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financial and human resources. Therefore, in the<br />

course of developing and implementing specific<br />

strategies for the hotel, the manager plays the<br />

decisional work role of resource allocator. Finally,<br />

the general manager furthers the leader work role<br />

by continuing relationships with subordinates as an<br />

integral component of the job and by choosing<br />

which specific plans and programmes to implement.<br />

As leader, the manager must contend with<br />

the challenge of ensuring that subordinates fully<br />

accept the plans and programmes outlined for the<br />

hotel and are committed to working toward their<br />

successful implementation. This requires that the<br />

general manager pays careful attention to the work<br />

roles of monitor and disseminator of information.<br />

References<br />

Mintzberg, H. �1973) The Nature of Managerial Work,<br />

New York: Harper & Row.<br />

Nebel, E.C. �1991) Managing Hotels Effectively, New<br />

York: Van Nostrand Reinhold.<br />

Nebel, E.C. �1993) À conceptual framework of the<br />

hotel general managers' job', Hospitality Research<br />

Journal 16: 27±39.<br />

leakage<br />

GLENN F. ROSS, AUSTRALIA<br />

Leakages, sometimes referred to as withdrawals or<br />

outflows, are that part of national income which is<br />

not spent on domestically produced goods or<br />

services. Much of the money earned by households,<br />

for example, accrues to the public sector in the<br />

form of taxes and customs duties; some is saved by<br />

the households and some spent on imported goods<br />

and services. These are the principal forms of<br />

leakage. But whereas in most cases taxes and<br />

savings remain in the economy for possible future<br />

use, imports form a permanent loss of revenue out<br />

of the country and are a deficit item in the<br />

balance of payments.<br />

The magnitude of the import leakages is<br />

determined by the situation of the domestic<br />

economy, in particular its ability to produce the<br />

goods and services required both directly by<br />

tourists and as a secondary consequence of the<br />

development of tourism �see multiplier effect).<br />

In turn, this depends upon the size of the economy<br />

and especially the nature of the trading linkages<br />

which domestic firms are able to establish with<br />

each other. The situation is compounded if the<br />

domestic firms are too small to supply the extended<br />

market. Further, during both the construction and<br />

operating phases of hotels and other tourism<br />

establishments, the domestic economy may not<br />

have the finance, expertise or ability to cope with<br />

demand; thus foreign loans, engineering and<br />

management companies may be used with a<br />

consequential leakage of profits and management<br />

fees abroad. This leakage element is compounded<br />

if some local staff require to be trained abroad.<br />

Another less obvious increase in leakages may<br />

occur if there is a change in domestic consumption<br />

patterns. As the economic benefits of tourism<br />

filter through the economy, national income rises<br />

and the income levels of a larger number of people<br />

rise. In consequence, their purchases increase and<br />

may change in nature from domestically produced<br />

goods to items with a higher import content. This<br />

in turn leads to further leakages. Leakages out of<br />

national economies vary from as little as 10 per<br />

cent to as much as 80 per cent, but these are<br />

generally much higher in the case of local<br />

economies. The principal reason is that local<br />

economies are much more integrated into their<br />

parent national economies than are national ones<br />

with other national economies.<br />

learning curve<br />

learning curve 351<br />

BRIAN ARCHER, UK<br />

The relationship between the performance of a<br />

particular activity and accumulated experience in<br />

doing the same is known as the learning curve.<br />

Performance normally improves as experience<br />

increases. In a business context, whether tourism<br />

or other, this relationship usually expresses performance<br />

in terms of the cost of producing one unit of<br />

output, and experience in terms of the accumulated<br />

volume of output. Two phenomena normally<br />

provide the basis for this relationship: learning and<br />

economies of scale.<br />

GEOFFREY I. CROUCH, AUSTRALIA

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