Aims of the Study * How does tourism affect the market in Philipsburg. * How does tourism affect market price in Philipsburg. * How does tourism contribute to the economy of Philipsburg. * The opportunity cost of tourism in Philipsburg.

Method of investigation

In order to obtain the necessary information needed for this study the researcher chose to use questionnaires, books and the internet. Although questionnaires can be insufficient to understand some forms of emotions and can only ask limited amount of questions. The researcher chose to use this method because you can get a large number of people’s opinions and views at once. The information obtained can also be analyzed more scientifically and objectively.
Therefore 50 questionnaires consisting of 10 questions were created and handed out. Respondents were chosen at random. The researcher stood in front of the courthouse and made his way around the area and handed out the questionnaires to every second passerby and asked to return it at once. Most of the respondents were working people with a few visitors and some youths. Secondary sources were also used such text books, the internet, and statistical reports, and government financial reports. These secondary sources were used because data already exist in form- text, charts, tables, diagrams. They are less time consuming and more in-depth analysis could be done.

Note: There is an example of the questionnaire in the appendices.
Note: There is an example of the questionnaire in the appendices.

Limitations of the research

The following limitations were faced: * Respondents did not understand some of the questions. * Some respondents did not take the questionnaires seriously. * No deadline was given so the questionnaires took time to collect.

These limitations did not effect this evaluation .The researcher overcome them by clarifying certain question to respondents that they did not understand.

Presentation and Explanation of Data

Employment Status

Employment status: | Employed | Unemployed | Youths | No. of respondents | 27 | 11 | 12 | Percentage | 54% | 22% | 24% |

Figure 1
Figure 1

Question 3. 27 of respondents, or 54%, are employed and 22% of the respondents unemployed and 24% are youths.

Income Level

Level of income: | Under $800 | $800-$1600 | $1600-$2200 | $2200+ | No. of respondents | 13 | 8 | 4 | 2 | | | | | |

Figure 2
Figure 2

Question 4. Of the 27 respondents who are employed 13 of them receive an income under $800 and only 2 earn an income of over $2200.

Country of Origin Country of origin: | Haiti | Holland | St. Maarten | United States | Jamaica | other | No. of respondents | 5 | 4 | 14 | 5 | 13 | 9 | percentages | 10% | 8% | 28% | 10% | 26% | 18% |

Figure 3
Figure 3

Question 5. Of the 50 respondents are 28 % are from St. Maarten, where as Jamaica is 26%.

Major foreign exchange earner in St. Maarten Major foreign exchange earner | Tourism | Infrastructure | Government departments | No. of respondents | 28 | 13 | 9 | percentage | 53% | 24% | 23% | Figure 4
Figure 4

Question 6. Based on the responses shown tourism is the major foreign exchange earner.

Effects of tourism on market prices Affects on market prices: | Higher Prices | Lower Prices | The same | Don’t know | No. of respondents | 37 | 2 | 5 | 6 | percentages | 74 | 4 | 10 | 12 | Figure 5
Figure 5

Question 7. 37 or 74% of the respondents answer that tourism increases the market prices.

Tourism and the market

How does tourism affect the market: | Respondents: | Lots of restaurants | 16 | Lots of stores selling mostly to tourist | 25 | Factors are set up | 6 | Don’t know | 3 |

Figure 6
Figure 6

Question 8. 50% of the respondents answered that stores in Philipburg are selling amass to tourists.

Cost of tourism

contribution of tourism: | No. of respondents | Provides Employment | 21 | Creates more business | 15 | Provides revenue | 14 | Does not contribute to the economy | 0 | | | Figure 7
Figure 7

Question 9. 42% of the respondents answer that tourism provides employment. 0% answered tourism does not contribute to the economy.

Opportunity Cost of tourism on St. Maarten

Choices | No. of respondents | Too dependent on one thing | 16 | Unavailability of space | 6 | Too much concrete | 8 | Too many businesses | 6 | Envision mental depression | 5 | Traffic congestion | 9 | other | 0 |

Figure 8
Figure 8

Question 10. Cost of tourism in Philipsburg. 32% of the respondents answered that the cost of tourism is too dependent on one thing.

Interpretation and analysis of data 50 people in the vicinity of Philipsburg were given questionnaires. There were 23 males and 27 females. Ten were from the age group 18-30 years; twenty-eight were from 31-40, nine from41-50 years and two from 51 years and over. Of the 50 respondents, 27 of them were employed, 11 were unemployed and 12 were youths. 48% of those who are working get an income of under $800. This may due to the work field they are in. A market is defined as the selling and buying of goods and services either at a place or by e-commerce. When tourist buys items of high prices this increases the price of that commodity. As demand is increased Q-Q2 price also increases from P-P1. If persons think that prices of the commodities were to increase in the future, demand increases D1
D1

s s D
D
Price D
D
D
D
D1
D1
Q2
Q2
Q
Q
P
P
P1
P1

s s Figure 11
Figure 11 Quantity

Based on the inquiry half of the respondents chose that most of the stores are selling to tourist. Based on the results of the project and what the researcher experience is that the town area is has two different level of pricing, Whereas Front street which mostly caters to tourist prices for their commodities and services are high whereas prices on Backstreet are reasonable. In accordance with figure 11 as consumers demand more rice rises. Seventy-four percent of the respondent chose that tourism affects market by increasing the prices. One reason for this maybe that visitors who come from abroad have a higher disposable income so they tend to spend more which increases market prices whereas locals based on the questionnaire on average they receive an income of $800. That is for day-to-day expenses and may choose not to spend it. Based on the Daily Herald Newspaper website date Wednesday, 18 September 2013, article- Brison: St. Maarten way behind competitors in allotted budget for tourism investments .It states “Relative to the number of people living in the country, our tourism budget divided by the population shows about US $66 a person, which is 50 per cent of the average. The countries that spend less per person than St. Maarten all have other industries, such as Jamaica, Trinidad, Dominican Republic, Puerto Rico, etc. Of the tourism-dependent islands, St. Maarten has the worst contribution per resident," Brison points out.
Tourism is the key income earner for St. Maarten. Forty-two percent of the respondents think that tourism provides employment but on the contrary in 2007 the unemployment rate reached10.6%. Thirty-percent of the respondents consider that tourism creates more businesses which one believe is true whereas the country is investing more to utilize tourism in infrastructure to its full capacity.
One opportunity cost of tourism is that the country is too dependent one thing. This means that the country heavily relies on one principal economic activity, namely, tourism. This characteristic is typical of most small island economies. However, such heavy reliance on a single activity enhances the business cycle and makes the economy more susceptible to external shocks. Six-teen percent of the respondents replied that there is too much concrete in areas where tourist activities are most. One finds it irrelevant as to debate over such minor details as to where the building up of the economy is necessary.

Findings

The Findings of the study are:

* St. Maarten depends heavily on tourism * Tourism makes 20% of St. Maarten’s GDP * Locals do not contribute as much, in order to save and meet day-to-day needs. * Many business that sell mostly to tourist, their prices are high * As demand raises so does so does prices.

Recommendations

* Government should invest more to create more jobs for the youths. * Government can trade more with surrounding islands to boost international trade.

Bibliography

Gopie, P. (2010). Economics for CSEC Examinations. Macmillan Education.

Moynihan Dan & Brian Titley, (2007), Economics a Complete Course for IGCSE and O’ Level, Oxford University Press.

Robinson and karlene & Cooke Novelette, (2011), Economics for CSEC, Carlong Publishers.

Mr. Brison (2013 September 18) ‘ Brison: St. Maarten way behind competitors in allotted budget for tourism investments’ Dialy Herald. Retrieved October 22 2013 from the www.dailyherald.com.

Analysis
1. Gender? Choices | No. of respondents | % of respondents | Male | 22 | 44% | Female | 28 | 56% |

2. Age? Choices | No. of respondents | % of respondents | 18-30 | 19 | 38% | 31-40 | 17 | 34% | 41-50 | 11 | 22% | 51+ | 3 | 6% |

3. Employment Status? Choices | No. of respondents | % of respondents | Employed | 27 | 54% | Unemployed | 11 | 22% | Youths | 12 | 24% |

4. Level of income? Choices | No. of respondents | % of respondents | Under $800 | 13 | 48% | $800-$1600 | 8 | 30% | $1600-$2000 | 4 | 15% | Over $2000 | 2 | 7% |

5. Country of Origin? Choices | No. of respondents | % of respondents | Haiti | 5 | 10% | Holland | 4 | 8% | St. Maarten | 14 | 28% | United States | 5 | 10% | Jamaica | 13 | 26% | other | 9 | 18% |

6. Major foreign exchange earner. Choices | No. of respondents | % of respondents | Tourism | 28 | 56% | Infrastructure | 13 | 26% | Government departments | 9 | 18% |

7. How tourism affect market prices. Choices | No. of respondents | % of respondents | Higher Prices | 37 | 74% | Lower Prices | 2 | 4% | Places that cater to tourist have higher prices | 5 | 10% | Don’t know | 6 | 12% |

8. How does tourism affect the market? Choices | No. of respondents | % of respondents | Lots of restaurants | 16 | 32% | Lots of stores selling amass to tourists | 25 | 50% | Factors are set up | 6 | 12% | Don’t know | 3 | 6% |

9. How does tourism contributes to economy? Choices | No. of respondents | % of respondents | Provides employment | 21 | 42% | Creates more businesses | 15 | 30% | Provides revenue to government | 4 | 8% | Tourism does not contribute to the economy | 0 | 0% |

10. The cost of tourism in Philipsburg. Choices | No. of respondents | % of respondents | Too dependent on one thing | 16 | 32% | Unavailability of space | 6 | 12% | Too much concrete | 8 | 16% | Too many businesses | 6 | 12% | Envision mental depression | 5 | 10% | Traffic congestion | 9 | 18% |

Table of Contents

Contents Page#

Acknowledgements I Introduction II Aims and Objectives of the study 1 Method of investigation 2 Limitations of the study 3 Presentation and Explanation of data 4 Interpretation and Analysis of data 12 Findings 14 Recommendations 15 Bibliography 16 Appendices-Sample questionnaire Interview questions Analysis of each question on the questionnaire Letter

Findings

1. St. Maarten depends heavily on tourism since it makes up 85% of its GDP.

2. The price of goods and services within tourist areas is higher.

3. Many businesses cater to tourist and therefore there were lots of restaurants and shops selling touristic items such as souvenirs.

4. The opportunity cost of tourism is mainly dependence of the economy on one thing, traffic congestion and overcrowding.

5. Tourism contributes mostly by providing employment and government funding.

Recommendations

Based on the findings of the study, the researcher wishes to make the following recommendations:
Government must take care of its products by doing the following: 1. It must ensure the safety and security of tourist.

2. It must develop the proper infrastructure such as good roads and telecommunications.

3. Needs to find ways to diversify the economy because it is too dependent on a fragile industry. One way of doing this is to enhance financial savings. For example many people who visit Switzerland have a Swiss account. By doing this there is an inflow of money that would boost the economy.

4. Government must ensure that education geared assured towards the economy and that the businesses are supplied with qualified professionals, also educated people are more creative and therefore can help diversify the economy. Government can do this by: Building more vocational schools, Performing arts and by increasing the number of students who receive study financing so then can return and share the knowledge obtain in order to