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Many capital-poor Third World nations in need of a profitable industry look to tourism as a solution to their economic problems. There are numerous (and often confusing) measures of the economic impact of tourism. The most important measures include tourism's impact on employment rates, GDP, and tourism's contribution to the balance of payments (i.e., repayment of foreign debts)." The literature suggests substantial benefits can be gained from tourism developnient.These include the following: Generation for foreign exchange and alleviation of balance of payment problems. Income generation through taxation of tourists. Diversification of a nation's economy (as the world's fastest growing industry, tourism is a growth sector). Employment generation, especially away from urban centers, as many attractions (beaches, forests, etc.) are often located in rural areas, and encouragement of entrepreneurial activities. Improvement of economic structures. Linkages with other aspects of the economy including tourists' demand for locally produced foods, goods, and crafts.
International image promotion. Empowerment of women. In some countries, women comprise 67% of tourism's labor force.' Contact with Western women may stimulate emancipation of native women,' and tourism provides expanded employment opportunities for woinen.I3 World Tourism Organization data for 1984 show that tourism receipts were higher than those for the main export product for Barbados, Bermuda, Haiti, the Philippines, Singapore,Thailand, and India.I4 In the Bahamas, tourism is the most important industry, and it comprises 53% of the GDP" Studies in Malaysia and Singapore suggest that the tourism industry has a greater economic impact and fewer foreign exchange leakages (i.e.,repatriation of tourism revenue) than other modern industries.'* A 1972 study of tourism development in Mexico revealed that 42 jobs were created with an investment of $80,000 (U.S.) in tourism. This was 25 inore jobs than would have been created by the same investnient in the petroleum industry, and 26 more than in metal products."
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Case Study 1: Mexico
Mexico is often cited as an example of successful tourism development. In the 196Os, Mexico began investing heavily in tourism development in Acapulco. The Mexican government offered incentives for developers to build hotels and resorts, but it did not regulate growth in Acapulco. The result was a flurry of construction of elaborate, exclusive hotels which led to over-building, environmental degradation, and marginalization of native Acapulquenos. Thousands of poor Mexicans flooded Acapulco in the 1960s and 70s in search of work. The city was not capable of handling such a large number of people and The adjacent town just grew. The lean-tos dotting the hills are unserviced by sewers, potable water, electricity, schools or recreation facilities. Public health is poor. An open canal carries runoff to the bay, while the hotels plan and build their own services.'" After reaching its peak in the mid-1970s the level of tourism declined, and Mexico was left with a city full of problems, which taught it some valuable lessons. Cancun, Ixtapa, and Huatulco are products of these 1essons.These three resort towns were conceived, planned, and built under the watchful eyes of FONATUK (Fondo Nacional de Foment0 a1 Tourismo), Mexico's tourism development authority. FONATUR, aided by $50 million in international funds, developed the entire resort town of Cancun solely to accommodate tourists and make money for the government of Mexico. Infrastructure development in Cancun included building roads, airports, water and sewer systems, schools and public housing, and creation of a local municipality including a police system.'" Mexico's vigilance and sound planning have made tourism a successful industry and an important contributor to Mexico's GDP (2.5% of total)."
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Case Study 2: Jamaica
Jamaica, too, has struggled with the issue of tourism development since the 1950s. Michael Manley, Prime
Minister during much ofJamaica’s tourism development, was a progressive leader whose first concern was social and economic well-being for all Jamaicans. According to Manley, tourism should be planned to carefully and consciously include and involve natives at every step. He argues that development of hotels and resorts should be
accompanied by urban developnient and improvement: Hiding slums and shanty towns from the hotel windows of tourists will only lead to resentment and provoke confrontations.I7 Manley does not debate the benefits of tourism: In fact (Jamaica) cannot afford to do without tourism. No industry grows as quickly in today’s world, nor is as
capable of rapid local expansion. In addition, it is one of the most labour intensive industries left to the niodern world.
Finally, it has a highly satisfactory multiplier effect when planned intelligently.’7 During the 1970s the Jamaican government (guided by Manley) instituted “Jamaicanization” policies designed to attract much needed foreign capital and investment. These included comparatively high wages and special industry taxes that went directly into social development and well-being programs such as health care and education. The results of this planning are impressive. In 1946, Jamaica’s per capital expenditure for health care was J$6; by 1970 that figure had reached J$23 (measured
in constant 1974 prices).Ths rate increased an additional 30% by 1980. In 1977, Jamaica had 154 health facilities; by 1982 that number had risen to 394 facilities, and the number of physicians in Jamaica simultaneously rose to 588. This investment in health care seems to have benefited Jamaicans. In the mid-l940s, Jamaica’s life expectancy was 53 years; in 1979 it was 71. Decreases in infant mortality and the birth rate occurred in the same time period. Jamaica’s main health concerns are now similar to those commonly found in affluent nations (e.g., cancer, cardiovascular disease, etc.). In addition, between the 1960s and 1980s, per capita GNP in 1984 U.S. dollars increased by approximately $900 total, and the educational system was improved and expanded for both men and women.”
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