Read the case study below, and answer all the questions that follow in about 2-3 page question. (5 x 10 marks = 50 marks)

Sonbaai is a small town on the East Coast of South Africa, with a population of 2000 people. There is very little employment in the town, except for a fish processing factory, which employs 60 people permanently, and another 200 on a seasonal basis. Most families depend, either directly or indirectly, on the fish processing factory for income. However, in recent years fish catches have been dwindling, and the factory is in danger of closing down.

The soils in the area are particularly fertile, and good crops of maize, potatoes, cabbages, and other fruit and vegetables are produced on small plots attached to the houses. Thus subsistence farming is thriving, but there is no commercial farming. The men have traditionally spent their days fishing, mostly for subsistence, while the women take care of the fruit and vegetable plots. There is a small weekly village market, where surplus fish, fruit and vegetables are sold to the local population.

The women do excellent beadwork and other crafts, including clay pots. There are good beaches and beautiful scenery. Summers are generally warm and sunny, while winters tend to be cold and rainy.

The town is well connected to surrounding villages by a network of footpaths. While these villages also produce good beadwork and other crafts, as in Sonbaai there is very little real employment. There are no hotels or other accommodation establishments in Sunny Bay, nor in the surrounding villages, and consequently the town receives very few visitors, almost none of whom stay overnight. The road linking Sonbaai to the N1 between Cape Town and Durban is not tarred and in poor condition.

In order to create employment and enhance economic development in the town, and in the region as a whole, the Sonbaai Town Council has decided to research its tourism potential in order to develop a tourism industry. An investor will be sought to build a beach resort hotel, with a casino, in order to attract foreign and domestic tourists. However, before making a final decision the Town Council needs to assess the viability of the proposed project, and consider both the positive and negative aspects. The Town Council does not have any experience in tourism development, and so they have appointed you as a consultant to advise them.

Question 5

One of the main reasons the Town Council wants develop a tourism industry in Sonbaai is to create employment. Discuss the advantages versus the disadvantages, of the types of employment that will most likely be created. (10)

Question 6

Explain the concepts of opportunity costs and displacement costs, and give your opinion as to whether and to what extent they might occur if money is spent on developing a tourism industry in Sonbaai. (10)

Question 7

Explain the concepts of opportunity costs and displacement costs, and give your opinion as to whether and to what extent they might occur if money is spent on developing a tourism industry in Sonbaai. (10)

Question 8

Explain the concept of leakage, how it may occur if the proposed development goes ahead in Sonbaai, and how it may be prevented, or at least reduced. (10)

Question 9

Do you think that building a resort hotel with a casino is the best option for Sonbaai? Discuss the advantages of this type of development, versus the disadvantages, and describe the type of development that would be best for Sonbaai. (10)