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The Tourism System 6th edition Kendall Hunt Publishing Company
Purpose Having learned about the concept and principles of sustainable tourism development, students will be able to describe a process for evaluating individual tourism project development opportunities.
Building a Sustainable Future for Tourism: Sustainable Tourism Development According to Manning and Dougherty, sustainable development “means the use of natural resources to support economic activity without compromising the environment’s carrying capacity, which is its ability to continue producing those economic goods and services.”
Building a Sustainable Future for Tourism: Principles of Sustainable Tourism Development To improve the quality of life of the host community To provide a high quality experience for visitors To maintain the quality of the environment on which both
the host community and the visitors depend
UNWTO
The Tourism System 6th edition Kendall Hunt Publishing Company
Building a Sustainable Future for Tourism: Main Forms of Tourism Development Ecotourism Deter or minimize negative environmental and social-
cultural impacts. Take place within “relatively untouched” natural areas. Contribute to the conservation of areas. Improve the local economy of adjacent communities. Primarily address visitors who maintain a certain “non-
consumerism”, nature-loving, and ethical conscience toward tourism.
Learning Objective 3: Government and Private-Sector Participation in Tourism Development Discuss government and private-sector roles in tourism development.
Volunteer Sector Roles in Tourism Development Operating attractions Creating and running events and special meals Providing travel information services Financing the development of community-oriented
Learning Objective 4: Roles and Types of Government Incentives in Tourism Development Describe the role and types of government incentives for tourism development and the criteria for government financial assistance.
Direct and Indirect Incentives from Government Non-refundable grants
Low-interest loans Interest rebates Forgivable loans Loan guarantees Working capital loans Equity participation Training grants Infrastructure assistance Leasebacks Land donations
Learning Objective 5: Pre-feasibility and Economic Feasibility Studies Describe the objectives and steps in completing a pre-feasibility study and an economic feasibility study.
Analysis of Individual Project Development Opportunities: Objectives of Pre-Feasibility Studies
The objectives of a pre-feasibility study are to determine
whether: The information available is adequate to show the
project will not be viable or will not be attractive to investors or lenders.
The information available indicates that the project is so promising that an investment decision can be made on the basis of the pre-feasibility study itself; that is, a detailed study is not needed.
The Tourism System 6th edition Kendall Hunt Publishing Company
The objectives of a pre-feasibility study are to determine whether: A preliminary assessment of potential environmental,
social or cultural impacts shows that these potential impacts are significant and unacceptable to the local community.
Aspects of the project are so critical to its viability that they must be analyzed as part of the detailed economic feasibility study.
The availability of factors critical to the viability of the project (such as availability of a specific site) must be confirmed prior to a detailed economic feasibility study.
Analysis of Individual Project Development Opportunities: Objectives of Economic Feasibility Studies To determine the economic feasibility of a tourism
development project. To evaluate the proposed site for the project or to locate a
suitable site for the project. To analyze the project’s market potential. To produce recommendations on the scale, sizes, facility
types, and quality levels of operation of the project.
The Tourism System 6th edition Kendall Hunt Publishing Company
Analysis of Individual Project Development Opportunities: Steps in Economic Feasibility Studies Project description Pricing Revenues Expenses and profits (losses) Capital costs Cash flow Return on investment (ROI)
Learning Objective 6: Groups Concerned with Feasibility Study Results Identify the two main groups concerned with the results of economic feasibility studies and discuss the questions they typically want answered.
The Tourism System 6th edition Kendall Hunt Publishing Company
Analysis of Individual Project Development Opportunities: Main Groups Concerned with Feasibility Studies The two main groups concerned with the results of economic feasibility studies are: Developers and investors Lenders
Analysis of Individual Project Development Opportunities: Purposes of an Environmental Impact Assessment The main purpose of an environmental impact assessment (EIA) is to identify in advance factors that may affect the ability to build a proposed tourism development and the environmental attributes that will be affected by the development (Manning and Dougherty).
The Tourism System 6th edition Kendall Hunt Publishing Company
Analysis of Individual Project Development Opportunities: Purposes of an Environmental Impact Assessment To identify risks, minimize adverse impacts, and
determine environmental acceptability. To achieve environmentally sound proposals through
research, management, and monitoring. To manage conflict through the provision of a means for
effective public participation.
Ecologically Sustainable Development Working Group
Analysis of Individual Project Development Opportunities: Detailed Design and Construction Preparation of preliminary architectural concepts Preparation of preliminary architectural design Preparation of final architectural design Construction
The Tourism System 6th edition Kendall Hunt Publishing Company