Impacts of Tourism PDF

MACRO PERSPECTIVE REVIEWER IMPACTS OF TOURISM Definition of Tourism Why Foreign Exchange Earnings Matter: - Activities of individuals traveling to and - Trade Balance: Countries often rely on foreign staying in pl...

MACRO PERSPECTIVE REVIEWER IMPACTS OF TOURISM Definition of Tourism Why Foreign Exchange Earnings Matter: - Activities of individuals traveling to and - Trade Balance: Countries often rely on foreign staying in places outside their usual exchange earnings to balance imports and environment for not more than one consecutive exports. The income from tourism can offset a year. trade deficit (when a country imports more - UNWTO: A social, cultural, and economic than it exports). phenomenon which entails the movement of - Currency Strength: An influx of foreign people to countries or places outside their usual currencies can strengthen a country's own environment for personal/business/professional currency, making it more stable and valuable purposes. on the global market. - Economic Growth: The inflow of foreign Tourist vs. Traveler money can lead to more investments, - Tourist: someone traveling for leisure or infrastructure development, and job creation. business and staying at a destination for at least 24 hours but less than one year. 3. Infrastructure Development E.g.: A businessperson traveling to Singapore for a - Tourism promotes the development of three-day conference. infrastructure (airports, roads, and communication systems) - Traveler: anyone who moves from one place to - Crucial aspect of tourism as it facilitates another, regardless of the reason or duration of access, enhances the visitor experience, and the stay. supports the overall growth of the tourism E.g.: A person commuting daily from one town to industry another for work is a traveler, but not necessarily a E.g.: Airport modernization and expansion, road and tourist. transport networks (NLEX and SCTEX), seaport development, sustainable infrastructure in ecotourism, Domestic vs. International Tourism and smart tourism infrastructure (grab, move-it, angkas) - Domestic Tourism: Residents traveling within their own country. 4. Livelihood Generation - International Tourism: Travelers crossing - Tourism has a direct impact on livelihood national borders to visit another country. It can generation, as it creates opportunities for be further classified into inbound (tourists employment, entrepreneurship, and income coming into a country) and outbound (residents generation across various sectors. traveling to foreign countries) tourism. E.g.: Local handicrafts and souvenir shops, tourism-related small businesses, agri-tourism and Impacts of Tourism farm-to-table initiatives cultural performances and I. Economic Impacts of Tourism festivals, community-based tourism (CBT) Positive Economic Impacts 1. Job Creation 5. Taxes and Fees - Tourism directly and indirectly creates - Government can earn from several sources of employment opportunities in hotels, tourism related revenues for the government. restaurants, tour operations, transportation, and - Passport processing fee, fees for National related services. Statistics Office NSO), certificates required for securing a passport, travel tax, documentation 2. Foreign Exchange Earnings fee for travel tax exemption, airport terminal - Tourism brings foreign currency into a fee, airport space rental fees, and parking fee. destination, which helps balance trade and - The government also collects value-added tax boosts the economy from tourism-related business establishments, - Income a country earns from foreign currencies business permit fees, barangay clearance, and through the export of goods, services, or taxes paid by employees in tourism capital investments. establishments. - Tourism Context: money that international tourists spend in a destination country which 6. Multiplier Effect are crucial for a country’s economy as they - Tourism spending creates a ripple effect increase the supply of foreign currency, help throughout the economy, benefiting suppliers balance trade, and strengthen the national and other sectors. reserves. - Tourism Concept: How money spent by tourists circulates and benefits various sectors of the economy, creating a chain reaction of MADE BY: YVETTE KASALA & RAILEIGH SERAFIN MACRO PERSPECTIVE REVIEWER IMPACTS OF TOURISM income generation. It means that every dollar, 3. Overdependence on Tourism euro, or other currency spent by tourists does - A place relies too heavily on tourists for its not just benefit the immediate recipient but also income and jobs, making its economy contributes to the wider economy as it is vulnerable if anything disrupts the flow of re-spent by businesses and workers. visitors E.g.: A tourist staying in a hotel leads to purchases from local suppliers (food, services), which boosts local 4. Income Inequality businesses - The gap between the rich and the poor is how much more money some people make How It Works: compared to others. When income inequality is - Direct Impact: Tourists spend money on high, a small group earns a lot more money, accommodations, food, transportation, while many others struggle to get by. entertainment, etc. - Indirect Impact: The businesses that serve 5. Seasonality and Employment Issues tourists then use that money to purchase goods - Certain jobs or industries only offer work and services from suppliers (food from local during specific times of the year, leading to farmers, linens for manufacturers). instability for workers during off-seasons (the - Induced Impact: The employees of these year when there is less activity in business) businesses spend their wages on goods and services, further spreading the economic 6. Environmental Costs Leading to Long-Term benefits throughout the local community. Economic Losses - The financial impact that environmental Key Points damage can have on communities, businesses, - Ripple Effect: Money spent by tourists and economies over time. (When we harm the generates additional economic activity, environment—like polluting rivers, deforesting benefiting a wide range of industries beyond land, or contributing to climate change—we tourism itself. may save money in the short term, but it can - Job Creation: The multiplier effect helps create lead to bigger financial problems down the jobs, both directly in tourism (e.g., hotel staff, line.) tour guides) and indirectly in industries like farming, manufacturing, and retail. 7. Dependence on Foreign Investment - A situation where a country or community Negative Economic Impacts relies heavily on money and resources from NEGATIVE ECONOMIC IMPACT OF TOURISM outside investors to support its economy 1. Economic Leakage - Money leaves an economy INSTEAD of II. Socio-Cultural Impacts of Tourism staying within it to benefit the local Positive Socio-Cultural Impacts community. 1. Cultural Preservation and Revitalization - Reducing economic leakage often requires - Efforts to maintain, protect, and renew the measures like supporting locally owned traditions, languages, arts, and customs of a businesses, and encouraging the use of local community or group products. 2. Cultural Exchange and Understanding 2 Types of Economic Leakage: - The sharing and learning of different cultures, - Import Leakage: A country or community traditions, and ideas between people from spends money on goods and services that are various backgrounds. This process fosters produced elsewhere, rather than buying from appreciation, respect, and connection among local businesses. individuals and communities. - Export Leakage: Profits from selling local products or services to other countries or 3. Empowerment of Indigenous Communities regions don’t stay in the local economy - Giving Indigenous people the tools, resources, and opportunities they need to make decisions 2. Inflation and Increased Cost of Living about their lives, preserve their cultures, and - Prices of everyday goods and services, like improve their quality of life food, rent, and transportation, go up over time, but people’s incomes don’t rise at the same 4. Promotion of Social Cohesion rate. - Efforts to bring people together, foster a sense of belonging, understanding, and unity within a MADE BY: YVETTE KASALA & RAILEIGH SERAFIN MACRO PERSPECTIVE REVIEWER IMPACTS OF TOURISM community. It’s about creating an environment 4. Erosion of Social Structure where everyone feels valued, regardless of - The gradual breakdown of the relationships, their background, and where differences are roles, and norms that hold a community or celebrated rather than divided. society together 5. Enhancement of Local Infrastructure and 5. Overcrowding and Strain on Local Facilities Communities - Improving the physical structures and services - Occurs when too many people live in a specific in a community, like roads, parks, schools, and area, leading to challenges in resources, public transport infrastructure, and overall quality of life (This situation can result from factors like urban 6. Promotion of Gender Equality migration, population growth, or lack of - Ensuring that everyone, regardless of gender, affordable housing, creating pressure on local has the same rights, opportunities, and access services and facilities) to resources. 6. Exploitation of Local Communities 7. Revitalization of Urban and Rural Areas - Outside individuals or companies take - Efforts to breathe new life into communities advantage of the resources, labor, or culture of that may be struggling or declining. This can a community for profit without providing fair involve improving infrastructure, creating jobs, compensation or benefits in return enhancing public spaces, and supporting local businesses to make these areas more vibrant 7. Sex Tourism and Crime and appealing for residents and visitors alike. - The troubling phenomenon is that individuals travel to different locations, often in search of 8. Increased Awareness of Global Issues sexual experiences, which can lead to - More people are becoming informed and exploitation, human trafficking, and various engaged about important challenges that affect forms of crime the world, such as climate change, poverty, inequality, and health crises. 8. Cultural Clashes - Conflicts or misunderstandings occur when Negative Socio-Cultural Impacts people from different cultural backgrounds 1. Cultural Commodification come together and their beliefs, values, or - The process of taking elements of a culture customs collide (traditions, art, clothing, or practices) and turning them into products or services that can III. Environmental Impacts of Tourism be bought and sold. Positive Environmental Impacts 1. Promotes Conservation and Protection of 2. Loss of Cultural Identity Natural Areas - Fading or erasure of the unique customs, - One of the most significant positive languages, traditions, and values that define a environmental impacts of tourism is the particular group of people (This can happen preservation of natural habitats. Tourism for various reasons, such as globalization, creates a direct financial incentive to protect assimilation, or external pressures that wildlife and ecosystems, as these become encourage individuals to adopt different valuable assets to attract visitors. cultural norms) 2. Encourages Sustainable Development and 3. Demonstration Effect Eco-Friendly Practices - How observing the behaviors, lifestyles, or - The rise of eco-tourism has prompted many consumption patterns of others can influence destinations to adopt sustainable practices that people's own choices and actions ( This effect reduce negative environmental impacts. is often seen when individuals or communities Tourism-driven demand for green initiatives see others enjoying certain products, pushes hotels, resorts, and local businesses to experiences, or lifestyles, leading them to want implement eco-friendly operations, such as the same for themselves) reducing waste, conserving water, and using renewable energy sources. MADE BY: YVETTE KASALA & RAILEIGH SERAFIN MACRO PERSPECTIVE REVIEWER IMPACTS OF TOURISM 3. Raises Environmental Awareness Negative Environmental Impacts - Tourism serves as a powerful tool for educating 1. Depletion of Natural Resources visitors and local communities about - Tourism activities can lead to the overuse of environmental preservation. By experiencing local natural resources, especially in regions natural wonders, tourists often become more where resources are already scarce. The high conscious of their environmental footprint. demand for water, land, and energy for tourism This awareness can lead to advocacy for infrastructure and operations can have environmental protection significant consequences. 4. Provides Funding for Conservation Projects 2. Pollution - Tourism can act as a direct source of revenue - Tourism contributes to various forms of for environmental conservation. Entrance fees pollution, including air, water, and noise to protected areas, special tourism taxes, and pollution, all of which degrade the quality of donations made by environmentally conscious the environment and harm local wildlife. travelers are used to finance conservation projects. 3. Habitat Destruction - Tourism infrastructure such as hotels, airports, 5. Supports the Restoration of Degraded Areas roads, and recreational facilities requires land - In some cases, tourism can incentivize the development, which often leads to habitat restoration of degraded ecosystems, turning destruction, deforestation, and the disruption of previously neglected areas into profitable and ecosystems. ecologically sustainable destinations. 4. Loss of Biodiversity 6. Promotes Marine Conservation through Diving - Tourism can lead to a decline in biodiversity as Tourism ecosystems are disrupted by infrastructure - Marine tourism, particularly diving and development, pollution, and over-exploitation snorkeling, has led to greater emphasis on of resources. The presence of tourists in protecting coral reefs and marine ecosystems. delicate ecosystems can result in the Tourism-related income can be used to support disturbance of wildlife and the introduction of marine reserves and protect fragile underwater non-native species, which can upset the environments. ecological balance. 7. Encourages Sustainable Agriculture and Local 5. Waste Generation Production - Tourism generates substantial waste, from food - Sustainable tourism can promote the use of packaging and plastic bottles to waste organic farming, sustainable fishing, and produced by hotels and resorts. Improper waste locally sourced food. Many eco-tourism lodges management in tourist areas can result in and restaurants emphasize sourcing produce littering and landfills, which can severely harm and goods from local, sustainable producers, the local environment. reducing the carbon footprint of food transportation. 6. Overcrowding and Overtourism - Occurs when too many tourists visit a Key Takeaways destination, overwhelming local infrastructure - Tourism encourages the conservation of natural and ecosystems. This not only reduces the areas through financial incentives. quality of the tourist experience but also - Sustainable tourism practices reduce degrades the natural environment. environmental degradation. - Tourists gain environmental awareness, leading 7. Climate Change to advocacy for preservation. - Tourism contributes to climate change through - Revenues from tourism can fund crucial the burning of fossil fuels in transportation and conservation efforts. infrastructure development. The tourism - Tourism can drive the restoration of degraded industry’s reliance on air travel, cruise ships, environments. and energy-intensive accommodations significantly increases its carbon footprint. MADE BY: YVETTE KASALA & RAILEIGH SERAFIN