Tourism as a boost to economic growth in African countries; the case of Cameroon

ABSTRACT

Tourism is viewed worldwide as a strategy to bring in foreign currency through the show casing of local goods, works of arts and cultures ranging from food to dressing. This also obtains in Africa and Cameroon in particular. Tourism is seen as a major source of income for the government and offers employment opportunities to thousands of its citizens. Cameroon is described as “Africa in miniature”

probably because of its rich touristic potentials.

This paper will therefore focus on the development of touristic potentials in Cameroon, public perception of tourism, the management of revenue from tourism and the overall economic gains it provides to the country.

Introduction

Cameroon is a Central African nation on the Gulf of Guinea, bordered by Nigeria, Chad, the Central African Republic, the Republic of Congo, Equatorial Guinea, and Gabon. Cameroon’s estimated 250 ethnic groups form five large regional-cultural groups: western highlanders (or grassfielders), including the Bamileke, Bamoun, and many smaller entities in the northwest (est. 38% of population); coastal tropical forest peoples, including the Bassa, Douala, and many smaller entities in the Southwest (12%); southern tropical forest peoples, including the Ewondo, Bulu, and Fang (all Beti subgroups), Maka and Pygmies (officially called Bakas) (18%); predominantly Islamic peoples of the northern semi-arid regions (the Sahel) and central highlands, including the Fulani, also known as Peuhl in French (14%); and the “Kirdi”, non-Islamic or recently Islamic peoples of the northern desert and central highlands (18%).

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The people concentrated in the Southwest and Northwest regions–around Buea and Bamenda–use standard English and “pidgin,” as well as their local languages. In the three northern regions– Adamawa, North, and Far North–French and Fulfulde, the language of the Fulani, are widely spoken. Elsewhere, French is the principal language, although pidgin and some local languages such as Ewondo, the dialect of a Beti clan from the Yaounde area, also is widely spoken. Although Yaounde is Cameroon’s administrative capital, Douala is the largest and the economic capital with the main seaport, and main industrial and commercial centers.

The western highlands are amongst the most fertile regions in Cameroon and have a relatively healthy environment in higher altitudes. This region is densely populated and has intensive agriculture, commerce, cohesive communities, and historical emigration pressures. From here, the Bantu migrations into eastern, southern, and central Africa are believed to have originated about 2,000 years ago. Bamileke people from this area have in recent years migrated to towns elsewhere in Cameroon, such as the coastal regions, where they form much of the business community. About 20,000 non-Africans, including more than 6,000 French and 2,400 U. S. citizens, reside in Cameroon.

HISTORY

The earliest inhabitants of Cameroon were probably the Bakas (Pygmies). They still inhabit the forests of the South and East regions. During the late 1770s and early 1800s, the Fulani, a pastoral Islamic people of the western Sahel, conquered most of what is now northern Cameroon, subjugating or displacing its largely non-Muslim inhabitants.

Although the Portuguese arrived on Cameroon’s coast in the 1500s, malaria prevented significant European settlement and conquest of the interior until the late 1870s, when large supplies of the malaria suppressant, quinine, became available. The early European presence in Cameroon was primarily devoted to coastal trade and the acquisition of slaves. The northern part of Cameroon was an important part of the Muslim slave trade network. The slave trade was largely suppressed by the mid-19th century. Christian missions established a presence in the late 19th century and continue to play a role in Cameroonian life. Beginning in 1884, all of present-day Cameroon and parts of several of its neighbors became the German colony of Kamerun, with a capital first at Buea and later at Yaounde. After World War I, this colony was partitioned between Britain and France under a June 28, 1919 League of Nations mandate. France gained the larger geographical share, transferred outlying regions to neighboring French colonies, and ruled the rest from Yaounde. Britain’s territory–a strip bordering Nigeria from the sea to Lake Chad, with an equal population–was ruled from Lagos.

In 1955, the outlawed Union of the Peoples of Cameroon (UPC), based largely among the Bamileke and Bassa ethnic groups, began an armed struggle for independence in French Cameroon. This rebellion continued, with diminishing intensity, even after independence. Estimates of deaths from this conflict vary from tens of thousands to hundreds of thousands.

French Cameroon achieved independence in 1960 as the Republic of Cameroon. The following year the largely Muslim northern two-thirds of British Cameroon voted to join Nigeria; the largely Christian southern third voted to join with the Republic of Cameroon to form the Federal Republic of Cameroon. The formerly French and British regions each maintained substantial autonomy. Ahmadou Ahidjo, a French-educated Fulani, was chosen President of the federation in 1961. Ahidjo, relying on a pervasive internal security apparatus, outlawed all political parties but his own in 1966. He successfully suppressed the UPC rebellion, capturing the last important rebel leader in 1970. In 1972, a new constitution replaced the federation with a unitary state.

Ahidjo resigned as President in 1982 and was constitutionally succeeded by his Prime Minister, Paul Biya, a career official from the Bulu-Beti ethnic group. Ahidjo later regretted his choice of successors, but his supporters failed to overthrow Biya in a 1984 coup attempt. Biya won single-candidate elections in 1984 and 1988 and flawed multiparty elections in 1992, 1997, and 2004. His Cameroon People’s Democratic Movement (CPDM) party holds a sizeable majority in the legislature following 2007 elections–153 deputies out of a total of 180.

ECONOMY

Cameroon is endowed with an abundance of natural resources, including in the agricultural, mining, forestry, oil and gas sectors. Cameroon is the commercial and economic leader in the CEMAC sub-region, although regional trade, especially with Nigeria, remains under-realized.

Cameroon’s economy is highly dependent on commodity exports, and swings in world prices strongly affect its growth. Cameroon’s economic development has been impeded by economic mismanagement, pervasive corruption, and a challenging business environment (for local and foreign investors). Cameroon remains one of the lowest-ranked economies on the World Bank’s annual Doing Business and similar surveys and regularly ranks among the most corrupt countries in the world. Over the last 3 years, GDP growth has averaged around 2%-3%, which is roughly on par with population growth but not enough to significantly reduce high poverty levels. Despite boasting a higher GDP per capita than either Senegal or Ghana, Cameroon lags behind these two countries in important socio-economic indicators, including health and education. The government has professed a determination to foster urgent economic growth and job creation, and there is a decided uptick in interest in the mining sector and infrastructure development.

For a quarter-century following independence, Cameroon was one of the most prosperous countries in Africa. The drop in commodity prices for its principal exports–oil, cocoa, coffee, and cotton–in the mid-1980s, combined with an overvalued currency and economic mismanagement, led to a decade-long recession. Real per capita gross domestic product (GDP) fell by more than 60% from 1986 to 1994. The current account and fiscal deficits widened, and foreign debt grew. The government embarked upon a series of economic reform programs supported by the World Bank and International Monetary Fund (IMF) beginning in the late 1980s. Many of these measures have been painful, including the government’s slashing of civil service salaries by 50% in 1993. The CFA franc–the common currency of Cameroon and 13 other African states–was devalued by 50% in January 1994. The conjunction of these two events meant an overall drop in purchasing power of nearly 65%. The government failed to meet the conditions of the first four IMF programs. A 3-year Poverty Reduction and Growth Facility (PRGF) approved by the IMF in October 2005 ended in 2008. Cameroon has not negotiated any new IMF program but is continuing cooperation with the Fund under Article IV consultations. In 2009, the IMF disbursed $144 million to Cameroon under its Exogenous Shocks Facility to help with the effects of the global economic crisis.

Official statistics for 2009 had inflation at 5.3%, indicating a weakening of Cameroonians’ spending power. Public frustration over rising prices was partly to blame for an outbreak of social unrest and

violence in many Cameroonian cities in February 2008. In March 2008, the government announced a reduction in food import tariffs and other measures designed to reduce the cost of basic commodities. The global economic crisis has seriously impacted Cameroon’s oil, cotton, timber, and rubber sectors, depressing exports, growth, and overall consumption.

The government has made halting progress on its privatization program. The National Water Utility Corporation (SNEC) was split into two entities. CAMWATER–to handle infrastructure–remains in government hands, and a reformed SNEC is now owned by a consortium led by Moroccan Water Utility. Plans to privatize the national air company CAMAIR and national telecom CAMTEL, however, have repeatedly faltered because of political sensitivities and concerns about corruption. CAMAIR was declared officially defunct and ceased to operate in May 2008; its replacement, CAMAIR-CO, has announced its intention to commence flights in early 2012. CAMTEL remains under the control of the Ministry of Posts and Telecommunications.

The European Union is Cameroon’s main trading bloc, accounting for 36.6% of total imports and 66.1% of exports. France is Cameroon’s main trading partner, but the United States is the leading investor in Cameroon (largely through the Chad-Cameroon pipeline and energy provider AES Sonel). According to press reports, China recently became the number one importer of

Cameroonian exports, especially unprocessed timber.

The map of Cameroon

Cameroon Geography

The climate of Cameroon is mainly tropical along the coast but it is hot in the north. The land of the country is diverse, starting form the coastal plain to mountains, plateau to plains. Volcanic activity from Lake Nyos and Lake Monoun volcanoes often take place.

The natural resources of this country are iron ore, timber, bauxite, hydropower and petroleum. The agricultural products of Cameroon are coffee, bananas, cocoa, cotton, oilseed, grains, livestock, rubber and root starches. Geography of Cameroon reveals that deforestation, poaching, overfishing, overgrazing are becoming environmental issues currently.

In Cameroon the southern part has got two dry seasons from November to March and June to August. The climate of the northern part is comparatively comfortable. The temperature varies from 23 degree to 26 degree C. This central plateau receives 150 cm to 60 cm rainfall a year. The dry season of this region continues from October to March.

Tourism in Cameroon

Tourism in Cameroon is a growing but relatively minor industry. Since the 1970s, the government of Cameroon has cultivated the industry by creating a ministry of tourism, encouraging investment by airlines, hotels, and travel agencies. Many hotels, restaurants and guesthouses have grown over the years to offer good accommodation facilities to the tourists, as such more cameroonians are being employed.

”All of Africa in a single Country”. This is a slogan of inspiration for all those who visit Cameroon and especially for expserts in Cameroon’s Ministry of Tourism. This country offers all major characteristics that can be found in other countries in Africa: a highly diverse cultural background found in more than 200 ethnic groups, an exceptional geological, ecological and botanic potential, wildlife in its natural form and varied climatic conditions. This is the main reason why tourism is ranked 10th top priority of the President and his collaborators. The objective is to make Cameroon a leading tourist destination. The number of tourists coming to Cameroon increased from 200 000 in 2001 to about 300 000 in 2003 and this figure has steadily increased over the years. The objective in 2003 was to attain 500 000 visitors.

Cameroon has more than 200 ethnic groups with over 233 languages spoken and a diversity of cultural activities. There are also ecotourist potentials that can be developed from North to south and from East to West thanks to the highly contrasting landscape. Mountaineering and tourism on mountains can also be practiced on the mountain ranges that are found all over the country. Safari

can also be practiced by visiting the multitude of National parks which contain a diversity of mammals, birds and other beasts. Henceforth a safari could be a visit to Waza to watch animals, then back to the Northern parks like that of Bouba Ndjidah, or Korup in the south and the Dja national patrimony to admire the riches of nature.

The some what median position of Cameroon in Africa makes it really summarize a good number of characteristics of the continent, causing some people refer to it as ‘Africa in miniature’. From the green dense south dominated by the Equatorial forest, there is a gradual change towards a low green savannah and steppe towards the north. The Western section of the country is dominated by a high relief, also dominated by savannah meanwhile the littoral section of the country has an extensive coastline marked by grayish yellow fine sands. There are also interesting aspects of the landscape marked by attractive sites, traditions and people. All these have led to different types of tourism which are practiced through out the year depending on the seasons.

Cameroon has a good site for sea and beach loving visitors, with about 400 km of the Atlantic coast stretching along part of the country. Kribi and Limbe towns are the highest points of attraction for tourism on the coast. From these coasts, tourists can also carry out inland tourism to other destinations. In Kribi, there is an excellent beach of white sand extending over a large area with coconut trees from time to time appearing on the scenery. The contact between the Ocean and the sea is also an extraordinary site to see. Another wonder of Kribi is found in the south where a number of cascades of about 30 m high have given rise to waterfalls, the most spectacular being the Lobe fall which issues out directly into the Atlantic Ocean. A little bit above this area are fishing villages; Ebounja and Ebodje in which the activity is believed to be carried out miraculously. From Lobe, further visits on boats and canoes will take you to the discovery of the Pygmies of the equatorial Forest.

The Limbe region is close to Douala and has a splendid site marked by the mount Cameroon which dominates the Atlantic region of Cameroon. The road linking the coast to Douala passes along magnificient plantations of rubber, palms and bananas. The geology of the coastal area is generally characterized by a large expanse of grey sand. Also thanks to the geographic situation Cameroon, there is a high diversity of most fauna and flora species found in Africa, with some that can only be found in Cameroon. There are presently nine national parks serving as a safe haven for wildlife in its natural state. This are areas of safari in which visitors can observe, take photos and feel the presence of animals in nature. The Waza National Park is the most popular in Cameroon and one of the most spectacular in francophone black Africa. It is located in the Far North Region and is a

paradise for lions and numerous mammals like giraffes, elephants, cheetahs, leopards etc as well as a great colony of diverse bird species.

The Bouba Ndjidah National park is a territory for rhinoceros. There are equally lions, elephants, buffaloes amongst others found here. The Benue National Park is at the heart of the northern region and it is a region with the largest antelopes, hippopotamus, hyenas, panthers, buffaloes etc. The Faro National park has a large number of animals amongst which are: buffaloes, rhinoceros, elephants, giraffes etc. The Kalamaloue National Park has elephants, crocodiles and a multitude of birds. The Mozogo Gokoro National park is of high botanical interest, and therefore a good site for research. The Korup national park located in the southern part of the country and has one of the oldest and most beautiful tropical forests in the world. Besides National parks, Cameroon also has a good number of reserves and sanctuaries such as that of Dja and Campo which are great gorilla sanctuaries.

Cameroon is also endowed with a rich cultural diversity manifested by a rich and diverse folklore, arts, habitats and ways of life. Every region has a particular folklore and music. In the south there is the Bafia dance, Bekutsi, assiko and others that are very much loved by poets and visitors to the region. In the West, there is the Bamaleke dance, dominated by masked people dancing in very attractive and picturesque costumes. The north is a whole country of fantasia, marked by decorated horsemen in painted costumes, carrying and blowing long trumpets.

Handicrafts and arts are made through out the country but the West and Northern parts of the country are leaders in the sector. Bafoussam, Foumban and Bamenda are towns that are noted for their masks, decorated costumes, chairs created in the form of thrones, pipes, sculptures and statues. In Maroua, there is an attractive multicolored market of decorated table cloths, locally tanned leather sleepers, bags and wallets of crocodile, snake or iguana skins, bracelets, hand-made carpets and decorative objects in general. There is also a rich historical patrimony in this region marked by monuments and antiquities as well as very ancient traditional palaces.

Cameroon also has abundant potentials for ecotourism; four sites can be visited in this respect like: the Dja reserve, the Korup National Park, the Limbe botanical garden and the Ebodje village. The Limbe botanical garden was created in 1892 by a German horticulturalist in a bid to cultivate certain crops which were not adapted to the climate of Cameroon. Limbe is situated in the South West, beside the Atlantic Ocean. Several small tracks were created in this garden to facilitate easy access by visitors who come there to admire the natural wonders and biodiversity of the site. A

jungle village was created at the centre of the garden for cultural manifestations. It is also a centre for international research on biodiversity. Ebodje is a fishing village also located at the borders of the Atlantic Ocean some 50 km from Kribi. Its beautiful beaches are a good site for lovers who can take on excursions in boats organized by fishermen. Ebodje is also a regional site for the protection of marine turtles. The Dja reserve is a world Heritage site declared y UNESCO since 1987. It is located in the south and has the richest natural fauna and flora biodiversity. It has over 1500 animal species amongst which are elephants, gorillas and chimpanzees, more than 107 mammals and a large biodiversity of birds estimated at over 320 bird species. The Korup National park falls amongst one of the oldest Tropical rainforests in the world. Fauna riches in this park can be explained by the fact that this area was not totally cleared off during the last ice age. Its fauna is comprised of more than 400 bird species, 140 fish species, numerous mammals and primates. More than 400 flora species have been identified in this area, with numerous medicinal plants. In terms of ecotourism, the presence of 250 fossilized dinosaur footprints at Manangia (Mayo Rey) are also be an attraction, not forgetting the mount Cameroon with its impressive height of 4070m. It is an active volcano, having a number of small rivers crisscrossing its slopes, some falling as rapids or waterfalls. To the north, the Mount Mandara and the sunny landscapes of the Kapsiki present beautiful sceneries. This area is inhabited by isolated human groups of people who are animists and live totally preserved from the influence of modern civilizations. An example is the Koma people on the Mount Atlantika. Within the confines of the boundary from the South west coasts of the Atlantic towards the interior, there is a vast expanse of forest vegetation that is cut across in several areas by rivers. There are equally towns and especially villages isolated in some areas; having traditions that have long existed and keep on passing from generation to generation. Some of these villages are good camping sites. The north has distinct vegetation from the south; there is a visible change from dense forests in the south to a savannah landscape in the north. This begins with a vast expanse of lowland prairies on the Adamawa plateau (grazing zone) towards the north between Maroua and Kousseri on immense dry plains which tend to be dominated by a Sahel steppe vegetation.

Culturally, annual traditional festivals are often organized in different areas of the country; these are opportunities of seeing different traditional dances and costumes. Examples are: the ‘Ngondo’ of the coastal people, funerals of the Western people, the ‘Ngoun’ of the Bamoun People which has become very popular and the Nyem-Nyem festival in the Adamawa. Big towns like Yaoundé and Douala with their immense infrastructure of hotels, banks, conference halls and hotels are favorable sites for international conferences and business.

There are also several possibilities of carrying out leisure activities like golf clubs, night clubs, bars,

theatre halls and swimming pools. There are more than 50 travel agencies that are specialized in organizing tours and taking tourists to different locations; ensuring their security, nice stay and safe return.

Cameroon also has three international airports that regularly serve international flights. There are equally internal flights to the nine secondary airports found in different locations. There is equally a good road network that links the major towns and provincial capitals as well as principal tourist sites in the country. A railway line runs from the south to the north, moving from Douala to Yaounde and finally to Ngaoundere. Cameroon is an ideal tourist destination in Africa and has a good record of security. The population is very welcoming to strangers and has much to offer in terms of culture, arts and behaviors. A visit to Cameroon could be equated to visiting the whole African Continent in summary. It is therefore not wrong to refer to this country as ‘Africa in miniature’.

Pic 1: Tourist climbing mt, Cameroon South West Region

Pic 2: elephants in Waza Park in the Far North Region

Pic 3: Palace of the Sultan of the Foumban people in the Western Region

Foumban or Fumban is a city in Cameroon, lying north east of Bafoussam. It has a population of 83,522 (at the 2005 Census). It is a major town for the Bamoun people and is home to a museum of traditional arts and culture. There is also a market and a craft centre, while Foumban Royal Palace contains a museum with information on Ibrahim Njoya who invented a new religion and the Shumom alphabet.

Pic 4: A Bamun artisan in Foumban

Though touristy, Foumban is one of Cameroon’s major attractions and an important centre of traditional African art. Its jewel is the Palais Royal, seat of power for the Bamoun people. The ruler of the Bamoun is known as the sultan, and the Bamoun can trace the lineage of their sultan back to 1394.

The palace, completed in 1917, resembles a medieval chateau. It houses the Sultan’s Museum, which contains a multitude of royal gowns, arms, musical instruments, statues, jewellery, masks and colourful bead-covered thrones carved in the shapes of the men who sat on them.

A few hundred metres south of the palace is the Musée des Arts et des Traditions Bamoun. This extensive collection has exhibits on Bamoun history and art, including cooking implements, musical instruments, pipes, statues, masks, gongs and an ornately carved xylophone. The road that connects the two museums is the Rue des Artisans, home to sculptors, basket makers, weavers and embroiderers, and one of the best places in Central Africa to buy wood carvings. The table below show the number of tourists arrival in cameroon since 2000.

YEAR

NUMBER OF TOURISTS ARRIVALS

2000

277000

2001

221000

2002

226000

2003

300000

2004

190000

2005

176000

2006

/

2007

/

2008

/

2009

/

2010

572.73

Table 1: Number of tourists arrivals in Cameroon per year since 2000

(source: African statistical year book, 2009).

THE ECONOMIC IMPORTANCE OF TOURISM IN CAMEROON

The economic impact of the tourism industry is usually assessed at the macroconomic level and can be measured in several different ways. While tourism generates a significant amount of foreign exchange earnings that also contribute to the economic growth of developed countries, such ingredient of growth has not been effectively harnessed in Africa. According to the World Tourism Organization (WTO, 2005) estimates, 766 million tourists who traveled world-wide in 2004 generated about $626 billion (excluding transport). During the same year, Africa received nearly 5% of the global arrivals (or 33 million tourists), an increase over the 2000 level (28.2 million) of 18% (Dieke, 2004). Similar increases in receipts were also registered, as reflected by the rise in the region‟s market share increase from 4.1% in 2000 to 4.5% in 2005.

The contribution of tourism to economic growth and development is reflected in the form of exports since it represents 40 percent of all exports of services, making it one of the largest categories of international trade (UNWTO, 2006). In 20005, the tourism sector accounted for 3 % to 10% of the GDP of developing countries (UNWTO, 2005). Consequently, it is not surprising to imagine that tourism can be a viable export-oriented economic growth strategy for bringing jobs and development to the people and help in the reduction of abject poverty.

Despite its increasing importance in African economies, however, tourism has attracted relatively little attention in the empirical literature on economic development. Studies examining cross-country rates of growth and development have largely focused on the contributions of exports from the agricultural and manufacturing sectors, rather than those of the service industry. Even those that explicitly examine the tourism sector in developing nations are primarily concerned with estimating and forecasting tourism demand and income generation via the multiplier process (Sinclair, 1999; Bezmen, 2006).

In a recent study of the economic growth performance of Greece, Dritsakis (2004) shows that tourism has a long-run economic growth effect. Using Spain‟s economic data, Balaguer and Cantavella-Jorda (2002) confirm the validity of tourism-led growth hypothesis for long-run economic performance. Oh (2005) for Korea, Tosun (1999), and Guduz and Hatemi (2005) for Turkey have also found empirical support for the tourism-led growth hypothesis. Similarly, employing the convergence approach based on Barro and Sala-i-Martin (1992a) type analysis, Proenca and Soukiazis (2005) examine the impact of tourism on the per capita income growth of Portuguese regions and draw the conclusion that tourism can be considered as an alternative solution for enhancing regional growth in Portugal, if the supply characteristics of this sector are improved. While Cunado and Garcia (2006) also find some evidence of conditional convergence toward the African regional average (for Benin, Cameroon, Cape Verde, Djibouti, Egypt, Ghana, Kenya, Mali, Uganda, and Zimbabwe) and the U.S. (for Cape Verde, Egypt, Mauritius, Seychelles, and Tunisia), the coverage given to the contribution of tourism has been scant. Comparing the relative growth performance of 14 “tourism countries” within a sample of 143 countries, Brau, Lanza, and Pigliaru (2003) document that tourism countries grow faster than all the other sub-groups (OECD, Oil Exporting, LDC, Small). Many developing countries have thus started to consider tourism as an important and integral part of their economic growth and development strategies as it serves as a source of scarce financial resources, job creation, foreign exchange earnings, and technical assistance (Sinclair, 1998; Dieke, 2004).

The spending of international tourists positively impacts the economic growth of African countries. a 10 percent increase in the spending of international tourists leads to a 0.4 percent 13 increase in

the GDP per capita income. According to the World Tourism Organization (WTO), Sub-Saharan Africa offers a considerable potential, not only for seaside tourism, but also for environmental and ecotourism, cultural tourism, sports tourism, and discovery tourism. However, this potential remains largely untapped.

In economic impact of Tourism, Daniel J. Stynes gives an adequate illilustration of how tourism impacts an economy. He explains as follows: A simple tourism impact scenario illustrates. Let’s say a region attracts an additional 100 tourists, each spending $100 per day. That’s $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 labor 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. The study might use a sales multiplier of 2.0 to indicate that each dollar of direct sales generates another dollar in secondary sales in this 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 est