Michigan State University Extension
Tourism Educational Materials - 33500046
06/06/02
Tourism and Its Significance In Local Development
Source: Michigan State University
Author: Alexander, Phil
ID: E1937
Year: 1986
"The last thing our town needs is a bunch of tourists
invading our nice, quiet community. Those outsiders will
overcrowd our beaches, cause traffic congestion, litter our
parks and roadsides, destroy all wildlife, and keep us up
all hours of the night with their snowmobiles, motorcycles,
and speed boats.
Could this happen to your community, or can you prevent the
above scenario and at the same time take advantage of the
benefits that tourism can bring? To answer these questions,
perhaps you should explore the significance of tourism to
the development of your community.
Tourists are everywhere. All year long, people travel to
new places and engage in new activities, or return to
favorite areas for fun and relaxation. People are also
acquiring more income and leisure time, resulting in wider
interests and an increased desire to travel. They journey
to every part of our state, constantly looking for new
places to visit, new sights to see, and new things to do.
Every community can attract tourists, but some have more
potential than others due to famous attractions or
proximity to a well known event. As you explore your
community's tourism potential, compare it with the other
natural resource based industries that may attract
tourists, such as agriculture, forestry, mining, and oil
exploration.
Many factors need to be evaluated when community leaders
design their master plan for local development. These
factors include land use, transportation, education,
utilities, fire and police protection, government
regulations, labor, housing, and commercial and industrial
activity. Communities are continuously searching for ways
to raise their standard of living, and tourism development
is one way to help achieve that goal. Three main components
to consider when developing tourism opportunities include
the economic, social, and environmental impact. All three
interact with each other at the same time and should be
viewed as one big picture.
TOURISM AND YOUR COMMUNITY
BENEFITS TO THE COMMUNITY
Like any business or industry, tourism needs the moral and
financial support of the entire community. Although certain
businesses, such as motels, resorts, gift shops, retail
stores, attractions, service stations, and places of
entertainment receive the direct bulk of the tourist
dollars, other businesses benefit too.
The following chart illustrates the distribution of the
tourist dollar, called the multiplier effect. The money
filters through the local economy and much of it remains in
the community. This income can be thought of as fresh or
new money because it was brought in from outside sources.
Even if you are not in direct contact with tourists, your
customers who earn their living from the tourist trade are
filtering their money to you.
LOCAL TOURISTS OUTSIDE
GOODS $ $ $ GOODS
GAS, FOOD, LODGING, AMUSEMENT, RECREATION
WAGES, SALARIES, PROFITS, TAXES
Sports Department Crafts
Shop Gifts-Toys Store Gallery Bank
Bakery
THE COMMUNITY
Source:
Tourism USA, United States Department of Commerce, Vol. 1,
Appraising Tourism Potential The University of Missouri,
1978.
All levels of government benefit from tourist tax dollars.
Examples of taxes a tourist pays include sales, use,
gasoline, cigarette, liquor, and entertainment. As a
consumer, the tourist helps pay real estate, business, and
income taxes because these are paid by business firms from
customer revenues. This makes the tourist a major tax
contributor and, most often, not a major tax consumer.
Some people refer to parts of Michigan as elephant burial
grounds because the young leave and the old return to die.
Tourism related enterprises can help remedy this problem
with entry-level jobs for youth and part time or seasonal
jobs for a second family income.
Tourism helps a community become more attractive and
prosperous. It is more attractive because a community must
be appealing to draw and satisfy visitors, and it is more
prosperous because these visitors spend money. Visitors who
enjoy and appreciate a community are likely to spend money,
recommend it to friends, and come back again. That's the
formula for success: Get them TO STOP, TO STAY (as long as
possible), TO SPREAD THE WORD, and TO RETURN.
Visitors are also potential investors in a community. A
visitor who likes a community may choose to relocate a
business in it, purchase property in the community, or even
take up permanent residence. New blood and new investments
stimulate the economic growth of a community.
Tourism often makes services available to residents that
the community could not otherwise support. Activities that
local citizens can enjoy which are heavily subsidized by
tourist spending include ports facilities, theater, fine
dining, and increased shopping selections.
COST AND LIABILITIES OF TOURISM
In considering the costs of tourism to the community you
should identify all of the facilities provided and services
performed by public agencies for the community and consider
how they are affected by tourism. These may be divided into
several categories:
transportation access to the community
local public works, such as roads and streets
parking
informational signs
water supply
sewage and trash disposal
public restrooms
public safety, such as police and fire protection
public education
public health and welfare.
Operational costs occur once the tourism program of a
community grows to the size and stature that requires
formal administration. These costs include promotional
costs, commissions and association costs, survey costs for
feasibility and impact studies, fund raising costs, and
office costs for office space, supplies, and personnel.
The development and maintenance of a tourism industry puts
demands on public services and imposes costs on local
residents. These demands and costs are not without benefit
to local residents, but careful assessment of the costs and
benefits should occur before making development decisions.
CONCLUSION
We tend to think of tourists as special kinds of people,
often categorized or stereotyped. However, tourists are
ordinary people away from home. Remember that anytime you
are out of your community, YOU too are a tourist. We need
to think of tourist as guests and visitors.
As a tourist center becomes more popular, word spreads
quickly that it is an attractive, hospitable, and
satisfying place to visit. Communities which best prepare
for tourists will benefit most. Good advance planning will
maximize benefits while minimizing costs associated with a
community's tourism industry.
Tourism offers a wide range of opportunities for Michigan
communities. Through good planning, you can explore the
advantages and disadvantages, implement the things that are
right for your situation, and evaluate the impacts. Tourism
development may not solve all your problems, but it can
provide jobs, diversify the local economy, and improve the
quality of life.
Tourism development, when based on local culture,
environment, and heritage, will complement other local
attributes.
Each community can accept changes to a certain limit
without excessively altering the quality of life in the
community. These limits, which vary from community to
community, are determined by attitudes of local residents
and must not exceed the limits which adversely affect the
quality of community life.
The attitude of the community's residents is an important
feature of tourism development. A hostile or indifferent
community does not attract visitors. Tourists want to be
treated well during their stay. Members of a community may
try to resist any local developments, or may only see the
negative, rather than the positive side of tourism. You
must make certain that community residents are well
informed as to the economic, social, and environmental
enrichment benefits of tourism before you begin
development. Residents should have the opportunity to make
rational decisions to support such community development.
Further discussion on tourism planning, development, and
assistance is covered in other bulletins in this tourism
series.
Sources of Information
Blank, Uel, Larry Simpson and Dayton Larsen So Your
Community Wants Tourism?, University of
Minnesota-Agricultural Extension Services, Bulletin No.
379, 1978.
Epperson, Arlen Tourism Promotion, University of Missouri
Columbia Extension Division, Bulletin No. RG0505, 1976.
McIntosh, Robert Tourism and Your Community, Michigan State
University Cooperative Extension Service, Bulletin No. E-
729.
Saunders, Walter L., Jr., Develop Community Interest,
Virginia Polytechnic Institute and State University
Extension Division, Bulletin No. 605, 1974.
United States Department of Commerce, United States Travel
Service, Tourism USA, Volume 1, Appraising Tourism
Potential, University of Missouri, 1978.
Tourism Information Series
The Tourism Information Series is for those interested in
tourism development. To obtain the series, contact your
county Extension office. Look in the white pages under
County Government.
1. E-1937, Tourism and Its Significance in Local
Development
2. E-2004, Tourism Planning
3. E-1958, Developing A Tourism Organization
4. E-1959, Tourism Marketing
5. E-1992, Feasibility Analysis in Tourism
6. E-1939, Developing A Promotional Strategy
7. E-1957, Creating A Promotional Theme
8. E-1940, Information and Traveller Decision Making
9. E-1938, Managing Tourism Information Systems
10. E-2005, Selecting Promotional Media
11. E-1999, Pricing Tourism Products and Services
12. E-1960, Direct Marketing of Agricultural Products to
Tourists
Series editor: Maureen H. McDonough, Associate Professor,
Department of Park and Recreation Resources.
Produced in Cooperation with the Michigan Travel, Tourism
and Recreation Resource Center
Michigan State University
MSU is an Affirmative Action/Equal Opportunity Employer.
Cooperative Extension Service programs are open to all
without regard to race, color, national origin, sex, or
handicap.
Issued in furtherance of Cooperative Extension work in
agriculture and home economics, acts of May 8, and June 30,
1914, in cooperation with the U.S. Department of
Agriculture, W.J. Moline, Director, Cooperative Extension
Service, Michigan State University, E. Lansing, MI 48824.
This information is for educational purposes only.
Reference to commercial products or trade names does not
imply endorsement by the Cooperative Extension Service or
bias against those not mentioned. This bulletin becomes
public property upon publication and may be reprinted
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This information is for educational purposes only. References
to commercial products or trade names does not imply
endorsement by MSU Extension or bias against those not
mentioned. This information becomes public property upon
publication and may be printed verbatim with credit to MSU
Extension. Reprinting cannot be used to endorse or advertise
a commercial product or company.
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