Chapter 6: The Impacts of Tourism and Hospitality PDF

The Impacts of Tourism and Hospitality Chapter 6 1 Learning Objectives: Determine the economic effects of tourism and hospitality; Discuss the social impacts of tourism and hospitality; Explain the impacts of tourism and hospitality on culture; and Analyze the...

The Impacts of Tourism and Hospitality Chapter 6 1 Learning Objectives: Determine the economic effects of tourism and hospitality; Discuss the social impacts of tourism and hospitality; Explain the impacts of tourism and hospitality on culture; and Analyze the environmental impacts of tourism and hospitality. 2  The Positive Economic Effects of Tourism and Hospitality On income On employment On the area’s balance of payments with the outside worlds On investment and development 3 Income The tourism and hospitality industry generates income within a destination country. Hence, the industry is both an income generator and an income redistributor. Tourism income comes from wages and salaries, interest, rent, and profits. The sum of all income in a country is called national income. The most common method for estimating the revenue generated from tourism and hospitality is by determining the multiplier for a destination. 4 Employment Since tourism and hospitality is a labor-intensive industry, it provides employment opportunities in the destination. There are 3 types of employment generated by tourism: (1)Direct (2)Indirect (3)Induced 5 Area’s Balance of Payments with the Outside World Tourism contributes to the country’s balance of payments in the form of international tourism receipts. These receipts are maximized by developing new attractions, promotions, subsidizing exchange rates, and other measures. This will help in balancing the deficit and surplus of payments. 6 Investment and Development The accelerator concept describes that once an area becomes economically successful, then it entices more businessmen and government agencies to invest in tourism and other industries. 7  The Negative Economic Effects of Tourism and Hospitality High Inflation and Land Speculation Destination High Leakages from the Economies of Developing Countries Low Returns on Investments because of Seasonal Fluctuations in Demand. Overdependence in Tourism and Hospitality 8 High Inflation and Land Speculation Destination Since some tourists can afford to buy items at high prices, retailers tend to increase their rates on specific products and provide more expensive goods and services to tourists. Also, inflation is caused by increasing land values as growth in tourist trade creates additional demand for land, and competition from potential buyers increases the price of a property. 9  High Leakages from the Economies of Developing Countries High leakages usually resulted from the cost of goods and services that must be imported, remittance of profits and wages to outside sources, and expenditure for promotion and publicity. 10  Low Returns on Investments because of Seasonal Fluctuations in Demand Tourist regions experience low returns on investment because of seasonal fluctuations in demand. Many hotels experience significantly reduced revenues during the offseason. Tour operators also face seasonality of demand. 11 Overdependence in Tourism and Hospitality Destinations are vulnerable to changes in tourist demand by being over-dependent on tourism. The decrease in demand for a destination results in underutilization of services, unemployment, and loss of income. 12 Impact Control Measures a. Develop tourism and hospitality gradually so that local residents can have sufficient time to adapt to it and understand it. It would also allow the government to properly plan, organize, and monitor tourism and hospitality; b. Maintain a scale of tourism and hospitality development that is appropriate for the local as well as the national environment. If possible, develop other economic sectors so that there are a balanced economy and employment structure. In some areas, small-scale and dispersed forms of tourism are more suitable than concentrated mass tourism development; c. Involve residents and their spokesmen in planning and decision-making so that they can participate in determining the future of this sector; 13 Impact Control Measures d. Apply the concepts of tourism development zones; e. Make sure that residents have easy access to tourist attractions, facilities, and services including reduced admission fee if necessary, and that essential amenity features have public access and are not preempted by tourism; f. Provide incentives to local ownership, management, and operations of hotels and other tourist facilities and services so that residents can receive direct economic benefits; 14 Impact Control Measures g. Develop strong linkages between tourism and hospitality and other commercial activities such as agriculture, fisheries, handicrafts, and manufacturing to help develop these sectors, reduce leakage of foreign exchange through import substitution, and spread the economic benefits of tourism and hospitality; h. Plan, develop, and organize tourism and hospitality so that no area becomes too congested with tourists, and residents can easily use community facilities and services; and 15 Impact Control Measures i. Train local people to work effectively in all levels of tourism and hospitality, including managerial and technical positions, to reduce the number of imported employees and to lessen possible misunderstandings between tourists and local employees. 16  The Social Impacts of Tourism and Hospitality The social impacts of tourism and hospitality should not be confused with the popular term "social tourism." The social impacts of tourism and hospitality refer to the changes in the quality of life of residents of tourist destinations. The objective of social tourism is to ensure that tourism is accessible to all people. 17 TYPES OF TOURISTS (SMITH, 1997) (1)Explorer - This type of visitor is interested in being an active participant-observer among the population. The explorer easily adapts to local lifestyles and does not need special tourist accommodations; (2)Elite - This type of tourist is few. He can afford to pay well for unusual vacations. He is well-traveled and usually known as “the jet-setter." He differs from the explorer in his attitude. His arrangements are either made by a travel agent or maybe pre-planned. Although he is willing to sample the local lifestyle, he requires some degree of comfort; (3)Offbeat - This tourist adapts well to simple accommodations and services provided for the occasional guest; (4)Unusual Tourist – This tourist loves sub-exotic cultural sites and the unique or primitive sites as long as he can quickly and safely return to more familiar surroundings and group; (5)Incipient Mass Tourist - This is a visitor who looks for the amenities of Western societies in hotels and other travel-related facilities. He is a mixture of both pleasure seeker and business traveler; (6)Mass Tourist – He comes from the middle class. He arrives at a destination with other tourists. There is a diversity of tastes among them, and their attitude is "you get what you pay for"; and (7)Charter Tourist – The charter tourist comes "en masse" with others of his kind, creating an extremely high amount of business and receiving a high degree of standardization in services and products. The interaction between the visitors and the hosts is limited and impersonal. 18 Frequency and Type of Tourists and Their Adaptation to Local Norms 19  The Positive Social Impacts of Tourism and Hospitality Social Change and Multicultural Understanding Adaptation to the Realties of Modern Life and Improvement of Lifestyle Use of Foreign Language Improved Health Conditions and Disease Control 20  Social Change and Multicultural Understanding One of the essential benefits of tourism is bringing together diverse people to help them understand one another. The more isolated the country visited, the more significant social changes are likely to be. 21 Adaptation to the Realities of Modern Life and Improvement of Lifestyle This positive social benefit is the result of the following: (1) The quality of life improve in places where tourism is being developed; (2) The changes that occur in occupation and income patterns create a middle class; (3) Increased social mobility results in new employment opportunities in tourism and hospitality; and (4) Changes in family relations occur through the employment of women outside the home. 22  Use of Foreign Language The need and the desire to communicate increase interest in both the host and visitor to learn another language. Many popular tourist destinations have developed short-term language courses to assist visitors. 23  Improved Health Conditions and Disease Control Tourism contributes to the maintenance and improvement of public health facilities in destination areas. The industry also helps local residents to be aware of both health problems and good hygiene that can lead to a change in the health infrastructure of a destination. 24 Negative Quote and Social Effects Image Slide of Tourism and Hospitality Social Saturation Changes in the Social Structure, Behavior, and Roles Community Problems Negative Demonstrative Effects 25  Social Saturation The presence of large numbers of tourists in particular places at specific times results in saturation or congestion. Tourists and residents compete for limited resources, facilities, and services. Residents frequently resent having to share their facilities and services with visitors. It is often cited as a social cost 26 Changes in the Social Structure, Behavior, and Roles Tourism changes the traditional forms of employment. Tourism in some areas leads to other social problems in the family. Disruption in the kinship system reduces cohesiveness and changing the population attitude. 27  Community Problems Tourism may contribute to the rise in prostitution in a tourist destination for several reasons. Also, an increase in the number of visitors may increase criminal activities. 28  Negative Demonstrative Effects One of the significant results of adverse demonstrative effects is the polarization of the hosts from the tourists, which happens in several ways: (1) Tourists often demand commodities and facilities beyond the economic capacity of local residents. (2) Social norms of the tourists that are very different from the local customs give rise to social problems. (3) Importation of foreign workers from more developed countries. 29  Impact Control Measures a. Reducing the contact between hosts and guests by limiting the carrying capacity of the destination and by regulating the tourist flow; b. Separating the hosts and the tourists within tourist enclaves; c. Designing community education and citizen involvement programs centered on tourism and hospitality development, policy, and regulatory issues; and d. Expanding human resource development and training programs in all components of the tourism and hospitality system to include social skills 30  Positive Effects of Tourism and Hospitality on Culture Intercultural Communication Renaissance of Native Culture 31  Intercultural Communication Cross-cultural communications between tourists and their hosts may promote changes in local culture while preserving or revitalizing local ethnic and cultural identity. Cross-cultural communication is of prime importance if it contributes to the promotion of understanding between tourists and their hosts. 32  Renaissance of Native Culture Tourism may be relevant to the host country to remind its people of its history and culture. Tourism has stimulated the preservation of traditional art, including traditional songs and dances. Also, the establishment of cultural villages has contributed mostly to the renaissance of native traditions and crafts 33 Negative Cultural Impact of Tourism and Hospitality Tourism has led to the destruction of a country’s work of art. Several tourists persuade the natives to sell traditional objects which have been used for generations. The increasing demand for artifacts has led to changes in its form and functions as art objects. Cultural villages and large hotels giving floor shows may manipulate authentic host traditions and events to conform to the time schedules and tastes of tourists. 34  Impact Control Measures a. Develop programs which enhance tourism and hospitality’s contribution to intercultural communication and interaction such as matching tourist types with destination characteristics and designing programs for the interaction of residents and guests promoting goodwill “ambassador” tourist education; and b. Incorporate local indigenous features within Western-style structures such as decorating hotel interiors with local paintings, murals, sculpture, and encouraging porters, maids, and waiters to dress in native costumes. 35  Environmental Impact of Tourism and Hospitality Tourism and hospitality has created environmental awareness in two ways: (1) Contact with scenic areas has raised man’s awareness of the earth’s beauty; and (2) Environmental awareness has been heightened by mass tourism. 36 Positive Environmental Impact of Tourism and Hospitality Conservation Development of Attractions 37  Conservation Conservation and preservation of the environment not only benefit the local area but also determine the future of tourism. Tourism’s importance to conservation are: i. Stimulating the rehabilitation of existing historic sites, buildings, and monuments; ii. Stimulating the transformation of old buildings and locations into new tourist facilities; iii. Creating the impetus for the conservation of natural resources; and iv. Bringing about the introduction of administrative and planning controls necessary to maintain the quality of the environment to ensure a satisfying and rewarding experience for the tourists. 38  Development of Attractions Countries around the world are identifying areas that have the potential to attract tourists. Tourism helps preserve the area and creates awareness. The following are the benefits of development: i. Historic Preservation. Many historical sites in both urban and rural areas have been preserved to attract tourists. ii. Resident Benefits. The results of conservation and preservation can be enjoyed by the local community as well as by tourists. 39  Negative Environmental Impact of Tourism and Hospitality Environmental Conflicts Geographical Conflicts Resident Conflicts 40  Environmental Conflicts Some problems affecting the quality of the environment are the destruction of vegetation, pollution, and the destruction of wildlife. 41  Geographical Conflicts Tourism and hospitality affect geological formations. Some tourists collect minerals, rocks, fossils, and corals from tourist attractions; others destroy natural formations by vandalizing. 42  Resident Conflicts The increasing value of lands often forces residents to move away from the area. The rising demand creates problems for local fishermen and hunters who now compete with the tourists. Tourism may also create damage to the area brought by littering, vandalism, and traffic congestion. Moreover, it may also result in competition for labor and land erosion. 43  Impact Control Measures a. Design general protective measures to safeguard various aspects of the environment; and b. Regulate and control the tourist development by planning zoning and land use. Also, specifications on the facilities being built should be designed to height, appearance, open space, and overall design, among other things. 44