ABSTRACT
National economies are characterized by upswings and downswings. It is clearly important for recreation, leisure and tourism organizations to monitor their economic environment carefully. This chapter considers the variables in the economy that affect leisure and tourism organizations such as investment, exports, imports, government expenditure, taxes, benefits, consumption, disposable income, employment, borrowing and expectations. It further examines the causes and effects of changes in these variables. It peers tentatively into the future and summarizes the features of an opportunities and threats analysis. This chapter enables the reader to:
identify the key variables in the economy which affect leisure and tourism organizations
identify and utilize information sources
analyse the impact of changes in economic variables on leisure and tourism organizations
explain the interrelationship between key economic variables
understand and analyse the causes of change in the economic environment
appreciate the use of CGE modelling
understand and evaluate government economic policy and the significance of the budget
understand the global economic environment
utilize economic forecasts with due caution
conduct an opportunities and threats analysis.
