Geography MYCT notes Economic Landscape-Industries Industry: the production of an economic good (either material or a service) within an economy.

. Types of Industries Primary industry-Directly involved with natural resources Fishing Industry-Catching of sea products Farming Industry-Cultivation of crops; rearing of animals Forestry industry-Felling of trees in forests Mining Industry-Extraction of minerals Can be further classified in terms of level of technology used Secondary Industry-involved with the processing and transformation of raw materials obtained from primary industry or packaging of manufactured goods. Also called the manufacturing industry Produces consumer goods Light and Heavy industry Light industry Heavy Industry Small Amt of Raw Materials Large Small Amt of Space required Extensive Lightweight Nature of goods Bulky and heavyweight Less Amt of pollution More Garments, television Examples Oil refineries, iron and sets steel industries Labour-intensive industry Large amt of people is employed Hence, large amt of capital is required to pay them E.g. production of garments, shoes and toys Capital-intensive industry Large amt of money to be invested in machines, technology and skilled labour to set up business and to improve work productivity. E.g. Oil refinery industry require oil specialists and sophisticated machines Primary and Secondary industry worked closely together because they are interdependent on each other. Tertiary Industry Involves selling & Exchanging goods & services Also called the service Industry E.g. Banking, education, tourism, entertainment Can be further classified according to quality of service Quaternary Industry Involves the handling and processing of information & knowledge E.g. Education, Research & Development, consultancy Other types of industry may engage the services of quaternary industry Developing new products & services to meet demands Industrialization: the process whereby the machinery assisted production of goods develops greater importance in an economy or a country. Often synonymous with rapid growth of the secondary industries or manufacturing industry

Factors influencing industry location Industries will locate in places where they can maximize their profits. Physical Factors Land: The space in which people carry out their activities. E.g. the primary industry needs huge plots of land for cultivation of crops and rearing of animals. The secondary industry needs land to build factories and develop infrastructures. Tertiary industry needs office and retail space to carry out activities. Ample lands are used to develop specialized parks and other facilities for quaternary industries involved in R & D. Level land: easier to clear the land of existing features like vegetation/rural settlements E.g. Jurong industrial estate, developed on an extensive piece of level land Location of industries may be influenced by amt of land needed Industries that require large amt of land are often away from CBDs, less expensive and congested E.g. airports, Chengdu airport is 11km away from the city Price of land is also influential Land in developing countries are usually cheaper Raw materials: Naturally occurring/partially processed physical substances that are used as inputs for production/manufacturing. Some primary industry are located where raw materials are located because they are directly involved with the extraction of them. E.g. Tin & Tungsten mining industries in Thailands Kanchanaburi Province. Weight-losing Industry: (Secondary) industries that are located near sources of raw materials. Because of Nature and availability of raw materials, weight and size and raw materials, and the cost of transportation. E.g. iron and steel industry Industry that uses perishable raw materials are influenced E.g. Food processing industry Ensures freshness of products Energy: Power needed to run machines. Industries that require a large amt of energy are usually located near energy sources such as coal and oil. Energy generating industry must be located at specific places e.g. hydroelectric industry Industries are discouraged from setting up factories in places with inconsistent supply of energy Human Factors Capital: financial resources needed to set up and run a business or industry. Companies prefer to set up in places with lower cost of buildings and machineries E.g. Singapore government built many flattered factories for small and new companies. Entrepreneurs could save money and time. Availability of loans from banks and financial institutions may attract companies to set up business in a particular place. Lower interest rate help to increase the amt of capital available for a company. Labour: People who are employed to run operations and they are normally paid a sum of money called wages. (Labour-intensive) industries usually choose to locate where labour is low in cost and is readily available. E.g. Nike in China and India Industries that require specialized and highly skilled workers may locate to places where they are readily available E.g. IT industry in India are commonly located in Bangalore, the city has the second highest literacy rate in India

Singapore Science Park is located Near NUS Market: A place of transaction for certain good or service; the demand for goods and services. Without the market for their goods/services, industries cannot sustain their businesses. Industry with perishable products are likely to locate near their market To ensure the freshness of their products Though could be partially ignored as transport and technology advances Weight-gaining industry: End products are heavier than initial products Will choose to locate neat markets to cut down transportation cost E.g. Toyota Motor Corporation has local factories around the world Tertiary industry locate their workplace near market for demand Making services and products easily accessible E.g. Patrol station, supermarkets Government: Group of people who looks into the way a country is run. Companies are willing to set up their companies at where the government gives financial incentives and loans with low interest rates E.g. Singapore government in the 1970s to 1980s offered many intensive packages to encourage foreign companies to settle in Singapore. Companies will tend to locate their companies in places where there are less restrictions by the government. E.g. Less Economically developed countries Case Study: Singapore Jurong Island was reclaimed and recreated as a district for petroleum, petrochemical and specialty chemical industries that are far away from the residential areas. In recent years, Singapore is attracting high value-added quaternary industries such as biochemical industry. They spent $500m in building a seven-storey building called the Biopolis biomedical research hub. Transport: movement of people and goods from one place to another through the use of vehicles. Important in carrying raw materials from source to factories and to distribute finished products to local and foreign markets. Companies tend to build their company in places with efficient transportation system. Though in recent times, advanced technology in transportation has globalized the world, making it possible for companies to sell perishable products overseas. Technology: knowledge, skills and tools that people use to meet their needs. Can be used to overcome physical constraints. E.g. With electric cables, companies no longer need to locate near energy sources Reduces the importance of distance to markets or labour Though quaternary industries would choose to locate in places with high technology level, equipments like cables, mass communication and internet should be available.

Globalization Definition: the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade. The term is most closely associated with the term economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence.

Trend of Transference 1960s: Large Scale Manufacturing activities start moving out of MEDCs to LEDCs. Influenced by high labour costs, government incentives, larger market and advancement in technology 1960s to early 1980s: Capital-intensive industries began to replace labour intensive industries Influenced by rapid growth of international trade and technological advancements in machinery that increases productivity. Late 1980s to 1990s: Increase in high technology industries Rapid industrialization has many LEDCs wealthier and more educated. High tech industries require more specialized knowledge and skills and expensive equipments. Mid 1990s: Companies practices outsourcing; Transnational Corporations and Multinational Corporations are formed. Influenced by advancements in technology and globalization.

Factors influencing Global Industrial shift Competitive Advantages Lower Cost When costs are low, companies could maximize profits and remain competitive LEDCs usually offers: Lower labour costs. E.g. 48 cents per hour in Sri Lanka Higher availability of workers Cheaper Land Cheaper and more readily available raw materials Attractive Government incentives Many governments of LEDCs view industrialization as a means of improving their countries economies and the living conditions of people. Government in LEDCs may offer tax exemption and high loans E.g. in Malaysia, projects involving heavy investments and use of high technology may be completely exempted from tax. Foreign firms can borrow up to RM 10 million from financial institutions. Governments may also set aside areas known as Free Trade Zones (FTZs) An area where infrastructures are built, government requirements are lower, and incentives are given to attract foreign companies. FTZs encourages the growth of foreign exchange and to generate jobs E.g. by year 2002, 3000 FTZs are set up across 116 countries, employing about 43 million people and generating about US$400 billion. Countries with tight economic laws set up Special Economic Zones (SEZs) Aimed to increase foreign investments, with more flexible laws E.g. China designated Shenzhen and Zhuhai in Guangdong province as SEZs Larger Markets LEDCs like China and India have larger populations With rapid growth of economy in these countries, the middle class markets are predicted to rise from the current 50 million to 250 million. More people Larger Market More demand Higher Profit Space Shrinking Technology Definition: Technology that has helped to reduce the time taken to travel, transport raw materials and products and communicate between countries. Transport Technology While the physical distance remains unchanged, transport has reduce the time and cost to travel from one place to another

Goods can now be transported quickly across countries Containerization Use of containers has helped to increase the speed and efficiency of moving goods Previously, goods has to be loaded and unloaded manually In which is inefficient and laborious This technology freed industries from being located near or at their sources of raw materials or market. Since now heavyweight items could be transported quickly across countries Communication technology Communication is now more efficient and more convenient TNCs and MNCs are able to monitor and coordinate with their branches better

Impacts of the Trend of Transference Shift in manufacturing-related jobs from MEDCs to LEDCs Fewer people from MEDCs will be involved in the secondary industry Proportion of labour engaged in LEDCs have increased, increased in employment 1990s, low-skilled labour needed After 1990s, more skilled labours needed in high tech industry Increase in foreign investments in LEDCs More money flows into LEDCs as foreign manufacturers carry out their economic activities E.g. Investment in Thailand increased from US$250 million in 1980s to US$3500 million in 2000. Foreign investments also introduces new technology into the country Mitsubishi introduces motor vehicle technology to Malaysia in 1980s Increase in export of manufactured products in LEDCs Exports of manufactured products in LEDCs have also increased significantly New Industrializing Economy (NIEs) Definition: LEDCs that has rapidly developed due to global industrial shift and establishment of TNCs and MNCs Characteristics Fast rate of growth in manufacturing Rising Share of world exports in manufactured products Fast growth in real per capita income Transnational Corporation Definition: Large global companies that establishes an administrative headquarters (HQ), a Research & Development establishment (R & D) and production centers in one country and at least one, often many, branches and/or production centers overseas. Approximately 90% if TNCs are based in MEDCs, especially in the USA, France, Germany, UK and Japan TNCs have branches in LEDCs because Production costs are usually less than in MEDCs-lower wages, cheaper land, and lower transportation costs Governments offer incentives, as it encourage multiplier effect LEDCs usually have less environmental restrictions TNCs have branches in MEDCs because A suitable workforce is available in a place of such history Cheaper land is offered in declining industrial areas A well developed transportation system High unemployment

 Past economic problems so the government is prepared to offer incentives Characteristics showing the success of TNCs Directly employ around 45 million people and indirectly provide for more Currently in control of over 75% of worlds trade Benefits and Drawbacks of TNCs on host countries Benefits Drawbacks Employment: Jobs are created directly Labour force: labour force in LEDCs and indirectly often exploited with long working hours Improved technology: TNCs introduced and low pay. Issue of child labour is new technology, expertise and severe. Skilled positions filled with management skills to host countries. workers from origin country. Infrastructure development: is often Foreign decision maker: TNCs often required by the TNCs, and locals benefit more concerned about profits than from the new roads, airports, improved workers. They pull out immediately in power and water supply. case of financial crisis. Financial support: TNCs pay tax to Profits mainly go back to the country of government and locals origin rather than to improve local area. Increase Exports: Increase in purchasing Health and Safety issue: often received power for host country insufficient attention. E.g. Bhopal in India Multiplier effect: local economy boost by 1984, gas leak from a pesticide factory e.g. growth of component suppliers; killed thousands, injured around half a increased personal income generates million growth in local service industry Environmental concerns: LEDCs usually Social Improvements: TNCs often agree have less strict environmental laws; to improve local health and education TNCs may exploit this to create pollution service. and environmental destruction. Increase in Quality of life: Competition between TNCs and local Employmentmore moneyimprove industry quality of life Case study: Shell in Nigeria Short Summary Africas leading oil producer Shell is very important in Nigeria, operating in the main oil region, the Niger delta area, for over 60 years. Currently produces nearly half the countrys oil output Employs 5000 people, 95% Nigerian Profits goes back to Shell and government Nigeria is politically unstable Its oil-based economy gave Shell political power and influence Oil production took place at the expense of peoples lifestyle and local environment TNCs and government benefited financially but not the locals Environmental issues Over 4000 oil spills since 1960, contaminated food supplies and destroyed natural habitats Gas flaring resulted in air pollution Deforestation to produce oil and gas Economic Landscape-Tourism Tourists: anyone who travels to and stays in a place outside his/her usual environment for not more than a year, regardless of travelling purpose. Tourist destination area: where the tourists are going Tourist generating area: where the tourists are coming from Global Tourism Domestic Tourism: Travelling within the country. Relatively cheaper

 International Tourism: Travelling from one country to another Purpose of tourism For Natural Attractions May be for natural features that offer scenic views May be for Climatic differences that offer new experiences For Cultural-historical Attractions Architecture which reflects peoples way of life and history Culture expressions thorough various means like Art and Music Human-Made Attractions Human made features which could be either modern or historical Event Attractions Activities and events organized by people Niche Tourism Specific form of tourism that appeals to specific group of people E.g. Medical tourism, Educational tourism Trends in Global Tourism Vast growth of tourism Accounted for 30% of the worlds exports of services Generating US$856 billion in 2007 Achieved an annual growth of 6.5% btw 1950 and 2005 Recognized as the worlds largest global industry in terms of volume of human traffic and amt of revenue generated On a international scale, tourism is still increasing in number of people involved and revenue generated On the regional scale, Europe will remain as the most popular tourist destination. However, regions such as Asia and Middle East have begun to capture the market in recent times. Trends in domestic tourism Increasing number of domestic travelling China has up to 98.3% of its tourists domestic tourists Revenue generated by domestic tourism covers up to 70% of the countries tourism industry Factors influencing the growth of tourism Demand Factor Definition: peoples willingness to purchase goods and services Disposable Income It refers to the amt of money left for an individual to spend Influenced by the economic conditions of a country As economic conditions improve in many countries around the world, people generally earn higher incomes, so they have more money to spend on leisure Declining economy in a country could lead to shrink in tourism Leisure Time Refers to time available outside demands of work Industrializing improved quality of life, most European countries give workers up to four weeks of vacation leave In Singapore, weekends are always available for people to travel. Changing lifestyle Refers to ways people choose to live Modern fast paced lifestyle given people a reason to travel as to relax People are now more educated and more informed, strive towards discovery of oneself and other cultures These factors are closely related to the trend of Global Industrial Shift

Supply Factors Amenities Attractions Natural Attractions in a country encourages international and domestic tourism E.g. China has the Great Wall, Mount Everest in Tibet Facilities Facilities such as hotels, restaurants and shops attracts tourists A range of accommodations should be available to the tourists Large shopping malls can provide an experience that attract tourists Accessibility A cheap, efficient, well developed transportation system is often preferred Airports played a big role in accessibility More and more people travel across countries Cambodia lacked a well developed transportation system Thus not able to receive tourists well Affordability The cost of travel also influences an individuals travel plan. Since air travel is more affordable, people may prefer international tourism to domestic tourism. Distance of travelling and currency exchange rate should be considered. Subsidiary Services Services such as marketing, reservation and coordination among tour agencies operating within a country Tourism board and information counters should be readily available Quality Service Quality service provide a favorable impression of the country They will probably come back again In order to increase the quality of service, hotel and retail management are sending their employee for training or hiring consultancy to train them. Other Factors Prevalence of Media Attractive advertisements High availability of information Ease of making traveling bookings Meetings and Conventions Reduction of political barriers Impacts of Tourism Positive Economic Impacts Contribution to revenue Tourists usually spend on food, accommodations, entertainment, sightseeing and shopping Food, hotel, leisure, retail and transport industry will benefit Government benefits through the collection of tax Development of Infrastructure Government will need to further develop the countrys infrastructure in order to attract more tourists Government can use revenue from tourism to upgrade places of interest and tourist facilities to attract more tourists. Creation of jobs Tourism industry is a labour-intensive industry

Growth of tourism create employment Multiplier effect on local primary & secondary effects Contribution to local economy Providing services to tourists help provide income for some of the local people and thus improving their standard of living Tourism circulates money through the countrys economy, thus promoting more development Diversification of local economies As tourism grows, it encourages the growth of supporting industries Tourism thus diversifies local economies, and helps to reduce overdependence on particular type of industry E.g. Tibetan farmers could provide food and hospitality services other than farming and animal husbandry Increase in foreign investments Foreign investors or companies may set up new businesses at popular tourist destinations Negative Economic Impacts Loss of income and development opportunities Not all the income from the tourists goes into the local economy Some tour companies and hotels are owned by foreign companies Leakage: The outflow of money and development opportunities from destination country to other countries. Foreigner who are more experienced may be employed over locals Enclave tourism A unique kind of tourism where people stay in resorts or take a cruise package. These enclaves allow only limited economic benefits to the destination countries and local communities. May widen the cultural and social gaps that already exist between the tourists and local communities. High Infrastructure Cost Lots of capital input is required to develop the industry. E.g. Hotels/Resorts Supporting infrastructures are costly. E.g. Transport Network Tax and revenues generated from tourism could have been used to develop important aspects of the society. E.g. Education/health Unequal Development of Industries Local people are expected to reap more benefits in tourism industry than in primary and secondary industry. However, low-skilled jobs such as rickshaw drivers are still poorly paid. Resources may be channeled to the tourism industry, causing other industries to generate less revenue and employments. Cause overdependence of countrys economy on tourism industry in which is easily subject to change and unforeseen events. San Marino, a country is southern Europe, benefited much from tourism in year 2000 such that the tourism industry contributed up to 50% of the countrys GDP. Increase in prices Influx of tourists may result in competition for local demand for basic goods and services. Locals suffer as they are natives who usually has lower purchasing power than the tourists Vulnerable to seasons an unforeseen events Tourism is subjected to peak and off-peak hours E.g. Beach resorts in Cherating, Malaysia only open during summer

Tourism are also vulnerable to events that are beyond the control of destination country E.g. SARS disease outbreak, Political revolution and instability, Natural disasters such as tsunamis and earthquakes

Positive Impact on society and culture Exchange of Values Interaction between the tourists and the locals provided an opportunity for them to interact. Thus promoting better understanding of cultures and social practices, enriching their understanding of others culture. Preservation of Culture Locals become increasingly aware of their heritage as they interact with the tourists Over time, locals preserve their heritage, infrastructures with historical or cultural values and some customs and festivals Negative Impact on society and culture Loss of local identity and values Locals may be compelled to discard their traditional activities for tourism-related ones E.g. The Masaai warrior tribe Conflict of resource use Competition of resource use between tourists and locals E.g. Tourism facilities in Spain use up to 850 liters of water per person a day, 4 times the normal use. Economic inequality Conflict may arise when high pay jobs in the tourism industry are taken by foreigner but low pay jobs are taken by locals. Clash of values Tourists who brings their own behavior norms to their destination may displease the locals E.g. Chinese tourists are described as noisy and rude in Japan Crime generation Due to tourists demand for casinos and drugs, related social problems may flourish in that region. Positive Impacts on the environment Conservation of natural areas Natural environments such as beaches, forests and mountains are potentially valuable tourists destination, thus encourages the conservation of these areas. E.g. Pulau Payar Marine Park in Malaysia has been preserved to attract tourists. By conserving and protecting natural environments, it reduces the destruction of these habitats of plants and animals to the minimum. Negative Impacts on the environment Environmental degradation Not all tourists are ecologically conscious or civic minded, resulting in uncivilized actions such as littering. E.g. Mountains areas such as Andes in Peru, Mount Everest base camp in the Himalayas Growth of tourism can being about other forms of pollution as well, increasing air travel can contribute to air pollution and global warming. Often a tourism destination has exceeded its carrying capacity,s overflooding of areas would possibly cause the soil erosion and barren grounds.

Managing the impact of tourism For tourism to be successful in the long term, it has to be carried out in a sustainable manner. Sustainable tourism: meeting the present needs of tourists and the host country while protecting and enhancing opportunities for future generation. However, it is practically impossible to thoroughly eliminate the negative impact of tourism. Thus, efforts must be made to maximize the positive impacts and minimize the negative impacts. The World Tourism Organization (UNWTO) outlined 3 main principals for this. Principals Make optimal use of environmental resources Respect the socio-cultural authenticity of host communities Strategies Conserving the natural heritage and biodiversity at tourist destinations Conserving the cultural heritage and the traditional values of the local people Contributing to inter-cultural understanding and tolerance Distributing economic gains among all stakeholders fairly Ensuring stable employment and income-earning opportunities for host communities Contributing to poverty alleviation

Provide economic benefits to all stakeholders

Parties who responsible Planning Authority Include local governments or national government agencies that control the rate and scale of development in tourist areas. Some may restrict or control tourism development and visitor numbers. Bhutan, a country in Himalayas accepted only 18000 tourists in 2006 Adopted a high value, low-volume policy to max their profits and minimize environmental harm Government could choose to develop a certain aspect of tourism as part of their national development strategy. Singapore drive to become a regional medical hub Planning authorities by themselves are often inadequate to make tourism sustainable. Some countries face difficulties in enforcing laws and regulations on proper tourist behavior. Lack of sufficient funds to employ park rangers, or to train more Businesses Includes hotels, tour operators, transport services and retail shops. They provide employment, generate revenue and act as frequent points of contact between the tourists and the destination. For long-term success of tourism, economic gains should not be the only motivation for business. International Tourism Partnership provides practical guidelines for hotels to adopt. E.g. conservation of water, educate guests and staff on environmental management. Purchase local products and employ local people. International tour operator organizations such as the Tour Operators Initiative advice tour operators on implementation of the principles of sustainable tourism in their tour packages. E.g. brief tourists on responsible behaviors.

Tour Guides can also maintain healthy interactions between tourists and the local community. Tourists Tourists play a significant role in making tourism sustainable. In 1999, The UNWTO released the Global Code of Ethics for Tourism, a document containing a code of conduct for the sustainable development of world tourism. Tourists should: Have responsible for their actions. Appreciating the locals culture and their problem. Pay attention to the local customs. And choose not to attend socially undesirable activities and not to intrude into the privacy of the locals. Refrain from causing disturbances to wildlife in natural environment. These codes merely serve as guidelines, thus their effectiveness is limited. Planning authorities and tour operators should convey them to tourists. Non-governmental Organizations Include independent pressure groups or campaigning organizations that are usually non profit-oriented are formed to defend or promote a specific cause. E.g. WWF Among the first to realize the threats and opportunities for tourism in an area Conducts researches and evaluations on an area to see if it is subjected to any potential harm by tourists. They would then conduct possible campaigns and protests to pressure the planning authorities. International Ecotourism Society could educate the tourists and influence the tourism industry. In Singapore, we have Nature Society (NSS) A NGO dedicated to the enjoyment, conservation and study of the natural heritage of Singapore, Malaysia and the surrounding region. Preservation of Chek Jawa and Palau Ubin. Singapores Strategy Singapores challenges Regional competitors developing theme parks, eco-tourism sites, cruise terminal and MICE facilities Singapores constraints with respect to land and labour Singapores 3 strategies of Innovation, Integration and Productivity Innovation Innovation in new experiences for tourists, targeting premium and High Net Worth Individuals. E.g. ION orchard offer concierge service to personalize the shopping experience. Innovation in facilities. E.g. The Jewel Cable Car Ride was upgraded with $36 million dollars to enhance panoramic views and accessibility. Integration Integrate different products to enhance the visitor experience and to promote cross-selling. Collaboration between different sectors. Suntec city and Resort World Sentosa. Visitors could have discount visiting different attractions of Singapore Productivity To increase customer satisfaction, operational efficiency and productivity in the organization. Upgrading skills of low-skilled workers, training workers to be multiskilled.

Ecotourism and Community-based Tourism Ecotourism Definition: Responsible travel to natural areas that conserves the environment and improves the well-being of the local people. Aims to let visitors appreciate the scenery of an area, and help them understand the local culture. Ensures part of revenue gained is put back into maintaining and protecting the area. There is conscious effort in such tours to increase the employment of the local being. And to minimize the impact on natural environment by reducing the volume of waste generated, using recycled materials and conservation of water and energy. To ensure effectiveness, it is usually conducted in small groups. Ecotourism usually revolve around places with natural attractions through careful management of planning authorities E.g. Phang Nga Bay in Phuket, Thailand. Exploring the limestone caves by rowing sea cannels. Sustainability Preserves ecology and natural habitat Preserves local customs and habitat Profits flows back to local community Limitations Fake ecotourism---Nature based tourism Tourists number must be maintained within the carrying capacity of the environment Cannot be effective in areas with weak laws and regulations Tour guides priorities profit by bringing large numbers of people Community Based Tourism Definition: The process of tourism development and management that includes, consults, and benefits the local community. Especially in the context of rural villages and indigenous people in LEDCs. Locals could participate in community based tourism through activities. E.g. Jungle excursions, home stays, or teaching traditional handcrafts. Tourists could learn and appreciate the local culture and lifestyle, gaining more knowledge of the place than mass tourism. Tour operators and government authorities may consult locals on tourism projects, thus able to manage the impacts of tourism on the community. Able to better make this tourism a success Avoid conflicts and misunderstandings between the locals and tour operators E.g. Phou Khao Khouay nature reserve in Laos. National Tourism Authority of Lao and the management of Phou Khao Khouay meet regularly to decide on various tourism projects. Locals are trained to become hosts for home stay or tour guides Sustainability Socially sustainable as locals benefited economically Profits goes back to improve local facilities and living condition Avoiding conflicts and misunderstandings on a long run Environmentally friendly, small scaled tourism Limitations Locals damage the environment to entertain the tourists Locals in Phuket, Thailand, hunt down animals to train themselves as performers Little profit gained, as it is small scaled. Thus unable to continue funding the community based tourism projects.

Development Definition: The improvement in the quality of life and standard of living Indicators Economic indicators Income per Capita Average income each worker in a country receives in a year. Indicate wealth of a country Measures Gross Domestic Product (GDP), income of a country excluding investments and business held abroad. More developed countries tend to have higher income per capita Employment structure The proportion of the workforce in the three main employment sectors: Primary, Secondary and Tertiary. Primary industry does not generate much income. The more people involved in secondary and tertiary industry, the more developed a country is. Employment Opportunities Availability of jobs in a country Increase in job opportunity employment Increase in income Improve standard of living and quality of life. DCs tend to have higher employment opportunities As standard of living increases, secondary and tertiary industry expands to suit peoples needs, resulting in more employment opportunities for people. LDCs are usually poor, there is little demand for goods and services, thus fewer employment opportunities Health Indicators Well-being of a person with regard to his or her mental and physical conditions. Indicates the availability and accessibility to medical and health care. Also indicate the availability of safe drinking water and proper sanitation. Life Expectancy The average number of years a person is expected to live Usually, the higher the life expectancy, the more develop a country is. Influenced by the amt of food available, the cleanliness of the environment, the access to health care, and a countrys political and social stability. Poor health limits the countrys development by lowering the productivity of the workforce. Affecting national income, resulting in inadequate health care. Infant Mortality Rate The rate at which the number of babies less than one year of age dies, for every 1000 live births, in a year. More developed country tend to have a lower IMR Because DC has proper health care amenities, such as clinics, hospitals and medical research facilities. Access to water supply Provision of clean water for people in a country Drinking water is easily available in DCs, because water is easily available by pipes. There are water treatment plants to ensure that water is clean. While in LDCs, people have to travel long distances to attain clean water. There is a lack of clean water too. This reflects the poor standard of living in a country. Access to sanitation facilities Access to sanitation facilities allows people to dispose of human waste hygienically. Random disposal of human waster will cause proliferation of bacteria and human diseases.

 DCs usually have proper flushing and waste disposal systems. Educational Indicators The process of learning and the acquisition of knowledge and skills. The standard of education in a country reflects its standard of living to a certain extent. Literacy Rate The percentage of adults in a country, who are above 15 years old, who can read and write. Education is needed to high-skilled tertiary and quaternary industry, which will ensure the continuous development of a country to achieve a better standard of living. Human development index (HDI) Refers to an index that measures the level of development of a country, based on its economic well-being, health and education standards. Countries are classified as countries with high human development, countries with median development, and countries with low development. Limitations of HDI It is most accurate when accessing DCs It is easier to obtain data from a developed countries In some places of LEDCs, data is not available HDI also fails to take into account measurement of human rights and freedom Which are important factors in determining the level of development