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Global Interdependence
Wednesday, August 5, 2015

3:30 PM

Trade flows and trading patterns :
Trade refers to the exchange of goods and services for money
...
Trade results from uneven distribution of resources over the earth's surface
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Goods purchases from other countries are called imports
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The difference between the value of imports and export is known as the balance of trade
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A country can make up this difference by using its saving or by borrowing
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Visible trade involves items that have a physical existence and can actually be seen
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Invisible trade is trade in services, which include travel and tourism, and business and financial services
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Resource Endowment means a country is rich in some form of resource - the OPEC countries are rich in oil
...
It was founded in 1960 after a US Law imposed
quotas on Persian Gulf oil in favor of Canadian and Mexican oil industries
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OPEC countries in 2007 had 78% of the world crude oil reserves
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Countries endowed with other raw materials such as food products, timber and minerals and fish also figure prominently in the world
trade stats
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Comparative advantage
This concept states that the different countries will specialize in producing those goods and services for which each is best endowed
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It applies to raw materials as well as manufactured goods and services
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This
results in specialization in production and employment
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Locational advantage
The location of the market demand influence on trade patterns
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For example, the tourist industry
in France benefits from the large population of neighboring countries so the customers can reach quickly and cheaply
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Some countries and cities are strategically located along trade routes
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Investment
Investment is the key to increasing its trade
...
These counties have attracted bulk of
foreign investment
...
Other
countries have be losing money s their trade has fallen compared to nations income
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For example UK still maintains
significant trading links with Common Wealth countries because of the trading relationships established at the time these countries
were colonies
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The
historic legacy of trade dependency has led to poorer tropical countries having a limited share of world trade
...
So
countries will trade these with other nations to get what they need
...
Below are the projects in each sector that
have taken place:
Type

Projects

Business service

1053

Wholesale and retail

693

Import and export

539

Construction, transportation, storage and postal services

392

Mineral products

319

Base metals and articles of base metal

148
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Base metals and articles of base metal

148

Articles of stone, plaster, cement, etc
...
76
Textiles and textile articles

75

Vegetable products

72

Chinese firms have also made major investments in African infrastructure, targeting key sectors such as telecommunications,
transport, construction, power plants, waste disposal and port refurbishment
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China has invested almost $20 billion in African continents
in order to improve infrastructure
...
Chinese oil companies are
gaining the invaluable experience of working in African nations which will prepare them for larger projects on the far more competitive
world market
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One of the reasons china has
invested in Africa is for it oil which is found in the north of the continent
...
It
largest supply of oil is from Angola, Nigeria and Congo
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As china imports items it needs, it also exports a lot of materials in order for development in Africa
...

Sino-African trade reached $126
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China has also offered resource-backed development loans to oil and mineral-rich nations like Angola, and developed special trade and
economic cooperation zones in several states, including Nigeria, Ethiopia, and Zambia
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" China has said they will invest about $1 trillion by 2020 for development in Africa
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Most of the investment has gone into energy, mining, construction and
manufacturing
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The China National Petroleum Corporation,
for example, invested up to $6 billion in Sudan’s oil sector
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Privately-owned Huawei and publicly-traded ZTE have become the principal
telecommunications providers in a number of African countries
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Increasingly, Chinese companies are moving into finance, aviation,
agriculture and even tourism
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5 billion
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Case Study India

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Changes in global markets
The rapid growth of newly industrialized countries has bought major changes in the economic strength of countries
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2% per year
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This has had huge global economic consequence with emerging countries exerting more pressure than they had before
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The G7 countries now only hold 17% of the global total
between them
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While, the BRIC holds 42% with CHINA alone holding 30%
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Much of the West has come from reserves of the emerging markets
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Trade agreements
A trade bloc is a group of countries that share trade agreements between each other
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Free trade: Members abolish tariffs and quotas on trade between themselves but maintain independent restrictions on imports from
non-member countries
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Customs unions: This is a closer form of economic integration
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Besides free trades between member countries, all members are
obligated to operate a common tariffs on imports from non-member countries
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Common Markets: These are customs unions which in addition to free trade of goods in goods and services, also allows the free
movement of labour and capital
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The EU in as great example of this
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Case study

Trade between regional bloc now account for 67% of world trade - and it is increasing in number
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It allows free movement of goods, capital and
people across the member states
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Each country under the
this union is independent but they agree to trade under the agreements made by the nation
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Trade negotiations
Free Trade Agreements are designed to create opportunities by:
•
•
•
•
•

Opening new markets for goods and services
Increasing investment opportunities
Making trade cheaper - by eliminating substantially all customs duties
Making trade faster - by facilitating goods' transit through customs and setting common rules on technical and sanitary standards
Making the policy environment more predictable - by taking joint commitments on areas that affect trade such as intellectual property
rights, competition rules and the framework for public purchasing decisions

Exports of goods and services also made up about 52 percent of its GDP
...
2 percent delivered to member
states of the EU
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5 percent of total exports)
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9
percent of German exports went to the US in 2012 and 6
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Most of the goods imported to Germany originated from the Netherlands
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6 billion euro from the
Netherlands (9
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Germany's Import and Export Indicators and Statistics at a Glance (2012)
Total value of exports: $1
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2 percent of total exports), US (7
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1 percent), Switzerland (4
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3 percent)
Total value of imports: $1
...
8 percent), China (8
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5 percent), Switzerland (4
...
3

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Primary imports partners: European Union (54
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9 percent), US (5
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2 percent), Russia (3
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The EU can trace its origins from the European Coal and Steel Community (ECSC) and the European Economic Community (EEC),
formed in 1951 and 1958 respectively by the Inner Six countries of Belgium, France, West Germany, Italy, Luxembourg and the
Netherlands
...
The organisation
was a forerunner of several other European Communities and what is now the European Union
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Who?
There are 28 countries within the European Union:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Austria
Belgium
Bulgaria
Croatia
Republic of Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
United Kingdom

Trade bloc are sometimes not good because of Greece; euro is devaluing
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Barriers and protectionism

World Trade Organization (WTO)
In 1947 a group of 23 nations agreed to reduce tariffs on each other's export under the General Agreement on Tariffs and Trade
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Since then there have been several trade agreements
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Every nation has equal vote in WTO
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In the recent years agreements have become more and more
difficult to reach, with some economists forecasting the stagnation of the WTO
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Leading agriculture exporters like USA, Australia want a considerable reduction in barriers to trade for
agriculture products
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Many LEDC's have
critised the WTO to be heavily influenced by the USA and EU
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Lower prices for consumers
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Free trade encourages greater competitiveness
...
For example, a domestic monopoly may now
face competition from foreign firms
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Law of comparative advantage states that free trade will enable an increase in economic welfare
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4
...
By encouraging free trade, firms can specialise and produce a higher quantity
...

5
...


Disadvantages of WTO
• However, the WTO has often been criticised for ignoring the plight of the developing world
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• Free trade may prevent developing economies develop their infant industries
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Case Study Banana Wars

The banana
wars expl
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Outline the role of the World Trade Organization (WTO) and, with the help of one or more examples, evaluate
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Outline the role of the World Trade Organization (WTO) and, with the help of one or more examples, evaluate
its work
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There have been both benefits and drawbacks of the World Trade Organisation
...

One of the benefits of the WTO is promoting peace between counties which is one of the most important principal of trading
...
Furthermore,
the resolution of the banana wars is another example of how the WTO has maintained peace between countries and stimulated trade
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The WTO however solved this dispute by
asking EU to reduce tariffs on US imported bananas as a result is an example of how the WTO has been successful in maintaining peace
between countries
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For example without the work of the WTO clothing prices would be 58% higher in the US due to the tariffs and import
restrictions imposed
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It can also be argued that the work of the WTO is responsible for economic growth in countries
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In 1975 60% of the people in Asia used to live in poverty however
economic growth now has decreased unemployment rates to as low as 7% and only 20% of the people in Asia now live in poverty as a
result of economic growth
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The WTO has also cut $1 trillion worth of tariffs on IT related
products; this alone has created almost 60,000 jobs in the US
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One of the greatest drawbacks of the WTO is that it values profits of companies rather than the protection of consumers
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The WTO has protected pharmaceutical companies right to profit against governments seeking to protect
their people's health by providing lifesaving medicines in countries in areas like sub-saharan Africa, where thousands die every day
from HIV/AIDS
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It is assumed that 20 % of
the deaths is due to either counterfeit medicine or those that are not created to industry standards
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The very first WTO panel ruled that a provision of the US Clean Air Act, requiring both domestic and foreign producers alike to produce
cleaner gasoline, was illegal
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In addition, the WTO is also attempting to deregulate
industries including logging, fishing, water utilities, and energy distribution, which will lead to further exploitation of these natural
resources
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The WTO has also bought some drawbacks in world trade
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Imports were estimated to me 4x to 5x the normal
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This led to
decreased prices of local goods and as a result led to farmers earning less profits having an impact on India's agriculture economy
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From encouraging trade to maintaining peace between
countries the WTO plays a vital role in the global economy
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Thus, the benefits of the WTO outweigh its
drawbacks
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Fairtrade is an organisation established in 1992 which guarantees a better deal for farmers and workers in developing countries
so that they can enjoy a better standard of living
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One of the economic benefit of the fairtrade is that it ensures fair prices for the primary goods sold by the farmers
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Therefore, farmers who sell their cocoa through fairtrade receive $1600/tonne, this means that the farmers receive $200/
tonne they sell, which is a much fairer price for the cocoa's sold
...
Thus, fairtrad e
has had an economic benefits for the farmers and worker in LEDC's
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For example, in the Ivory Coast new wells with motors have
been constructed by the organisation this has ensured that clean water is accessible to all and this in turn has prevented
diseases like malaria and cholera
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This means that the people can be treated in
time if they have any injures or if they have any diseases
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Furthermore, the life-expectency has increased from 49 to 50
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There are also social benefits of fairtrade in the field of education
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This has led to
increase literacy rate in Ivory coast from 30% in 2000 to 48
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In assessment folder
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A country's international finances are healthier when this ratio is low
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Debt relief: is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals
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Imports: Good and services being purchased from overseas and brought into a country
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Balance of Trade: The difference in the monetary value of exports and imports over a specified period (normally a year or a quarter)
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This includes goods like the

balance of trade but also services and transfers of financial capital
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Trade Surplus (in the black): When the value of your exports is greater than the value of your imports
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This might be done with tariffs, quotas or

subsidies
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This might be done by keeping

interest rates low so people don't want to invest in it or flooding the market with the currency (increasing supply)
International Monetary Fund (IMF)
The IMF like the World Bank was created at Bretton
Woods in 1944
...
Member countries all
contribute to a pool of money which member countries
can then borrow on a temporary basis to overcome
budget deficits/imbalances
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World Bank
The World Bank was established in Bretton Woods in 1944 and has its
headquarters in Washington DC
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It has two main institutions, the International Bank for
Reconstruction and Development and the International Development
Association
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In its early days the bank did not lend much money, but
then in the late 1960's and 1970's it started lending more money to
developing countries in order to fund schools, hospitals, infrastructure
projects, etc
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The IMF has taken a leading role during the current global
economic crisis
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Even though the IMF is
From the 1990's onwards the World Bank is now more interested in helping
currently taking a leading role in the economic crisis, it
countries achieve the UN's Millennium Development Goals
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Criticisms include:
growth
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The World Bank has had a number of criticisms including:
• SAPs imposed on borrowing countries were often
• Its imposition of policies on developing countries (particularly the damaging
damaging, forcing countries to sell state assets and to cut
SAPs)

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•

• Its imposition of policies on developing countries (particularly the damaging

damaging, forcing countries to sell state assets and to cut
funding to education and health
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Greece has had to follow very strict
austerity measures to get help from the IMF and EU
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• The head of the IMF always comes from Europe
• That it often has reactionary policies rather than
preventative ones
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• Some development projects were environmentally damaging e
...
dams
causing deforestation

• Some projects involved expensive technology which countries could not
fund themselves
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HIPC initiatives
Decision Point - This is when a county is considered eligible for HIPC Initiative assistance
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Example: Liberia, ivory Coast
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Examples: Somalia, Sudan
HIPC Case Study Initiatives:

HIPC Fact
File

Colombia-f
actfile
HIPC

The Heavily Indebted Poor Countries (HIPC) are poor countries with high levels of debt and poverty
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The HIPC programme was initiated by the IMF
and World Bank in 1996 after extensive campaigning from NGOs
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The majority of the debt relief is coming from the IMF and World Bank
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As you have read above, Nicaragua had unsustainable debt and therefore became eligible to HIPC status
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5 billion reducing its debt burden as a percentage of export earnings to below 150% and its annual debt service
to below 9% of government expenditure
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Aid can take many different forms ranging from giving money and loans to providing technology and

expertise to providing food and rescue teams
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Emergency aid may include food,

water, tents, clothing or even rescue teams to look for victims of natural disasters
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This might be money given to build a new road or port to improve

infrastructure or money given to build a new hospital or school to benefit the people of a country
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Untied aid: Aid that is given to a country with no policy or spending requirements attached
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Multilateral aid may be collected by an NGO or a UN

organisation e
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UNHCR or WFP
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NGOs: Non-governmental organisations have no connections with national governments
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Human Geography Page 13

World Bank: Formed at Bretton Woods in 1944 the World Bank is charged with helping developing nations
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SAPs: Structural Adjustment Programmes were implemented by the IMF
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SAPs aimed to cut social expenditure, liberalise trade, privatise assets and reduce corruption
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Aid
Official Development Assistance (ODA): This is the term
that the Development Assistance Committee (DAC) of the
OECD has given to official aid
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However, as a
percentage of GNI it is not even in the top 20 donors
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7% of their
GNI as aid
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According to the OECD the current top recipient of ODA is
Afghanistan followed by Indonesia
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Japan is currently
China's biggest donor followed by the UK, France and
Germany
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However, many countries in the current economic
crisis area asking if China need this much money and are
reducing the amount of aid that they give, especially at a
time that China is giving aid itself to so many countries in
Africa and Latin America
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• Aid can help build expensive infrastructure products that wouldn't normally be built e
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new roads, ports, irrigation
projects or HEP stations
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• Many aid agencies employ local workers to carry out projects
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This is especially true of bottom-up aid where locals are fully involved and make all key decisions
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These schemes are not creating dependency,
because they are not necessarily giving money, but do improve the well-being of societies
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• Aid money does not always reach the most needy and instead is taken by corrupt officials
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Kleptocratic (corrupt) governments may also take money for themselves and not give it to the people that need it
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Also many of the
contracts might go to companies from donor countries, so the receiving country is not receiving the full benefit in
terms of jobs, training and income
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• Food aid or worse food dumping, can force local food production to collapse
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This undercuts the local food market and takes local farmers out of business
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However, the UK has protected its development budget in the current economic downturn
• Aid might fund inappropriate and/or harmful technologies that can not be sustained after aid has been removed
e
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Nuclear power
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• Aid sometimes takes the forms of loans which can lead to high levels of debt
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Human Geography Page 14

Water aid: Case study
Case Study: Water aid project in Mali
Mali is a country in the west of Africa
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65% of land is semi or fully deserted and only 50% have
access to clean water
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Wateraid set up a project in Mali in 2000 and now works with
seven partner organisations providing clean water, sanitation and hygiene education to 5 out of Mali's eight region
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Wateraid, using appropriate technology, finances the areas water network and installed communal
tap stands
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The project is also good as people are taught how to maintain and raise finance to fund the project so
they aren't reliant on water aid
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This has meant that more people have clean water and can go to work and no longer need to pay for medicine and
search for water
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Also the deaths from
diseases in the area has fallen by 65% so the project is quite sustainable
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• Usually large scale policies or schemes
• Usually carried out by governments or international organisations
• Work is often carried out by outside contractors
• Schemes usually have plenty of funding
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Bottom-up Development: Development that is run by local
communities for the benefit of the community
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The
schemes are usually led by the local people themselves

• Projects are often labour intensive and for the benefit of the
local community e
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• Funds are very limited
• Teach local people new skills
• Schemes are appropriate and sustainable long-term
...
However, top-down aid is still very
important to respond to natural disasters and conflicts where local organisations and communities don't have the technology,
equipment or money to help
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They have suffered
from drought which has led to significant
and widespread famine
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Women are repressed and this helps to
perpetuate the problems
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The UK government gave £3
million to help
Development aid: Mainly from NGOs such
as Oxfam

For children: the life expectancy of children increased and infant mortality
started to decrease
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This meant that they could go to school and develop new skills
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The children can get jobs and therefore are less dependent on the government
for support in later life and can earn ta receipts for the government
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For pastoral farmers: they got new tools and learnt new techniques to help
them farm in sub-Saharan Africa
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For women: women are not trapped at home and so can learn new skills to
help them get jobs
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The nature of the aid

Emergency aid:
Food aid for 600,000 for one month
Water purification tablets
Therapeutic food for 17,000 severely
malnourished children
245 cereal banks opened - give families
cereals to help them survive
...


Development Aid ( case study)
• EU development aid goes to around 150 countries in the world, ranging from Afghanistan to Zimbabwe
...

• Starting in 2014, the EU is therefore phasing out direct aid to large countries such as India and other countries like
Malaysia or many Latin American countries
...
Instead, we are increasingly focusing on
the poorest places in the world
...

Moreover, the EU is the only donor worldwide which gives support in all countries that are fragile or suffer from
conflict
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8 billion for development aid in the next 7 years alone
...

• China has also given $200 million to Africa as a development aid
...
These include UN development and humanitarian organisations, Multilateral Deve lopment
Banks (MDBs) such as the World Bank and Asian Development Bank (ADB), and Commonwealth organisations
...
Such programmes specifically fund emergency relief projects, refugee a ssistance, largescale construction of railways, roads, and other development projects, as well as scientific research of disease and global w arming issues
...
2 million over ten years to the World Bank's lending arm, the International Development
Association and, in 2005-2006, provide $14
...

Conditional aid
Tied aid is foreign aid that must be spent in the country providing the aid (the donor country) or in a group of selected countries
...

The much-trumpeted $5bn China-Africa Development Fund, portrayed by Beijing as economic assistance, will be used to invest
exclusively in Chinese enterprises and their projects in the continent
...

China will provide about $20bn in infrastructure and trade financing to Africa over the next three years
...

International tourist arrival: Number of tourists who travel to a country other than that in which they have their usual residence
...


Economic

Social

Political

Steadily rising real incomes - tourism grown on average 1
...


An increase in the average number of
days of paid leave
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The decreasing real costs of holidays
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Government backing for major international events
such as Olympic games and the World Cup
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(Drawback)
holidays, travel and nature
...


High levels of international migration
over the last decade or so means that
more people have relatives and friends
living abroad
...

(Drawback)

'Air-mile' and other retail reward schemes aimed at travel
and tourism

More people are avoiding certain
destinations for ethical reasons
...
(Drawback)

'Globalization' (world shrinking in terms of distance) has
increased business travel considerably
...


The heavy marketing of shorter foreign holidays aimed at
those who have the time and disposable income to take an
additional break

Case Study

Tourism is a rapidly growing industry and has far-reaching economic and environmental impact
across the world
...
This is
worth $919 billion dollars, making tourism one of the world's largest industries
...


More affluence - since 1950 people have become more wealthy
...
People
also now have paid time off work for holidays
...


Human Geography Page 17

More car ownership - more families own a car
...


Improvements in technology - travelling today is much quicker
...
Travelling by air has become more accessible as you can
book on line and choose more budget options
...
Also
people who are retired remain active for longer
...

More choice - in the past seaside holidays and package holidays were the most popular
...


TOURISM IS NOW TANZANIA'S LEADING ECONOMIC SECTOR

Earning $1 billion (USD), Tourism Overtakes Agriculture
Growing at a steady rate for the past seven years, Tanzania's tourism is booming
...
Benno Ndulu, Tourism, earning $1 billion USD, now contributes nearly triple the GDP of
Agriculture, which has been the leading contributor to the East African country's coffers for most of its history
...
Shamsa S
...
We attribute this growth to several factors, not the least of which is that Tanzania has a
stable and peaceful environment with a democratically elected government
...
Kilimanjaro, the Selous Game Reserve, and of course
Zanzibar, comprising of the islands of Unguja and Pemba, are well known abroad and need little explanation, this
more distant location has always been a specialty destination for tourists
...
Tanzania has improved its advertising technique by
forming ties with large school organizations such as ‘Nord Anglia Education Schools’ – providing discounts – and
hiring more qualified marketing agents to advertise Tanzania as the ‘The land of Kilimanjaro’
...

There are various reasons, other the ones mentioned previously, that result in Dubai continuing its growth as a
tourism hotspot
...
The ‘Beyond Oil’ Effect
The UAE’s diversification into aviation, tourism, trade, financial services and other industries is a direct response to
that in the era of Peak Oil—the point where we’ve run out of cheap hydrocarbon resource supply
...
Spurring
private development, a 10% municipality fee has been waived for new hotels opening before June 2017
...
“According to the IMD World
Competitive Centre Index, the UAE was ranked as the 26th most diversified economy in the world in 2012, ahead of
many developed countries
...
The Information Effect
Online booking and digital travel content are two areas where the GCC is lagging among global top-tier travel
destinations
...


Presently, airlines dominate 75% of the present $6 billion worth of annual online travel spending in the GCC
...
Currently the viral #MyDubai account on Instagram, has 79,000 followers
...
On the photo-sharing platform, #JumeirahGroup and #VisitAbuDhabi are in the
8,000 follower range; #Dubai has 423,000 followers
...
Its capital city is San Salvador
...
El Salvador has a long pacific coast, ideal for surfing
...

El Salvador's tourism industry has grown dynamically over recent years as the Salvadoran government focuses on developing thi s
sector
...
6% of GDP; only 10 years ago, it accounted for 0
...
In this same year tourism grew 4
...
Comparatively, El Salvador saw an increase of 8
...
15 million to 1
...
This has led to r evenue from
tourism growing 35
...
As a reference point, in 1996 tourism revenue was $44
...
Als o, there
has been an even greater increase in the number of excursionists (visits that do not include an overnight stay)
...


PHYSICAL ATTRACTIONS
 Lago de Ilopango
 Lago de Coatepeque
 El Impossible National Park
 Volcanoes (Santa Ana, San Miguel, Izalco, San Vicente, etc
...
g
...
Variation in tourism over time - the 'external shock'
...


Tourist Industry is affected by:
Natural Disasters: Earthquake : Haiti, Volcano: Monserrat, floods and other natural events which can have a major impact on t ourism
...

Terrorism
Exchange rate Fluctuation
Political uncertainties : Afghanistan and Middle East for ISIS
Increasing Competition
Global Warming
Carrying Capacity: It is the maximum number of tourists can be supported at once given the amount of the resources is available
...


The impact of tourism
Social and cultural impacts
Many communities in LEDC's have suffered considerably adverse cultural changes, some of them through the imposition of Western
values
...

The abandonment of traditional values and practices
...

Abuse of human rights by government and companies to make maximum profits
...

Visitor congestion at key locations, hindering the movement of local people
...


Human Geography Page 20

There are varying levels on irritation as correctly shown by Doxey's irritation index:

Economic and social impact of Tourism:
The World Travel and Tourism Council has developed the TTSA
...
It is known that
industries have a much larger impact
...
The TTSA contributes contributes 3
...
4% of the world's GDP
...
1 million people directly while 231
...
6% of the total worldwide employment
...

The 'direct effect' is the ones which are directly caused by tourism this includes accommodation, entertainment, transportation
...
This includes manufacturing, food etc
...
With cheap package holidays, by far the greatest part of the
money paid stays in the country where holiday was purchased
...
However, most local jobs are created
are menial, low-paid and seasonal
...

• Money borrowed to invest in the necessary infrastructure increases national debt
...

• Locations can be overly dependent on tourism
...

However there are economic benefits of Tourism:
• Multiplier effect is one of the greatest benefits of Tourism
...

• By providing employment in rural areas can help to reduce rural to urban migration
...

• It can create opening for small businesses in which start-ups costs and barriers to entry are generally low
...


Human Geography Page 22

Environmental Impact

Carrying Capacity
Physical - Impact on the physical environment

Economic - number of tourists before adverse economic impact
Ecological - impacts on flora/fauna

Perceptual - attitudes of local people (index of irritation)
Carrying Capacity

The idea of carrying capacity does come in for some criticism
...
For example 10 cyclists, cycling and camping in a forested area are going to have a very different impact
compared to 10 hunters travelling through a forest in 4 x 4 vehicles
...
Despite its criticisms it can be useful for
explaining the possible impacts from tourism
...
This is made more complicated by the fact that because it deals with ecology which is able to regenerate to
some extent so in this case the carrying capacity is when the damage exceeds the habitats ability to regenerate
...
It is the extent to which a

tourist destination is able to accommodate tourist functions without the loss of local activates e
...
a souvenir store taking the place of
a shop selling essential items to the local community
...

Perceptual or Social: This relates to the negative socio-cultural affects related to tourism development
...

Physical: This is the maximum number of people that an area is actually able to support/hold
...
For a tourist
destination this might mean also mean the total number of rooms available or incoming flights e
...
Easter Island only has five flights a
week and there is no other way of getting there
...

Sustainable tourism: Sustainable tourism is tourism attempting to make a low impact on the environment and local culture, while

helping to generate future employment for local people
...
The aim of sustainable tourism is to ensure that development brings a
positive experience for local people, tourism companies and the tourists themselves
...

Carrying capacity: The maximum number of people that may visit a tourist destination at the same time, without causing destruction

of the physical, economic, socio-cultural environment and an unacceptable decrease in the quality of visitors' satisfaction
...
Environmental carrying capacity is t he
maximum number of visitors before environmental harm is done
...

Many people think that ecotourism or sustainable tourism is not possible
...
Deforestation will have taken place to build many hotels and resorts and the hote ls and resorts
will create areas of private land that will disturb local flora and fauna
...
They may demand products that are not found locally and could introdu ce new
diseases or alien species
...
This is when people go on holiday
so that they can show off to the friends when they get home of what a fantastic time they had and tell them what a remote loc ation they
visited, while also caring for the environment
...
You will learn
more about sustainable tourism at the end of this unit but some of the main similarities and differences include
...
With can be on a much larger scale
• Sustainable tourism also focuses on the economic needs of areas
ecotourism this might include indigenous groups
...


sustainable tourism can be to any location e
...
cities or beaches

• Both aim to educate tourists about responsible travel
• Both hope to be sustainable over the long-term
...

• Ecotourism is a type of tourism that is included under the umbrella of
sustainable tourism

ENVIRONMENTAL SUSTAINABILITY

• Use renewable energy sources to power
tourist facilities

ECONOMIC SUSTAINABILITY

• Employ local workers and provide them

SOCIAL/CULTURAL SUSTAINABILITY

• Ensure that all tourist facilities are able to

be accessed by locals and that they are
affordable
...
g
...

• Promote local food, dance, music,
walking and kayaking
• Reinvest all tourist company profits in the costumes, language, etc
...

habitat when building tourist facilities
• Preserve historical and archeological sites
• Recycle all waste (plastic, paper, glass, metal) • Use local guides and companies
(ruins, churches, castles, etc
...
g
...

• Educate about importance of biodiversity,
• energy reduction, conservation, etc
...


• Only buy local products so to support

Ecotourism Case Study - Costa Rica - Monteverde Cloud Forest

Costa Rica, located in Central America, often advertises itself as an ecotourism location
...
The government has actively promoted
ecotourism to create jobs and income in a country which has seen a decline the primary sector
...
One of these areas in the Monteverde cloud forest
...
It has extremely diverse flora and fauna (over 100 species of mammals, 2,500
plant species over 400 bird species and over 120 reptile and amphibian species)
...
Tourist developments included the local population who had an interest
in the maintenance of the forest
...
In
1974 the area only received 471 visitors but by the 1990's tourism was averaging about 50,000 a year
...
To this day the only access is by dirt road (30km of bumpy track only really
accessible by 4x4s)
...
g
...

The Monteverde reserve employs over 50 staff
The reserve actually budgets to train and educate locals and tourists about ecotourism and protection of the reserve
Access to the cloud forest is strictly controlled
...

• Locals arts and crafts have been rejuvenated
• An increase in the quantity and variety ecotourist activities e
...
canopy walks
• Local population and private sector value the cloud forest as its creates income
...


As with most things that have been a few problems:
•
•
•
•
•
•
•
•

Land prices have increased
People have migrated into the area looking for jobs placing pressure on the local infrastructure
Atmosphere has changed away from local Quaker community to a tourist centre
Tourists are demanding more and more facilities and greater luxury
...

40% of Monteverde's amphibians have become extinct (including the Golden Toad)
...

Many areas close to the trails have less wildlife, showing that humans do disturb and have an impact on them
Some activities don't necessarily appear sustainable e
...
monorails through the canopy and zip lines
...
In addition the large amounts of 4x4s cre ate a lot of dust
which can disturb plant and animal life
...
9 million stopover tourists in 2011) People
visit for the beaches such as Montego Bay, deep sea fishing at Port Antonio, caves at Cockpit County, golf
courses such as next to Kingston Town and water sports in Montego Bay
...
You can see the huge rise in tourist numbers over the past decade on the graph opposite
...
This does have a downside
however, as Jamaica is dependent upon this income and if tourist numbers fall the economy would be affected
...
People work in a wide range of jobs, from the
construction of hotels and tourist facilities, to service work cleaning, working in bars, caddying on golf courses
amongst other jobs
...
(Economic)
NEGATIVES
Many of the jobs created are seasonal, so people can become unemployed
...
(Economic)
Local employees are paid low wages, whereas managers from other countries tend to earn more
...
(Socio
Economic)

Land for the massive hotels takes away land from famers
...
(Social)
Local people cannot afford the facilities put in place for the tourists
...
There are also
ecotourist lodges along the coastline
...
Great Huts Resort near Boston Beach has some of these features and also offers
educational tours of its local area
...


Tourism Management Case Study: Negril, Jamaica (More notes in textbook)
Where is Negril?
Negril is a small but widely dispersed beach resort town located across parts of two Jamaica parishes,
Westmoreland and Hanover
...
When the road
between Montego Bay and Negril was improved in the early 1970s, it helped to increase Negril’s status as a new
resort location
...
The long paved road from the village ran north to
Green Island, home to many of the Jamaican workers in Negril, and was straight enough to double as a runway
fro small airplanes, which was why there were lengths of railroad track standing on end along the side of the
road
...
Europeans also came to Negril, and several hotels were built to cater directly to those guests
...
Natural Resource Management
 Current managers of the Orange Bay Fish Sanctuary via an MOU with Ministry of Agriculture
...
Research
 Securing, installing and monitoring hydrological and climate data equipment to generate site level data
necessary for addressing wetland degradation issues
 Rapid assessment of wetland hydrology and development of a wetland management strategy for the Negril Great
Morass
 Coastal water quality monitoring in response to pollution issues
3
...
Sustainable Community Development
 Institutional development assistance for Green Island Fishers
 Small scale coastal ecosystem restoration in Little Bay – in development
 Empowering one community to address issues and reduce stress on wetland via mentoring
 Working with local farmers to identify opportunities to secure and improve their livelihood

5
...
Finical Independent and Sustainability
 Developing program and project and actively applying for grants to fund implementation and long term
Human Geography Page 31

 Developing program and project and actively applying for grants to fund implementation and long term

sustainability
Visit here; http://www
...
com/index
...
It should encourage people to value and respect their cultural
heritage
 Where possible, tour operators should keep groups small to minimize cultural and environmental impacts
 Tour guides should brief tourists on what to expect and on appropriate behavior before arriving in a community
 Local people should have the right to say no to tourism






Challenges ahead
People have a negative image of Jamaica because of its level of violent crime and harassment, and despite the
recent initiatives of the Jamaican government to protect the environmental much valuable biodiversity has
already been lost

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