Impacts of Tourism

Impacts of Tourism

• Tourism impacts change over time as destinations develop (Butler, 1980).
• Impacts also depend on time, location, and seasonality.
• Tourism's effects extend beyond the destination itself.
• Tourism has an impact on tourists themselves.

Advantages of Tourism

• Income from tourism can be used to conserve natural environments which attract visitors.
• Tourism benefits countries through overseas investment, both directly in tourism and related industries.
• Tourism aids in preserving local cultures and communities as they become tourist attractions.

Disadvantages of Tourism

• Tourism jobs are often low paying with poor working conditions.
• Large numbers of tourists can damage environments.
• Increased tourists can cause environmental problems like littering, pollution, and erosion.
• Tourism can devalue local cultures.

Fundamental Truths about Tourism

• Tourism consumes resources and generates waste.
• Tourism has the capacity to over-consume resources.
• Tourism competes with other resource users.
• Tourism is primarily driven by the private sector.
• Tourism is complex and difficult to control.
• Tourists are consumers rather than anthropologists.
• Tourism is a form of entertainment.
• Unlike other industries, tourism's customers come to it rather than the industry exporting its product.

Impacts of Tourism (Categories)

• Economic Impacts
• Socio-cultural Impacts
• Environmental Impacts

Economic Benefits of Tourism

• Foreign Exchange Earnings: Travel and tourism expenditures generate income, stimulate investment in various sectors, and accelerate growth through foreign currency brought in. Tourism is a top 5 export category for many countries with 83% and a major source of foreign exchange for at least 38% of countries.
• Contribution to Government Revenues: Direct and indirect contributions are made to government coffers.
• Generation of Employment Opportunities: Direct, indirect, and induced employment is created.
• Infrastructure Investment: Tourism can motivate infrastructure improvements like better transportation, water systems, electricity, sewage, and roads enhancing the quality of life.
• Leakage: Money leaves the local economy for imported goods, expatriate salaries or franchise fees, potentially reducing benefits. Leakage can occur through repatriation of profits, vertical integration, or not sourcing goods and services from local sources.
• Enclave Tourism: Tourists may remain entirely at resorts and cruise ships, limiting benefits to local communities.
• Seasonal Character of Jobs: Insecure jobs with no guarantee of employment from one season to the next, and limited benefits like housing and working conditions are common.
• Prostitution and Underground Economy: This sector can seem to contribute, but indirectly harms the local economy. (2% - prostitute's income, 14% - other affected parties)

Economic Costs of Tourism

• Inflation: Increased prices of land, houses, and food due to tourism. Inflation directly impacts demand.
• Opportunity Costs: The cost of choosing tourism over other economic activities.
• Dependency: Over-reliance on tourism, causing other industries to decline.
• Seasonality: Impacts jobs, investment, and tourism-related businesses due to fluctuations in demand.