The economic environment is associated with factors that affect consumer buying power and spending patterns, financial and job related issues and most importantly economic development (Kotler, P. Brown, L. Adam, S. Burton, S. and Armstrong, G, 2007). This definition help structure the analysis of how South Bank incorporates the recognised principles of responsible tourism from an economic perspective. When investigating South Bank it was decided that it was necessary to identify both the positive and negative economic issues. By doing this, an examination of the extent of which South Bank addresses responsible tourism criteria can be undertaken and furthermore relevant recommendations can be made in order to address any short comings.
Positive Impacts:
- South Bank is one of Brisbane’s most visited attractions and a key economic driver for the State (Brisbane City Council, 2009; South Bank Corporation, 2009).
- The existence of local infrastructure has and continues to contribute toward the local economy in the form of job creation and general economic stimulation. Some examples of infrastructure which benefit South Bank include the Brisbane’s Convention and Exhibition Centre, Queensland Performing Arts Centre, Queensland Art Gallery as well as all the local businesses (Brisbane City Council, 2009).
- Activities available at South Bank also provide jobs for adventure and leisure operators, such as, being a lifesaver at ‘Streets Beach’, the man made swimming lagoon. Other job opportunities include the jobs created by South Bank’s economic attractions and activities e.g. The Big Wheel of South Bank, which shall be discussed further on (Brisbane City Council, 2009).
- Tourism expenditures in South Bank stimulate the investment necessary to finance growth in other economic sectors. In this way a larger range of businesses and industries could profit.
- Tourism can contribute to government revenue:
o Indirect contributions --> derive from taxes on services and goods supplied to tourists e.g. taxes on restaurants.
- Another positive initiative by the South Bank Corporation includes the ‘South Bank Markets’. This type of organised activity not only encourages indirect economic stimulation for local shops and restaurants but it also encourages the fostering of local Brisbane talent to showcase their products. This is an important socio-cultural impact that is tied closely with this activity.
Negative Impacts:
However, as mentioned along with the positive impacts, negative impacts were also identified.
- Certain shops, such as Great Aussie Sweet Co. the sweet shop, Brumby’s Go and Kapsali’s restaurant were all locally owned and employed mostly local staff. However the Scenic World Souvenir shop, advertised as Australian regarding it's operation and the goods sold, actually stocked souvenirs predominantly made in Asia, showing false marketing and the leakage effect.
- A recent addition to South Banks attractions includes ‘The Big Wheel’, a sixty metre high Ferris wheel, consisting of forty two gondolas which are able to hold three hundred and thirty six people (Giles, D. 2008; Queensland Government, 2008). While this attraction encourages visitor expenditure in the area, an important issue unknown to many is that The Big Wheel is in fact owned by World Tourist Attractions, a British company (World Tourist Attractions, 2009). This has been identified as a major negative economic impact in the form of the leakage effect (Hohl, A. E. Tisdell, Clem A, 2000). This means that a percentage of the income generated by the apparent ‘Brisbane icon’, leaks out of both Brisbane and Australia. Therefore instead of this money being allocated to the local community or dedicated to the further enhancement of South Bank, it is sent overseas. From our observation this attraction obviously wasn’t as successful as contemplated due to its lack of passengers and the employees looking bored. This could be due to the high use fee of fifteen (15) dollars for an adult and ten (10) dollars for a child aged 3 to 12 yrs of age per ride or the fact that it isn’t really that exciting. Obviously this form of tourism within the destination can be deemed irresponsible economic practice as either the prices are too high for both locals and tourists or due to the lack of advertising.
Conclusion of Economic Impacts:
As responsible tourism requires a destination to have balanced development, South Bank embodies this economically through being both economically self sufficient and balanced as a small to medium sized residential and business district. However it is vital to address the negative issues mentioned, such as monitoring ownership of local businesses by locals and certify that all facilities and activities truly contribute to Queensland’s economy in a positive manner.
