the role of tourism in natural resource management in the okavango ...

government. These transactions form further flows of income and extend the indirect
linkages of tourism well beyond the immediate core of the industry (Williams, 1998).
The aim of multiplier analysis is therefore to establish the impact generated in any
given tourist destination, for every dollar that is spent on the tourist product (Alex,
1997). The multiplier concept is summed up in its simplest form by Eadington and
Redman (1991). The "greater the amount of local/regional resource utilisation, and
the lower the proportion of imported goods that enter into local consumption and
production expenditures, the higher the multiplier" (p. 52).
The multiplier process can be divided into three levels of effect. Firstly, a direct
effect, which is the original injection of revenue into the local economy by the tourist,
for example, through the payment of a hotel bill. Secondly, an indirect effect, which
consists of a second wave of spending by the recipients of initial expenditures, in
purchasing the goods and services required by the tourists. An example of such
spending is the purchase, by the hotelier, of local goods for the hotel restaurant.
Thirdly, an induced effect, which consists of further spending by the beneficiaries of
the direct and indirect effects, on goods and services for their own consumption. An
example of such spending is the purchase of clothing by the hotel waiter (Williams,
1998).
Multipliers are usually expressed as a ratio in which the predicted increase in
income associated with a unit of currency is stated. Therefore, a multiplier of 1.35
would indicate that for every $1 spent, a further $0.35 is generated by the indirect
and induced effects. However, the scale of the multiplier will fluctuate, depending
upon the extent of development within the economy, the type of tourism and the
degree to which the local economy can supply the tourism industry from its own
resources and, hence, the extent to which the leakage effects may be minimised
(Williams, 1998).
2.8.1.2 Creation of Employment
One of the most notable direct advantages of tourism is that of public and private
employment (Mathieson and Wall, 1982). However, the number of jobs generated by
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