Outline

• The Impact of Tourism

• Tourism Planning
• Tourism Development
• Tourism Marketing
• Tourism Promotion
• Tourism Distribution Channel
• Employment Opportunities
• Transportation Services
• Accommodation
• Food Services
• Recreation and Leisure
• The Gaming Entertainment
• Tourist Attractions and Theme Parks
The Impact of
Tourism
Chapter 1
 Learning Objectives
• Determine the economic effects of tourism
• Discuss the social impact of tourism
• Explain the impact of tourism on culture
• Analyze the environmental impacts of
tourism
 The Economic Effects of
Tourism
• effects on income
• on employment
• on the area’s balance of payments with the
outside world
• on investment and development.
 1. Income
• Tourism income in general comes from wages
and salaries, interest, rent, and profits.
• Tourism is both an income generator and an
income redistributor.
• The sum of all income in a country is called
the national income.
• The importance of tourism to a country’s
economy can be measured through the
national income created by tourism.
• The most common method for estimating
the income generated from tourism is by
determining the multiplier for a destination.
• Multipliers are means of estimating how
much extra income is produced in an
economy as a result of the initial spending or
injection of cash.
 2. Employment
• the tourist industry offers more employment
opportunities than other economic sectors.
Generating employment is perhaps the
greatest advantage of tourism on a
developing economy.
• Tourism generates employment faster for
developing nations than for the developed
ones.
There are three types of employment
generated by tourism.
• Direct employment is generated as a result
of providing goods and services directly to
tourists in hotels, restaurants, bars,
nightclubs, and the like.
• Indirect employment consist of those
positions that are associated with other
tourism-related activities employment.
• Induced employment refers to people
working in positions only peripherally
related to tourism but generated because of
it.
 3. Balance of Payments
• Balance of payments is an accounting of the
flow of goods, services, and funds in and out
of the country during a given period.
• If a country pays or agrees to pay or agrees
to pay more money than it receives, it has a
deficit in its balance of payments.
• If it receives more money than it sends or
exports, it has a surplus in its balance of
payments.
 4. Investment and
Development
• Once an area has become economically
successful, more businessman and
government agencies may be influenced to
invest in tourism and other industries in that
area. This is known by economists as an
accelerator concept.
Negative Economic Aspects of Tourism

1. high inflation and land speculation

destinations,
2. high leakages from the economies of
developing countries
3. low returns on investment because of
seasonal fluctuations in demand,
4. and overdependence on tourism.
 1. Inflation and Land Values
• Rich tourists can afford to by items at high prices.
Retailers, realizing that profits can be greatly
increased by catering to tourists increase their
prices on certain products and provide more
expensive goods and service. Such stores can
compete more successfully with those catering to
local residents. They can afford to pay higher rents
and taxes which are passed on to the consumers
through higher prices. Thus, local residents have to
pay more for their goods.
• Inflation within destination areas is also caused
by increasing land values. Growth in the tourist
trade creates additional demand for land,
competition from potential buyers increases the
prices of land. The demand for more hotels ,
vacation homes, and tourist facilities my bring
more income to builders , real estate agents, and
landowners, but local residents are forced to pay
more for their home because of the increased
value of land.
 2. High Leakages
• It occurs from the cost of good and service
that must be imported to satisfy the needs
of tourists.
• Examples of these are developing countries
which have to import cars, buses,
manufactured materials, and technology
from developed nations to meet the
demand of tourists.
• Another source of leakage is the remittance of
profits and wages to outside source. If foreign
capital is invested in the country’s tourism, plant
interest payment, rents or profits may have to be
paid to the foreign country.
• A third source of leakage is the expenditure for
promotion and publicity to encourage tourists to
visit a certain destination. The cast of
advertisement is a large expense that reduces the
earnings of a destination area.
 3. Seasonality
• Many tourist regions experience low on
investment because of seasonal fluctuations
in demand.
• The seasonality of demand is reflected in
hotel occupancy rates.
 4. Overdependence on
Tourism
• Some destinations have made themselves
vulnerable to changes in tourist demand by
becoming overdependent on tourism for
their livelihood. Tourist is highly susceptible
to change from within and outside the
industry.
 Social Impacts of Tourism
• The social impacts of tourism should not be
confused with the popular term “social
tourism”.
• Social impacts of tourism refers to the
changes in the quality of life residents of
tourist destinations.
• The objectives of social tourism is to ensure
that tourism is accessible to all people.
 Host –Visitor Interactions
• Tourism causes more interaction between
peoples particularly between the tourist or
visitors and the local residents or hosts. To
understand the social impact tourists have
on an area, the characteristics of various
type of visitors and the level of interaction
with the hosts should be clarified.
 Smith (1997), categorized tourists into several type and
outlined her views on the intensity of interaction
between the tourists (visitors) and the local residents
(hosts). Her classifications are as follows:

• Explorer- This type of visitor is interests in

being an active participant-observer among
the host population. The explorer easily
adapts to local lifestyles and does not need
special tourist accommodations;
• Elite- This type of tourists is few in number.
He can afford to pay well for unusual
vacations. He is well-traveled and usually
known as the “jet-set”. He differs from the
explorer in this attitude. His arrangements
are either made by a travel agent or may be
pre-planned. Although he is willing to
sample the local lifestyle, he requires some
degree of comfort;
• Off-Beat- This tourist adapts well to simple
accommodation and services provide for the
occasional guest;
• Unusual Tourist- This is a visitor loves sub-
exotic cultural sites, and the unusual or
primitive sites as long as he can quickly, and
safely to more familiar surroundings and
group;
• Incipient Mass Tourist- This is a visitor who
looks for the amenities of western societies
in hotels and other travel-related facilities.
He is mixture of both pleasure seeker and
business traveler;
• Mass Tourist- He comes from the middle
class. He arrives in a destinations with other
tourist. There is a diversity of tastes among
them and their attitude is “you get what you
pay for;” and
• Charter Tourist- This charter tourist comes
“en masse” with other if 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.
 Table 1. Frequency and Type of Tourists
and Their Adaptation to Local Norms
Type of Number of Tourist Adaptation of Local
Tourist Norms
Explorer Very limited Adapts fully
elite Rarely seen Adapts fully
Off-beat Uncommon but seen Adapts well
unusual occasional Adapts slightly
Incipient mass Steady flow Seeks Western
amenities
mass Continuous influx Expects Western
amenities
charter Massive arrivals Demands Western
amenities
 Positive Social Effects of
Tourism
• It creates a new medium for social change
and multicultural understanding;
• It encourages adaptation to the realities of
modern life and work toward improving the
host country’s environment and lifestyle
options;
• It promotes knowledge and use of foreign
languages; and;
• It improves health conditions and disease
control.
 1. Social Change and Multicultural
Understanding
• One of the most important benefits of
tourism is the bringing together of
diverse people to help them
understand one another.
 2. Adaptation to the Realities of
Modern Life and Improvement of
the Host Country’s Lifestyle
This positive social benefit is the result of the
following:
• The quality improves in places where
tourism is being developed by bringing
both the urban infrastructure (water,
housing, sewerage) and population
benefits (medical care, social assistance
schools) together;
• The change that occurs in occupation and
income patterns create a middle class with
its different attitudes, values and social
concerns;
• Increased social mobility results in new
employment opportunities in tourism; and
• Changes in family relations occur through
the employment of women outside the
home. This increases the family income and
gives the worker’s children more
opportunity for higher education.
 3. Use of Foreign Language
• Use of a foreign language brings people in contact
with those of other language groups. The need and
the desire to communicate increase interest in
both the host and visitor to learn another
language.
• Visitors to others destinations often want to learn
a language to improve the quality of future
experiences. They may rent tapes or buy books to
assist in learning a language. Many popular tourist
destinations have development short-term
language courses to assist visitors.
 4. Improved Health Conditions and
Disease Control
• The desire of tourists for high quality public health
facilities can contribute to the maintenance and
improvement of those facilities in destinations areas and
provide additional sources of revenue which, in turn can
be invested in upgrading water and sewage disposal
facilities.
• Through tourism, local residents can become aware of
both health problem and good hygiene. This awareness
can lead to a change in the health infrastructure of a
destination. Improvement in one community then paves
the way for improvement of the whole region.
 Negative Social Effects of
Tourism
• social saturation;
• change in the social structure, behavior and
roles community problems; and
• negative demonstrative effects.
 1. Social Saturation
• The presence of large number of tourist in
particular places at specific times results in
saturations or congestion of facilities and
services and competition for limited
resources. The local residents frequently
resent having to share their facilities and
services with visitors.
 2. Changes in the Social Structure,
Behavior and Roles
• Tourism changes the traditional form of
employment which results in the lowering of the
status of agricultural workers, migration of the
population, and the breaking up of families.
Many young people demand freedom from their
families. They also disregard social norms such
as respect for elders and close family ties. Young
women who enter the work force have changed
their traditional dress to tourist clothes.
 3. Community Problems
• Prostitution, often called the “oldest
profession” certainty existed before the
growth of mass tourism. It difficult to say
how responsible tourism has been for the
rise in prostitution is tourist destination.
 4. Negative Demonstrative
Effects
• Tourists often demand commodities and
facilities beyond economic capacity of local
residents.
• Social norms of the tourist are very different
from the local customers give rise to social
problems.
• Importation of foreign workers from more
developed countries
 Impact of Tourism on Culture
• Tourism increases the acculturation process
as well as the cultural convergence of
people.
• Acculturation is defined as those changes
that occur in a cultural though borrowing
from other cultures. These changes may
include technology, language, and values.
• Cultural convergence is the tendency of world
cultures to become more alike. A very good
example of his is the adoption of many European
ways by people of less developed countries
because of their exposure to European culture and
technology.
 Positive Effects of Tourism on
Culture
• The two most important positive effects of
tourism on culture are the promotion of
intercultural communication and the
renaissance of native culture.
1. Intercultural Communication
• Mobility, which is a prerequisite of tourism is
necessary for different social groups,
nationalities, and cultures to meet and
interact. Such interaction may contribute to
the removal of social or national prejudices
and the promotion of better understanding
and positive social change.
 2. Renaissance of Native
Culture
• Tourism may be important to the host
country to remind its people of its history
and culture. In Eastern and Western Europe,
many traditional folk customs and costumes
are preserved for the benefit of tourists.
Folk culture festivals are organized to attract
visitors.
 Negative Culture Impact of
Tourism
• led to the destruction of a country’s work of art.
• Several tourists persuade the native to sell
traditional objects which have been used for
generations.
• The greed of money which induces people to
part with family heirlooms explains the
destruction of archaeological sites or the
desecration of monuments in Egypt, Bali, India
or Central America.
The artifacts may no longer be represented as
traditional arts due to the following reasons:

• Mass production due to increase in

demand results to losing the careful and
precise workmanship;
• The impersonal nature of the tourist
market has decreased the spiritual
relevance of the artist’s work;
• Arts is produced according to the tastes of
tourists which in Africa, means carving
animals, grotesqueness, and gigantism; and
• The increased demand has led to the
misrepresentation of the age or authenticity
of object resulting in a large number
imitations.
Positive Environmental Impact
of Tourism
Tourism has created environmental awareness
in two ways:
• Contact with scenic areas has raised man’s
awareness of the earth’s beauty and made it
easier for him to see and enjoy it with
minimum damage: and
• Environmental awareness has been
heightened by mass tourism which caused
direct and indirect destruction.
 1. Conservation
• Local residents benefit from preservation
• Tourism for as long as it draws tourists, it will
continue to be a socioeconomic and cultural
asset
 2. Historic Preservation
• Many historical sites in both urban and rural
areas have been preserved to attract
tourists.
 3. Resident Benefits
• The first benefit is that the results of
conservation and preservation can be
enjoyed by the local community as well as by
tourists. The creation of natural parks and
monuments provides quick access to a
variety of nature’s wonders and outdoor
activities to both local residents and visitors
• The development of a coastal resort allows
free access to tourists and local residents.
 Negative Environmental Impact of
Tourism
• Exceeding the carrying capacity and saturation
levels of an area will negatively affect that area.
• The term carrying capacity is the degree of
development a certain area can take without
having detrimental effects on the environment.
 1. Environmental Conflicts
• Some of the problems affecting the quality
of the environment are destruction of the
vegetation, pollution (air, water, and noise)
and the destruction of wildlife.
 2. Geological Conflicts
• Tourism affects geological formations. Some
tourist collect minerals, rock, and fossils, and
corals from tourist attractions; others
destroy natural formations by vandalizing.
 3. Resident conflicts
• In cities, hotels are built at the expense of
residential accommodations.
• The increasing value of lands often forces residents
to move away from the area.
• Hotel development also brings traffic congestion
and air pollution.
• In fishing and hunting areas, the increasing
demand creates problems for local fishermen and
hunters who now compete with the tourists as
well as with each other.
• Walker, John R. & Walker, Josielyn T. (2010).
Tourism: Concepts & Practices. 1st ed. Pearson
Education South Asia Pte Ltd.

• Cruz, Zenaida L. (2013). Principles of Tourism.

Part I. Rex Book Store.