Is Tourism an Economic Disease? - VisualEconomik EN

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INTERESTING REFERENCES

Capo, J., Font, A. R., & Nadal, J. R. (2007). Dutch disease in tourism economies: Evidence from the Balearics and the Canary Islands. Journal of sustainable Tourism, 15(6), 615-627.

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Tourists generally come in 2 types. Type 1 tourists going to NYC, Disneyland, Paris, London, Rome, Amsterdam, and other similar places are looking for an "experience" and are willing to part with significant cash to absorb as much as possible while they are there. Type 2 tourists are simply looking for a place to unwind, drink, eat and tan and don't particularly care where that is as long as it is cheap and relatively safe. Type 1 tourist destinations are usually unique and very hard to replicate. All type 2 destinations are competing with each other, since anywhere with a nice beach and a good stocked bar can be a tourist destination. Since these type 2 tourist sites are interchangeable (i.e. commodities) they all end up competing on price - leading a sad race to the bottom. But there might be some truth to the assertion that if you are making good money selling sand, sun and booze, you really don't need to be doing very hard, very expensive cancer research at the same time.

banto
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Southern European here.

Having lived in Croatia Greece Portugal and a little bit in Italy.

One thing you did not mention is that Europeans from central and Northern Europe have a bit colonial mindset towards us.

They feel entitled to cheap holidays of any kind.

Young? They want cheap beer and wild party, leave trash everywhere and make fun of anyone who tell them to behave. They will complain about destinations where there is no party as “something for the young”.

Families with small kids? They like Croatia as for many of them it is on driving distance. They will filll their card with their own food, rent an apartment with a kitchen and occupy the space for a very cheap price for their standard, at the same time complaining about any price that went up.

Independent professionals /liberals / well off seniors?

They will look for a solution to make their cost of living cheaper. They will just buy/rent property and live in a very savy way as they use to.

Meanwhile, a limited number of locals will make money from the “sezon” and be comfortable with that. But most of them will work endless hours with no quality of life.

Generally most young people struggle find home due to inflated property value and on many places businesses operate only for tourism.

Imagine trying to live in a normal neighborhood with a salary let’s say 1000€ month but rents being 800-1000 and all the shops around being “convenience stores” with ready made frozen pizza, overpriced fancy cheese, ham, wine, and chocolate. Lisbon has become a dystopia in which Americans “looking for themselves” rent rooms with a view for 1000 euros, buy a branded can of tuna for 5 euros. It will still be incredibly cheap for them in a pure colonial manner.

When hearing about the average income, they will blame it on our “unproductive mentality” and so on, but they do not understand they colonized our cultures where liberal ultra competitive market is not in the peoples DNA.

LanaPajdasArt
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One thing that the video only touched upon a little bit, but it's very important, is the question of center vs. periphery. In many countries, probably including Spain, many of the tourist hotspots are in the periphery, outside of the big cities. In other words, if a young person from Benidorm doesn't get that tourist job, they might indeed get a better job – in nearby Valencia. This would lead to a slow erosion of the periphery, in favor of the big cities. The UK is a good example of a country where the tourist hotspots are also the richest places in other industries; so in a city like Liverpool, if a young person doesn't work in tourism, they might not work in any high-value-added industry, and the city stagnates. If a country wants to develop its periphery, keeping any tourism alive is of the utmost importance. If, on the other hand, the country considers it OK that the productive population concentrates in a few big cities, then tourism shouldn't be as encouraged.

Ynhockey
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Back in the day our parents went back-packing in 3rd world countries, and found some magic that we could not find in our own nations. Those nations had no real economy compared to our own Western Countries, but they became reliant upon our imported money. They aspired to be like us. Then we imported western "Tourism" to those impoverished lands and took advantage of them. We "Culturally Appropriated" them and made them slaves to that imagery, created by us. Now they rely on western culture to survive, but we don't care if things turn bad.

cinemaipswich
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Surely what matters is diversification. That can't be created over night, but with proper assistance from central government, can be built up over tine.

It seems to me that governments must bear much of the responsibility for failing to bring in other industries. It becomes easier to rely on subsidies.

London and New York are, primarily, working cities. Financial and other office based industries are the actual bedrocks.

timg
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If Spain tourism will be expensive, the tourism would be diverted in other countries . Dubai it's just a city in comparison to Spain that its an entire nation .Most of the workers of Dubai are foreigners that are underpayed compared to the emirati citizens . For exemple there are people that prefer to go somewhere else instead of Dubai, becouse it's cheap and better .

malokaloMPK
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Tourist countries are not poorer
Actually poorer countries are more likely to attract tourist due to the lower costs they have for tourists to stay

faridjafari
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Main reason why Thailand struggle to develop their high tech industry. Bcoz their economy far too reliant on tourism

nassrol
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Can we get the whole other video discussing solutions or has it been made, if so where can I find it? Thanks enjjoyed your analysis

josephagidani
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It is tourism that boosts economies. There are bunch of loosers in political and social arenas in every country who are often laying down their frustations on the tourists since they are incapable of managing the economy.

TIGERZYK
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London and Paris are huge tourist hot spots but they have huge industries

discopot
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Its too easy to become corrupt when one or more people are given loads of money and power/authority/influence.

Solution: 🤷

veracruzb
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The biggest tourist countries are france spain italy usa britain. Hardly poor countries??

ike
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I dont know man. This looks to me like the normal rich North vs. poor South distribution. Tourism seems to have little effect on this reality.

dagda
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The weird thing for me is that i knew all of this from SImCity 5 !! I love that game i learn so much from it.

rajjalas
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Where is the proof that "Spain is a well developed country today because of tourism? ( 4:22 ) Spain ruled the world at one point in time and actually has quite some natural resources. I'm not sure but it seems incorrect to imply that Spain is wealthy just because of tourism, which is only a recent thing?

xLeBang
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Spain's tourism industry has a limit to how much it can make, if they want to be richer they need to diversify. Any country that depends on only one industry, and that industry suffers for any reason whatsoever, it will be catastrophic for the entire country. Its of Spain's best interest to lean to high tech jobs, and a side effect of high tech industry is people will have higher quality of life due to the comforts it can bring.

eurostar
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The UAE doesn't have oil? Um....

AnnDavi-cw
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The issue is low paying jobs in general in all industries. Each person wheather rich or poor still needs roughly the same amount of services such as police and doctors and roads. Bearing the burden of these costs isn't possible on low pay, which increases the burden on the others with better pay making it harder for them and the industries they work in.

witoldschwenke
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I guess from a consumer perspective I totally agree with you. We can allow ourselves nice vacations, but still enjoy a week at the beach doing nothing. So what do we look for? The innovative hotels. Private little pool is one example, new to us a few years ago, now popping up everywhere, and something we now won't do without (let's just put the ecologic part aside please ...). Second: We look for hotels where the reviews highlight the service quality. And we are ready to spend quite some money to be treated nicely. And this takes education, in languages for example, but also skills like how to be attentive to the different needs of the different clients, you also need a management that supports and controls all this, innovative reservation modes for dinner etc. So there is room for innovation and we are ready to pay for it. Thanks for the video!

stefanschneider
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