IMPACTS OF TOURISM

Chapter 4
 Learning Objectives
After the lesson, BSIHM 1st year will be able to:

Have a basic understanding on various impacts

of tourism.
Be aware that tourism impacts can be
categorized as positive or negative;
Know the range of perspectives of tourism
impacts
 Key Perspectives on Tourism
Impacts
• Impacts are multi-faceted.
• Tourism impacts can be categorized into three:
economic,
socio - cultural and
environmental.
• It can be positive (beneficial) or negative
(detrimental).
• The impacts also depends on the value and
judgment of the observer.
 Introduction

• Tourism has both positive and negative impacts

for an area. In both developing and developed
world, tourism has been the catalyst for
economic, cultural and environmental growth.
Economic Impacts of Tourism
 Economics
• the social science that
studies the production,
distribution, and
consumption of goods and
services.
• Economics focuses on the
behavior and interactions
of economic agents and
how economies work.
 Economic Impact of Tourism

• The tourism industry generates substantial

economic benefits to both host countries and
tourists’ home countries.

• Especially in developing countries, one of the

primary motivations for a region to promote
itself as a tourism destination is the expected
economic improvement.
• As with other impacts, this massive economic
development brings along both positive and
negative consequences.
• According to the World Tourism Organization:
698 million people traveled to a foreign country
in 2017, spending more than US$ 478 billion -
making tourism the world’s number one export
earner, ahead of automotive products, chemicals,
petroleum and food.
• When travelers outside the
destination area spend on
goods and services within the
destination, tourism acts as
an export industry by bringing
revenues from outside
sources.

• Many countries have utilized

tourism as a means to
increased forex earnings to
produce investment necessary
to finance economic growth.
Positive Economic Impacts
of Tourism
 Positive
• Foreign Exchange Earnings
• Contribution to Government Revenues
• Employment Generation
• Stimulation of Infrastructure
Investment
• Contribution to Local Economy
 Foreign Exchange Earnings
• Tourism expenditures generate income to the host
economy and can stimulate the investment
necessary to finance growth in other economic
sectors.
• An important indicator of the role of international
tourism is its generation of foreign exchange
earnings.
• Tourism is one of the top five export categories for
as many as 83% of countries and is a main source of
foreign exchange earnings for at least 38% of
countries.
Contribution to Government Revenues
• Direct contributions are generated by taxes on
incomes from tourism employment and tourism
businesses, and by direct levies on tourists such
as departure taxes.
• Indirect contributions come from taxes and duties
levied on goods and services supplied to tourists.
• The WTO estimates that travel and tourisms tax
contribution worldwide was over US$ 800 billion
in 2016 - a figure it expects to double by 2022.
 Employment Generation
• Rapid expansion of international tourism has
led to significant employment creation, for
example, the hotel accommodation sector
alone provided around 11.3 million jobs
worldwide in 2015.
 Stimulation of
Infrastructure Investment

• Tourism can induce the local government to

make infrastructure improvements such as
better water and sewage systems, roads,
electricity, telephone and public transport
networks.
 Contribution to Local Economy
• As the environment is a basic component of
the tourism industry assets, tourism revenues
are often used to measure the economic value
of protected areas.
• Money is earned from tourism through
informal employment (e.g. street vendors,
informal guides, rickshaw drivers)
• The positive side of informal employment is
that the money is returned to the local
economy,
Negative Economic Impacts
• There are many hidden costs to tourism, which
can have unfavorable economic effects on the
host community.
• Whereas the least developed countries have the
most urgent need for income, employment and
general rise of the standard of living by means of
tourism, they are least able to realize these
benefits.
 Negative
• Leakage
• Enclave tourism
• Infrastructure cost
• Increase in prices
• Economic dependence
• Seasonal character of jobs
 1.) Leakage
• In the study of tourism,
the leakage is the way in
which revenue generated by
tourism is lost to other
countries' economies.

• It occurs in different
mechanism.
 Methods of Tourism Leakage
• Goods and Services
– Many countries must purchase goods and
services to satisfy their visitors. This includes
the cost of raw materials. (Import Leakage)
• Infrastructures
– Some less economically developed countries do
not have the domestic ability to build tourism-
related infrastructure (hotels, airports, etc.).
The cost of such infrastructure is then leaked
out of the country.
• Promotional Expenditures
– Many countries spend considerable sums of
money for advertisements and publicity.
Maintaining a presence abroad may
increase the volume of tourists to a country
but also represent a considerable loss of
money to foreign markets.
• Foreign Workers
– Often foreign workers are employed in tourism and
especially on a temporary base. These workers
typically stay a couple of months in the country, they
live on the premises and take all the salary home
when they return home after their assignment.
 2. Enclave Tourism
• Local businesses often see their chances to earn
income from tourists, severely reduced by the
creation of "all- inclusive" vacation packages.

• When tourists remain for their entire stay at the

same cruise ship or resort, which provides
everything they need and where they will make
all their expenditures, not much opportunity is
left for local people to profit from tourism.
• The cruise ship industry provides another
example of economic enclave tourism.
• On many cruise ships, especially in the
Caribbean, guests are encouraged to spend
most of their time and money on board, and
opportunities to spend in some ports are
closely managed and restricted.
 Infrastructure Cost
• Developers may want the government to
improve the airport, roads and other
infrastructure, and possibly to provide tax breaks
and other financial advantages, which are costly
activities for the government.

• Public resources spent on subsidized

infrastructure or tax breaks may reduce
government investment in other critical areas
such as education and health.
 Increase in Prices
• Increasing demand for
basic services and goods
from tourists will often
cause price hikes that
negatively affect local
residents whose income
does not increase
proportionately.
 Economic Dependence

• Diversification in an economy is a sign of health,

however if a country or region becomes
dependent for its economic survival upon one
industry, it can put major stress upon this
industry as well as the people involved to
perform well.
 Seasonal Character of Jobs
• no guarantee of employment from one season
to the next.
• difficulties in getting training, employment-
related medical benefits, and recognition of
their experience.
Socio - Cultural Impacts
of Tourism
Tourism and
Culture
 Culture

Is defined as a set of beliefs, values,

attributes, habits and forms of
behaviour that are shared by society
and are transmitted from generation to
 Sociology and Society
• Sociology is the study of
society and is concerned
with people in groups, their
interaction, their attitudes
and their behavior.
• Society refers to the
patterns of social
organization of and within
communities.
Cultural tourism – includes all
aspects of travel in which people
learn about each other’s way of life.
Cultural Factors with Tourist Appeal
Art – this includes performing arts
and fine arts. The formers refers to
live theatre, music and dance and
the latter includes painting,
sculpture, graphic arts and
architecture.
Music and Dance. Evening
entertainment programs, concerts,
recordings and sound production
systems are greatly appreciated by
tourists.
Handicraft. To satisfy tourists, gifts
and souvenirs for sale should be
manufactured in the country where
the purchase is made. A visit to
shops where handicrafts are actually
being made by the craftsman is an
effective form of tourist
entertainment.
Literature and Language. Libraries and
museums are favorite cultural institutions
for the tourists since books, magazines,
newspapers, booklets, pamphlets and
other printed literacy works found in the
library are significant expressions of the
culture of a country.
Industry and Business. Most
travelers are particularly curious
about the country’s industry,
commerce, manufactured products
and its economic situation. Shopping
is one of the most important
elements in tourism.
Government. Visits to centers of
government, such as capitals, are very
motivating to individuals interested in
political science and government. When a
person visits another country, he
becomes aware of the type of
government in operation and compares it
with the government of his own country.
 Religion. The religious pilgrimage is
another motivation to travel. Many people
go to the different headquarters of their
church organizations and to places that
are well known in their religious literature.
Visits of famous churches are also
incentive to travel.
Cuisines and Dishes. Tourists
usually enjoy native foods especially
those which are local or ethnic in
nature.
History. The historical resources of a
country reveal its cultural heritage. The
preservation of history and the quality
and management of museums are very
important for the success of tourism.
 Socio-cultural Impacts of Tourism
• Social impacts of tourism
refers to changes in the
lives of people living in
destination communities.

• Cultural impacts of tourism

refers to changes in the
arts, artifacts, customs,
rituals, and architecture of a
people.
• The term socio-cultural impacts refer to changes
to resident’s everyday experiences, as well as to
their values, way of life, and intellectual and
artistic products.
• The socio-cultural impacts of tourism described
here are the effects on host communities of
direct and indirect relations with tourists, and of
interaction with the tourism industry.

• The interaction of the two groups will be a major

issue in affecting the types of impacts.

• “..when there is large contrast between the

culture of the receiving society and the origin
culture, then it is likely that impacts will be
greatest.”
Positive Socio – Cultural Impacts
 Positive Socio – Cultural Impacts

• Tourism as a force for peace

• Strengthening communities
• Facilities developed for tourism can
benefit residents
• Revaluation of culture and traditions
• Encourages civic involvement and pride
 Tourism as force for PEACE

• Travelling brings people into contact with each

other and it can foster understanding between
people and cultures and provide cultural
exchange between hosts and guests.
• people to develop mutual sympathy and
understanding and to reduce their prejudices
 Strengthening communities
• events and festivals of which local residents
have been the primary participants and
spectators are often rejuvenated and
developed in response to tourist interest.
 Facilities developed for tourism can
benefit residents
• it can bring higher living standards to a
destination.

• upgraded infrastructure, health and transport

improvements, new sport and recreational
facilities, restaurants, and public spaces

• as well as an influx of better-quality

commodities and food.
Revaluation of culture and traditions

• Tourism can boost the

preservation and
transmission of cultural
and historical traditions,
the protection of local
heritage, and a
renaissance of indigenous
cultures, cultural arts and
crafts.
 Encourages civic involvement and pride

• Tourism also helps raise local

awareness of the financial
value of natural and cultural
sites.

• can stimulate a feeling of

pride in local and national
heritage and interest in its
conservation.
Negative Socio – Cultural Impacts
 Negative Socio – Cultural Impacts
1. Loss of Cultural Identity
2. Commodification
3. Standardization
4. Cultural Clashes
5. Social and Culture Exploitation
6. Crime Generation /Ethical Problems
7. Prostitution and Sex Tourism
8. Demonstration Effect
9. Acculturation
Loss of Cultural Identity
• identity is important;
lose it and people become
commodities.
The loss of identity is
the loss of culture — the
greatest loss any society
can suffer because of
tourism.
 Commodification
• Tourism can turn local cultures into
commodities when religious rituals, traditional
ethnic rites and festivals are reduced and
sanitized to conform to tourist expectations,
resulting in what has been called “Culture for
Sale."
 Standardization

• standardization in the process of satisfying

tourists' desires for familiar facilities.
• While landscape, accommodation, food and
drinks, etc., must meet the tourists' desire, they
must at the same time not be too new or strange.
Culture Clashes

• can take place as a result

of differences in cultures,
ethnicity, religion, values,
lifestyles, languages, and
levels of prosperity.

• “discrimination”
 Social and Cultural Exploitation
• Exploitation of social carrying capacity (limits of
acceptable change in the social system inside or
around the destination) and cultural carrying
capacity (limits of acceptable change in the
culture of the host population) of the local
community.
 Crime Generating/ Ethical Problems

• The presence of a large number of tourists with a

lot of money to spend, and often carrying
valuables such as cameras and jewellery,
increases the attraction for criminals and brings
with it activities like robbery and drug dealing.
 Prostitution and Sex Tourism
• The commercial sexual exploitation of children
and young women has paralleled the growth
of tourism in many parts of the world.
• Though tourism is not the cause of sexual
exploitation, it provides easy access to it
 Demonstration Effect
• It is theorized, that simply observing tourist
will lead to behavioral changes in the resident
population .
• Under these conditions, local people will note
the superior material possessions of the
visitors and aspire to these.
 Acculturation

• states that when two cultures come into contact

for any length of time, an exchange of ideas and
products will take place, that produce varying
levels of convergence between the cultures; that
is they become identical.
Environmental Impacts of Tourism
 What is Environment?

• encompasses the
interaction of all living
species, climate,
weather and natural
resources that affect
human survival and
economic activity.
 Introduction

• The quality of the environment, both natural and

man- made, is essential to tourism.
• However, tourisms relationship with the
environment is complex - many activities can have
adverse environmental effects.
• The negative impacts of tourism development
can gradually destroy the environmental
resources on which it depends.
• On the other hand, tourism has the potential to
create beneficial effects on the environment by
contributing to environmental protection and
conservation.
Positive Environmental Impacts
 Positive Environmental Impacts
1. Environmental awareness.

2. Enhancements of local environment.

3. Protection and conservation of

wildlife.
Environmental Awareness
• Tourism has the potential
to increase public
appreciation of the
environment and to
spread awareness of
environmental problems
when it brings people
into closer contact with
nature and the
environment.
 Enhancement of Local Environment
• Retain and increase visitor numbers by
improving the general amenity value of the
local environment.
Protection and Preservation of Wildlife

• Tourism acts as a force of conservation as it

offers an alternative economic use.
• Tourism draws attention to issues relating to
biodiversity, endangered species and human
impact on the environment.
 Negative Environmental Impacts
1. Inappropriate development

2. Loss of natural habitat and effects on wildlife

3. Pollution

4. Overcrowding and traffic congestion

5. Activities (affecting the natural environment)

 Inappropriate Development
• Tourism development
may be classed as
inappropriate if it fails
to be sensitive to the
natural environment.

• Long-term planning in
environment terms
should be done.
 Loss of natural habitat and effects on
wildlife
• Development of facilities and subsequent
tourist use may result in rapid or more gradual
effects on habitats of the preserved wildlife
animals and plants that can cause to their
endangerment and worst, Extinction.
 Pollution
• is the introduction of contaminants into the
natural environment that cause adverse
change.

– Water
– Noise
– Land (Solid Waste)
– Air
 Water Pollution
• the contamination of water bodies such as
lakes, rivers, oceans, and groundwater.
 Noise Pollution

• (or environmental noise) is displeasing

human-, animal- or machine- created sound
that disrupts the activity or balance of human
or animal life.
 Land Pollution
• Solid Waste,also referred to as rubbish, trash,
garbage, or junk depending upon the type of
material and the regional terminology. In living
organisms, waste relates to unwanted
substances or toxins that are expelled from
them.
 Air Pollution

• is the introduction of chemicals, particulate

matter, or biological materials that cause harm or
discomfort to humans or other living organisms,
or damages the natural environment, into the
atmosphere.
 Overcrowding and Traffic Congestion
• Happens when the volume of tourists exceeds
the capacity of an environment. • Overcrowding
poses an increased risk of environmental
damage through erosion and restricts visitor
appreciation of the destination.
 Activities
(affecting the Environment)
• while the premise of tourism is to assist in
conservation and well-being of local
communities, it is often the case that tourism-
based activities lead to deterioration in
environmental quality. - proper planning and
management is needed
Tourism and Global Warming
 What is Global Warming?
• Global warming is the observed century-scale
rise in the average temperature of the Earth's
climate system and its related effects, as part
of climate change.
 Introduction
• By 2050, tourism is expected to see its
contribution to greenhouse gas emissions rise
from 3 to 7%.
 Effects of Global Warming
• Experts begin to understand how climate
change may reverse the shape of seasonality
with a growing demand for coolness in
summer, leading to increased energy
consumption for air- conditioning, along with
a greater number of extreme weather events
which could disrupt tourism, such as flooding,
sand storms, droughts and summer fires.
Specific Measures to Minimize
Environmental Damage
• installing water saving devices;
• Abolishing individually wrapped food items at the
breakfast buffet;
• Using recycled paper and reusable bottles.
• decreasing automobile traffic in resorts, clinic
and recreational zones by constructing parking
areas outside of the central areas and using
electric buses
• Use high capacity airplanes to reduce noise and
emissions of pollutants and fuel consumption