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Tourism Planning and Development 1

Simon T. (15108)

INTRODUCTION

Businesses and public organizations are increasingly interested in the economic impacts of

tourism at national, state, and local levels. One regularly hears claims that tourism supports X

jobs in an area or that a festival or special event generated Y million dollars in sales orincome in a community. Multiplier effects are often cited to capture secondary effects of

tourism spending and show the wide range of sectors in a community that may benefit from

tourism. Tourisms economic benefits are touted by the industry for a variety of reasons.

Claims of tourisms economic significance give the industry greater respect among the

business community, public officials, and the public in general. This often translates into

decisions or public policies that are favourable to tourism. 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 virtually everyone in theregion in one way or another. Economic impact analysis provide tangible estimates of these

economic interdependencies and a better understanding of the role and importance of tourism

in a regions economy. Tourism activity also involves economic costs, including the direct

costs incurred by tourism businesses, government costs for infrastructure to better serve

tourists, as well as congestion and related costs borne by individuals in the community.

Community decisions over tourism often involve debates between industry proponents

touting tourisms economic impacts (benefits) and detractors emphasizing tourisms costs.

Sound decisions rest on a balanced and objective assessment of both benefits and costs andan understanding of who benefits from tourism and who pays for it. Tourisms economic

impacts are therefore an important consideration in state, regional and community planning

and economic development. Economic impacts are also important factors in marketing and

management decisions. Communities therefore need to understand the relative importance of

tourism to their region, including tourisms contribution to economic activity in the area. A

variety of methods, ranging from pure guesswork to complex mathematical models, are used

to estimate tourisms economic impacts. Studies vary extensively in quality and accuracy, as

well as which aspects of tourism are included. Technical reports often are filled with

economic terms and methods that non-economists do not understand. On the other hand,

media coverage of these studies tend to oversimplify and frequently misinterpret the results,

leaving decision makers and the general public with a sometimes distorted and incomplete

understanding of tourisms economic effects.


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Tourism has a variety of economic impacts. Tourists contribute to sales, profits, jobs, tax

revenues, and income in an area. The most direct effects occur within the primary tourism

sectors --lodging, restaurants, transportation, amusements, and retail trade. Through

secondary effects, tourism affects most sectors of the economy. An economic impact analysis

of tourism activity normally focuses on changes in sales, income, and employment in a region

resulting from tourism activity. A simple tourism impact scenario illustrates. Lets say a

region attracts an additional 100 tourists, each spending $100 per day. Thats $10,000 in new

spending per day in the area. If sustained over a 100 day season, the region would accumulate

a million dollars in new sales. The million dollars in spending would be distributed to

lodging, restaurant, amusement and retail trade sectors in proportion to how the visitor spends

the $100. Perhaps 30% of the million dollars would leak out of the region immediately to

cover the costs of goods purchased by tourists that are not made in the local area (only the

retail margins for such items should normally be included as direct sales effects). The

remaining $700,000 in direct sales might yield $350,000 in income within tourism industries

and support 20 direct tourism jobs. Tourism industries are labour and income intensive,

translating a high proportion of sales into income and corresponding jobs. The tourism

industry, in turn, buys goods and services from other businesses in the area, and pays out

most of the $350,000 in income as wages and salaries to its employees. This creates

secondary economic effects in the region. Through multiplier effects, the $700,000 in direct

sales produces $1.4 million in total sales. These secondary sales create additional income and

employment, resulting in a total impact on the region of $1.4 million in sales, $650,000 in

income and 35 jobs. While hypothetical, the numbers used here are fairly typical of what one

might find in a tourism economic impact study. A more complete study might identify which

sectors receive the direct and secondary effects and possibly identify differences in spending

and impacts of distinct subgroups of tourists (market segments). One can also estimate the tax

effects of this spending by applying local tax rates to the appropriate changes in sales or

income. Instead of focusing on visitor spending, one could also estimate impacts of

construction or government activity associated with tourism. The different types of economic

effects have been discussed further.


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Direct, Indirect and Induced Effects

A standard economic impact analysis traces flows of money from tourism spending, first to

businesses and government agencies where tourists spend their money and then to:

y other businesses -- supplying goods and services to tourist businesses,y households earning income by working in tourism or supporting industries, andy government -- through various taxes and charges on tourists, businesses and

households

Formally, regional economists distinguish direct, indirect, and induced economic effects.

Indirect and induced effects are sometimes collectively called secondary effects. The total

economic impact of tourism is the sum of direct, indirect, and induced effects within aregion. Any of these impacts may be measured as gross output or sales, income, employment,

or value added.

Direct effects are production changes associated with the immediate effects ofchanges in tourism expenditures. For example, an increase in the number of tourists

staying overnight in hotels would directly yield increased sales in the hotel sector. The

additional hotel sales and associated changes in hotel payments for wages and

salaries, taxes, and supplies and services are direct effects of the tourist spending.

Indirect effects are the production changes resulting from various rounds of re-spending of the hotel industry's receipts in other backward-linked industries (i.e.,

industries supplying products and services to hotels).

Changes in sales, jobs, and income in the linen supply industry, for example, represent

indirect effects of changes in hotel sales. Businesses supplying products and services to the

linen supply industry represent another round of indirect effects, eventually linking hotels to

varying degrees to many other economic sectors in the region.

Induced effects are the changes in economic activity resulting from household spendingof income earned directly or indirectly as a result of tourism spending. For example, hotel

and linen supply employees, supported directly or indirectly by tourism, spend their

income in the local region for housing, food, transportation, and the usual array of

household product and service needs. The sales, income, and jobs that result from


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household spending of added wage, salary, or proprietors income are induced effects. By

means of indirect and induced effects, changes in tourist spending can impact virtually

every sector of the economy in one way or another. The magnitude of secondary effects

depends on the propensity of businesses and households in the region to purchase goods

and services from local suppliers. Induced effects are particularly noticed when a large

employer in a region closes a plant. Not only are supporting industries (indirect effects)hurt, but the entire local economy suffers due to the reduction in household income within

the region. Retail stores close and leakages of money from the region increase as

consumers go outside the region for more and more goods and services. Similar effects in

the opposite direction are observed when there is a significant increase in jobs and

household income.

Final demand is the term used by economists for sales to the final consumers of goods and

services. In almost all cases, the final consumers of tourism goods and services are

households. Government spending is also considered as final demand. The same methods for

estimating impacts of visitor spending can be applied to estimate the economic impacts of

government spending, for example, to operate and maintain a park or visitor centre.

Total Economic Impact

Total Economic Impact = direct + secondary effects

= direct + (indirect + Induced effects)

A change in tourist spending can affect virtually every sector of the economy by means of

indirect and induced effects. The magnitude of these secondary effects is directly related to

the propensity of local businesses and households to purchase from local suppliers. Induced

effects are easily visible when a large regional plant closes: supporting industries are hurt by

the indirect effects, but the entire local economy usually suffers due to the reduction inregional household income. Retail stores may close, thereby increasing leakages as local

consumers turn to outside suppliers. Similar but reversed induced effects are observable when

there is a significant increase in regional jobs and household income.


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Simon T. (15108)

ECONOMIC IMPACT OF TOURISM : A CASE OF TURKEY

Today the importance of tourism as a major source of income is recognised by all countries in

the world. According to the World Tourism Organisation (WTO) 806.8 million people

travelled to foreign country in 2005 spending more than 682.7 billion dollars, making tourismthe worlds number one export earner, ahead of automotive products, chemical, petroleum

and food. Despite downside risk facing global tourism last 4 years, in particular terrorism,

Iraq-USA conflict, rising oil prices, recession, Thailand and Maldives tsunami in 2004, 842

billion people travelled around the world and spent approximately 715 billion dollars in 2006.

In parallel, countries engaged in fierce competition to increase their shares in the world

tourism since the tourism industry generates substantial economic benefits to host countries.

Especially for developing countries facing foreign exchange constraint, promoting tourism

became a primary policy goal because tourism earnings contribute significantly to theeconomic performance of the host country by removing the balance of payments deficits,

which in turn increases the availability of those imported inputs that have no domestic

substitutes and are crucial for production. Other tourism generated benefits involve increasing

employment, additional source of income for households and governments. Tourism in

Turkey has emerged as an enormous branch of industry with its approximately US$20 billion

annual foreign exchange earnings and direct and indirect employment opportunities it

provides for more than 3 million people. Over the past two decades Turkey has experienced a

remarkable growth in tourist numbers with overseas arrivals doubling between 1991 and1998 and revenues reaching $7.2 billion as of 1998. It is estimated that such trend may have a

significant impact upon host communities in Turkish tourist regions. Given the fact that

tourism can flourish in an area only with the support of the areas residents, it is felt that the

attitudes and perceptions of residents towards tourism development and impacts serve as

crucially important inputs in identifying the strategic and managerial priorities of tourism.

Over the years, Turkey has emerged as a popular tourist destination for many Europeans,

often competing with Greece, Spain and Italy. In the year 2009, Turkey hosted 24.45 milliontourists and earned 20 billion dollars in total. The latest figures indicate that the tourism is the

most dynamic and fastest growing sector in Turkey. It is also the second most important

source of foreign currency earnings. Tourist arrivals and tourism receipts have been rapidly

increased since 1970. While the share of tourism receipts in GDP was only 0.5% in 1970, it

rapidly increased to 1.5% in 1980, 2.8% in 1990, 4.6% of GDP in 2006 and reached 10.2% in


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2009. In the case of Turkey the main transformation concerning the tourist sector started

during the 1980s. Before 1980, the share of tourism in total fixed investments was under 1%

and its share in domestic product was 0.8% with only about 60,000 bed space. In 1985, in

line with the implemented program the sector was included among promoted sectors; thus

largely contributing to the economic growth with increasing investment in the sector. While

tourism income was US$ 326 million and the number of foreign tourists was 1,288,000 in1980 the figures increased to 23,500,000 tourists with a tourism income of US$13,390

million.

Development of Turkish Tourism by years

Years Incoming Tourists (*1000) Tourist Income (Million US$)

1980-1983 5,709 1,488

1984-1987 9,977 5,288

1988-1991 19,537 10,270

1992-1995 27,972 16,876

1996-1999 35,519 25,028

2000-2003 49,258 33,884

2004-2007 81,801 52,597

2008* 21,107 17,457

Source: The Association of Turkish Travel Agencies www.tursab.org, *From January to

September.


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Simon T. (15108)

STAGES OF TOURISM DEVELOPMENT IN TURKEY

Economic development and other systems in Turkey, supportive of a feasible tourism

industry open to international competition only came gradually and in stages. The interaction

between tourism and other sectors gave way to generally positive results; but the process was

not without its restrictions and costs. The tourism industry contributed to local development

in a land that suffered from serious social and economic differences among regions. Through

the eventual spread of tourism activity to relatively underdeveloped regions of Turkey

(particularly central, eastern, southeastern Anatolia and the Black Sea Coast) a new drive was

introduced with improvements in the local social and physical infrastructure, enjoyed both by

the tourist and local resident. But this improvement did not mean suppression of regional

imbalances. Nevertheless, besides providing the required infrastructure, employment,

additional income and making a contribution to local social capital (new skills, enhanced

organizational capabilities), tourism activity in these regions, with the passage of time,

created new ``actors'' (local organizations, voluntary bodies, guides, concerned mayors, local

administrations, and municipal unions) willing and capable of cooperating with the central

government. As they proved their capacity to take up more responsibilities, in line with the

general trend to decentralize and to delegate, they gradually gained increased functions. The

central governments reluctance to share its long-built authority and jealously guarded

resources did not diminish immediately and the new players who were happy with their

recently gained autonomy were not equipped to handle their independence. Most professional

tourism bodies still promote the continuation of active state involvement, particularly in

financial terms. Set against a generally positive picture, there are a number of problems

associated with tourism development in Turkey. Most parameters of the framework

developed by Brohman (1996) to study these problems in Third World countries seem to be

appropriate for the Turkish case as well. He names some specific issues such as foreign

domination and dependency, socioeconomic and spatial polarization, environmental

destruction, cultural alienation, and the loss of social control and identity among host

communities. Foreign domination and resulting dependency do not seem to be a major

problem in Turkey, at least on the supply side, because the vast majority of tourisminvestment (both for large- and small-scale establishments) has been undertaken by

indigenous capital and entrepreneurs. This is probably due to the fact that the country has

never been colonized and, during most of the Republican period, there has been reluctance

both on the part of foreign capital to invest in Turkey and on its own part to accept it.

However, like most of the situations, and in spite of specific efforts to get rid of regional


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imbalances, a pronounced spatial dichotomy has evolved in Turkish tourism between a

``privileged'' space along the coast and an ``underprivileged'' space in the interior of the

country. During the advocacy period in tourism, as Jafari calls it, when emphasis was on

benefits of tourism, this problem did not catch attention. But during the subsequent

cautionary stage when costs became apparent, this became a much-debated issue, and was

instrumental in the formation of an adaptancy platform, advocating diversification of theTurkish tourism product by type and region. A number of studies conducted on the social

aspects and consequences of tourism activity in Turkey (Iyidiker 1990; O zdemir 1992;

Pnar 1990; Turizm Bakanlg 1995; Usal 1990; Var, Kendall and Tarakcoglu 1985)

indicate that segments of the host community which seem to benefit from tourism, have a

more favourable attitude, compared with the ``losers'', who exhibit different degrees of

resentment, or even hostility. Comparable to similar attitudes elsewhere, most of the

complaints are centred around incompatibility of values as reflected by behaviour patterns of

tourists, investing multinational enterprise representatives or foreign managers of localfacilities (Poirier 1997a); rising prices and cost of living; increased crime; negative

demonstration effect on local youth due to gambling, drug addiction, vandalism, and sexual

behaviour. In parts of Turkey there is additional resentment due to the belief that benefits of

tourism add only to big capital, `outsiders', and foreigners, and that spaces that were

previously freely available [the coast, forests, picnic and recreational areas are not now

accessible''. Furthermore, as Brohman suggests ``contact with the indigenous culture tends to

be packaged rather than spontaneous, contrived rather than original (also in Turkey) resulting

in a sense of alienation (in the host community) rooted in feelings of a loss of social control

and cultural identity'' (1996:50). During the advocacy stage, success only meant increasing

both the number of tourists and the revenue derived from this activity. But this emphasis on

mass tourism began to shift, in the later stages, to responsible tourism (Baratal 1992; Sonat

1992); and a knowledge-based platform (Jafari 1992) started promoting a holistic, scientific

approach to tourism. This required a balanced evaluation of both the possible benefits and

costs of tourism, bearing in mind that, through planned efforts, costs could be minimized,

benefits could be maximized and shared in a relatively democratic manner. However, due

care was required to adjust general planning principles to local socio cultural and economic

conditions (Timothy 1999).


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General Overview

Turkey has become one of the worlds most popular tourism destinations thanks to its natural

attractions, unique historical and archaeological sites, improving touristic infrastructure and

its tradition of hospitality. In the city of Istanbul, two suspension bridges over the Bosphorus

link Asia and Europe. The Asian part of the country, called Asia Minor by the Romans, was

the crossroad for many ancient civilisations. The country is surrounded by 3 different seas

with long summers which make it a popular summer destination. The tourism industry has

been one of the most important drivers behind Turkeys economic development over recent

decades by reducing unemployment, raising national GDP and improving the countrys

balance of payments. In 2009, combined with the travel sector, the industry generated TL

95.3 billion of economic activity (approximately 10.2% of Turkeys GDP) with an

employment of approximately 1.7 million people (7.2% of total employment). International

tourist arrivals and tourism receipts have been growing rapidly over recent decades. The

growth in Turkish tourism industry has been faster than that of the globe. The share of

Turkish tourist arrivals in the world has increased from 1.1% in 1990 to 2.7% in 2008. The

share of tourism receipts in the global tourism GDP, likewise, has increased from 1.2% in

1990 to 2.3% in 2008. The tourism encouragement law (no: 2634), enacted in 1982, provided

strong momentum for the industrys growth, which made Turkey a very popular destination

especially for Western Europe. Since 2000, this growth has been continuing until present,

except for 2006, when the World Cup in Germany affected the normal travel patterns

globally. In 2008, despite the worsened conditions observed globally, Turkey enjoyed its best

year ever, welcoming more than 30 million tourists (26 million international and 4 million

domestic).Tourist arrivals and tourism receipts grew by 13.6% and 18.5%, respectively,

resulting in an average receipt of US$708 per arrival. In the first three quarters of 2009,

arrivals increased by 1.5% but receipts decreased by 7%, resulting in an average receipt of

$647 per arrival

Germany, the United Kingdom and the Russian Federation took the top three places in terms

of number of visitors, together forming approximately 36% of the total international arrivals.

In terms of growth, the Russian Federation, Israel, Georgia, the Ukraine and Italy have shown

the most rapid advances in visitor numbers to Turkey in the last three years with CAGRs of

24.0%, 23.0%,22.4% and 22.0%, respectively. Antalya and Istanbul are the most popular

destinations. These two cities account for approximately 60% of all arrivals.


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Hotel MarketTurkeys 3 big cities, stanbul, Ankara and zmir, together with the popular holiday

destinations, Antalya, Mula and Aydn dominate the hotel market in Turkey. Currently,

hotels in Turkey have a capacity of 567,470 beds. In addition, there are many hotels under

construction with an additional capacity of 258,287 beds. The CAGR in bed capacity

between 1998 and 2008 has been 6.1%. The Mediterranean region has the largest bed

capacity. However, the capacity in the Aegean region is developing rapidly and is expected to

grow by 67% with new investments. Istanbul is also very significant. Hotels account for 83%

of the operational bed capacity, followed by holiday villages with 10%, based on 2008

figures. Five, four and three star hotels account for 38%, 31% and 19% of the operational bed

capacity, respectively. Apart hotels, on the other hand, are gaining popularity as the figures

indicate that the capacity under construction a bigger than the currently operational capacity.

Many hotels and other touristic facilities in Turkey are on land owned by the Turkish

Treasury, and are leased out for a 49 year period, which is likely to be renewable at expiry.

Most of the international hotel chains have entered the Turkish market since the 1970s.

Currently, nine of the worlds top 10 hotel chains are operating in Turkey. The Best Western

International has 15 hotels in Turkey, followed by the IHG Group with 8 hotels.

Aviation MarketThe aviation market in Turkey has demonstrated considerable growth in the last decade. Until

2002, the market was not yet open to competition, being a monopoly for the national operator

Turkish Airlines. After 2002, various steps were taken aiming to liberalise the market, which

resulted in a rapid increase in the number of domestic passengers, recording a CAGR of

25.2% between 2002 and 2008. In the same period, the number of international passengers

grew with a CAGR of 8.5%. Compared to the monopolistic situation in 2002 where Turkish

Airlines owned 150 aircraft, at present, there are 5 airline operators owning a total of 270

aircrafts.

Government IncentivesThere are various investment incentives offered within the Law of for the Encouragement of

Tourism (Law no: 2634). Below is a summary of these incentives:

y Land Allocation for Tourism Investment: Public land can be allocated to tourismfacilities up to 49 years with relatively economic prices.

y Employment of Foreign Staff: Certified tourism establishments may employ qualifiedforeign personnel and experts with the approval of the Ministry of Tourism and the


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Ministry of Interior. Provisions of the Law concerning the Trades and Services to be

performed in Turkey by Turkish Citizens are not applicable to such personnel. However

the total number of foreign personnel employed may not be higher than 10% of the total

number of employees. This ratio may be increased up to 20% by the Ministry of

Tourism. Such foreign staff may start working at the establishment 3 months prior to the

commencement of commercial operations. The employment of personnel aged fewerthan 21 at certified tourism establishments and covered by Law no 2559 concerning the

Duties and Powers of the Police shall be subject to the prior permission of the highest

civil authority of the local area.

y Communication Facilities: All procedures and allocations in connection with requests ofcertified tourism investments and establishments for telephone and telex facilities are

carried out on a priority basis.

y Favourable Treatment as Exporters: Of the certified tourism establishments, thoseearning foreign exchange in the amounts that are specified annually by the Ministry forthis purpose are considered as exporters.

y Tourism Loan: The Tourism Bank Inc. of the Republic of Turkey may obtain foreigncurrency loans from foreign sources for allocation to certified investments in tourism

areas and tourism centres.

Note: A draft law has been prepared in order to decrease rates of utility prices for the

tourism establishments.

Sector OutlookDespite the start of the global economic downturn, the Turkish tourism industry managed to

grow in 2008 and record its best ever year. The outlook also appears very strong and the

industry is expected to support Turkeys future GDP growth by creating new jobs and

improving the countrys balance of payments.

y Istanbul 2010Istanbul is a European Capital of Culture 2010 along with Pe (Hungary) and Essen

(Germany). The European Capital of Culture is a city designated by the European Union for a

period of one calendar year during which it is given a chance to showcase its cultural life and

cultural development. Istanbul 2010 is expected to bring many benefits and a significant

income to the industry.


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y Tourism Strategy for Turkey 2023Coastal tourism is currently the most popular type of tourism in Turkey. In addition to coastal

tourism, Turkey has several unique opportunities for different types of tourism such as health

and thermal resources, winter sports, mountain climbing, conference and expo tourism, cruise

ships and yachting, golfing, etc. However, a good deal of this potential is not yet utilised. In

order to establish a framework for utilising these alternatives, the Ministry of Culture &

Tourism has issued Turkeys 2023 Tourism Strategy with the intention of guiding the tourism

industry in production management and implementation phases, by creating a roadmap for

the sector. With this framework, those investors who are considering investing in the sector

will be supported by the government in terms of planning, land allocation, and with respect to

tourism projects. The characteristics and shapes of such incentives will be determined on an

annual basis.

Health & Thermal Tourism

The following four regions of Turkey are suitable for health and thermal tourism:

y South Marmara: Balkesir, anakkale, and Yalova;y South Aegean region: Aydn, Denizli, Manisa, and zmir;y Phrygian region: Afyon, Ankara, Uak, Eskiehir, and Ktahya;y Central Anatolia: Aksaray, Krehir, Nide, Nevehir, and Yozgat.W

inter Tourism

Winter tourism facilities will better function with better access by means of roads or lifts.

New accommodation facilities are planned for additional capacity. Ski runs will be brought in

line with internationally accepted standards. Winter sports competitions and events will be

supported.

Golf Tourism

Suitable areas suitable for golfing shall be identified and new golf courses will be developed

by the Turkish Golf Federation and the Ministry of Culture and Tourism.

Sea Tourism

A single authority will be responsible for all entry procedures for foreign flagged yachts. All

income generated from the operation of yacht tourism will be invested back into

infrastructure development for the sector. Fairs will be funded and the development of yacht


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clubs will be encouraged. Legislation will be rearranged so that sail-powered yachts will pay

less tax than engine powered yachts. Technical standards will be developed for the processing

of bilge water and solid waste disposal. Steps will be implemented to organise the training of

workers for the yacht tourism sector.

Congress and Expo Tourism

The Ministry of Culture and Tourism will organise meetings to shape the required framework

for congress and expo tourism for seven priority cities: Istanbul, Ankara, Antalya, zmir,

Bursa, Konya and Mersin.

Ecotourism and Plateau Tourism

Locals will be trained and local museums and peripheral requirements will be supported.

Mahmut Zortuk, in his report, focussed on investigating the contribution of the rapidly

developing tourism sector, especially after the 1980s, to the economic growth. The data

pertaining to 1990Q1 and 2008Q3 periods were used in the study and the relationship

between the expansion in tourism and economic growth was investigated using Granger

Causality Test Based on VECM and it was discovered that a unidirectional causality from

tourism development to economic development exists between the two variables. Moreover,

the parameters which were tested using Wald test were discovered to be significant by 1%.

This study had investigated a series of unit root, cointegration and causality tests to ascertain

the direction of causality between the growth of GDP, tourist arrivals and exchange rate in

Turkey. Using quarterly data over the 1990Q12008Q3 period and since the variables in this

article are non stationary and present a unit root; Johansens cointegration technique has been

applied. This methodology has allowed for obtaining of a cointegrating relationship among

these variables. Moreover, the information on cointegration in variables is taken into

consideration in specifying the correct model. The main conclusion of this study was that

there is a long-run equilibrium relationship between gross domestic product (GDP) and

tourist arrivals (TOAR). There is a unidirectional causality between variables, from tourist

arrivals to economic growth. The main issue is the impact of tourist arrivals on GDP in

Turkey during the period 1990Q12008Q3. Employing Granger causality, we found a

unidirectional positive causal relation from tourist arrivals to GDP. Moreover, the parameters

which were tested using Wald test.


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CONCLUSION

Economic impact analysis is a broad category of analytic methods including some of the most

common tools for travel and tourism planning. In simple terms, economic impact analysis

tracks and aggregates monetary payments as they move through a regional economy

measuring the transfer of payments from one group or sector to others. In its most common

travel and tourism applications, economic impact analysis seeks to estimate changes in

regional spending, output, income, and/or employment associated with tourist policy, events,

facilities, or destinations. As mentioned above the appropriate data for all the pre requisites of

an economic impact analysis have been mentioned. The tourism industry in Turkey has

contributed to 10.2% of the GDP in 2009 and given jobs to 1.7 million people which is 7.2%

of total employment. While tourism income was US$ 326 million and the number of foreign

tourists was 1,288,000 in 1980 the figures increased to 23,500,000 tourists with a tourism

income of US$13,390 million. In 2008, Turkey enjoyed its best year ever; welcoming more

than 30 million tourists (26 million international and 4 million domestic).Tourist arrivals and

tourism receipts grew by 13.6% and 18.5%, respectively, resulting in an average receipt of

US$708 per arrival. The findings of the study used in this report, by Mahmut Zortuk, indicate

that the threshold level in tourism has been exceeded and the tourism industry contributes

substantially to the economic performance in Turkey. In this sense, it can be established that

the tourism receipts can be regarded as a stable source of foreign currency in Turkey and the

payoff of economic policies directed to develop tourism will be higher in the long-run.


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BIBLIOGRAPHY

y Daniel J. Stynes, Economic impacts of tourismy Stynes D. J (1997) Economic Impacts o Tourism, A Handbook for Tourism

Professionals, Illinois Bereau of Tourism, Tourism Research Laboratory.

y Kaplan M, Celik T (2008) The Impact of Tourism on Economic Performance: TheCase of Turkey, Department of Economics, The International Journal of Applied

Economics and Finance.

y Zortuk M (2009) Economic Impact of Tourism on Turkeys Economy: Evidence fromCointegration Tests, International Journal of Finance and Economics.

y Prof. Erdal F, Prof. Tatoglu E (2002) Resident Perceptions of the Impact of Tourism,Beykent University, Department of Management.

y Goymen K (2000) Tourism and Governance in Turkey, Annals of Tourism Research,Vol 27, No. 4, www.elsevier.com/locate/atoures

y Turkish tourism industry report (2010) invest.gov.tr, Republic of Turkey PrimeMinistry.

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