Microeconomic and Tourism Essay Example

Microeconomic and Tourism Essay Microeconomic and Tourism I. Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. II. The significance of tourism to economic. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ III. The impact of tourism on local society. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ IV. The effects of tourism on microeconomics†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. V. UAE as an example for the subject. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. VI. Clusters and competitiveness of the UAE. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. VII. Conclusion. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ VIII. List of figures. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ IX. References. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ List of Figures: * Figure 1: Determinants Of Competitiveness. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. * Figure 2: Determinants of Competitiveness (Sophistication of Company . Operations and Strategy). †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. * Figure 3: Determinants Of Competitiveness (Quality of The National Business . Environment). †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. * Figure 4: Quality Of The National Business Environment)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Figure 5: The Dubai Logistics Clusters Map†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. * Figure 6: Dubai Tourism Cluster Map†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Tourism is one of the largest and fastest growing industries in the world especially in the developing countries. Some countries consider tourism as a source of income and government revenues in addition to agriculture and industry or even oil and gas products. This report describes the important and major role tourism plays in the macroeconomic and microeconomic of some countries. We will write a custom essay sample on Microeconomic and Tourism specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Microeconomic and Tourism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Microeconomic and Tourism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer This report also gives a brief account about tourism and microeconomics in the UAE, and the plans which include strategic objectives to closely connect tourism with micro businesses, demand, supply and local services as well as recreational facilities. Many countries, especially some developing countries like Caribbean countries, Kenya, Tunisia, Indonesia, Thailand and Egypt have tourism as the main income for local development, foreign currency, and poverty reduction and for economic growth. They invest on tourism considering it as their major industry. They ave it as a remedy for local economic development and to solve problems like unemployment. In this way they generate higher income for the local economic circuit, for individuals like taxi drivers, storeowners etc. , and for hotels, restaurants and local firms To attract tourists such countries build the required infrastructure like hotels, resorts, communication, roads, parks and other recreational facilities, which in turn aff ects demand and supply of many commodities. Moreover, â€Å"Community support is important for tourism, as it is an activity that affects the entire community. Tourism businesses depend extensively on each other as well as on other businesses, government and residents of the local community. Economic benefits and costs of tourism reach everyone in the region in one way or another. † In countries that depend on tourism as number one industry, tourism economy affects their, policy, strategic decisions and planning as it may reflect on the whole of its community and microeconomic. In addition to the plans for building the suitable infrastructure, they have to conduct economic impact studies, analysis and assessment to support decisions related to tourism. They have to know the contribution of tourism to the economy of the country, the government income from taxes and fees and whether the revenues of tourism will cover the cost of services in addition to making sufficient profits. They also have to conduct environmental impact assessment in order to know the effects on social, cultural, microeconomic, biological, physical, and ecological systems. Tourism microeconomic impact studies are vital for countries which depend on tourism industry as the main income. The studies and analysis will answer many questions that affect policies, planning and strategic decision making as well as actions to encourage tourism activity. The results of the studies include the amounts of money tourists spend, the portion of sales by local businesses, the income tourism generates for households and micro businesses, the jobs tourism support and taxes that are generated by tourism. It is worth mentioning that not only poor countries pay attention to the importance of tourism. There are some rich countries that care about tourism. United Arab Emirates is a good example. Although they have sufficient revenues from oil and gas exports but at the same time they have long term plans to promote tourism. They â€Å"made significant investments to diversify beyond oil production and enhance the quality of its business environment. † There are â€Å"numerous world-class development projects throughout the UAE especially in Abu Dhabi and Dubai – from new luxury hotels, resorts, leisure attractions and shopping malls, to low, mid and high-income residential communities – that dramatically attracts visitors. For example in Abu Dhabi â€Å"Saadiyat Island is undergoing remarkable transformation that will become a world-class leisure, residential, business and cultural hub. Saadiyat Island’s Cultural District will house the world’s largest single concentration of premier cultural assets, including the Lord Norman Foster-designed Zayed National Museum, the Louvre Abu Dhabi and Frank Gehr y-conceived Guggenheim Abu Dhabi. A performing arts centre and a maritime museum will add to the portfolio of leading cultural institutions. There will be also Manarat Al Saadiyat, Monte Carlo Beach Club, Mesopotamia exhibition, Beach Golf Club, Zayed National Museum. Another interesting and entertaining place is Yas Island which includes Marina Circuit, Yacht Club, Abu Dhabi Grand Prix, Ferrari World Abu Dhabi and many more interesting places. Such projects enhance the microeconomic in UAE. Moreover, in Dubai there are many projects that attract visitors which in turn encourage tourism and increase expenditure. The following figures and facts show the microeconomic competitiveness of the UAE and Dubai logistic and tourism cluster maps. Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Clusters in the UAE Remarks: †¢ Cluster developments include all emirates while the efforts that are made by each Emirate are not the same. The main efforts are made by Abu Dhabi and Dubai. †¢ The present UAE’s clusters support the infrastructure investments, and the attraction of outside companies and foreign manpower. †¢ In spite of the remarkable efforts made by the experts and the departments of UAE overnment, the success in making clusters is still not comprehensive, but The UAE is still better in cluster-based economic variations than some other oil-dependent economies. †¢ The building of better, more developed and sustainable clusters is still important for UAE government. Competitiveness in the Regions †¢ Economic performance of each country is deferent. †¢ Local policie s and investments may help all countries in the region make much more efforts in competitiveness. †¢ To improve competitiveness there should be more coordination and cooperation among the individual Emirates and other GCC countries. â€Å"Different emirates have developed their own economic strategies, e. g. , Abu Dhabi Economic Vision 2030 and Dubai Strategic Plan 2015† Figure 6 Dubai Tourism Cluster Map Finally, it is true that tourism has some disadvantages with regards to demand and supply, prices, environmental pollution, cultural and traditional lifestyle degradation, but in our opinion tourism is and will remain a source of profit and has many more advantages especially to microeconomic growth and in creating different levels of employment for people as well as a source of profit to individual and firms business. References: http://www. tandfonline. com/doi/abs/10. 1080/00220389808422535#preview https://www. msu. edu/course/prr/840/econimpact/pdf/ecimpvol1. pdf http://www. propoortourism. org. uk/Publications%20by%20partnership/Tourism%20and%20Local%20Development. pdf http://www. allfreeessays. com/topics/advantages-and-disadvantages-of-tourism/0 http://www. visitabudhabi. ae/en/abudhbi. tomorrow. aspx http://www. isc. hbs. edu/pdf/2010-0124_UAE_SessionTWO. pdf http://www. scribd. com/doc/25183529/United-Arab-Emirates-Country-Analysis