5. The need to estimate social cost
The current literature seems to suggest that the discount rate in international tourism development has neither been appropriately accounted for because of the social cost factor, nor do they provide suitable concepts for calculating the non monetary aspects of tourism development. A number of studies in the environmental literature have addressed this issue (for example,Dixon and Hufschmidt,1986; Dixon and Sherman, 1990; Dixon et al., 1988; Hufschmidt et al., 1983). However, although similar studies have been conducted in the field of tourism,few have suggested ways to quantify costs.For example :Lindbergetal.,(1997)suggested the contingent-valuation (CV)method as at echnique for measuring the economic value of selected actual social impacts associated with tourism; Dwyer et al., (1997) have measured the yield from foreign tourism by going beyond visitor expenditure. They propose taking into account a wide range of economic,environmental and social costs of tourism development; Sinclair (1998) has suggested both a single and a system of equation models for estimating tourism’s costs. Since one of the basic facts about international tourism is thatitdealswithpopulationsofdevelopingcountrieswhofacelargegroupsoftourists (mass tourism),the objective of asocial cost estimation is to guide the decision makers in the choice of capital projects and expenditures which will maximize the gains to the citizens. Economic theory suggests that resources are limited. Therefore, undertaking of a public investment will divert resources from an alternative use — perhaps another public investment, or an investment in the private sector. In other words, there is an opportunity cost to carrying out the tourism project. Thus, tourism planners in developing countries should be interested in the benefits to be derived from the expenditure on a tourism project compared to the benefits that would be obtained if thecapitalhadbeenusedelsewhere.Itfollowsthereforethatthereshouldbearanking system which should reflect the difference between benefits that would have been obtained from a given project, say a resort development, and the benefits that would be obtained from the project which is foregone, say an irrigation project. Thus, tourism planners in developing countries must come to terms with finding ways to measure (a) the physical benefits and costs and (b) societal costs, once the physical costs are found. Furthermore, if societal costs are estimated and included in financial cost/benefit decriminalization,the discount factor might readjusted in an upward manner which might reduce the net present values of the expected cash flows. Finally, new developments always take place in a geographical setting. They draw upon resources and people from other locations. These actions affect not only the development location itself, but also others. As May (1991) suggests, environmental impact as assessments not taken sufficient notice of the wider implications of development. Thus there is the need to provide appropriate information for specialists and
D.O. Brown, F.A. Kwansa/Hospitality Management 18 (1999) 31—43 33
non-specialists, so that decision makers are made aware of potential conditions that may stand in the way of the social welfare of the citizens.
5. ต้องประเมินต้นทุนทางสังคมThe current literature seems to suggest that the discount rate in international tourism development has neither been appropriately accounted for because of the social cost factor, nor do they provide suitable concepts for calculating the non monetary aspects of tourism development. A number of studies in the environmental literature have addressed this issue (for example,Dixon and Hufschmidt,1986; Dixon and Sherman, 1990; Dixon et al., 1988; Hufschmidt et al., 1983). However, although similar studies have been conducted in the field of tourism,few have suggested ways to quantify costs.For example :Lindbergetal.,(1997)suggested the contingent-valuation (CV)method as at echnique for measuring the economic value of selected actual social impacts associated with tourism; Dwyer et al., (1997) have measured the yield from foreign tourism by going beyond visitor expenditure. They propose taking into account a wide range of economic,environmental and social costs of tourism development; Sinclair (1998) has suggested both a single and a system of equation models for estimating tourism’s costs. Since one of the basic facts about international tourism is thatitdealswithpopulationsofdevelopingcountrieswhofacelargegroupsoftourists (mass tourism),the objective of asocial cost estimation is to guide the decision makers in the choice of capital projects and expenditures which will maximize the gains to the citizens. Economic theory suggests that resources are limited. Therefore, undertaking of a public investment will divert resources from an alternative use — perhaps another public investment, or an investment in the private sector. In other words, there is an opportunity cost to carrying out the tourism project. Thus, tourism planners in developing countries should be interested in the benefits to be derived from the expenditure on a tourism project compared to the benefits that would be obtained if thecapitalhadbeenusedelsewhere.Itfollowsthereforethatthereshouldbearanking system which should reflect the difference between benefits that would have been obtained from a given project, say a resort development, and the benefits that would be obtained from the project which is foregone, say an irrigation project. Thus, tourism planners in developing countries must come to terms with finding ways to measure (a) the physical benefits and costs and (b) societal costs, once the physical costs are found. Furthermore, if societal costs are estimated and included in financial cost/benefit decriminalization,the discount factor might readjusted in an upward manner which might reduce the net present values of the expected cash flows. Finally, new developments always take place in a geographical setting. They draw upon resources and people from other locations. These actions affect not only the development location itself, but also others. As May (1991) suggests, environmental impact as assessments not taken sufficient notice of the wider implications of development. Thus there is the need to provide appropriate information for specialists andD.O. น้ำตาล บริหารจัดการ F.A. Kwansa/โรงแรม 18 (1999) 31 – 43 33ไม่ใช่ผู้เชี่ยวชาญ ดังนั้นที่ตัดสินใจชงได้ทราบเงื่อนไขศักยภาพที่โดดเด่นในทางสังคมของประชาชน
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