Economic Impact of Tourism Assignment

Economic Impact of Tourism Assignment Words: 1517

Select a small to medium size town and explain the economic impact the tourists have had on this place. Introduction The potential of tourism as a development strategy for small towns is a very important issue for local economic development. Many small towns have benefited from tourist development all over the world . I have decided to choose the town of Jurmala in Latvia as the focus of this assessment. Background information about Jurmala Jurmala – the medium size resort town in Latvia and is well known for its natural treasures- the mild climate, sea, healthy air, curative mud and mineral water.

Its strcture consists of three former villages that were united in 1959. The attraction of Jurmala hides in its almost 33 km of long white sand beach, large pine forests and the natual border of the city – the river Lielupe. In Jurmala you can discover the combination of harming wooden houses built in the beginning of the last century and modern resort buildings. The unique combination of these components makes Jurmala very attractive to the tourists and makes the town an attractive relaxation and cure place for many tourists.

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Since 1871 the main means of transportation is train, remaining the station buildings of the late 19th century and early 20th century. The territory of Jurmala is proposed for inclusion in the World Heritage Tentative list is the Eastern part of the town -from the mouth of the river Lielupe till the territory of former fishermen village in Dubulti that for the first time was mentioned in historical sources in 16th century. This place is very interesting because here the distance between the river Lielupe and the sea is only 500 metres.

Modern town of Jurmala Jurmala has grown as a tourist destination over the past decade with its main walking street Jomas and different shops which include gift shops, art galleries, quaint buildings, modern spa hotels, coffee shops, etc. The unique features of the area and the geographical location of Jurmala make the area boating, fishing, bird-watching, sunbathing, camping, etc. The entrepreneurs of Jurmala offers new possibilities for tourists every year – hotels and guesthouses and various entertainments.

They cantaste delicious and healthy food in Jurmala’s restaurants and cafes, walk along the central promenade of Jomas ideal for a variety of recreational activities such as river rafting, biking, hiking, street, explore the eco-trails in Kemeri National park and Ragakapa Nature Park, enjoy the water attractions in the biggest aquapark in Northern Europe “Livu Akvaparks” and “Nemo”, visit the famous concert hall Dzintari or simply watch the sunset on Jurmala beach! | | | | | | ”According to data provided by the Central Bureau of Statistics, the number of tourists in the first quarter of 2009 has decreased, and adds up to 15 530 persons, that is by 28% less than in the according period in 2008. The highest load in this period was in resort rehabilitation centres and sanatorium – 31%, but the average load of hotels and resort hotels was 13%” www. jurmala. lv”Division of guests by the country: Latvia (51%) – 6145 Russia (12%) – 1841 Byelorussia (8%) – 1191 ( + 7%) Estonia (7%) – 1100 Lithuania (5%) – 846

Norway (4%) – 689 Sweden (2%) – 376 Finland (2%) – 266 Germany (2%) – 164 Denmark (1%) – 111 ( + 50%)United Kingdom-1311(+10%)” www. jurmala. lv Looking at the statistics by the division of guests by countries, we can see that the greatest increase is for tourists from Denmark – increase by 50%. During winter and spring months guests chose to stay in Jurmala city resort rehabilitation centres and sanatorium as they provide wide choice of rehabilitation, health and medical treatments of high quality, but for lower prices than in other EU countries.

The average length of stay in Jurmala is 5 days, and that is by 2 days more than it was in the corresponding periods in 2008. Byelorussian guests have stayed in Jurmala longer than other guests – in average 18 days, then comes the guests from Germany. To show the economic impact the tourism has on Jurmala more precisely, I would like to stop at the economic impact analysis of Dzintari concert hall which is situated in the very centre of Jurmala and has an international significance.

This place attracts more and more tourists and visitors every year because of different events such as like pop and rock band concerts and various entertainment events which are being held there every season from May till September. The concert hall also supports youth festivals, chamber music concerts and always gives priority to orchestra concerts. Tourists all over the Europe and especially from Russia come here each year to see the international contest of young singers, called “New Wave”. During the hot season the concert hall generates more than LVL 8. million turnover. It can easily show the economic usefulness and an important contribution to Jurmala economic development as well as to the development of state economics. Dzintari concert hall became a limited company in 2004 and started to attract more tourists. The audience of the concert hall per season since year 2003 till 2004 increased from 100 000 till 200 000 customers and now the number is still growing till 250 000 tourists. Due to the fact that the number of customers is growing the concert hall can provide more employment to the local people.

Customers not only watch the event, they spend money on transport and it allows the transportation system become more economical as well, they also spend money on food to dine in Jurmala’s cafes and restaurants that gives them an opportunity to stay open longer and earn more. The tourists have some extra expenses during the event too such as tea, coffees, juices, alcoholic drinks, ice-creams, flowers for artists, etc. “According to the statistics o Dzintari concert hall, 76% of Dzintari hall audience spend on related goods and services more than LVL 30 per event.

Only 24% buy the cheapest tickets, go to the event by public transport(when you go to Jurmala by your own car you have to buy a pass which costs LVL 1 and the money also goes to the development of the town of Jurmala), during the event take only tea, coffee or beer and go home for dinner “(see the table below) www. su. lt/filemanagerThe expenses of Dzintari concert hall customers SUM PER EVENT| PERCENTAGE OF CUSTOMERS | TOTAL EXPENSES| LVL 10-16| 24%| LVL 5940. 00| LVL 30| 30%| LVL 24300. 00| LVL 40| 15%| LVL 12000. 00| LVL 60| 15%| LVL 18300. 0| Up to LVL 100| 6%| LVL 18600. 00| | 100%| LVL 74140. 00| There were 90 events in Dzintari concert hall in 2007. We can see from the table that despite short event season, customers spent more than 6. 5 million Lats(Latvian currency , 1Ls is about ? 0. 83 ). Jurmala in the past. Telling about the economic impact of tourism on Jurmala nowadays, it would be also essential to mention the Soviet Union times when Jurmala was one of the biggest rehabilitation centres and health resorts for the working people from the whole entire Soviet Union.

To understand the economic impact of tourism on Jurmala those times I would like to provide some data. J Jurmala in the past had about 70 health centres with about 12,000 tourists all year round. Today, there are about 30 recreation facilities in the recreation business, able to accommodate no more than 4,000 guests. Earlier as many as 232,000 people came to Jurmala for holidays every year, now this figure is down to 62,000, which is a very big difference and certainly it has a negative impact on Jurmala’s economy in comparison with the Soviet times.

As for the number of foreign visitors, it shrank four times after the introduction of visa requirements for Russia, for example. T Let us have a look at some objective reasons for the decline. During the Soviet times, Jurmala was very popular resort for the people all over the Soviet Union. And the region of Jurmala experienced constant growth since 1969. The situation changed dramatically since the early 1990s when Latvia re-gained independence. Latvia hasn’t been able to attract local or Western tourists to compensate for the reduced number of holiday–makers at its rehabilitation centres. In the last two years some positive trends emerged, however. Firstly, the annual number of tourist visitors has grown up to 12-15%; it’s much higher than an average figure for Latvia in general (5-6%), or the global rate of 9 percent. In the given situation (the survival of the fittest) the strongest will survive, i. e. those, who managed to preserve rehabilitation facilities, keep skilled personnel, and do qualitative marketing. Secondly, a new trend emerged, i. e. he opening of small pensions, boarding houses (bread & breakfast), and small hotels with 5 to 30 rooms” Dainis Urbanovich, www. baltic-course. com Conclusion Looking at the information provided in the essay, we can see that the tourism has a great impact on the development of Jurmala as a resort town and the more tourists(consumers) that can be attracted by Jurmala’s beautiful nature, climate, hotels and, of course, the events in the Dzintari concert hall and different other places of entertainment in Jurmala, the higher the economic impact.

Words 1527 Bibliography Books Book 1- The understanding of the travel and tourism industry Websites www. jurmala. lv www. baltic-course. com www. su. lt www. riga-hotel-guide. com Learners Declaration: I certify that the work submitted in this assignment is my own. Full Name Viktorija Chesnovicka…Address 2 Pavasara gatve , flat 21, Riga, Latvia LV-1082.. |

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