The Economic Impact of Ontario's Tourism on Muskoka



The Economic Impact of Ontario's Tourism on Muskoka

Muskoka lies in the heart of the Canadian Shield about two hours north of Toronto. It has been a vacation spot for all of Ontarians and some Americans alike for over 100 years. It offers lots of freshwater lakes, rivers and beautiful landscapes. Many people own or rent cottages here during late spring, summer and early fall. It offers a variety of activities and attractions during this time and offers people of all ages a place for relaxation and recreation.

Picture three small towns in Muskoka - Gravenhurst (population 10,000), Bracebridge (population 13,000) and Huntsville (population 11,000) getting two million visitors a year during its busiest months. How do the people of these towns accommodate all the visitors? How different is the economy in the summer compared with in the winter? The answer is a bit complicated. The economy is a bit complicated. The fact is though; this area thrives in the summer because of all the visitors and suffers in the winter months because of its dependence on the tourism industry. Look at the table below to see just how profound the impact was in 2003.

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In 2003, Ontario's tourism receipts reached $ 19.7 billion (visitor spending plus fares paid by Ontarians to Canadian carriers in order to travel to destinations outside the province). These receipts, which include those of Muskoka District Municipality's, generated $241,835,000 of GDP for Muskoka District Municipality, $132,822,000 in labour income and 4,408 jobs.

The Economic Impact of Ontario's Tourism Receipts on Muskoka District Municipality

|GDP | |Wages and Salaries |  |Number of Jobs | |

|(Gross Domestic Product) ($ 000) | |($ 000) | | | |

|Indirect |29,485 |Indirect |18,818 |Indirect |411 |

|Induced |48,391 |Induced |27,096 |Induced |600 |

|Total |241,834 |Total |132,822 |Total |4,408 |

Source: Ontario Ministry of Tourism and Recreation

Diversifying the Local Tourism Economy

When you read the information on Muskoka, you should have recognized a few major points about how tourism affects their economy. For example, in 2003, 4,408 jobs were created. What we don’t see in the table of statistics though, is just how many of these jobs continue throughout the whole year. Yes, some of them were full time jobs but that could mean full time hours for only five months of the year. What do these people do for income for the other seven months of the year?

Your task is to research an area other then Muskoka, locally (near your location), globally (in Canada) or internationally (outside Canada) and come up with solutions to the problem of an areas economy relying too much on tourism. In other words, how can your area diversify its economy so that jobs last longer than five months of the year. When you are choosing your location, remember that large cities do not have this problem. This could be done in a number of ways. You could be marketing ice fishing and snowmobiling at the resorts so that resort jobs could exist throughout the winter. You could also come up with another industry or place of work for these people to go during their ‘other seven months’ of the year. You are required to provide five ways in which the area can improve the economy. Remember to discuss the treatment of the landscape/area that you have researched. Also, discuss the well being of the workers in the area (employment status). Use statistics from your area to support your suggestions.

Thailand

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Thailand is a developing country that relies heavily on it’s tourism receipts which in turn make up a large percentage of their economy. What is it about this developing country that attracts so many tourists? The above pictures should give you some ideas. Thailand has some of the most beautiful beaches in the world and they are only a short plane ride away for Europeans, Australians and Japanese. Phuket, the island pictured above receives all those tourists and their money. Remember the multiplier effect? This is a prime example of an economy that is richer than other areas of Thailand because of tourism. Have a look at the table to see exactly the difference tourism receipts makes when compared to the rest of the country. Phuket is located in the Southern region of Thailand.

|Thailand’s Tourism Effects and Gross Domestic Products |

|2004 |

|Region |Hotels and Restaurants (Millions of Baht) |Gross Domestic Product (Millions of Baht) |

|Whole Kingdom (all of Thailand) |332 566 |6 615 176 |

|Northeastern |12 864 |738 356 |

|Northern |14 385 |615 945 |

|Central |3 308 |497 981 |

|Bangkok and Vicinity |233 290 |2 820 210 |

|Western |8 246 |293 245 |

|Eastern |21 181 |973 501 |

|Southern |39 262 |675 968 |

Currency Exchange Assignment

Different currencies around the world have very different values when comparing a popular hamburger for example. There is sometimes a correlation between the price of things (cost of living) and the economy of that region. When looking at Europe for example, Finland and Austria have a higher cost of living therefore it costs more to buy a burger there. A burger in Ottawa Canada costs on average $ 2.89 Canadian when we convert the Euros into Canadian dollars we come up with the following prices of burgers:

Finland $ 4.14

Austria $ 3.57

Luxembourg $ 4.43

Belgium $ 4.21

Greece $ 3.01

Portugal $ 3.20

Netherlands $ 3.57

You are an independent traveller going to a few places in Europe. You have to calculate your costs for everything that you do while you travel. This is to ensure that you stay on your daily budget (as most alternative tourists do). You will have to convert the currency where you are visiting into a Canadian amount to compare the prices in the different countries that you visit.

Use this link to get accurate currency conversions before you begin.

United Kingdom (England) - London

1. You fly into Heathrow airport and take the ‘underground’ to London. A ticket costs 2.5 pounds. How much is that in Canadian?

Example 2.5 pounds * (times) Canadian Currency 2.27 = $5.675

2. You arrive at your hotel and pay for two nights lodging. One night’s lodging costs are 40 pounds.

3. You ride a double-decker bus to see Big Ben, the Parliament Building, Buckingham Palace, and the Thames River. Bus ride costs 1 pound.

4. Most restaurants serve meals only during fixed times of lunch and dinner, so that night you eat a big dinner of beef and boiled vegetables. Dinner costs 20 pounds. You’re stuffed!

France - Paris (Euro)

1. You cross under the English Channel via the ‘Chunnel’ and arrive in Paris, where you check into your hotel for two nights. One night of accommodation costs 40 Euros.

2. Paris is full of great bakeries. You have some cake and hot chocolate which costs 6 Euros.

3. The roads are narrower than in Canada. You take a bus tour of Paris and see the Seine River, famous museums, and the Eiffel Tower. Bus tour cost 35 Euros.

4. You eat dinner at a little restaurant in Paris. You have a classic steak and french fry dinner that is the best you’ve ever eaten. Dinner costs 35 Euros.

Germany - Frankfurt (Euro)

1. You take a train from Paris to Frankfurt. On the way you see many castles. When you arrive at Frankfurt train station, you buy a soft drink. It cost 2 Euros.

2. Your hotel is at the edge of the city with woods in the backyard. You check in for two nights. One night’s lodging is 70 Euros.

3. For breakfast the next morning, you have soft-boiled eggs and Dunklebrot, a heavy black bread with jam and butter. The cost for breakfast is 8 Euros.

4. Since you are in Frankfurt, you decide to have frankfurters (sausage) for dinner. There is more food that you can possibly eat. The cost is 38 Euros.

5. You mail three letters to family and friends back home. Each stamp costs 1.6 Euros.

Switzerland - Zurich (Francs)

1. The train arrives in Zurich, and you check into the hotel for two nights. One night costs 100 francs.

2. Zurich is Switzerland’s largest city, but it still has only about 400 000 people. You can explore it on foot. You see many old buildings, churches, and parts of the city that have narrow streets built hundreds of years ago. You buy a swiss pocket knife in a small shop. The cost of the knife is 18 francs.

3. Lunch is the main meal. You order sausage and taste Switzerland’s famous cheeses. You main dish is melted cheese served with potatoes and pickles. You eat everything. The meal costs 40 francs.

Poland (Zloty)

1. You fly to Warsaw and need to buy a street map in the airport. The map cost is 8 Zlotys.

2. You take a guided walking tour of the Warsaw ghetto, seeing what life was like for the Jews in World War II. The cost is 15 Zlotys.

3. You are exhausted after your tour and flight so you find a cheap hotel on the outskirts for 50 Zlotys.

4. Your final day of your trip, you take the train to the infamous Aushwitz Concentration Camp. It costs 16 Zloyts.

Total

What is the total cost of you trip?

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