Review on the Economic Effects of Cultural Tourism - 3850 Words

A Literature Review on Economic Effects of Cultural Tourism (Dissertation Review Sample) Content: A Literature Review on Economic Effects of Cultural Tourism1. IntroductionFor the last few decades, cultural tourism has become an extremely important and major economic sector. Cultural tourism is a sub-category of tourism. When a tourist participates in the cultural tourism scenario, it suggests that the tourist is interested in the culture, history, art, architecture, lifestyle, social aspects, religious and ethical values, and other influencing cultural agents for the people of the destination places. The scope of cultursl tourism is growing at an unbelievable rapid pace because the tourists are becoming more interested in cultural tourism. The statistics clearly shows that the arrivals of international tourists exceeded to an all-time world record of 1,184 million. It is a 4% worldwide increase in respect to the numbers of the previous year. The regions of Europe, America, and the Asia-Pacific are the largest contributors to this growth because these regions huge ly attract the international tourists. But, European countries are the most visited destinations. In 2015, the European countries had the overwhelming share of 51% in the numbers of worldwide arrivals of international tourists. On the other hand, cultural tourism sums up to as much as about 40% of the whole statistical representation. Experts suggest that the numbers will hugely increase (as much as about 15% every year) in the coming years. This is because the international tourists are becoming more and more interested in the cultural scenario of the destination places CITATION Tri16 \l 1033 (Trinh, Ryan, Cave, 2016). Culture and tourism are indeed very closely related to each other. The culture and the cultural events of these destinations play a huge role in the development, growth and impact of the tourism industry in various dimensions. Researchers and analysts are engaging themselves in the extensive studies on the cultural tourism. It is quite evident that the tourists ar e becoming more interested in cultural shopping rather than mere petty shopping. As a result, cultural tourism is not only creating a huge impact on the social structure but also on the economy of the destination places. If evaluated at a broader dimension, we can find out that cultural tourism also has a significant impact on the overall economic condition of the world.1.1. An Overview of the ImpactExperts have arrived at the point of understanding that the international tourists should be disaggregated into different sections depending on two different purposes of travel -- business travel and personal travel. But travelers from the second section are differentiated into two more parts -- people who travel for leisure purposes, and people who travel being motivated by cultural influences. But, often these two purposes get merged as it is very difficult to properly determine the nature of one's personal travel. But, studies have revealed that most of the tourists try to maintain a balance between cultural and recreational aspects during their travel. About 50% of the destinations are chosen due to their rich cultural heritage and presence of heritage sites. Many experts are of the opinion that it is the cultural influence that drives the tourists to visit the destinations. They have tried to establish this argument by citing the example of the tourism industry in America where most of the tourists visit America only to explore its rich tradition and culture. Both the urban destinations and the rural destinations have immensely contributed to the growth of cultural tourism. Another significant thing has come into notice. The cultural tourism immensely contributes to the economic growth because an average cultural tourist spends more money than other tourists during the whole period of stay CITATION Got05 \l 1033 (Gotham, 2005). It is pretty clear that these facts contribute hugely to the rapid growth of cultural tourism as well as the overall economic growth .2. Method of the Literature ReviewThis section of the article addresses the existing literature related to cultural tourism and its impact on the economy. It will try to provide an in-depth analysis of the literary works resulted from extensive research and evaluation. The first part of this literature review is mainly focused on analyzing a static setting where the general equilibrium is established. The prices of the goods and the resources increase according to the increase of demand. Thus, it creates a huge impact on the economy. Then, the second part addresses a dynamic setting where the main focus of the cultural tourism is focused on how tourism can lead to a long-run economic growth.3. BackgroundThe past studies and research have found that the economic effects of cultural tourism can be divided into three varied parts CITATION Wag97 \l 1033 (Wagner, 1997). The direct effect affects the tourism industry of the cultural destination with an immediate effect. The indirect eff ect does not have any direct link with the cultural tourism, but it can contribute in a roundabout way. The induced effect enhances the economic growth of an area by allowing the inhabitants to spend more in the industry or in the supporting businesses. Cultural tourism can effectively contribute to the economic growth of the region because culture is going through a stage of commodification. With the growth of modernization and industrialization, every urban tourist destination has some special technological attraction to some extent. The competitive market in terms of this aspect is quite normal. The economic impact of this factor is also equal in most of the places. Therefore, various urban destinations have decided to enhance the functionality of their cultural uniqueness by providing various means of entertainment and consumption through museums and theatres. On the other hand, the rural or sub-urban destinations have developed a different approach. Culture cannot successfully contribute to the economic growth unless it becomes a commodity. Therefore, these destinations are trying represent various aspects of their cultural uniqueness as consumption commodities. The past surveys and studies have also revealed that not every destination can be termed as cultural destination. Only those destinations that have living cultural areas, historical sites, or any other cultural components are considered as cultural destinations. The town fairs, various cultural festivals, natural ecosystems, and theme parks also contribute immensely to the growth of cultural tourism. These are cultural resources either in the tangible or in the intangible form. Experts have emphasized both of these. It should be ensured that a huge land mass of a cultural area should not be owned by any foreign investor CITATION Luc98 \l 1033 (Lucas, 1998). Then, the labor wage and the output productivity will maintain a balance and it will contribute to the economic growth. The dynamic nature of labor availability, productivity, and price change depends on the availability of tangible and intangible resources. In a specialized tourism scenario like the cultural tourism, if the demand and the need for cultural commodities change, then the economic aspects of land mass rental and labor wages will also change. These are variable aspects that are closely related to cultural tourism CITATION AGl15 \l 1033 (Datta, Bigham, Zou, Hill, 2015). As a result, when the demand for cultural commodities increases, the increased demand gets reflected in the land rental and the labor wages. It is in a equilibrium balance with these economic aspects.4. General Equilibrium ModelThis general equilibrium model of cultural tourism is closely linked to the model of Dutch disease literature CITATION Cor82 \l 1033 (Corden Neary, 1982). The local amenities of the tourist destinations have two different classes -- natural resources and cultural resources CITATION Ric96 \l 1033 (Richards, 1996). Beaches, mountains, and landscapes can be considered as the natural resources. Monuments, museums, and architecture are regarded as the significant cultural resources. Both of these groups are equally important for the growth of cultural tourism CITATION Tho16 \l 1033 (Thompson, 2016). As a result of these resources, cultural tourism immensely contribute to the economy in a disguised manner. The tourist come to the cultural destinations to enjoy the natural and cultural resources, they buy the services or products, and they acquire the essence of the destinations. All of these activities have to be paid to some extent. This is why cultural tourism is regarded as a medium of invisible export to enhance the economic growth of the destination CITATION Sch11 \l 1033 (Schubart, Brida, Risso, 2011) .The impact of these resources is further divided into two models. The first model has a huge impact on the growth of tourism and economy but it does not lead to any kind of migration flows. It is also related to labor immobility. The second model analyzes the factor of labor mobility and migration flows CITATION Ada95 \l 1033 (Adams Parmenter, 1995). With the help of the existing literary sources, these aspects can be effectively analyzed.5. Factor of Services, Products, and Labor ImmobilityWe can clearly and efficiently analyze the effect of labor immobility by assessing the economic effect and distributional welfare of the cultural tourism. This model tries to establish the aspect in which local amenities plays a huge role in the growth of tourism and economy but does not induce any kind of labor immobility.When tourists cross the national boundaries and visit a foreign country, they get the opportunity to consume the local amenities of the destination places at its original and basic location. This is why cultural tourism is often considered as an export industry in an invisible form CITATION Urr88 \l 1033 (Urry, 1988). This m...

The Debate Over Homosexual Couples - 941 Words

A homosexual couple is a pair of two individuals of the same sex involved in an intimate and loving relationship. Homosexual couples want to be treated the same way as heterosexuals by fighting for their right to get married and also their right to have children. Because of the nature of their relationship, they cannot biologically have children together so their only option is to adopt. The debate over homosexual couples being able to adopt children is very controversial and is becoming a big issue in today’s society. Some believe that by allowing these couples to adopt, they intentionally deprive the children from either a male or female role models; the children will have more challenges in school compared to those raised by heterosexual couples; and, children will tend to have more homosexual behaviors themselves because of what they are exposed to at home. Gary Glenn, president of the American Family Association of Michigan, stated at a debate on same-sex couple’s adoption held by CBS Detroit that â€Å"healthy development of a human child requires having the role model and the care of a mother and a father. It should not be the emotional needs of adults that drive the public policy. It is up to the adults to make sure we act in the best interest of the children† (Glenn). In this citation, Gary Glenn forgets the fact that one in four children in the United States is being raised by a single parent. This insinuates that those children do not have either a male or femaleShow MoreRelatedGay Couples Adopting1042 Words   |  5 PagesHomosexuals must be allowed to adopt children just like any other couple who want to do the same thing. A child needs love, respect and a home in which they can assure themselves that there will be someone there to care for them. 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People opposed to homosexual parenting argue that homosexual couples are not capable of having long enduring strongRead MoreDiscrimination Against Gay Marriage is the Voice of Ignorance1447 Words   |  6 Pagesfor voter approval, or even in their wildest dreams [nightmares?] have to consider doing that. However, in the past ten years that is a prospect gay men and women are facing all over our United States. Why is American culture so unacce pting of homosexual marriages and what are the reprocutions of this for homosexual couples and for all of our citizens? Homosexuality, as a lifestyle has always been under great fire in our culture. Homosexuality has been defined and termed in many contexts.Read MoreCritical Analysis of Schulmans Article Gay Marriage and Marriage963 Words   |  4 Pagessomeone of the same sex? Why is this debate so heavily heated amongst individuals? Is it that religion is a large structure base that those in society are guided by? 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They are held at an unfair disadvantage solely because of their sexual orientation. This discrimination must stop, because gay and lesbian couples are law-abiding citizens too, who shou ld be afforded the same rights as heterosexual couples. Marriage is about love and commitment; this means that since we are all human, we all deserve

Akron Children’s Hospital - 1555 Words

Study about Akron Children’s Hospital Executive Summary: In this paper, I will attempt to study the operation condition about Akron Children’s Hospital. First of all, I will briefly introduce the hospital’s basic information, including the beginning of its operation, its development process, and current situation. Then, we will focus on the Akron Children’s hospital’s current managerial problem. They want to by using the research to help them fix this problem. The research process is conducted by a professional management research company, who was called â€Å"Marcus Thomas LLC†. Their management research process could be separate into five hierarchy, and in every step, Akron hospital has a specific work to do, or they have a particular†¦show more content†¦The third step of research hierarchy is Research Questions. The Akron Children s Hospital should define the research questions such as whether they expand their service beyond the county, which means it will increase the number of the patient; and whether they can provide the higher technology equipment or higher-quality medically advanced care than their competitors. The forth step of management research hierarchy is Investigative Questions. The Akron Children s Hospital should research the questions such as â€Å"which hospital do the parents’ prefer to bring their children to, the nearest or the high-quality one?† or â€Å"Is the higher technology equipment and higher-quality hospital do real attract the patients who in the distance?† The last step in management research hierarchy is Measurement Questions. The Akron Children s Hospital could list many factors that patients are possible care about, such as â€Å"How important you think it is that a hospital has many high-technology equipment, from 1 star to 5 stars.†, â€Å"How important you think it is that a hospital can provide the most medically advanced care, from 1 star to 5 stars.†, or â€Å"How important you think it is that a hospital hold the most and the best medical staffs, from 1 star to 5 stars.† Advantages and Disadvantages for This Research: Obviously, each study has both advantages and disadvantages involved. The advantage is that from observation, analyzing and studying theShow MoreRelatedAkron Childrens Hospital650 Words   |  3 Pagesmanagement-research question hierarchy for Akron Children’s Hospital? The management research hierarchy for Akron Children’s Hospital includes: Discover the Management Dilemma: Akron’s Children’s Hospital felt the need to distinguish itself from the other prominent pediatric hospitals in the Northeastern Ohio area: Akron Children’s wanted to be the top pediatric hospital choice in Akron and the surrounding counties. Define the Management Question: How can we (Akron Children’s) convince the public, orRead MoreAkron Childrens Hospital687 Words   |  3 PagesCase Study: Akron Children’s Hospital 1) What is the management-research question hierarchy for Akron Children’s Hospital? a. Management Dilemma- Step 1 is identifying the management dilemma. The dilemma that the hospital faces is how to increase the bed-occupancy rate and what can the hospital do to gain more business than its competitors. b. Management Question- Step 2 is how to differentiate itself and step out of the shadow of its competitors. c. Research Questions-Read MoreAkron Children’s Hospital Case Study1120 Words   |  5 Pages1. Develop a focus group discussion guide for the research described above. a. What topics should be discussed in what order? * How do children parents decide which hospital to take their children to, when their children need acute care? * Is the quality of service a factor on their decision * Is the financing a determine factor? * Is their decision driven simply by emotion? b. What pre tasking exercises might be relevant? Ask the people who are participating in the focus groupRead MoreAkron Children’s Hospital Case Study1105 Words   |  5 Pages1. Develop a focus group discussion guide for the research described above. a. 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Akron Children’s Hospital Marketing Director Aaron Powell felt it was important to conduct this study because Akron Childrens Hospitals marketing director Aaron Powell thought that it was important to conduct this study, because other competitive hospitals in the area had hiredRead MoreThe Health Care Market Of Northeast Ohio1580 Words   |  7 Pageschildren with serious illnesses. Hospitals that have not been involved in pediatrics are now emerging into this particular field. In order to contest this, Akron Children’s Hospital (ACH) decided to try to figure out how the selection of institutions and physicians amongst parents with seriously ill children work. This is an effort to differentiate itself from other health care providers entering the pediatric care market. The advertising strategies within the major hospital in the area had some similarities;Read MoreA Case Study of Akron Children‚Äà ´s Hospital2143 Words   |  9 PagesAkron Children’s Hospital Anthony D. Davis, Sr. Keiser University MBA 542 Read MoreInformation Security Breaches At The News Since Last Decade1052 Words   |  5 Pagespasswords How might they have been stopped - Gawker Media has done a security done after the website affect and set up a two level authentication in which user can login moreover they strengthen the authentication protocol. Company name – Akron Children’s Hospital Industry – Health care Size – largest pediatric health care provider in northeast Ohio with 78 locations. Place in industry – Read MoreA Nursing Philosophy Coincides With Self Awareness1452 Words   |  6 Pagesafter we thought he never would. In kindergarten he contracted meningococcal meningitis and was hospitalized for a long period of time. A couple years later his appendix ruptured while waiting in the hospital emergency room. After a couple weeks he had to be transferred to Akron Children’s Hospital where he stayed for another month. 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Introduction. For My Project On Critiquing An Epidemiology

Introduction: For my project on critiquing an epidemiology study I choose to do my project on second-hand smoking and how it affects other people than just the smoking population. The article I choose was Cigarette Smoking Associated with Lung Adenocarcinoma in Situ in a Large Case-Control Study (SFBALCS). The objective of this study was â€Å"designed to understand why nonsmokers are associated with Adenocarcinoma in situ (AIS), which is common cause of lung cancer in cigarette smokers† (Bracci et al.). Statistics show that 80 % to 90% of lung cancer cases are from smoking. â€Å"Adenocarcinoma in situ (AIS), formerly bronchioloalveolar carcinoma (BAC), is not so common subtype of lung adenocarcinoma and accounts for approximately 3% to 4% of lung†¦show more content†¦They only included five counties that were located within the Bay Area which is limiting their data. By not having this part of the study so restricted it will open many other variables that are not included in the study now. Another weakness in the study is that they did not include genetic variations and susceptibility for BAC which is an important factor. With this information, it can show which people in the control and case study already have BAC in their family history which can show us the cause for why they already must disease or who will likely develop the disease later. From this information, they could have explored another direction with the AIS patients which can show us that cigarette smoke may have not been the cause of the disease developing. They also decided to not use survival biased in their study which has a big impact on their study. The reason for that is because they are just if AIS patients have good prognosis, there is no need to include survival rate. If you are conducting a study on a disease you show still include the survival rate because people can still death from this disease, even if the rates may be low. Strengths: Overall this case-control study had some good strengths which allowed the case study to successful in the aspects that it mainly covered. Overall the case study wanted

Essay on The Debate Concerning Secondhand Smoke - 1777 Words

We all know that smoking poses a significant risk to our health. We can make an educated decision about whether or not to smoke, and if we do decide to smoke, we should be willing to accept any negative effects such as lung cancer and heart disease later in our lives. But what about exposure to secondhand smoke? At this point, we don’t always have a choice in exposure to the smoke of others. The Office of the Surgeon General (OGS) has documented a high level of exposure to secondhand smoke among nonsmoking adults and children in the United States. Blood tests of nonsmokers for the presence of cotinine, a chemical produced by nicotine, indicate that 88% of nonsmoking Americans are exposed to secondhand smoke (US, OGS, Clean). In†¦show more content†¦The EPA determined that secondhand smoke is a Group A carcinogen, a classification of pollutants that have been proven to cause cancer. The tobacco industry responded to the report with a well-funded advertising, public relations, and legal counterattack. Since then, controversy over the topic has spread, both politically and socially. But what exactly are the risks associated with secondhand smoke, and how has the American public responded to those risks? Secondhand smoke is most harmful to young children, especially those with asthma or other respiratory diseases. The EPA notes that 43% of children in the United States under the age of 11 live in a home with at least one smoker. Children exposed to secondhand smoke tend to have more bronchitis, pneumonia, respiratory infections, fluid in the middle ear, and asthma. And if both parents smoke, or if the child is frequently exposed to smoke, the child’s chances of showing symptoms of these diseases increase (US, EPA, Indoor). Infants and toddlers up to 18 months of age suffer between 150,000 and 300,000 cases of lung infections because of secondhand smoke, according to EPA estimates. Secondhand smoke produces symptoms of asthma in anShow MoreRelatedShould We Legalize Marijuana? Essay1362 Words   |  6 PagesIn today’s world one of the growing debates is the legalization of marijuana. Nowadays people use â€Å"weed† for many different purposes. Whether it be for medical or even recreational weed has become a part of this world. The government in the USA keeps fighting this natural product and destroying lives on account of this drug. It has been proven to be even better than alcohol and many other things in this world. Weed being a natural product has many advantages and disadvantages but the good outweighsRead MoreThe Purpose Of This Essay Is To Provide An Argument For1952 Words   |  8 Pages â€Å"The Counterculture and Drug Scene In the late ‘60s, amid the growing countercultur e and drug proliferation, marijuana use becomes a mainstay of the hippie lifestyle. A fierce debate emerges over whether to legalize the drug.† (MOORE, 2013), and this counterculture would lead to some very possive laws concerning cannabis in the latter future, but also would lead to some very damaging laws in the 70s and 80s. In the 70s we had the Controlled Substances Act a large piece of foolishness becauseRead MoreLogical Reasoning189930 Words   |  760 Pagescritical thinking skills also involve assessing whether a group of sentences are consistent, whether a proposed definition is successful, whether an advertisement gives any useful information about a product, whether a speaker is being fair in a debate with an opponent, whether a statistical sample was biased, and whether someones supposed scientific explanation is unscientific. This book is designed to improve all these other critical thinking skills, too, even though they dont directly involveRead MoreFundamentals of Hrm263904 Words   |  1056 PagesPolicy 66 Geographical Comparisons 67 McDonnell-Douglas Test 67 Responding to an EEO Charge 67 Business Necessity 68 Bona Fide Occupational Qualifications 68 Seniority Systems 68 Selected Relevant Supreme Court Cases 69 Cases Concerning Discrimination 69 Cases Concerning Reverse Discrimination 71 ETHICAL ISSUES IN HRM: English-Only Rules 72 Enforcing Equal Opportunity Employment 72 The Role of the EEOC 72 Office of Federal Contract Compliance Program (OFCCP) 73 Current Issues in Employment Law 74Read MoreLibrary Management204752 Words   |  820 Pagesferment—what some have called chaos2—demands reevaluation, renewal, revamping, even redesign of previously rather stable library and information service organizations. In that process, futurists, trying to predict outcomes, are making forecasts concerning the importance of various forces that have been growing for some time. To coin an alliterative phrase, â€Å"confusion about comprehensive change complicates compliance with contemporary conditions† in library and information service. Change—The Innovative Process

Why Cigarette Smoking Should Be Banned Free Essays

Cigarette smoking should be banned. Cigarette smoking is a dangerous habit that not only affects the user in a negative physical and psychological way but also endangers others around them. Would you play Russian roulette – A deadly game of chance involving a revolver and a single bullet– and then force others around you to participate? Cigarette smoking has detrimental effects on both the user and innocent bystanders effectively initiating a game of Russian roulette. We will write a custom essay sample on Why Cigarette Smoking Should Be Banned or any similar topic only for you Order Now Considering the dangers of cigarettes, banning them could potentially protect society from their dangerous effects. The physical effects of smoking are quite frightening and include a wide variety of diseases. These include but are not limited to: cardiovascular disease, respiratory disease, and a wide variety of cancers. A common outcome of the more serious tobacco related diseases is death. It is noted on the CDC (Centers for Disease Control) website that ‘More deaths are caused each year by tobacco than all deaths caused by HIV (Human Immunodeficiency Virus), illegal drug use, alcohol use, motor vehicle injuries, suicides, and murders combined. (CDC – Fact Sheet – Tobacco-Related Mortality – Smoking Tobacco Use, 2011) With all this evidence pointing to the physical dangers of cigarettes, why then do people continue choosing to engage in this behavior? Perhaps the psychological effects of cigarettes can account for the continuation of their use. Cigarettes can have not only a stimulating effect, but also a perceived calming effect and can also induce feelings of eupho ria. Nicotine in tobacco causes these perceived effects and feelings. Nicotine is a psychoactive drug found in tobacco products, and it is this chemical that causes users to develop a dependency on cigarettes. One particular cause for alarm is taken from the CDC website. ‘Research suggests that nicotine may be as addictive as heroin, cocaine, or alcohol. ’ (CDC – Fact Sheet – Smoking Cessation – Smoking Tobacco Use. 14 Nov. 2011) With this in mind, we now start to understand the psychological dangers of smoking cigarettes. The addiction compels the user to continue smoking. Having looked at the physical and psychological effects of smoking on the users, let us now take a look at how detrimental cigarette smoking is to non-smokers. Cigarette smoking is extremely dangerous to non smokers. Secondhand smoke is a mixture of side stream smoke — smoke from the end of a lighted cigarette—and mainstream smoke—smoke exhaled by a smoker. This secondhand smoke contains 250 known harmful chemicals of which 60 are known to cause cancer. This dangerous concoction of chemicals in the smoke puts those that have chosen not to smoke in harm’s way. According to the website of the American Cancer Society, each year, second hand smoke is responsible for ‘an estimated 46,000 deaths from heart disease’, â€Å"About 3400 lung cancer deaths’, and ‘Between 150,000 and 300,000 lower respiratory tract infections in children’. (â€Å"Secondhand Smoke. â€Å", 14 Nov. 2011) The list carries on, but we can now see how cigarette smoking not only affects smokers, but non smokers too. As detrimental as cigarettes are to everyone’s health, there are still those that claim it is their right to be able to smoke. Opponents of cigarette banning claim that it is their civil right to choose to smoke and that society does not have the right to dictate what people do to their bodies, regardless of whether it is unhealthy for them or not. They claim that if the government bans cigarettes on the basis that it is harmful to one’s health, then they may as well ban other things that pose a health risk, like â€Å"junk food†. The problem with this argument is that while eating junk food does pose a health risk to the person eating it, there is no immediate health risk to the people around them. Even governments have started to recognize the dangers of cigarettes by allocating smoke free zones where smoking is not allowed. Even though this is a step in the right direction, it still does not keep everyone safe from the dangers of cigarette smoking. By examining the all the information, it is easy to see that cigarette smoking is particularly dangerous on both physical and psychological levels while also needlessly endangering non-smokers. Could the banning of cigarettes potentially wrestle the revolver from the hands of the smoker and finally put an end to this dangerous game of Russian roulette? How to cite Why Cigarette Smoking Should Be Banned, Essay examples

Determination Whether Lump Sum Received †Myassignmenthelp.Com

Question: Discuss About The Determination Whether Lump Sum Received? Answer: Introducation The amount of $7,500,000 in the form of compensation received by Connect IT may constitute as income and will held taxable as income as per the ordinary concepts of Section 6-5 of the ITAA 1997. As a held in the case of F C of T (NSW) v Meeks (1915)[1] sum received in association with the cessation or deviation of deal or other forms of business contract that is made in the due course of performing on of a trade that are in the nature of income. As a rule, to decide whether the sum of compensation received by Connect-IT is of income or capital in nature it is vital to understand whether the annulled contract is linked to the purpose of providing service and formed the part of the profit making structure. In the present case, Connect-IT may find an alternative service provider and it can be argued that the agreement would not however substantially affect the Connect-IT income making composition. The contract did not create an impact on the permanent composition under which Connect-IT executed its business activities and the amount of compensation received would be of revenue in nature. However, if the service provided formed the significant fraction of their commercial operations, an argument can be put forward that the compensation was capital. As held in the case of Californian Oil Products Ltd (in liq) v. Federal Commissioner ofTaxation (1934) 52 CLR 28; (1934) the decision passed supported the view[2]. As evident the assessee entered into the agreement of five-year with international oil company that provided them only right of distributing the oil merchandise in Australia. Afterwards, the foreign company sought after to end the agreement and compensated Californian oil with a sum in the form of compensation for the cessation of deal. The court passed its verdict by stating that the sum received as reimbursement for rescission of the contract was capital in nature. Consequently, it is vital to determine that the vitality of contract was to Connect-IT. Although it is assumed that Connect-IT would be able to discover an alternative arrangements with another clients and can be considered that compensation received was of revenue account[3]. Citing the reference of Allied Mills Industries Pty Ltd v. Federal Commissioner of Taxation(1989) the amount of $7,500,000 paid constitute an un-dissected lump sum payment as an arrangement for the settlement of the claims. Pursuing the decision in Allsop v FC of T (1965) these amounts therefore be assessable in the form of recoupment of a loss under section 20-20 (2)[4]. Conclusion: The sum of compensation received by Connect IT constitute as income and will be held taxable as an income as per the ordinary concepts of Section 6-5 of the ITAA 1997 Reference List: Barkoczy, Stephen. "Foundations of Taxation Law 2016."OUP Catalogue(2016). Blakelock, Sarah, and Peter King. "Taxation law: The advance of ATO data matching."Proctor, The37.6 (2017): 18. ROBIN, H.AUSTRALIAN TAXATION LAW 2017. OXFORD University Press, 2017. Woellner, R. H., et al.Australian Taxation Law Select: Legislation and Commentary 2016. Oxford University Press, 2016. [1] Barkoczy, Stephen. "Foundations of Taxation Law 2016."OUP Catalogue(2016). [2] Woellner, R. H., et al.Australian Taxation Law Select: Legislation and Commentary 2016. Oxford University Press, 2016. [3] Blakelock, Sarah, and Peter King. "Taxation law: The advance of ATO data matching."Proctor, The37.6 (2017): 18. [4] ROBIN, H.AUSTRALIAN TAXATION LAW 2017. OXFORD University Press, 2017.