour of an individual. When a person goes for tourism, the person experiences a number of activities (Ta?nase et al., 2013). These effects often result in the demonstration of various factors of that region. These factors might include the governmental policies or other success or failure of the place.
It has been observed that ecotourism can stimulate economic development and social welfare of the citizens as well as the region. In order to develop a community based tourism, local employment and diversification of the economic activities of the people in the region is needed. Again, with the involvement of FDI and entrepreneurship the scope of tourism can be increased. It has been observed that the place has a natural beauty of both sea and mountain. Therefore, the region can attract more number of people. The multiplier effect of tourism has showed evidence that the investment made on the tourism activities on the Clipper Bay is sure to multiply its income and increase the profitability of the region.
It has been suggested that the tourism activity should follow the sustainability of environment and the region. It is very important to preserve the nature and the natural resources that are available at the place. Profitability should not be the only means of tourism but there should be some aspect of keeping the environment safe. There are a number of comparative advantages that the region has that is helpful for creating a better environment for the purpose of tourism. It now depends on the people of the place to take advantage of the available resources and improve the tourism activities of the place.
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