Hotels and Investment Decisions
Previously, we added tourists and explored their effect on the local environment. On this final page, we add hotels.
Hotels increase attractiveness to tourists, and more tourists means more income.
If profits are channeled only into building more hotels, then tourist numbers will keep rising, and the environmental quality will keep declining.
If, instead, some of the profits are invested in the environment, then this can contribute to a more sustainable pattern.
If, at the same time, advertising is kept to a reasonable, lower level,
then tourist numbers will not overwhelm the ability of the environment to regenerate itself.
Your turn to experiment!
The graphs below show the typical pattern of unsustainable tourism. Try to turn the situation around to make it sustainable.
Experiment with decreasing the Advertising rate and the Hotel Investment Rate, and increasing the Investment in the Environment.
See what happens to the number of tourists and the environmental quality.
Sustainability means that tourists keep coming while the quality of the environment remains acceptable.