The impacts of tourism on a destination area are one of the most significant elements of the tourism process. Negative impacts of tourism affecting a destination like Christchurch, which depends mainly on cultural and historical attractions, may destroy the very environment that attracts tourists to the city in the first place. The economic impacts of tourism are almost entirely positive, Lincoln University research reported approximately 11,000 persons (Full-time Equivalent - FTE), on average over the year 2002, were employed directly in tourism in Christchurch.
The major economic impact of tourism is the impact on employment. Lincoln University research shows every job in tourism leads, on average, to a further 0.46 other jobs elsewhere in Christchurch. Table 16 shows employment in industries servicing tourism, illustrating year round Full-Time Equivalent (FTE) employment. From this data researchers conclude that up to approximately 11,000 full-time equivalent jobs may be generated by tourism in Christchurch.
The other major positive economic impact is tourist spending. Total direct spending by tourists in Christchurch was estimated to be $1,103 million in the year 2002.
The negative economic impacts include the costs and demands tourism development imposes on services such as sewage treatment, resulting in higher local council rates (property taxes).
Table 16. Employment in industries servicing tourism
| Industries |
Employment (FTEs) |
| Accommodation |
2,392 |
| Transport |
1,007 |
| Restaurants and Cafes |
4,720 |
| Activities |
730 |
| Petrol |
48 |
| Retail |
1,484 |
| Miscellaneous |
591 |
| Total |
10,972 |
Table 17. Employment by sector (%) 1991-2001
| Sector |
1991 |
2001 |
| Agriculture |
1.8 |
1.4 |
| Forestry |
0.1 |
0.1 |
| Fishing and Hunting |
0.1 |
0.1 |
| Mining |
0.0 |
0.1 |
| Food Manufacture |
3.6 |
2.7 |
| Wood and Paper Products |
2.3 |
1.1 |
| All Other Manufacturing |
14.2 |
12.9 |
| Electricity, Gas and Water |
0.3 |
0.3 |
| Construction |
6.2 |
6.2 |
| Wholesale and Retail Trade |
18.4 |
19.1 |
| Restaurants |
2.7 |
3.4 |
| Accommodation |
1.6 |
1.7 |
| Air Transport |
1.3 |
2.6 |
| Transport |
4.3 |
2.3 |
| Communications |
2.4 |
1.6 |
| Business and Professional Services |
12.5 |
14.6 |
| Recreation and Cultural Services |
1.9 |
2.3 |
| Health and Education |
14.4 |
13.7 |
| All Other Services |
12.1 |
9.5 |
| Unidentified |
0.0 |
4.3 |
| Total |
100.0 |
100.0 |
References
Butcher, G., Fairweather, J.R. and Simmons, D.G. (2003). The Economic Impact of Tourism on Christchurch City and Akaroa Township. Tourism Recreation Research and Education Centre (TRREC), Lincoln University, Report No. 37.
Learning activities
- Study Table 17 and list the employment categories that have increased since 1991.
- From Table 17, list all the employment categories that have declined since 1991.
- Graph the Figures for Restaurants, Accommodation and Recreation and Cultural Services.
- Suggest reasons why the category Air Transport doubled over the ten year period (1991 - 2001).