The effects of scale in tourism projects in developing countries

The paper by Rodenburg (Annals VII:2:177–196) on the effect of scale in tourism development in Bali raises important questions relating to tourism development in Third World countries. One fundamental question is whether large-scale development is inevitable in such countries, or whether there is persuasive evidence to support smaller and craft scale enterprises. This article undertakes a critical review of Rodenburg's analysis and concludes that large scale developments are likely to be inevitable because of external economies of scale and market structures in international tourism, but that the consequences of such developments can be foreseen and therefore mitigated by appropriate pre-project planning.