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414 non-discretionary income
contemporary growth from emerging Asian economies.
Major tourism products include nature, adventure
tourism and cultural experiences. In the more
temperate North island, volcanic activity, indigenous
Maori culture and water-based activities are
major attractions. The South Island, dominated by
the Southern Alps and associated glaciers and fjords,
offers considerable scope for walking, tramping and
skiing and a range of adventure �bungee jumping,
rafting, `flightseeing' and so on) and nature
tourism. Tourism is a significant sector of the
New Zealand economy. The 1.5 million international
arrivals contribute 5.5 per cent of gross
domestic product. Government plans have recently
shifted away from a long-term target of 3 million
tourists per annum, to a figure of $4.5 billion in
foreign exchange �10 per cent of current GDP).
New Zealanders themselves are prolific tourists with
up to one million departures per year.
A government-funded New Zealand Tourism
Board was established in 1991 to develop, implement
and promote strategies for tourism, while an
Office of Tourism and Sport provides advice to a
Minister of Tourism. The Department of Conservation
�which includes administration of thirteen
national parks and maritime parks) manages the
30 per cent of land vested in the Crown, and is a
significant agent in tourism development and
planning. Industry concerns are advanced by the
New Zealand Tourism Industry Association. At the
site level, Territorial Local Authorities administer
specific developments, and they are influenced by
the Resource Management Act of 1991 which
charges them with facilitating the sustainable
development of resources.
DAVID G. SIMMONS, NEW ZEALAND
non-discretionary income
Income can be defined in a variety of ways including
nominal and real, disposable, discretionary and nondiscretionary.
The first one is the income recorded in
national accounts and is generally expressed in terms
of current prices. This covers such sources as wages,
salaries, profits �dividends) rent and interest. It is
generally the definition of income used in impact
studies and multiplier effects because it corresponds
to national accounting practices. On the
other hand, real income �after the effects of inflation
have been taken into account) is a term generally
used to describe the purchasing power of an
individual or the residents of an economy.
Disposable income refers to that income available
to an individual after mandatory deductions
for such things as taxes and social insurance
payments. However, it should also take into
account any transfer payments such as income
support or unemployment benefits. Therefore, it is
national income less `net' tax payments. It should
not be confused with discretionary income, for it
takes no account of voluntary commitments that
may have been entered into by an individual.
Discretionary income refers to that over which
an individual has some choice in how it is to be
spent. Many of the personal services such as
tourism are associated with relatively high income
elasticities of demand. That is, as income levels go
up, the increase in demand for tourism-related
goods and services grows more than proportionally.
This is in part explained by the fact that the
amount of discretionary income increases as
income levels increase.
Non-discretionary income refers to that disposable
income over which the recipient has no choice in
terms of expenditure. Examples of this category
include all enforced and long-term spending such as
mortgage payments, pensions, health schemes and
so on. They also include part of the expenditures that
are made on essential purchases such as that amount
of spending on heat, light and food necessary for
survival. Thus, income required to meet prior
commitments may be considered to be non-discretionary
for the individual has no discretion as to how
that income may be spent. The higher the proportion
of non-discretionary income out of total income,
the less scope there is for additional spending upon
tourism, unless income levels increase overall.
JOHN FLETCHER, UK
non-governmental organisation
A non-governmental organisation �often referred to
as an NGO) is defined by the United Nations as