Impacts of Tourism

Dr. Rajiv Dahal

For a tourism-based economy to sustain
itself in local communities, the residents
must be willing partners in the process.
Their attitudes toward tourism and
perceptions of its impact on community
life must be continually assessed.
(Allen et al. 1988)
 Impacts
• Economy
• Socio-cultural
• Environmental
 Positive Impacts - Economic
• Contributes to income and standard of living
• Improves local economy
• Increases employment opportunities
• Improves investment, development, and infrastructure
spending
• Increases tax revenues
• Improves public utilities infrastructure
• Improves transport infrastructure
• Increases opportunities for shopping
• Economic impact (direct, indirect, induced spending) is
widespread in the community
• Creates new business opportunities
 Negative Impacts - Economic
• Increases price of goods and services
• Increases price of land and housing
• Increases cost of living
• Increases potential for imported labor
• Cost for additional infrastructure (water, sewer, power, fuel,
medical, etc.)
• Increases road maintenance and transportation systems costs
• Seasonal tourism creates high-risk, under- or unemployment
issues
• Competition for land with other (higher value) economic uses
• Profits may be exported by non-local owners
• Jobs may pay low wages
 Positive Impacts - Socio-Cultural
• Improves quality of life
• Facilitates meeting visitors (educational
experience)
• Positive changes in values and customs
• Promotes cultural exchange
• Improves understanding of different communities
• Preserves cultural identity of host population
• Increases demand for historical and cultural
exhibits
• Greater tolerance of social differences
• Satisfaction of psychological needs
 Negative Impacts - Socio-Cultural
• Excessive drinking, alcoholism, gambling
• Increased underage drinking, crime, drugs, prostitution
• Increased smuggling
• Language and cultural effects
• Unwanted lifestyle changes
• Displacement of residents for tourism development
• Negative changes in values and customs
• Family disruption
• Exclusion of locals from natural resources
• New cliques modify social structure
• Natural, political, and public relations calamities
 Positive Impacts - Environment
• Protection of selected natural environments
or prevention of further ecological decline
• Preservation of historic buildings and
monuments
• Improvement of the area’s appearance
(visual and aesthetic)
• A "clean" industry (n smokestacks)
 Negative Impacts - Environment
• Pollution (air, water, noise, solid waste, and visual)
• Loss of natural landscape and agricultural lands to
tourism Development
• Loss of open space
• Destruction of flora and fauna (including collection of
plants, animals, rocks, coral, or artifacts by or for
tourists)
• Degradation of landscape, historic sites, and
monuments
• Water shortages
• Introduction of exotic species
• Disruption of wildlife breeding cycles and behaviours