Costs & Benefits of Tourism

Tourism can provide economic development for lower-income and emerging nations if they do not have access to raw materials for manufacturing
Tourism is sometimes regarded as an export
- Goods and services are not subject to price fluctuations of commodities on the world market
National tourism strategies are government policies to encourage tourism
Tourism can benefit unemployment levels in both rural and urban environments
Tourist jobs include
- Catering
- Transport
- Guiding
- Accommodation workers
- Food production
- Construction through the building of hotels and other infrastructure
Tourism can also provide new skills for people, such as learning multiple languages
The multiplier effect takes place when income generated by local people is circulated back into the local economy

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The multiplier effect in tourism

Leakage - due to foreign ownership of many aspects of the secondary resources such as hotels much of the money made does not remain in the country but is lost to the foreign owners
Employment for local people is often low-skilled and poorly paid
- Jobs in management are often filled by workers from the countries where the TNC headquarters are located
Price increases occur in local businesses as tourists can pay higher prices
- This impacts locals menacing they are less able to afford goods
Inequality occurs because some areas attract more tourists than others
Water usage increases as tourists use large quantities of water
Land is used for building resorts, hotels and other facilities such as golf courses

Small islands often rely on tourism for economic development
There are benefits to tourism for SIDS:
- Manufacturing is unlikely to be possible due to the small land area
- Tropical islands have many natural attractions, such as beaches, rainforests, and coral reefs
- Tourism is not restricted by quotas or tariffs
- Direct and indirect employment provides jobs
There are negatives of tourism for SIDS:
- Can be negatively affected by global pandemics
- Transport and accommodation costs can be high

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Location of Bermuda

Bermuda is a British Overseas Territory in the Atlantic Ocean
It is 21 square miles
Population size of 63,867 (2021)
In 2019 (pre-COVID-19) tourism was the second-largest industry in Bermuda and accounted for over 5% of its GDP
In 2022, tourism accounted for around 3% of the GDP
The terrain is hilly, with the highest location at Gibb's Hill, which is 260 feet above sea level
Bermuda is an archipelago of seven main islands and some 150 other islands and islets
The islands have a subtropical climate
- The annual mean temperature is 70.2°F
- The average annual rainfall is 57.6 inches
- High humidity throughout the year makes summers sticky and warm and winters cold and damp
There are no rivers or lakes on Bermuda and water supply is through rainfall harvesting or desalinisation

Each year, an average of 405,000 visitors arrive on cruise ships
In 2023, 505,217 visitors in total visited Bermuda, compared to 605,003 visitors in 2019
The Bermuda Tourism Plan was launched for 2019-2026

Success Indicators for the Bermuda Tourism Plan

Tourism will contribute $1.2 billion to GDP (average 4.5% leisure visitor growth per year)

30% of visitors will arrive by plane in the summer (25% in 206/17)

More than 56% of leisure arrivals will be in non-summer - September to May (52% in 2017)

More than 8% of air arrivals will be African Americans (4% in 2017)

More than 83% of people will recommend Bermuda to family and friends (76% in 2018)

More than 70% of residents will support tourism development (61% in 2018)

According to tourism figures reported by the Bermuda Tourism Authority, the reasons for tourism are:
- Vacation
- Destination weddings
- Sporting events
- Business
- Visiting family and friends
Over three quarters (76%) of visitors are from USA, 7% Canada, 9% UK, 3% Europe, and the remaining are from other places

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Tourist destinations in Bermuda

There are a range of ways of reducing Bermuda’s vulnerability to external shocks and internal limitations. These include:

Promoting electric vehicles
Advising establishments on greener hospitality services for waste
Work with environmental groups to increase environmental practices
Improving accessibility for disabled tourists
Working with the government on out-of-date tourism regulations
Using community outreach programmes to encourage more Bermudians to work in the tourist industry
The development of the African Diaspora Heritage Experience
Providing a focus on key sports such as sailing and golf
The setting up of Bermuda’s own airline, which targets travellers from the east coast of the USA
Investing in hotels such as the Southampton Princess through the Fairmont Southampton Hotel Act
Making the Southampton Princess an Anchor hotel sponsored by the Bermuda government
Bermuda hotels have signed up to a guarantee scheme against hurricanes

Costs & Benefits of Tourism (SL IB Geography)