Module Description:

The module equips learners with a basic grasp of concepts in economics as they relate to the tourism industry. It examines the place of tourism in the national and international economy outlining the basic economics of supply and demand, the market structure and the extent to which tourism generates revenue for the destinations. Learners shall be equipped with the ability to analyse the trends in tourism, evaluate the effectiveness of tourism policies and measure the economic sustainability of the tourism development. The course is a mixture of concepts and a myriad of diverse case studies which sharpen the learners’ ability to make sound economic decisions in connection with tourism. Students are able to evaluate the role and impact of tourism in the economy after undergoing training in the module (125 Hours).

Learning Outcomes:

Competences:

At the end of the module/unit the learner will have acquired the responsibility and autonomy to: 

  • Consider how economic theories and concepts apply to the tourism sector.
  • Consider the effect of tourism on the economy of a region, country, and the world.
  • Use economic reasoning when planning policies regarding tourism.
  • Explain the relevance of economic data concerning tourism to the strategies formulated and adopted.
  • Ensure economic development and tourism diversification align with the concepts of sustainability.
  • Examine the types of markets existing in tourism and their pricing policies.
  • Formulate logical and fact-based conclusions regarding the impact of tourism on the development of economies.

Knowledge:

At the end of the module the learner will have been exposed to the following: 

  • Explain the basic economic concepts of tourism including elasticity as well as equilibrium.
  • Understand the impact of tourism on the macroeconomic indicators such as GDP, structural unemployment, inflation, etc.
  • Understand the main drivers and barriers to tourism as well as how demand and price interact.
  • Know the tourism economics policies and the applicable regulatory frameworks.
  • Assess the impact of tourism on various regions and local economies and communities.
  • Assess the role of tourism in the economic development and sustained development.
  • Understand the relationships of tourism with other sectors such as transport and hospitality.
  • Understand the methods and models for tourism economic impact assessment and forecasting.

Skills:

At the end of the module the learner will have acquired the following skills: 

  • Apply theoretical frameworks to examine practical examples in tourism.
  • Analyse economic data to study the impacts of tourism on the world economy.
  • Conduct cost-benefit and economic impact analysis for tourism development projects.
  • Use tourism trend and pattern forecasting to construct suitable economic hypotheses.
  • Formulate tourism policies and strategic management plans based on thorough research analysis.
  • Convey intricate economic concepts in diagrammatic and written forms to different audiences.
  • Engage in problem-based collaborative research with peers in online environments in the field of tourism economics.
  • Formulate solutions to economic issues through empirical and non-empirical research approaches.

Core Topics and Subtopics :

Introduction to Tourism Economics

  • Boundaries and definition of economic tourism
  • Tourism's economic attributes

Supply and Demand in Tourism

  • Classification and factors of tourism demand
  • Seasonal dynamics
  • Tourism elasticity

Market Structures in Tourism

  • Flawless and flawed competition with respect to tourism
  • Approaches to pricing
  • Dividing markets

Economic Impact of Tourism

  • Primary, secondary, and tertiary effects
  • Multiplicative effect
  • Links and leaks

Tourism and National Economy

  • Contribution towards the GDP, employment, and investment of the economy by tourism
  • Impact on the balance of payments

Public Policy and Government Role

  • Taxation and subsidies in tourism
  • Regulatory frameworks
  • Role of DMOs

Sustainable Tourism Economics

  • Sustainability from an economic perspective
  • Load capacity (or carrying capacity - economic)
  • Circular economy and green growth

Global Trends and Crises in Tourism

  • Globalization effects
  • Tourism amidst economic downturns (like pandemics and wars)

Measuring Tourism Performance

  • KPIs (Key Performance Indicators)
  • Information sources (UNWTO, WTTC, and others)

Forecasting and Economic Modelling

  • Anticipating tourism demand
  • Planning by scenarios
  • Tools for economic modeling

Weekly Breakdown / Session Plan

 Week 1: Overview of Tourism Economics

  • Objectives: Grasp the scope and significance of familiarising with the economic dynamics of the travel and tourism industry.
  • Activities: Initial forum discussion, first video lecture, foundational principles quiz.
  • Key Readings: Cooper C. et al. (2020) Tourism; Principles and Practices.

Week 2:Demand and Supply in the Tourism Industry

  • Objectives: Examine the elements of tourism demand and supply and their drivers.
  • Activities: Interactive graphing activity, case study analysis on demand shift, group forum.
  • Key Readings: Tribe, J. (2015). The Economics of Recreation, Leisure and Tourism, Chapter 2.

Week 3: Tourism’s Price Mechanism and Elasticity

  • Objectives: Analyse elasticity and its impact concerning pricing on tourism behaviour.
  • Activities: Price simulation, elasticity calculator.
  • Key Readings: Sinclair, M.T. and Stabler, M. (1997). The Economics of Tourism, Chapter 4.

Week 4: Economic Consequences of Tourism

  • Objectives: Evaluate the direct, indirect and induced effects tourism has on the economy.
  • Activities: Reflective quiz, simulation on the multiplier effect discussion post.
  • Key Readings: Fletcher J. et al. (2018). Tourism Economics and Policy, Ch. 6.

Week 5: Employment and Income Distribution in Tourism

  • Objectives: Analyse the effects of tourism in relation to job opportunities and income prospect.
  • Activities: Regional case studies, collaboration and design of infographics.
  • Key Readings: UNWTO Report on Tourism and Employment.

Week 6: Government Role & Taxation

  • Objectives: Evaluate the effects of policy, taxation, and government spending on tourism.
  • Activities: Exercise: critique public spending policy debate forum.
  • Key Readings: A chosen chapter from the OECD's 2022 report on tourism trends and policies.

Week 7: International Tourism and Trade

  • Objectives: Assess tourism as an international commodity and its impact on the balance of payments.
  • Activities: Video lecture, case study, discussion forum.
  • Key Readings: WTTC & UNWTO Reports on Global Tourism Economics.

Week 8: Sustainable Tourism and Economic Planning

  • Objectives: Connect the economic development of tourism with sustainability and long-term strategic planning.
  • Activities: Final reflective journal, group report, evaluation survey.
  • Key Readings: Gössling S. et al. (2015). Futures of Sustainable Tourism, Chapter 5.

Reading Materials

Core Textbook:

  • Title: Tourism Economics and Policy
  • Author(s) / Source: Larry Dwyer, Peter Forsyth, Wayne Dwyer

Supplementary Textbook:

  • Title: Economics of Tourism Destinations
  • Author(s) / Source: Norbert Vanhove

Core Article:

  • Title: Tourism and Economic Development: A Comparative Perspective
  • Author(s) / Source: Richard Sharpley, David J. Telfer

Academic Journal:

  • Title: Annals of Tourism Research – Selected articles on tourism demand, pricing, and policy
  • Author(s) / Source: Elsevier

Online Resources:

  • Title: UNWTO Reports on Tourism and Economic Impact
  • Author(s) / Source: www.unwto.org

Data Resource:

Case Studies:

  • Title: Tourism Economics: Retrospect and Prospect
  • Author(s) / Source: C. Michael Hall

Open Access Book:

  • Title: Introduction to Tourism and Hospitality in BC (Chapter on Tourism Economics)
  • Author(s) / Source: Open Textbook by BCcampus