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The Economic Effects Tourism Has on New Zealand

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The Economic Effects Tourism Has on New Zealand

The following report provides an accurate and informative overview of the nature of tourism, its history and growth, the structure of the New Zealand industry and the impact of tourism from a New Zealand perspective. The report will draw a conclusion which Highlights area of consideration in tourism planning.

Conclusion and Recommendations

For New Zealand tourism has a lot to offer but at the same time, care has to be taken not to mistreat it. The social and cultural impacts of tourism on New Zealand so far have been on the whole beneficial but as tourism continues to grow this could change. Non-economic benefits of tourism are maximized when visitors and hosts share mutual interests and when trade is relatively small. However these factors limit potential tourist markets and income. One solution to this problem could be promotion of New Zealand as a high quality destination at a higher price, i.e. less tourists spending more money.

New Zealand tourism is largely reliant on 'Eco-tourism' so to maintain the tourism industry it is imperative that our environment is conserved. However tourism itself can have negative effects on the environment. The tourism sector must act responsibly in its use of the environment and any use must be sustainable.

It is the economic effects of tourism which bring the most benefit to the host nation. Tourism is a low import user which means more of the money earned here stays here. The government is earning money through tourist taxes such as the airport tax, increased export earnings and income tax revenue from people employed by the industry. A balance must be struck between these benefits and associated negative impacts on the community and the environment.

If New Zealand is to see more growth in tourism we must try and make the country more attractive to visit. More flights, low visa requirements, favorable exchange rates are all facilitators that will make New Zealand more appealing. With a high level of promotions overseas that will motivate tourists to think of our country as a destination which will be able to satisfy their needs.

The Nature of Tourism

There is not really a universally accepted definition of tourism. In 1994 the World Tourism Organization (WTO) revised its definition. It says the tourism comprises of 'the activities of persons travelli...

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...ourism has an influence on most areas of society, employment, environment, health, economic stability and quality of life. Therefore it is the concern of governments, the public sector, is to ensure the negative consequences is minimized. At the 1968 UN Conference on International Travel and Tourism it was made clear the government intervention and management is required for the smooth running tourist activities between countries.

In New Zealand the biggest participants in creating the creating the tourism product are from the private sector, that is individual operators like airlines, accommodation chains, attractions and tour operators. These sectors have their own organizations. For example hotels are represented by the Hotel Association of New Zealand (HANZ). The sales sector has groups like the travel agents Association of New Zealand or the Inbound Tourism Organizations Council. In Turn they all feed into the New Zealand Tourism Industry Association (NZTIA). The NZTIA can then represent their interests to the New Zealand Tourism Board (NZTB) , which is the country's national tourism Organization, or the ministry of commerce, which is responsible for tourism legislation.
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