Impacts of Tourism Development

Tourism is a major economic engine whose development can have a fundamental impact on societies
and the environment, both positive and negative. Managing the impacts of tourism development begins
with an awareness of the potential positive and negative impacts of tourism on the environment,
society, and the economy.

This lesson will introduce the study of tourism impacts. As impacts tend to be multi-faceted, often
having a combination of economic, social, and environmental dimensions, it may be not that
straightforward to classify impacts at one tourism resort or destination under the heading of either
solely 'positive' or 'negative'. It is quite likely that there is a combination of impacts of tourism in relation
to a destination and some of these impacts may be viewed as positive, while others are negative.

Objectives

 To discuss the impacts of tourism on the environment, society, and the economy
 To determine the specific causes of tourism impacts
 To identify strategies in managing the negative impacts of tourism

Overview

Tourism brings both positive and negative impacts on tourist destinations. The traditionally described
domains of tourism impacts are economic, socio-cultural, and environmental dimensions. The economic
effects of tourism include improved tax revenue and personal income, increased standards of living, and
more employment opportunities. Sociocultural impacts are associated with interactions between people
with differing cultural backgrounds, attitudes and behaviors, and relationships to material goods.
Environmental impacts affect the carrying capacity of the area, vegetation, air quality, bodies of water,
the water table, wildlife and natural phenomena.

At the same time, tourism also brings health outcomes for local people. The short-term negative
impacts of tourism on residents' health are related to the density of tourist's arrivals, risk of disease
transmission, road accidents, higher crime levels, as well as traffic congestion, crowding, and other
stressful factors. In addition, residents can experience anxiety and depression related to their risk
perceptions about mortality rates, food insecurity, contact with infected tourists, etc., which can result
in negative mental health outcomes. At the same time, there are positive long-term impacts of tourism
on residents' health and well-being outcomes through improving healthcare access positive emotions,
novelty, and social interactions.

Know the Industry

1. Impacts of tourism to the environment (Planet)

Positive impacts:
a. Improved Environmental Management and Planning

Sound environmental management of tourism facilities and especially hotels can increase benefits to
natural areas. But this requires careful planning for controlled development, based on analysis of the
environmental resources of the area. Planning helps to make choices between conflicting uses, or to find
ways to make them compatible. By planning early for tourism development, damaging and expensive
mistakes can be prevented, avoiding the gradual deterioration of environmental assets significant to
tourism.

b. Environmental Awareness Raising

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.
This confrontation may heighten awareness of the value of nature and lead to environmentally
conscious behavior and activities to preserve the environment.

c. Protection and Preservation of Wildlife

Tourism can significantly contribute to environmental protection, conservation and restoration of

biological diversity and sustainable use of natural resources. Because of their attractiveness, pristine
sites and natural areas are identified as valuable and the need to keep the attraction alive can lead to
creation of national parks and wildlife parks.

d. Adoption of Environment-friendly Regulatory Measures

Regulatory measures help offset negative impacts; for instance, controls on the number of tourist
activities and movement of visitors within protected areas can limit impacts on the ecosystem and help
maintain the integrity and vitality of the site. Such limits can also reduce the negative impacts on
resources.

Negative impacts:

a. Lead to environmental destruction

Sudden and unanticipated events like political turmoil, terrorism, natural disasters, and adverse weather
conditions cause a havoc on any region. It badly impacts inbound tourism for a significant period. To
build airports, hotels, resorts etc., the open space is constructed by cutting trees. Due to absence of
trees and forests, animals and birds lose their shelter too. The extent of destruction caused to the
environment determines the time for its recovery.

b. Depletion of natural resources

Another big disadvantage of tourism on environment is seen in the form of depletion of natural
resources. One of the most important sources of living, i.e., water become scarce due to expansion of
tourism industry. This is because tourism results in overuse of water. A simple golf course uses around
60,000 rural villagers, 1500 kgs of pesticides, herbicides, and chemical fertilizers every year.

c. Causes Pollution
Throwing paper, bottles, food and other items into the water causes water pollution. Due to increased
use of vehicles, air pollution is also caused. The natural ecological system is disturbed. Transformation of
beaches into tourism destinations and depletion of homes for construction destroys and eliminates
these habitats.

Such type of commercialization of land fails to provide any genuine travel experience and authentic
social benefit to people. It only leads to depletion of natural resources, waste issues, and pollution.

d. Other loss to nature

In addition to the other destructive impacts of tourism on the country, it also leads to huge stress on the
use of local land. Tourism causes soil erosion, loss of natural habitat, increased pollution, and stress on
threatened species. All these impacts destroy environmental resources that form the basis of tourism.

e. Change in climate

The tourism industry contributes to around eight percent (8%) of greenhouse gas emission all over the
world. This along with transportation accounts to 90 percent (90%) of the emission (Lenzen, 2018).
Tourists contribute to climate change in several ways through travel by air, rail and road, for example,
and by consuming goods and services, such as food, accommodation and souvenirs.

How can we conserve environment from the negative impacts of tourism?

One of the alternatives to the negative impact of tourism is the push for ecotourism, or tourism
activities directed toward exotic, often threatened, natural environments, intended to support
conservation efforts and observe wildlife. Looking at the positive impact of this type of tourism, the
entire world is looking forward to it. Ecotourism is rapidly flourishing industry that offer benefits for the
economies of tourist places as well as safeguards the environment.

Another key step to have low-carbon travel is to fly less, choose destinations that are close to home and
pay to offset carbon emissions. Decision-makers should support carbon taxes or carbon-trading schemes
to encourage the development of innovative solutions in the airline industry and other transportation
sectors.

2. Impacts of tourism to the economy (Profit)

Positive impacts

a. Employment generation

The rapid expansion of international tourism has led to significant employment creation. From hotel
managers to theme park operatives to cleaners, tourism creates many employment opportunities.
Tourism also generates millions of direct and indirect jobs, with a high share of women and young
people (UNWTO).

Direct employment includes jobs that are immediately associated with the tourism industry. This might
include hotel staff, restaurant staff or taxi drivers, to name a few. Meanwhile, indirect employment
includes jobs which are not technically based in the tourism industry but are related to the tourism
industry.
b. Foreign exchange earnings

Tourism expenditures generate income to the host economy. The money that the country makes from
tourism can then be reinvested in the economy.

c. Development of the private sector

Every destination is different with regards to how they manage the development of the private sector in
tourism. This is the case even more so in recent years due to the rise in the popularity of the sharing
economy and the likes of Airbnb and Uber, which encourage the growth of businesses within the local
community.

Negative impacts

a. Leakage

Economic leakage in tourism is when money spent does not remain in the country but ends up
elsewhere; therefore, limiting the economic benefits of tourism to the host destination.

b. Infrastructure cost

Tourism development can cost the local government and local taxpayers a great deal of money. Tourism
may require the government to improve the airport, roads and other infrastructure, which are costly.
Money spent in these areas may reduce government money needed in other critical areas such as
education and health.

c. Increase in prices

Increasing demand for basic services and goods from tourists will often cause price hikes that negatively
impact residents whose income does not increase proportionately. For example, tourism development
and the related rise in real estate demand may dramatically increase building costs and land values. This
often means that local people will be forced to move away from the area that tourism is located, known
as gentrification.

d. Overdependence of the community to tourism

Over-reliance on tourism carries risks to tourism-dependent economies, which can have devastating
consequences brought by an economic recession, natural disasters or changing tourism patterns.

e. Foreign ownership and management

Also related to leakage, foreign companies often bring with them their own staff, thus imiting the
economic impact of increased employment. They will usually also export a large proportion of their
income to the country where they are based.

How can we mitigate the negative economic impacts of tourism?

Taking measures to ensure that tourism is managed sustainably can help to mitigate this negative
economic impact of tourism. Techniques such as employing a huge majority of local people, limiting the
number of all-inclusive hotels, and encouraging the purchasing of local products and services can all
help.

3. Impacts of tourism to the society (People)

Positive impacts

a. Preservation of Local Culture

Many destinations will make a conserved effort to preserve and protect the local culture, which can also
become the motivation tourists. This often contributes to the conservation and sustainable
management of natural resources, the protection of local heritage, and a renaissance of indigenous
cultures, cultural arts, and crafts.

b. Strengthened Communities

Events and festivals of which residents have been the primary participants and spectators are often
rejuvenated and developed in response to tourist interest. The jobs created by tourism can also be a
great boost for the local community. Aside from the economic impacts created by enhanced
employment prospects, people with jobs are happier and more social than those without a disposable
income.

Local people can also increase their influence on tourism development, as well as improve their job and
earnings prospects, through tourism-related professional training and development of business and
organizational skills.

c. Provision of Social Services

The tourism industry requires many facilities/ infrastructures to meet the needs of the tourist. This often
means that many developments in an area because of tourism will be available for use by the locals also.
Local people often gained new roads, new sewage systems, new playgrounds, bus services etc because
of tourism. This can provide a great boost to their quality of life and is a great example of a positive
social impact of tourism.

d. Commercialization of Culture and Art

Tourism can see rise to many commercial businesses, which can be a positive social impact of tourism.
This helps to enhance the community spirit as people tend to have more disposable income as a result.
These businesses may also promote the local cultures and arts. Museums, shows, and galleries are
fantastic way to showcase the local customs and traditions of a destination.

e. Revitalization of Culture and Art

Some destinations will encourage local cultures and arts to be revitalized. This may be in the form of
museum exhibitions, in the way that restaurants and shops are decorated and in the entertainment on
offer, for example. This may help promote traditions that may have become distant.

f. Preservation of Heritage

Many tourists will visit the destination specially to see its local heritage. It is for this reason that many
destinations will make every effort to preserve its heritage. This could include putting restrictions in
place or limiting tourist numbers, if necessary. This is often an example of careful tourism planning and
sustainable tourism management.

Negative impacts

a. Globalization and the Destruction of Preservation and Heritage

Globalization is the way in which the world is becoming increasingly connected. Communities lose their
uniqueness/individuality and gaining a sense of 'global being' whereby peoples are more and more alike
than ever before. Globalization is inevitable in the tourism industry because of the interaction between
tourists and hosts, which typically come from different geographic and cultural backgrounds. It is this
interaction that encourages us to become more alike.

b. Loss of Authenticity

Along similar lines to globalization are the loss of authenticity that often results from tourism.
Authenticity is essentially something that is original or unchanged. It is not fake or reproduced in any
way. Some communities believe that a tourist destination is no longer authentic when their cultural
values and traditions change, although some contend that this naturally happens.

c. Standardization and Commercialization

Similarly, destinations risk standardization in the process of satisfying tourists' desires for familiar
facilities and experiences. While landscape, accommodation, food, and drinks. etc., must meet the
tourists' desire for the new and unfamiliar, they must at the same time not be too new or strange
because few tourists are looking for completely new things. Tourists often look for recognizable facilities
in an unfamiliar environment, like well-known fast-food restaurants a standardized (the toilet, their
breakfast, their drinks, the language spoken etc.), but others to be different (dinner options. Music,
weather, tourist attractions etc.).

d. Culture Clashes

Another negative social impact of tourism that can have significant consequences is culture clashes.
Because tourism involves movement of people to different geographical locations cultural clashes can
take place because of differences in cultures, ethnic and religious groups, values, lifestyles, languages,
and levels of prosperity.

The attitude of residents towards tourism development may unfold through the stages of euphoria,
where visitors are very welcome, through apathy, irritation and potentially antagonism when anti-
tourist attitudes begin to grow among local people. This is represented in Doxy's Irritation Index, as
shown below.
 Figure 1. Doxey’s Irritation Index

e. Increases the presence of crimes, gambling, and prostitution

Although tourism is not the cause of sexual exploitation, it provides easy access to it e.g., prostitution
and sex tourism. Therefore, tourism can contribute to rises in the numbers of sex workers in each area.
Another thing is gambling, as it is a common occurrence because of tourism. Growth of casinos and
other gambling facilities can encourage not only the tourists to part with their cash, but also the local
population.

Salient Points
Positive Impacts of Tourism
Environmental Economic Socio-cultural
Revenue generated to restore and Develops an infrastructure that will also Promotion of the need to conserve
maintain natural attractions help stimulate local commerce and areas of outstanding beauty which have
industry aesthetic and cultural value
Enhanced responsibility from visitors in Generates foreign exchange Revitalization of non-industrialized
the importance of natural environment regions
Greater awareness and willingness to Provides employment opportunities Rebirth of local arts and crafts and
protect and preserve environment traditional cultural activities
Conservation of wildlife thru the Increases GNP and government Revival of social and cultural life of the
enacting of strict laws protecting flora revenues locals
and fauna
Can be built on existing infrastructure Improves quality of life - higher incomes
and improved standards of living
Spreads development thru Multiplier Renewal of local architectural traditions
impact
Diversifies the national and local Creation of employment
economy

Negative Impacts of Tourism

Environmental Economic Socio-cultural
 Air Pollution and Noise Develops excess demand Creates social problems (Overtourism)
Solid erosion, waste, and littering Results in high leakage Stress for both tourists and residents
Disturbance to habitat (marine and Creates difficulties of seasonality Traditional activities may decline
terrestrial)
Land Degradation (Forests and wildlife) Causes inflation Threatens family structure
Conversion of natural habitat to build Can result in unbalanced economic Contributes to disease, economic
tourist destinations development fluctuation, and transportation problems
Trampling on vegetation Increases vulnerability to economic and Commercializes culture, religion, and the
political changes arts
Vulnerability to forest fires Creates conflicts in the host society
Climate Change Creates misunderstanding