Final answer:
Tour wholesalers typically earn commissions from suppliers and hotels. While tourism can boost economic development, it also poses risks such as economic leakage and underinvestment in local community needs. Balancing these dynamics is crucial for a positive impact. Option 1 and 2 are the correct answer.
Step-by-step explanation:
Tour wholesalers play a crucial role in the travel and tourism industry by packaging and selling travel products to consumers. They typically earn commissions mainly from two sources: suppliers and hotels. Suppliers might include various service providers such as tour operators, while carriers such as airlines usually have their own pricing models and may not always offer commissions directly to wholesalers. The significant income for tour wholesalers comes from hotels where they book a large number of rooms and manage to secure a commission on each booking. It is important to note that this sector is a part of a broader economic development strategy for many regions, particularly in the Caribbean and other island economies.
However, the impact of tourism is multifaceted. On the one hand, tourism is a lucrative industry that can create jobs and stimulate local economies. On the other hand, tourism can sometimes lead to economic leakage, where the profits from tourism-related business end up leaving the local economy and benefit multinational corporations instead. This is particularly evident when the ownership of major resorts and cruise lines, as in the Caribbean, is largely by international or affluent local entities.
Moreover, the investment in tourism infrastructure can potentially divert resources away from other vital community needs, like education and healthcare. Yet, without the infrastructure to attract and accommodate tourists—such as airports and hotels—the income from tourism, which can be substantial, would not be possible. It is a delicate balance that destinations must strike to ensure that tourism serves as a positive force for economic development without undermining other aspects of societal well-being.