Impacts of Tourism Industry PDF

TH2107 Impacts of the Tourism Industry The tourism industry is one of the largest industries worldwide. It can have major impacts in both positive and negative ways in a country. These impacts can be observed in destination regions where tourists interact with the local environment, economy, cultur...

TH2107 Impacts of the Tourism Industry The tourism industry is one of the largest industries worldwide. It can have major impacts in both positive and negative ways in a country. These impacts can be observed in destination regions where tourists interact with the local environment, economy, culture, and society (Cruz, 2015). Economic Impacts Tourism contributes greatly to a nation’s economy. The economy is defined as the process or system by which goods and services are produced, sold, and bought in a country or region (Merriam-Webster, n.d.). Tourism products are sold to people interested in travel, which generates profit for both the private and public sectors. According to the United Nations World Tourism Organization (UNWTO), the tourism industry is the third- largest export sector in the global economy. For some countries, it can represent over 20% of their Gross Domestic Product (GDP). Tourism is one of the most effective ways to redistribute wealth into local economies. Positive Impacts These positive economic impacts of tourism are the primary reasons for developing tourism in an area: Foreign Exchange Earnings – Tourism expenditures generate income to the host economy by exporting and importing all related goods and services. Travelers from foreign countries trading their original currency with the currency of their destination is a common scenario for this. Government Revenues – The continuous growth of tourism resulted in the expansion of ventures and employment creation. Each sector in the tourism industry (as discussed in 02 Handout 1) provides significant tax revenue each year through property taxes, airport taxes, sales taxes, park entrance fees, and employee income taxes, which the government uses for its development projects. Generation of Employment – Along with the increased tourist arrivals in a destination, comes the creation of tourism jobs and businesses. Tourism needs human resources to man hotels, restaurants, transportation, souvenir shops, and other tourism-related businesses. Contribution to the Local Economies – Tourism is an essential part of local economies. The environment is a basic component of the tourism industry’s assets, and tourism revenues are often used to measure the economic value of protected areas. Local revenues are not easily quantified, as not all tourism expenditures are formally registered in the macroeconomics statistics. Part of the tourism income comes from informal employment, such as street vendors and informal guides. The positive side of informal employment is that the money is returned to the local economy and has a great multiplier effect (the number of times money spent by tourists circulates through a country’s economy). Tourism also contributes directly to the conservation of sensitive areas and habitats. Revenues from park entrance fees and similar sources can be used to pay for the protection and management of environmentally protected areas. Negative Impacts The negative economic consequences of tourism are the following: Inflation – This is the progressive increase in the general level of prices of land, houses, and food brought about by tourism. Prices for these commodities can increase when tourists place extra demands on local services in a tourist destination. Leakages – Economic leakages in tourism occur when money does not remain in the country, limiting tourism's economic benefits to the host country. This happens, for instance, when a local economy cannot meet tourist demand for certain products. So local suppliers must look elsewhere, spending a significant proportion of their income on importing the goods tourists want. Opportunity Costs – It refers to the cost of engaging in tourism instead of other forms of economic activity. For instance, opportunity costs refer to investing in tourism instead of farming, gardening, or fishing in rural areas. 04 Handout 1 *Property of STI  [email protected] Page 1 of 6  TH2107 Tourism Overdependence – Opportunity costs result in overdependence on tourism. Some countries become so dependent on tourism revenue that any change in demand will lead to a major economic crisis. Economic Impact Control Strategies Specific measures need to be practiced to lessen the negative economic impacts of tourism. The following are some strategies: Maximize the use of goods and services produced within the country, region, and community to reduce leakage from importing goods and services. This also includes hiring local personnel in tourist facilities and services to enhance local economic benefits. Make sure that local residents have access to tourist attractions, facilities, and services, including reduced admission fees for residents and discounts for young and student travelers to increase patronage and appreciation in host communities. Provide training and other knowledge-sharing techniques for local business owners and managers to improve their operations, thereby increasing the direct economic benefits of tourism. Educate the local residents on the concepts, benefits, and problems of tourism and the current development policies and plans for tourism in the area. The more they are involved in tourism initiatives, the more they develop a sense of destination ownership. Encourage higher tourist expenditures by providing a greater variety and higher quality of handicrafts, souvenirs, specialty, duty-free items, and other tourism-related products. Sociocultural Impacts Tourism is an interactive service which means that host-guest interaction is inevitable. Society is concerned with people in groups, their interactions, attitudes, and behavior. Culture is about the social interaction of people, their social relations, and material artifacts. According to Burns and Holden (as cited in Cruz, 2015, p. 66), culture consists of behavioral patterns, knowledge, and values that have been acquired and transmitted through generations. The social impact aspect of tourism is concerned with studying the impacts of tourism on the people in groups, including the residents of tourism areas usually referred to as hosts and the tourist themselves. While the cultural impact aspect of tourism is concerned with the impacts of tourism on the culture of the host population and the culture of visitors themselves (Cruz, 2015). Positive Impacts These are the beneficial sociocultural impacts of tourism: Creation of Employment – This refers to new employment opportunities for residents and a chance for new income opportunities to the tourist area. People with jobs are also happier and more social than those without income. Conservation of Cultural Heritage – Tourism can be a major factor in conserving the important elements of the cultural heritage of a tourist area. These elements consist of preservation of archaeological sites, conservation and revitalization of traditional arts, handicrafts, dance, music, drama, customs, ceremonies, dress, and other aspects of traditional lifestyles, and lastly, financial assistance for the maintenance of museums, theaters, and other cultural facilities and activities. Renewal of Cultural Pride – Tourists appreciating the culture of a host community gives the residents a renewed sense of pride. Cross-cultural Exchange – Tourism can promote cross-cultural exchange between tourists and residents when they learn more about one another’s culture, resulting in mutual understanding and respect for their values and traditions. Negative Impacts The negative sociocultural impacts of tourism are: Overcrowding and Loss of Amenities for Residents – Overcrowded amenities, shopping, and community facilities and congestion of transportation systems by tourists may lead to residents not 04 Handout 1 *Property of STI  [email protected] Page 2 of 6  TH2107 being able to use these facilities themselves. Hence, they will become irritated and resentful of tourism. Overcommercialization of Traditional Arts and Crafts – Commercialization and loss of authenticity of traditional arts and crafts, customs, and ceremonies can result if these are changed/performed to suit tourist demands. An example is when traditional dances and music are performed out of context because tourists demand to witness such, defeating their cultural authenticity. Demonstration Effect – This impact results when there are visible differences between tourists and residents. It is common in many developing countries where behavioral changes occur in the resident population by simply observing tourists. The demonstration effect is disruptive when the locals become resentful because they cannot obtain the goods and lifestyles shown by the visitors and may result in a crime. Young people are usually susceptible to the demonstration effect. Cultural Clashes - These occur because of the differences in cultures, ethnic and religious groups, values, lifestyles, and languages. This negative impact can also be exasperated by the fundamental cultural differences between the hosts and the tourists. For instance, leaving tips in Japan is considered an insult, resulting in arguments and misunderstandings between tourists and locals. Acculturation – According to Williams (as cited in Cruz, 2015, p. 69), acculturation occurs when two (2) cultures come in contact for any length of time and an exchange of ideas and products take place, that through time, it produces various levels of convergence between the cultures that they become similar. The acculturation process is generally not balanced since one culture is stronger than the other. A good example is an American culture that predominates over one from a developing country. One of the negative effects of the acculturation process is the reduction of the diversity of global cultures. Sociocultural Impact Control Strategies Here are some specific measures that can be applied to lessen the negative sociocultural impacts of tourism: Maintain authenticity of local dance, music, and drama performances, arts, and handicrafts. These may be adapted and expanded based on traditional skills by establishing quality controls and organizing training programs. Design, reinforce, and help revive local architectural styles of hotels and other tourist facilities so that these facilities are not strange to residents. Use themes and events to show the history, lifestyles, and geographic setting of tourist destinations. Educating tourists about an area’s culture teaches them what to avoid doing during their stay to remain in harmony with the residents. It is best to expand the variety of available tourist activities, develop new tourist attractions, including natural, cultural, and special types of attractions, and organize additional tours to new tourism areas to increase tourist expenditures and length of stay. In addition, promoting tourism in different periods (for example, out of season) may help lessen multiple masses of tourists visiting the destination. Environmental Impacts The environment is recognized as a major resource for tourism. There is a mutual dependence between tourism and the environment, which has been described as symbiotic. This relationship is one in which tourism benefits from being in a good quality environment, and the environment benefits from the measures taken to protect and maintain its value as a tourist resource. The environment includes the natural environment and the built environment. The natural environment exists in nature, such as climate and weather, the land and topography, geology, water features, flora, fauna, and ecological systems. The built environment consists of man-made physical features such as buildings, infrastructures, and archaeological and historic sites. According to Swasbrooke (as cited in Cruz, 2015, p. 70), five (5) aspects of the environment are connected. These are the natural environment (mountains, seas, rivers, and lakes), wildlife (flora and fauna), farmed environment (agricultural landscapes and fish farms), built environment (buildings, villages and townscapes, and transport infrastructures), and natural resources (water, climate, and air). 04 Handout 1 *Property of STI  [email protected] Page 3 of 6  TH2107 Positive Impacts The following are the positive environmental impacts of tourism: Conservation of Important Natural Areas – Tourism can help conserve important natural areas and develop natural and regional parks that may serve as tourist attractions. Marine conservation, particularly reef areas and beaches, are receiving much attention because these are important tourist attractions. Conservation of Archaeological and Historical Sites – Tourism can help provide the incentive for the preservation of archaeological and historical sites such as the walls of Intramuros in Manila and the Spanish houses in Calle Crisologo in Ilocos Sur. Improvement of Environmental Quality – Tourism can help clean the environment by controlling air, water, and noise pollution, littering, and other environmental problems. A clean and aesthetically pleasing environment in a tourist attraction motivates tourists to visit and improves their mood. Enhancement of the Environment and Infrastructure – Tourism can help enhance rural or urban landscapes by developing well-designed tourist facilities such as attractive hotels. Tourism can also help build and improve local infrastructures such as airports, roads, sewage, solid waste disposal systems, and telecommunications. Increased Environmental Awareness – Tourism can encourage local environmental awareness, especially in places where the residents have limited interest and concern about the natural environment and its conservation. Negative Impacts The following are the negative environmental impacts of tourism: Water Pollution – This may occur if a proper sewage disposal system is not installed for hotels, resorts, and other tourist facilities. Surface water pollution in rivers, lakes, and seawater also results from motorboats that spill oils and gas into the water, especially in enclosed harbors. Air Pollution – This can result from the excessive use of internal combustion vehicles, such as cars, buses, and motorcycles, used by tourists in major tourist attraction sites. Air pollution may also occur if the exhaust systems of the vehicles are not properly maintained. Noise Pollution – This is generated by the concentration of tourists, recreation vehicles, airplanes, motorboats, amusement parks, car, and motorcycle racetracks in a destination. Visual Pollution – This occurs because of the following: o Poorly designed hotels and other tourist facility buildings that are incompatible with the local architectural style; o Use of unsuitable building materials; o Inappropriate landscaping; o Use of unattractive advertising signs; o Overhead electric and telephone lines and poles; and o Poor building maintenance. Waste Disposal Problems – Improper solid waste disposal from hotels, restaurants, and resorts can cause litter and environmental health problems from vermin, disease, and pollution. An example of this is the incident in Boracay wherein it was shut down due to pipes carrying raw effluence directly into the sea. Ecological Disruption – Overuse of the natural environment by tourists can lead to ecological damage. Examples are the stunted vegetation growth in parks because tourists walk through them and trees cut by hikers and campers to make campfires. Deforestation (the clearing or thinning of forests by humans) may lead to erosion (a geological process in which earthen materials are worn away and transported by natural forces such as wind or water) and landslides. Tourists' collection of seashells, coral, and turtle shells as souvenirs or by residents for commercial purposes can deplete these species. 04 Handout 1 *Property of STI  [email protected] Page 4 of 6  TH2107 Environmental Hazards – Poor engineering design of tourist facilities can result in erosion, landslides, flooding, and avalanches. Environmental disruption may result in the destruction or damage to tourist facilities by earthquakes, strong winds, and flooding. Land Use Problems – Tourism development can cause land use problems if not developed following proper planning principles. For instance, hotels constructed too close to the shoreline have been damaged by high waves during storms. Without integrated land use and infrastructure planning, the infrastructure may become overloaded, leading to traffic congestion, inadequate water supply, and sewage disposal systems. Environmental Impact Control Strategies The following are the environmental impact control strategies that should be applied during the tourism development planning process to prevent environmental problems: Installation of water supply and sewage disposal systems for hotels and other tourist facilities that meet internationally accepted standards to prevent pollution problems. This also includes using proper solid waste disposal techniques and recycling waste products. Development of electric power systems that provide sufficient and reliable power and apply conservation techniques. Construction of sufficient drainage systems to prevent flooding during the rainy season and standing water that may cause health problems. Development of adequate road and other transportation systems to prevent traffic congestion and maximize mass transit and pedestrian systems. Application of land use zoning regulations with appropriate development standards and good site planning principles in tourism areas, including adequate setback of buildings from shorelines, attraction features, maximum densities, and building heights. This also includes providing open space and parks and suitable landscaping on hotel and resorts sites, tourist attractions in urban areas, and along roads, walkways, and shorelines. Management of visitor flows at natural and cultural tourist attractions to avoid congestion in these areas. Application of proper architectural design standards so that the structures in tourism areas will be architecturally and environmentally compatible. This also includes applying appropriate design standards to control the location and size of advertising signs. Proper site planning, designing, and engineering of tourist facilities also help lessen damage from environmental hazards such as earthquakes, tsunamis, high winds, rainfall, and other hazards that may occur. Strict prohibition of littering with the imposition of fines. It is better to establish controls on ship cleaning operations and dumping of garbage and litter in water areas. Proper maintenance of tourist vehicles such as buses, taxis, rental cars, and boats to prevent air and noise pollution. Prohibiting the use of motorized boats in environmentally sensitive water areas also helps prevent water and noise pollution. Establishment of strict control on the collection of environmental resources, such as seashells and coral, and rare species of flora and fauna by tourists, cutting of trees for making campfires, and feeding wild animals. Establishment of suitable park, building, and landscaping maintenance programs for public areas as well as good maintenance in private areas. This also includes maintaining environmental health and safety standards for both residents and tourists to prevent environmentally derived diseases and high accident rates resulting from traffic congestion, fires, and other hazards. 04 Handout 1 *Property of STI  [email protected] Page 5 of 6  TH2107 References Cruz, Z. (2015). Tourism planning and development (2nd ed.). National Book Store. Framba, A. (2020, February 14). Overtourism: Causes, consequences and solutions. Ecobnb. Retrieved September 20, 2021, from https://ecobnb.com/blog/2020/02/overtourism-causes-consequences-solutions/ McKirdy, E. (2018, April 5). Philippines closes 'cesspool' tourist island of Boracay. CNN. https://edition.cnn.com/2018/04/04/asia/philippines-duterte-boracay-shutdown-intl/index.html Merriam-Webster. (n.d.). Economy. In Merriam-Webster.com dictionary. Retrieved September 20, 2021, from https://www.merriam- webster.com/dictionary/economy National Geographic. (n.d.). Erosion. In National Geographic. Retrieved September 20, 2021, from https://www.nationalgeographic.org/encyclopedia/erosion/ Primm, S. (n.d.). Deforestation. In Britannica. Retrieved September 20, 2021, from https://www.britannica.com/science/deforestation Putinja, I. (2017, September 13). 12 things you should never do in Japan. Business Insider, Oyster.com. https://www.businessinsider.com/12-things-you-should-never-do-in-japan-2017-9 Sajit, A. (2014, November 15). Tourism multipliers [PowerPoint slides]. Slideshare. Retrieved September 20, 2021, from https://www.slideshare.net/workhelpaccount/tourism-multipliers Stainton, H. (2021, June 23). Economic impacts of tourism. Tourism Teacher. Retrieved September 20, 2021, from https://tourismteacher.com/economic-impacts-of-tourism/#5-contribution-to-local-economies- Stainton, H. (2021, June 3). Environmental impacts of tourism. Tourism Teacher. Retrieved September 20, 2021, from https://tourismteacher.com/environmental-impacts-of-tourism/ Stainton, H. (2021, June 15). Social impacts of tourism. Tourism Teacher. Retrieved September 20, 2021, from https://tourismteacher.com/social-impacts-of-tourism/ United Nations. (n.d.). About small island developing states. https://www.un.org/ohrlls/content/about-small-island-developing- states World Tourism Organization (UNWTO). (n.d.). Secretary-General’s Policy Brief on Tourism and COVID-19. Retrieved September 20, 2021, from https://www.unwto.org/tourism-and-covid-19-unprecedented-economic-impacts 04 Handout 1 *Property of STI  [email protected] Page 6 of 6