A Small-Town Economic Revitalisation Conundrum: Focus on Tourism, Manufacturing, or Both?

Danie F Toerien

doi:10.3390/en14227568

Abstract

The decline in small towns is a concern in many countries. The manufacturing and tourism sectors are considered to be important in the revitalisation of towns but could be subject to ‘Dutch disease’. This is a malady in which success in one sector leads to a decline in the other. The importance of, and relationships between, the manufacturing and tourism sectors of more than 500 United States micropolitan statistical areas (micropolitans) were extensively investigated by following settlement scaling theory. Publicly available 2016 datasets were used to test a hypothesis that Dutch disease between the two sectors is important. Both sectors are present and important in virtually all of the micropolitans. Regression analyses, including log–log (power-law) analyses, were used to examine the population-based and enterprise-based orderliness in the micropolitan demographic–socioeconomic–entrepreneurial nexus. There is much orderliness, and non-linear relationships are prevalent. No evidence of the presence of Dutch disease was recorded except in one case. When the strengths of the two sectors (as a percentage of their enterprise numbers in relation to total enterprise numbers) are compared, a weak negative relationship is observed. The hypothesis that Dutch disease is important was rejected. A focus on both sectors is recommended to build resilience and to contribute to the revitalisation/development of small towns.

Highlights

Populations in many rural communities in the United States are declining as a result of decreasing employment in agriculture and mining, the globalisation of manufacturing, and economic growth in urban areas [1]
The hypothesis that Dutch disease plays an important role in the relationship between the tourism and manufacturing sectors of small human settlements, requires answers to a number of questions: (i) are tourism and manufacturing activities in micropolitans part of the demographic–socioeconomic–entrepreneurial orderliness of micropolitans? (ii) are they subject to Dutch disease? (iii) do they singly, or in combination, offer potential to strengthen the resilience of micropolitans? (iv) do they detract from one another? These questions are addressed in this contribution
Such an association is true for the micropolitan gross domestic product (GDP) and tourism enterprises (Table 2)

Summary

Introduction

Populations in many rural communities in the United States are declining as a result of decreasing employment in agriculture and mining, the globalisation of manufacturing, and economic growth in urban areas [1]. Rather than natural increases or decreases in population, has largely driven population change across rural America [2]. Between 2000 and 2010, rural populations in the US grew by just over half as much as their population growth in the 1990s [3]. Small towns are essential in rural areas but are often neglected [4]. They serve as market nodes for the provision of services, goods, and non-farm employment [4].

Methods

Results

Conclusion