Many SIDS attempt to develop export markets in merchandise, but these tend to be unsuccessful or not as successful as these countries would wish. On the other hand the natural attractions (comprising the climate) of many small islands frequently gives them a competitive edge in tourism activities. For this reason, many governments of SIDS give tourism top priority, and attempt to maximise their island’s tourism potential by further developing the industry through promotion campaigns, building of hotels and other tourist facilities, and enhancing their air and sea links with other countries.
a) Discuss critically the economic impacts derived from tourism in SIDS, taking into consideration that SIDS are characterised as being “vulnerable”.
b) As a destination manager, how would you maximise the positive economic impacts of tourism in Mauritius? Give suitable instances to support your answer.
Illustrate what do you understand by tourism demand and discuss how far tourists are able to make an optimal choice, while considering the dissimilar determinants of tourism demand. Support your answer with suitable instances and diagrams.
One of the factors of the Structure Conduct Performance (SCP) paradigm is economic integration.
a) Describe briefly the SCP paradigm and discuss how far tourists might respond to competition from domestic or foreign rivals by means of dissimilar kinds of economic integration. Use relevant instances to support your answer.
b) Assess the different features of monopolistic competition, while illustrating its equilibrium levels of production in both the short and long runs. Give a relevant ex of a tourism firm under monopolistic competition in Mauritius and justify your selection.