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The Economics of Recreation, Leisure and Tourism [4Th Ed.] The Economics of Recreation, Leisure and Tourism The Economics of Recreation, Leisure and Tourism F O U R T H EDITION John Tribe AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK 225 Wyman Street, Waltham, MA 02451, USA © 2011, 2005, 1999, 1995, Published by Elsevier Ltd. All rights reserved The right of John Tribe to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1T 4LP. Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publisher Permissions may be sought directly from Elsevier’s Science and Technology Rights Department in Oxford, UK: phone: (144) (0) 1865 843830; fax: (144) (0) 1865 853333; e-mail: [email protected]. You may also complete your request on-line via the Elsevier homepage (www.elsevier.com), by selecting ‘Customer Support’ and then ‘Obtaining Permissions’ British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress ISBN 978-0-08-089050-0 For information on all Butterworth-Heinemann publications visit our website at www.elsevierdirect.com Typeset by MPS Limited, a Macmillan Company, Chennai, India www.macmillansolutions.com Printed and bound in Spain 11 12 13 14 10 9 8 7 6 5 4 3 2 1 Preface to the fourth edition Recreation, leisure and tourism continue to provide a fascinating field of study for economists. The first edition of this book was writ- ten just after a period of intense recession in the UK economy. The second edition was prepared during a period of growth in the econ- omies of the UK, the USA and Europe. But elsewhere, the econo- mies of Japan – the second largest in the world – Brazil, Russia, and what were once referred to as the Asian tiger economies had suffered decline. The third edition was written in a period where the eco- nomic significance of China had continued to grow whilst the rest of the world economy showed a mixture of growth and economic stagnation. Additionally, tourism suffered a severe shock in the wake of 9/11 and the war in Iraq. This new fourth edition is particularly overshadowed by the (near) global recession and its effects on recre- ation, leisure and tourism. It is, of course, impossible to predict the economic conditions that will prevail in the year when, or the region where, this book will be read. But it is important to understand what has happened over the course of economic business cycles to prepare for what may happen in the future. The changes in fortunes of various economies are mapped out through the updated statistics which are a central feature of this fourth edition. The effects of these changes on the leisure sector are also evident in these statistics and more so in the many new and updated exhibits that illustrate the text. In some cases, original exhib- its have been retained and updated so as to provide the reader with contrasting evidence and a sense of the dynamics of the economy. In terms of geographical coverage, this book attempts to use examples from around the world to illustrate its points. The aim of this book remains that of offering those involved in the business of recreation, leisure and tourism an understanding of the practicalities of economics. To support this aim, real-world examples continue to be emphasized in this book rather than economic theory for theory’s sake. Thus, in contrast to general economics introduc- tory texts, the marginal productivity theory of labour is excluded, but pricing of externalities is included on the grounds that the latter is more useful to students of leisure and tourism than the former. The key themes of the book focus on a series of questions: l How is the provision of leisure and tourism determined? l Could it be provided in a different way? l How are organizations affected by the competitive and macroeconomic environments? l What are the economic impacts of leisure and tourism? l What are the environmental impacts of leisure and tourism? viii Preface to the fourth edition l How can economics be used to manage leisure and tourism? l How has economics failed recreation, leisure and tourism? The other key features of this book are: l Visual mapping of the content of each chapter. l Liberal use of press cuttings to illustrate points. l Chapter objectives. l Learning outcomes. l Key points summarized. l Data response questions. l Short answer questions. l Integrated case studies. l Useful websites. The fourth edition also includes illustrations in each chapter, multiple choice questions at the end of each chapter and a set of PowerPoint slides available on the companion website. It is hoped that this book will create a lasting interest in the eco- nomics of recreation, leisure and tourism and generate a spirit of critical enquiry into leisure and tourism issues affecting consumers, producers and hosts. John Tribe, 2011 C H A P T E R 1 Introduction Leisure Work Recreation Recreation Home-based Travel and away from recreation tourism home Unlimited wants Economics of leisure and tourism Scarce resources © 2011 Elsevier Ltd. All rights reserved. 2 1 Introduction Objectives and learning outcomes l Are the recreation, leisure and tourism industries more important to national economies than banks? l Why do these industries provide so many new jobs? l What is the globalization of recreation and leisure? l Are recreation, leisure and tourism shares good investments? l Is air travel sustainable? l Why do we spend more days at work than at play? l Economics is a social science but is it human? This book will help you investigate these issues. The objectives of this chapter are to define and integrate the areas of study of this book. First the scope of recreation, leisure and tourism will be discussed, and second the scope and techniques of economics will be outlined. The final part of the chapter explains how the study area of recreation, leisure and tourism can be analysed using economic techniques. By studying this chapter students will be able to: l understand the scope of recreation, leisure and tourism and their interrelationship; l explain the basic economic concerns of scarcity, choice and opportunity costs; l outline the allocation of resources in different economic systems; l explain the methodology of economics; l understand the use of models in economics; l understand the use of economics to analyse issues in recreation, leisure and tourism; l access sources of information. DEFINITION AND SCOPE OF RECREATION, LEISURE AND TOURISM Like all definitions, those pertaining to recreation, leisure and tourism encounter some problems. For example, a common element in many definitions of leisure is that of free time. Thus working, sleeping and household chores are excluded. However, should we then include people who are sick or recovering from illness? Similarly, recreation is commonly applied to the pursuits that people undertake in their lei- sure time. But what about things people do to support their employ- ment in their spare time? For example, is a computer programmer’s use of computers in non-working time a leisure activity? Similar ques- tions arise in defining tourism. The common element in definitions of Introduction 3 tourism is that of ‘temporary visiting’. Questions of scope immediately arise. Are people who are engaged in study overseas tourists? Are peo- ple travelling on business tourists? Aware of the problems involved, some working definitions of travel and tourism are now attempted. WORKING DEFINITIONS l Leisure: Discretionary time is the time remaining after working, commuting, sleeping and doing necessary household and personal chores which can be used in a chosen way. l Recreation: Pursuits undertaken in leisure time. Recreational pursuits include home-based activities such as reading and watching television, and those outside the home including sports, theatre, cinema and tourism. l Tourism: Visiting for at least one night for leisure and holiday, business and professional or other tourism purposes. Visiting means a temporary movement to destinations outside the normal home and workplace. l Recreation, leisure and tourism sector organizations: Organizations producing goods and services for use in leisure time, organizations seeking to influence the use of leisure time and organizations supplying recreation, leisure and tourism organizations. Many organizations produce goods and services for recreational and non-recreational use, for example, computer manufacturers. Figure 1.1 shows the relationship between recreation, and tourism and the constituent parts are discussed later. Time Other Leisure Work Recreation Recreation Home-based Travel and away from recreation tourism home Figure 1.1 Leisure and tourism. 4 1 Introduction Home-based recreation This includes: l listening to music l watching television and videos l listening to the radio l reading l do it yourself (DIY) l gardening l playing games l exercise l hobbies l leisure use of computers.
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