CHAPTER 6: IMPACT OF TOURISM

 ALESSANDRA DELOS REYES  ANDREA LAZARO

 VANESSA MAE G. SUNGA  DANTE PARINGIT JR.
 GIOVANNI TAPIADOR  CHRISTINE JOY BARTOLOME
 MC NHIEL ANCHETA  AUBREY BAÑAGA
 ANGELICA SHEEN AGUSTIN  MARJORRY BAL
INTRODUCTION

The rapid growth of tourism and hospitality in the 20th

century has brought both problems and benefits to
destination countries. It has a visible impact on the
socio-cultural and socio-economic environment. While
tourism and hospitality can bring economic benefits to a
destination country, they also create serious long-term
problems that, without careful control and planning,
can threaten society.
 Tourism and hospitality is
one of the largest sector
in the economy: this
support the local goods
and services for the
consumer.
IMPACTS OF TOURISM
OIKOS
(household)

SOCIO-
ECONOMIC ENVIRONMENTAL
CULTURAL
NOMUS
(management)
 ECONOMIC IMPACT OF
TOURISM
 The main economic characteristic of activities related
to the tourism sector is that they contribute to three
priority objectives for developing countries: income,
employment and foreign exchange earnings. Tourism
can create jobs and increase the prosperity of a
region. Many developing countries are eager to
develop tourism to enrich themselves and improve
the quality of life of their inhabitants. However, when
many visitors go to a place, it is called mass tourism.
This can have both positive and negative effects on
the area.
 DIRECT AND INDIRECT IMPACTS
 Direct Impact - represents the GDP generated by activities
that directly deal with tourism such as hotels, travel agents ,
airlines and tour operators as well as restaurants and other
activities that cater the tourists.
 Indirect Impact - impacts which accrue due to the activities
undertaken by the sector , and are a function of three
different factors:
1. Capital Investment in Tourism
2. Government Spending for Tourism
3. Supply Chain Effects
POSITIVE ECONOMIC IMPACTS OF
TOURISM
 FOREIGN EXCHANGE

 INFRASTRUCTURE DEVELOPMENT

 EMPLOYMENT GENERATION
 FOREIGN EXCHANGE
One of the biggest benefits of tourism is the ability to make
money through 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. How a destination manages their
finances differs around the world; some destinations may
spend this money on growing their tourism industry further,
some may spend this money on public services such as
education or healthcare and some destinations suffer extreme
corruption so nobody really knows where the money ends up!
 Tourism is one of the top five export categories for as many as
83% of countries and is a main source of foreign exchange
earnings for at least 38% of countries.
 INFRASTRUCTURE DEVELOPMENT

• Tourism can induce the

local government to make
infrastructure improvements
such as better water and
sewage systems, roads,
electricity, telephone and
public transport networks
• This can can improve the
quality of life for residents as
well as facilitate tourism.
EMPLOYMENT GENERATION

 International
tourism has led to significant
employment creation.
 Tourism can generate jobs directly through
hotels, restaurants, taxis and souvenir sales, and
indirectly through the supply of goods and
services needed by tourism-related businesses.
 Tourismsupports some 7% of the world’s
workers.
NEGATIVE ECONOMIC IMPACTS OF
TOURISM

 INFLATION
 INFRASTRUCTURE COSTS
 ECONOMIC DEPENDENCE
 LEAKAGE
 SEASONAL CHARACTER OF JOBS
 INFLATION

 Increase prices of land, houses and food that can occur as a

result of tourism.
 Lies heavily on the demand.
 Prices
for commodities can increase when tourists place
extra demands on local services at a tourism destination.
INFRASTRUCTURE COSTS

 Publicresources spent on subsidized

infrastructure or tax breaks may reduce
government investment in other critical
areas such as education and health.
 DEPENDENCY

 Over-dependence on tourism can occur in, a place

become over – dependent on tourism that other
industries are abandoned.
 Over
– reliance on tourism carries risk to tourism –
dependent economies.
 LEAKAGE
 Goes out of the local economy to pay for imported
items, expatriate salaries or franchise fees.
 There are two main ways that leakages occurs:
1. Import Leakage - this commonly occurs when
tourists demand standards equipment , food and
other products that the host country cannot supply.
2. Expert Leakage - often especially in poor
developing destinations, they are the only ones
possess the necessary capital to invest the
construction of tourism infrastructure and facilities.
 SEASONAL CHARACTER OF JOBS
 Problems that seasonal workers face include :
 Job ( and therefore income) insecurity.
 No guarantee of employment from one season to the
next.
 Difficultiesin getting training , employment – related
medical benefits and recognition of their experience.
 Unsatisfactory housing and working conditions.
 ENVIROMENTAL IMPACTS OF TOURISM

 Itis refers to the impact on nature and

surrounding areas.
 Environment is the total surroundings or
conditions in which a person, animal or plant
lives or interact.
 Theenvironment is made up of both natural and
human features.
POSITIVE IMPACTS

 Conservation of natural and built resources

◾ National Park
◾ Monument
 Preservationof archaeological and historic sites and
architectural character
 Improvement of infrastructure
 Increase environmental awareness
NEGATIVE IMPACTS

DEPLETION OF NATURAL RESOURCES
 Water Resources
◾overuse of water for hotels , swimming pools , golf
courses and personal use
◾local population don’t have enough water for
their own needs
2. LOCAL RESOURCES
◾energy, food, raw materials used in excessively in tourism
> damages environment physically

3. LOCAL DEGRADATION
◾ land destroyed due to tourist activities
◾ construction of facilities and attractions damage natural
environment
◾ tourist activities e.g walking, skiing cause erosion of the
earth
 INCREASE LEVELS OF POLLUTION - air, water, noise
and visual
 DESTRUCTION OF THE NATURAL ENVIRONMENT – due
to tourism infrastructure and superstructure.
 ECOLOGICAL CONGESTION – leading to erosion and
destruction of habitats.
 OVERLOADING – of waste disposal and sewwrage
system.
 OVERUSE – of water and other resources.
 DISTRACTION OF BUILDINGS – being worn away.
SOCIO-CULTURAL IMPACT OF TOURISM
 Sociocultural impacts are the ‘human impacts’ of the
tourism industry, with an emphasis on changes in the
quality of residents’ daily life at the tourist destinations
and cultural impacts related to transformations in
traditional values, norms, and identities arising from
tourism
 Theinteraction between tourists and the host community
can be one of the factors that may affect a community as
tourist may not be sensitive to local customs, traditions
and standards. The effect can be positive or negative on
the host community.
 The term socio-cultural impacts socio-cultural impacts refers
to changes to resident’s everyday experiences, as well as to
their values, way of life, and intellectual and artistic products.
 Thesocio-cultural impacts of tourism described here are the
effects on host communities of direct and indirect relations
with tourists, and of interaction with the tourism industry
 Theinteraction of the two groups will be a major issue in
affecting the types of impacts.“..when there is large contrast
between the culture of the receiving society and the origin
culture, then it is likely that impacts will be greatest.” Burns
and Holden (1995)
POSITIVE SOCIO-CULTURAL IMPACT OF TOURISM

 Preservation and restoration of cultural heritage •

Revival of traditional arts and crafts
 Cultivation of cultural pride and sense of identity
 Cross-cultural exchange
NEGATIVE SOCIO-CULTURAL IMPACT OF
TOURISM
 NEGATIVE SOCIO-CULTURAL IMPACTS OF TOURISM
CHANGE OR LOSS OF INDIGENOUS IDENTITY OR VALUES
Tourism can cause change / loss of local identity and
values by:
 1. COMMODIFICATION
 2. STANDARDISATION
 3. LOSS OF AUTHENTICITY / STAGED AUTHENTICITY
 4. ADAPTATION TO TOURIST DEMANDS
COMMODIFICATION
 Tourism can turn local cultures into commodities when religious
rituals, traditional ethnic rites and festivals are reduced and
sanitized to conform to tourist expectations, resulting in what has
been called “reconstructed ethnicity.”
 Once a destination is sold as a tourism product, and the tourism
demand for souvenirs, arts, entertainment and other commodities
begins to exert influence, basic changes in human values may
occur.
 Sacred sites and objects may not be respected when they are
perceived as goods to trade
 Keechak Dance, part of the traditional religious ritual,
performed originally only on special occasions in Bali’s
Agama Hindu culture, has been shortened, taken out of
its religious context and performed on a daily basis, to
paying tourists groups.
STANDARDISATION
 Destinations risk standardization in the process of
satisfying tourists’ desires for familiar facilities.
 Whilelandscape, 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 actually looking for completely
new things.
 Tourists
often look for recognizable facilities in an
unfamiliar environment, like well-known fast-food
restaurants and hotel chains.
LOSS OF AUTHENTICITY
 Tourists want souvenirs, arts, crafts, and cultural
manifestations, and in many tourist destinations,
craftsmen have responded to the growing demand, and
have made changes in design of their products to bring
them more in line with the new customers’ tastes. While
the interest shown by tourists also contributes to the
sense of self-worth of the artists, and helps conserve a
cultural tradition, cultural erosion may occur due to the
commodification of cultural goods.
CULTURE CLASHES
Because tourism involves movement of people to different
geographical locations, and establishment of social relations
between people who would otherwise not meet, cultural clashes
can take place as a result of differences in cultures, ethnicity,
religion, values, lifestyles, languages, and levels of prosperity.
The result can be an overexploitation of the social carrying
capacity (limits of acceptable change in the social system inside
or around the destination) and cultural carrying capacity (limits
of acceptable change in the culture of the host population) of
the local community.
 Theattitude of local 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
growing among local people.
JOB LEVEL FICTION
In
 developing countries especially, many jobs occupied by
local people in the tourist industry are at a lower level,
such as housemaids, waiters, gardeners and other practical
work, while higher-paying and more prestigious managerial
jobs go to foreigners or “urbanized” nationals.
Due to a lack of professional training, as well as to the
influence of hotel or restaurant chains at the destination,
people with the know-how needed to perform higher level
jobs are often recruited from other countries.
This may cause friction and irritation and increases the gap
between the cultures.
 Even in cases where tourism “works”, in the sense that it
improves local economies and the earning power of local
individuals, it cannot solve all local social or economic
problems.
 CHANGES IN CULTURAL PRODUCTS AND
FESTIVAL

The production of cultural arts and activities for

tourists has often resulted in changes in cultural
products, cultural festivals, ceremonies, and
dances to make them more palatable to visitors
What is sustainability?
 Sustainability is the key to the stable growth of economy.
It will not only lead to the development of the present
economy but will also lead to its development in the future.
 the phrase “sustainability” conjures up images of
recycling, renewable energy, and environmental sensitivity,
it encompasses much more. It’s a delicate art of balance.
When we are able to satisfy the demands of today’s
generation without jeopardizing the needs of future
generations, we have achieved sustainability.
Environmental Sustainability

 environmental sustainability. It is necessary for the maintenance of the

factors and practices that contribute to the quality of the environment on a
long-term basis. This is how environmental sustainability takes place. Without
that, future generations will not have access to what we have today.

 The environment is for sure important not only for tourism but, in general.
If many sights we see today will disappear, in the future would not be
possible to visit.
 When we talk about environmental sustainability it is not only a natural
environment but, also the built environment.
Socio-cultural sustainability

 Socio-cultural sustainability today and later will satisfy essential human

needs.
Like for instance self-arrangement, social equity, well being, education, culture,
religion, peace, human rights, balance throughout everyday life and inspiration.
All this, as a long-term process forming social conditions for who and what is to
come.
 When a place is being visited for tourists there are social and cultural
impacts. Not only for travellers but, also for the host community.
 Example:
Local people will see their space increase with strangers. New languages and
values are introduced and even the influx of migrant workers to be employed in
the tourism industry.
Economic Sustainability

 Economic Sustainability towards sustainable tourism, we

shouldn’t forget economic sustainability. All of this revolves
around the money. It is inevitable those days. But, even though
money is not one of the best things in the world, it can be
beneficial for tourism.
 Some people even argue money is the key to making a
tourism venture sustainable.
 In practical terms, economic sustainability means that we
must use, safeguard and sustain resources to create long-term
sustainable values by optimal use, recovery, and recycling.
 Reminder:

It is always up to us, the tourists, to make a good

difference. We have the ability to make decisions.
We now have so much knowledge that we can do it
properly. Always keep in mind that this is beneficial
not only to you, but to everyone on the planet