Social Cost Benefit Analysis
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INTRODUCTION
What is Social Cost Benefit Analysis?
Cost-benefit analysis is a process for evaluating the merits of a particular project or course of action in a systematic and rigorous way. Social cost-benefit analysis refers to cases where the project has a broad impact across society {and, as such, is usually carried out by the government. While the cost and benefits may relate to goods and services that have a simple and transparent measure in a convenient unit (e.g. their price in money), this is frequently not so, especially in the social case. It should therefore be emphasized that the costs and benefits considered by (social) `cost-benefit' analysis are not limited to easily quantifiable changes in material goods, but should be construed in their widest sense, measuring changes in individual `utility' and total `social welfare' (though economists frequently ex- -press those measures in money-metric terms). In its essence cost-benefit analysis is extremely, indeed trivially, simple: evaluate costs and benefits for the project under consideration and proceed with it if, and only if, benefits match or exceed the costs.
Information Systems Advancing Accounting
There are a variety of factors:
• Benefits and costs may accrue to different sets of people. If this is so we need someway to aggregate and compare different benefits and costs across people. • Benefits and costs may occur at different points in time. In this case we need to compare the value of outcomes at different points in time. • Benefits and costs may relate to different types of goods and it may be difficult to compare their relative values. This usually occurs when one of the goods does not have an obvious and agreed upon price. For example, we may be spending standard capital goods today in order to obtain environmental benefits tomorrow. • Benefits and costs may be uncertain.
• Benefits and costs may be difficult to calculate and, as a result, there may be widely differing views about their sizes. One might think this could be subsumed under uncertainty, however the two points are rather different: two people agreeing that an outcome follows some probability distribution is different from them arguing about its mean and variance.
Usually, in real-world cases the dominant issue is usually the last one: the basic job of calculating estimates for the project's costs and benefits. This especially true in the `social' case where the projects under consideration may involve costs and benefits that very difficult to quantify { what is the benefit of the national security derived from military spending, how large are the benefits from education, etc. Necessarily this quantification only makes sense on a case-by-case basis. Here we are concerned with general principles and we therefore focus only on the preceding four items and look at how they can be incorporated into the analysis in a general way.
INFS 2005 Accounting information system
(Source: Cost Benefit Analysis in Nutshell by RUFUS POLLOCK, EMMANUEL COLLEGE,
UNIVERSITY OF CAMBRIDGE)
TOURISM
“Tourism” is the totality of the relationship and phenomenon arising from travel and stay strangers. The stay does not imply the establishment of a residence and connected with remunerated activity.
IMPORTANCE OF TOURISM
In creating better appreciation of other people’s ways of the life and institution, tourism may create goodwill for a country. Each year many tourist travel to participate in particular events ranging from congress to corona tings; their visits also afford opportunities to improve co-operation as well as project the correct image of a country to the out side world.
Politics, society, education, and culture thus often provide motivations for tourist to travel away from home, they influence tourism and tourism in turn has an influence on them. These factors also help explain participation in tourism generally as we have seen. An evaluation of the significance of tourism may be extending to such aspects as organized sport and religion.
The main economic significance of tourism-that money earned in places of normal residence is spent in places visited-is common to all tourism, whether domestic or international. Each year vast sums are transferred from the economy from whom it is earned, to economies in receiving areas where they provide a source of income, a means of livelihood, and amenities for the resident population.
The outstanding economic effect of tourism lies in the purchasing to spend at a much bigger rate than when they are at home. The flow of money generated by tourist expenditure finds its way into the overall economy of the tourist destination, as the money is turned over and re-spent. But international tourist expenditure introduces an additional aspect of economic significance, as countries, which have separate political and economic entities, have to balance their transactions with the rest of the world.
International tourism, therefore, enters into the balance of payments accounts of individual countries and ease of major significance in international trade. For countries, which generate tourist traffic, it represents an import, in much the same way, as the import of merchandise. Globally tourism countries are a major item in world trade, which has shown a much faster rate of growth in recent years than trade in goods. Tourism is evaluated mainly in terms of its economic significance, but reference is made also to its role as source of other, less quantifiable, benefits and to some of the problems which tourism presents to individual destinations.
When traveling away from home, tourists come in contact with places they visit and with their inhabitance, and so social exchanges take place. Their presence and their social background affect the social structure and mode of life at the destination. Tourists are in turn affected by the experiences and often carry back home with them new habits and new outlook on life.
Tourism has an educational significance. In the wider sense it has the altogether beneficial effect which contact between people of different races and nationalities can bring about. In a narrow sense much tourist activity takes the form of study trips and attendance at courses and conferences with specified educational aims in view. Tourism is often accompanied by cultural exchange and by cultural enrichment of those who travel as well as those at the receiving end. The cultural factors that may attract tourists to a particular destination are architecture, historical monuments and birthplaces of famous people. These are some of the places most visited by the tourists. Festivals and exhibition rely heavily to visitor traffic as their audience.
Tourism can be classified into:
a. Tourists visit places for recreational purposes. Such tourists spots are usually hill stations, beaches etc, such tourists like to get away from the daily grind of life and freshen themselves.
b. CULTURAL TOURISM:
Such type of tourist satisfies the cultural curiosity of the tourist. Such tourist spots include ancient monuments, places of historical and religious importance etc Tourism can be classified into:
a.
Tourists visit places for recreational purposes. Such tourists spots are usually hill stations, beaches etc, such tourists like to get away from the daily grind of life and freshen themselves.
b.
CULTURAL TOURISM:
Such type of tourist satisfies the cultural curiosity of the tourist. Such tourist spots include ancient monuments, places of historical and religious importance etc. [pic]
c. ADVENTURE/SPORTS:
This type of tourism is very particular with the youth. This type provides people to have adventure like diving, skiing, rafting etc.
d. HEALTH
Such type of tourism takes people to places of recovery like places with curative possibilities. E.g.: Hill-Stations, hot springs, spas etc.
e. CONVENTION/EDUCATIONAL:
Tourism such as these is meant for organizing conventions for political, cultural or academic reasons.
Tourism can also be classified on basis of region:
Domestic:
Domestic tourism is for tourists belonging to their own country and do not require any papers or documentation for travel.
International:
Such type of tourism refers top traveling to other countries other than their own and with different political and economic systems. This requires documents such as visa, passports, etc. to cross the borders.
MODERN TRENDS IN TOURISM
The tourism industry is spread over a land mass of 324 million sq.kms with a population of around million, with at the rote of about 13 million every year, with 14 major and 20 not languages and 845 dialects, each state habits, religious customs and festivals. For a foregone visitors to indo, it some how gets on his blood. Love it or not. One can never ignore India. One visit to India can never satisfy the thirst of screening visitor and when back in his/her place , desire to get back there. India is luxurious country. Some places are featureless as some spectacular, the food can be terrible as it is magnificent and the country defies imagination and cold logic. There is diversity and get unity. This is India of the Indus valley civilization; there is also Bharat, the land of Emperor Bharatha. It mixture of natural beautiful and diversity of culture attracts a lot of tourism. India is a country where tourists can enjoy the adventure of Himalayas and the beauty of the sea. They can explore the desert and jungle of Assam. Behind this terrific beauty, India has a never-ending culture, religion, temples, church and mosques. Tourism in India is presently the 3rd largest after gum and jewelers and ready-made garments.
The fettle of India tourism is not very attractive when compared to the world scenario. The annual foreign tourist arrival in India is 2 million where as the foreign exchange earnings touched Rs.70 billion. Most of the India tourism thrives on domestic tourism. Each year, 100 million domestic tourist criss-cross the borders of the states.
The government of India had put forward some strategy on order to improve this sector. Now the Indian tourism exchange industry has become the 11th largest foreign exchange earner of the world and during 1997-1998 the estimation made on the earnings of foreign exchange was Rs. 11032/- crore. Tourism budget has been increased from 100 crore to 160 crore recently and the government has also helped in their organization of visit India year 1999-2000 which boost up the industry.
The government, in collaboration with Rajasthan tourism had put forward the Palace of Wheels. It is a luxury train with 14 deluxe saloons. The train covers 8 destinations in 7 days. In February 1995, the Gujarat tourism launched a similar train called Royal Orient which is centrally air-conditioned.
Tourism industry in India shows a positive trend for the future and with the developments as well as those, which will occur in future, will without any doubt shoot up the industry. (Source: a presentation on tourism in Kerala.
http://www.scribd.com/doc/11517707/42/COST-BENEFIT-ANALYSIS)
TOURISM AND SOCIAL COST BENEFIT ANALYSIS
The Major Economic Impacts of Tourism
1. Increasing foreign exchange Earnings
2. Increasing Income
3. increasing employment
There are also some strategies adopted to increase the economic benefits from the tourism industry. A few of them are:
1. Encouraging import substitution
2. Implementing incentive programs
3. Dealing with multinational companies
SOCIO-CULTURAL IMPACTS OF TOURISM INDUSTRY
Positive Impacts
benefit analysis
Some useful links:
Busn 1002 accounting processes and systems
What is Social Cost Benefit Analysis?
Cost-benefit analysis is a process for evaluating the merits of a particular project or course of action in a systematic and rigorous way. Social cost-benefit analysis refers to cases where the project has a broad impact across society {and, as such, is usually carried out by the government. While the cost and benefits may relate to goods and services that have a simple and transparent measure in a convenient unit (e.g. their price in money), this is frequently not so, especially in the social case. It should therefore be emphasized that the costs and benefits considered by (social) `cost-benefit' analysis are not limited to easily quantifiable changes in material goods, but should be construed in their widest sense, measuring changes in individual `utility' and total `social welfare' (though economists frequently ex- -press those measures in money-metric terms). In its essence cost-benefit analysis is extremely, indeed trivially, simple: evaluate costs and benefits for the project under consideration and proceed with it if, and only if, benefits match or exceed the costs.
Information Systems Advancing Accounting
There are a variety of factors:• Benefits and costs may accrue to different sets of people. If this is so we need someway to aggregate and compare different benefits and costs across people. • Benefits and costs may occur at different points in time. In this case we need to compare the value of outcomes at different points in time. • Benefits and costs may relate to different types of goods and it may be difficult to compare their relative values. This usually occurs when one of the goods does not have an obvious and agreed upon price. For example, we may be spending standard capital goods today in order to obtain environmental benefits tomorrow. • Benefits and costs may be uncertain.
• Benefits and costs may be difficult to calculate and, as a result, there may be widely differing views about their sizes. One might think this could be subsumed under uncertainty, however the two points are rather different: two people agreeing that an outcome follows some probability distribution is different from them arguing about its mean and variance.
Usually, in real-world cases the dominant issue is usually the last one: the basic job of calculating estimates for the project's costs and benefits. This especially true in the `social' case where the projects under consideration may involve costs and benefits that very difficult to quantify { what is the benefit of the national security derived from military spending, how large are the benefits from education, etc. Necessarily this quantification only makes sense on a case-by-case basis. Here we are concerned with general principles and we therefore focus only on the preceding four items and look at how they can be incorporated into the analysis in a general way.
INFS 2005 Accounting information system
(Source: Cost Benefit Analysis in Nutshell by RUFUS POLLOCK, EMMANUEL COLLEGE,
UNIVERSITY OF CAMBRIDGE)TOURISM
“Tourism” is the totality of the relationship and phenomenon arising from travel and stay strangers. The stay does not imply the establishment of a residence and connected with remunerated activity.
IMPORTANCE OF TOURISM
In creating better appreciation of other people’s ways of the life and institution, tourism may create goodwill for a country. Each year many tourist travel to participate in particular events ranging from congress to corona tings; their visits also afford opportunities to improve co-operation as well as project the correct image of a country to the out side world.
Politics, society, education, and culture thus often provide motivations for tourist to travel away from home, they influence tourism and tourism in turn has an influence on them. These factors also help explain participation in tourism generally as we have seen. An evaluation of the significance of tourism may be extending to such aspects as organized sport and religion.
The main economic significance of tourism-that money earned in places of normal residence is spent in places visited-is common to all tourism, whether domestic or international. Each year vast sums are transferred from the economy from whom it is earned, to economies in receiving areas where they provide a source of income, a means of livelihood, and amenities for the resident population.
The outstanding economic effect of tourism lies in the purchasing to spend at a much bigger rate than when they are at home. The flow of money generated by tourist expenditure finds its way into the overall economy of the tourist destination, as the money is turned over and re-spent. But international tourist expenditure introduces an additional aspect of economic significance, as countries, which have separate political and economic entities, have to balance their transactions with the rest of the world.
International tourism, therefore, enters into the balance of payments accounts of individual countries and ease of major significance in international trade. For countries, which generate tourist traffic, it represents an import, in much the same way, as the import of merchandise. Globally tourism countries are a major item in world trade, which has shown a much faster rate of growth in recent years than trade in goods. Tourism is evaluated mainly in terms of its economic significance, but reference is made also to its role as source of other, less quantifiable, benefits and to some of the problems which tourism presents to individual destinations.
When traveling away from home, tourists come in contact with places they visit and with their inhabitance, and so social exchanges take place. Their presence and their social background affect the social structure and mode of life at the destination. Tourists are in turn affected by the experiences and often carry back home with them new habits and new outlook on life.
Tourism has an educational significance. In the wider sense it has the altogether beneficial effect which contact between people of different races and nationalities can bring about. In a narrow sense much tourist activity takes the form of study trips and attendance at courses and conferences with specified educational aims in view. Tourism is often accompanied by cultural exchange and by cultural enrichment of those who travel as well as those at the receiving end. The cultural factors that may attract tourists to a particular destination are architecture, historical monuments and birthplaces of famous people. These are some of the places most visited by the tourists. Festivals and exhibition rely heavily to visitor traffic as their audience.
Tourism can be classified into:
a. Tourists visit places for recreational purposes. Such tourists spots are usually hill stations, beaches etc, such tourists like to get away from the daily grind of life and freshen themselves.
b. CULTURAL TOURISM:
Such type of tourist satisfies the cultural curiosity of the tourist. Such tourist spots include ancient monuments, places of historical and religious importance etc Tourism can be classified into:
a.
Tourists visit places for recreational purposes. Such tourists spots are usually hill stations, beaches etc, such tourists like to get away from the daily grind of life and freshen themselves.
b.
CULTURAL TOURISM:
Such type of tourist satisfies the cultural curiosity of the tourist. Such tourist spots include ancient monuments, places of historical and religious importance etc. [pic]
c. ADVENTURE/SPORTS:
This type of tourism is very particular with the youth. This type provides people to have adventure like diving, skiing, rafting etc.
d. HEALTH
Such type of tourism takes people to places of recovery like places with curative possibilities. E.g.: Hill-Stations, hot springs, spas etc.
e. CONVENTION/EDUCATIONAL:
Tourism such as these is meant for organizing conventions for political, cultural or academic reasons.
Tourism can also be classified on basis of region:
Domestic:
Domestic tourism is for tourists belonging to their own country and do not require any papers or documentation for travel.
International:
Such type of tourism refers top traveling to other countries other than their own and with different political and economic systems. This requires documents such as visa, passports, etc. to cross the borders.
MODERN TRENDS IN TOURISM
The tourism industry is spread over a land mass of 324 million sq.kms with a population of around million, with at the rote of about 13 million every year, with 14 major and 20 not languages and 845 dialects, each state habits, religious customs and festivals. For a foregone visitors to indo, it some how gets on his blood. Love it or not. One can never ignore India. One visit to India can never satisfy the thirst of screening visitor and when back in his/her place , desire to get back there. India is luxurious country. Some places are featureless as some spectacular, the food can be terrible as it is magnificent and the country defies imagination and cold logic. There is diversity and get unity. This is India of the Indus valley civilization; there is also Bharat, the land of Emperor Bharatha. It mixture of natural beautiful and diversity of culture attracts a lot of tourism. India is a country where tourists can enjoy the adventure of Himalayas and the beauty of the sea. They can explore the desert and jungle of Assam. Behind this terrific beauty, India has a never-ending culture, religion, temples, church and mosques. Tourism in India is presently the 3rd largest after gum and jewelers and ready-made garments.
The fettle of India tourism is not very attractive when compared to the world scenario. The annual foreign tourist arrival in India is 2 million where as the foreign exchange earnings touched Rs.70 billion. Most of the India tourism thrives on domestic tourism. Each year, 100 million domestic tourist criss-cross the borders of the states.
The government of India had put forward some strategy on order to improve this sector. Now the Indian tourism exchange industry has become the 11th largest foreign exchange earner of the world and during 1997-1998 the estimation made on the earnings of foreign exchange was Rs. 11032/- crore. Tourism budget has been increased from 100 crore to 160 crore recently and the government has also helped in their organization of visit India year 1999-2000 which boost up the industry.
The government, in collaboration with Rajasthan tourism had put forward the Palace of Wheels. It is a luxury train with 14 deluxe saloons. The train covers 8 destinations in 7 days. In February 1995, the Gujarat tourism launched a similar train called Royal Orient which is centrally air-conditioned.
Tourism industry in India shows a positive trend for the future and with the developments as well as those, which will occur in future, will without any doubt shoot up the industry. (Source: a presentation on tourism in Kerala.
http://www.scribd.com/doc/11517707/42/COST-BENEFIT-ANALYSIS)
TOURISM AND SOCIAL COST BENEFIT ANALYSIS
The Major Economic Impacts of Tourism
1. Increasing foreign exchange Earnings
2. Increasing Income
3. increasing employment
There are also some strategies adopted to increase the economic benefits from the tourism industry. A few of them are:
1. Encouraging import substitution
2. Implementing incentive programs
3. Dealing with multinational companies
SOCIO-CULTURAL IMPACTS OF TOURISM INDUSTRY
Positive Impacts
benefit analysis
Some useful links:
Busn 1002 accounting processes and systems
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