CHAPTER 6

THE IMPACTS OF TOURISM AND

HOSPITALITY
 THE IMPACTS OF TOURISM AND
HOSPITALITY

• The rapid growth of tourism and hospitality in the twentieth century has produced
both problems and benefits for destination countries.

• It has had visible impacts on the sociocultural and socioeconomic environment.

 THE POSITIVE ECONOMIC EFFECTS
OF TOURISM AND HOSPITALITY

The economic effects of tourism and hospitality may be classified into four groups:

• Effects on INCOME

• On EMPLOYMENT

• On the AREA'S BALANCE OF PAYMENTS with the outside world; and

• On INVESTMENT and DEVELOPMENT

 INCOME
• TOURISM INCOME, in general comes from wages and salaries, interest, rent,
and profits.

• It is also generated from interest, rent, and profits on tourism and hospitality
businesses such as interests paid on loans to an airline in order to buy aircraft, or
rent paid to a landowner for a car park.

• Income is also obtained from direct taxation or indirect taxation.

• Tourism and hospitality is both an income generator and income redistributor.

 INCOME

• The sum of all income in a country is called NATIONAL INCOME. The most
common method for estimating the income generated from tourism and
hospitality 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.
 EMPLOYMENT
• Employment, from local to national, benefits as well from tourism and hospitality.

• In general, the tourist industry offers more employment opportunities than other
economic sectors.

• There are three types of employment generated by tourism and hospitality:

- Direct

- Indirect; and

- Induced Employment
DIRECT EMPLOYMENT

- is generated as a result of providing goods and services directly to

tourist in hotels, restaurants, bars, nightclub, and the like.
INDIRECT EMPLOYMENT

- consist of those positions that are associated with other tourism-

related activities but are used by both the local resident and the
tourist.
INDUCED EMPLOYMENT
- refers to people working in positions only peripherally related to
tourism and hospitality, but generated because of it.

e.g. construction workers, merchants and professionals (doctors,

accountants) who service the employees working directly in tourism-
related positions.
 BALANCE OF PAYMENTS

• BALANCE OF PAYMENTS is an accounting of flow of goods, services and

funds in and out of the country during a given period.

• If a country pays or agrees to pay more money than it receives, it has 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.
 INVESTMENT AND DEVELOPMENT

- Once an area has become economically successful, businessmen and government

agencies may be influenced to invest in tourism and hospitality and other industries in
that area. This is known by economists as an accelerator concept.
 NEGATIVE ECONOMIC ASPECTS OF
TOURISM AND HOSPITALITY

- While most countries encourage tourism and hospitality for its economic benefits,
there are some negative economic aspects of tourism and hospitality that have to be
identified and discussed.
 NEGATIVE ECONOMIC ASPECTS OF
TOURISM AND HOSPITALITY

These are:

- high inflation and land speculation destination

- high leakages from the economies of developing countries

- low returns on investments because of seasonal fluctuations in demand; and

- overdependence on tourism and hospitality

 INFLATION AND LAND VALUES

• The inflationary effects of tourism and hospitality can arise in different ways.

• Inflation within destination areas is also caused by increasing land values.

 HIGH LEAKAGES

• Leakage occurs from a variety of sources. It occurs from the cost of goods and
services that must be imported to satisfy the needs of tourist.

• Another source of leakage is the remittance of profits and wages to outside

sources.

• A third source for leakage is the expenditure for promotion and publicity to
encourage tourists to visit a certain destination.
 SEASONALITY

Many tourist regions experience low returns on investment because of seasonal

fluctuations in demand. The seasonality of demand is reflected in hotel occupancy
rates.

Accomodation investments are not the only ones with a low rate of return, tour
operators also face similar problems.
 OVERDEPENDENCE ON TOURISM AND
HOSPITALITY

- Some destinations have made themselves vulnerable to changes in tourist demand

by becoming overdependent on tourism and hospitality for their livelihood. Tourism
is highly susceptible to changes from within and outside the industry.
 IMPACT CONTROL MEASURES

There are number of ways to maximize the benefits of tourism and hospitality to the
destination area. Edward Inskeep (1991), a consultant for the United Nations World
Tourism Organization (UNWTO), has suggested the following:

1. Develop tourism and hospitality gradually.

2. Maintain a scale of tourism and hospitality development that is appropriate for the
local as well as national environment.
3. Involve residents and their spokesmen in planning and decision-making.
 IMPACT CONTROL MEASURES

4. Apply the concepts of tourism development zones.

5. Make certain that residents have easy access to tourist attractions, facilities, and
services.
6. Provide incentives to local ownership, management, and operations of hotels and other
tourist facilities and services.
7. Develop strong linkages between tourism and hospitality and other economic
activities.
8. Plan, develop, and organize tourism and hospitality.
9. Train local people to work effectively in all levels of tourism and hospitality.
 SOCIAL IMPACTS OF TOURISM AND
HOSPITALITY

• The social impacts of tourism and hospitality should not be confused with the
popular term "social tourism."

• The social impacts of tourism and hospitality refer to the changes in the quality
of life of residents of tourist destinations.

• The objective of social tourism is to ensure that tourism is accessible to all

people.
 HOST - VISITOR INTERACTIONS

Smith (1997), categorized tourists into several types. Her classifications are as follows:

1. Explorer - interested in being an active participant-observer among the population.

Easily adapts to local lifestyles.

2. Elite - this type of tourist is few in number. Usually known as "the jet-setter."

3. Offbeat – adapts well to simple accommodations and services provided for the
occasional guest.

4. Unusual Tourist – loves sub-exotic cultural sites, and the unusual

 HOST - VISITOR INTERACTIONS

primitive sites as long as he can quickly return to more familiar surroundings and group.

5. Incipient Mass Tourist – looks for the amenities of Western societies. He is a mixture
of both pleasure seeker and business traveler.

6. Mass Tourist – he comes from the middle class. He arrives in a destination with other
tourists.

7. Charter Tourist – the charter tourist comes "en masse" with others of his kind creating
an extremely high amount of business and receiving a high degree of standardization in
services and products.
 POSITIVE SOCIAL EFFECTS OF
TOURISM AND HOSPITALITY

Some of the positive effects of tourism and hospitality are the following:

1. It creates a new medium for social change and multicultural understanding.

2. It encourages adaptation to the realities of modern life and works.

3. It promotes knowledge and use of foreign languages; and

4. It promotes health conditions and disease control.

 SOCIAL CHANGE AND MULTICULTURAL
UNDERSTANDING

- One of the most important benefits of tourism and hospitality is the bringing
together of diverse people to help them understand one another. Pope Pius XII
touched on this aspect of tourism and hospitality when he spoke of "subjecting
oneself, joyfully or sorrowfully, to the inconveniences, great or small, which can
with difficulty be avoided."
 ADAPTATION TO THE REALITIES OF MODERN
LIFE AND IMPROVEMENT OF THE HOST
COUNTRY'S LIFESTYLE

- Tourism and hospitality promotes progress and modernization through exposure to

other attitudes and values. It brings about improvement in facilities and services as
well as improvements in the lifestyles and quality of life of the residents of the host
country.
 USE OF FOREIGN LANGUAGE

- Use of a foreign language brings people in contact with those of other language
groups. The need and desire to communicate increase interest in both the host and
visitors to learn another language.
 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 destination areas and provide
additional sources of revenue which, in turn, can be invested in upgrading water and
sewage disposal facilities.
 NEGATIVE SOCIAL EFFECTS OF
TOURISM AND HOSPITALITY
- While tourism and hospitality has enabled different people to strengthen the social
structure, mass tourism has brought with it expenses and problems. Among these are:

• Social saturation

• Changes in the social structure, behavior, and roles

• Community problems; and

• Negative demonstrative effects

 SOCIAL SATURATION

- The presence of large numbers of tourists in particular places at specific times

results in saturation or congestion of facilities and services and competition for
limited resources.
 CHANGES IN THE SOCIAL STRUCTURE,
BEHAVIOR AND ROLES

- Tourism and hospitality changes the traditional forms of employment which results
in the lowering of the status of agricultural workers, migration of the population,
and the breaking up of families.
 COMMUNITY PROBLEMS

• Prostitution, often called the "oldest profession", certainly existed before the
growth of mass tourism.

• An increase in visitors, increase criminal activity

 NEGATIVE DEMONSTRATIVE EFFECTS

One of the major results of negative demonstrative effects is the polarization of the
hosts from the tourists, which happens in number of ways:

• Tourists often demand commodities and facilities beyond the economic capacity of
local residents.

• The social norms of the tourists that are very different from the local customs give
rise to social problems.

• The importation of foreign workers from more developed countries.

 IMPACT OF TOURISM AND
HOSPITALITY ON CULTURE

• Tourism and hospitality increases the acculturation process as well as the cultural
convergence of people.

• ACCULTURATION – defined as those changes that occur in a culture through

borrowing from other cultures.

• CULTURAL CONVERGENCE – is the tendency of world cultures to become

more alike.
 POSITIVE EFFECTS OF TOURISM AND
HOSPITALITY ON CULTURE

- The two most important positive effects of tourism and hospitality on culture are
the:

• Promotion of intercultural communication; and the

• Renaissance of native culture

 INTERCULTURAL COMMUNICATION

- MOBILITY, which is a prerequisite of tourism and hospitality, 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.
 RENAISSANCE OF NATIVE CULTURE

• Tourism and hospitality may be important to the host country to remind its people
of its history and culture.

• Traditional art forms have been revived in several countries. Tourism and
hospitality has stimulated the preservation of traditional art including
traditional songs and dances.
 NEGATIVE CULTURAL IMPACT OF
TOURISM AND HOSPITALITY

- While tourism and hospitality has enabled different people to restore and maintain
interest in their own cultures, it has also led to the destruction of a country's work of
art.
 ENVIRONMENTAL IMPACT OF
TOURISM AND HOSPITALITY

• The history of tourism and hospitality closely shows that the environment has
contributed to the birth and progress of tourism and hospitality.

• The term "environment" connotes both human and physical characteristics.

 POSITIVE ENVIRONMENTAL IMPACT
OF TOURISM AND HOSPITALITY

Tourism and hospitality has created environmental awareness in two ways:

1. 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

2. Environmental awareness has been heightened by mass tourism which caused

direct and indirect destruction.
 CONSERVATION

Conservation and Preservation of the environment not only benefit the local area
but they also determine the future of tourism and hospitality.

1. local residents benefit from the preservation.

2. tourism and hospitality, for as long as it draws tourists, will continue to be a

socioeconomic and cultural asset.
 DEVELOPMENT OF ATTRACTIONS

A. HISTORIC PRESERVATION

- Many historical sites in both urban and rural areas have been preserved to
attract tourists.

B. RESIDENT BENEFITS

- Tourism and hospitality benefits the local residents in a number of ways.

 NEGATIVE ENVIRONMENTAL IMPACT
OF TOURISM AND HOSPITALITY

A. ENVIRONMENTAL CONFLICTS

- Some of the problems affecring the quality of the environment are:

• destruction of the vegetation

• pollution (air, water and noise); and

• destruction of wildlife
 NEGATIVE ENVIRONMENTAL IMPACT OF
TOURISM AND HOSPITALITY
B. GEOLOGICAL CONFLICTS

- Tourism and hospitality affects geological formations. Some tourists collect

minerals, rocks, fossils, and corals from tourist attractions.

C. RESIDENT CONFLICTS

- Anumber of conflicts frequently occur between residents and tourists or

tourim developers.
CHAPTER QUIZ
_________ 1. The sum of all income in a country.

_________ 2. In general comes from wages and salaries, interest, rent, and
profits.

_________ 3. An accounting of the flow of goods, services, and funds in

and out of the country in a given period.

_________ 4 - 5 The last positive economic effect of tourism and

hospitality.

_________ 6. A tourist who arrives in a destionation with other tourists.

_________ 7. A tourist who is well-traveled and can afford to pay for
unusual vacations.

_________ 8. An excess of payments over receipts on the balance of

payments.

_________ 9. A tourist who adapts easily to local lifestyles.

_________ 10. A type of employment which is the result of providing

goods and services directly to tourists.
ENUMERATE THE FOLLOWING:

11- 14. List down the positive economic effects of tourism and
hospitality

15 - 16. What are the positive effects of tourism and hospitality on

culture.

17 - 20. Enumerate the negative social effects of tourism and

hospitality.
1. NATIONAL INCOME 10. DIRECT EMPLOYMENT

2. TOURISM INCOME / INCOME

3. BALANCE OF PAYMENTS

4. INVESTMENT AND DEVELOPMENT

5.

6. MASS TOURIST

7. ELITE

8. SURPLUS

9. EXPLORER
11. INCOME 20. NEGATIVE DEMONSTRATIVE
EFFECTS

12. EMPLOYMENT

13. BALANCE OF PAYMENTS

14. INVESTMENT AND DEVELOPMENT

15. INTERCULUTURAL COMMUNICATION

16. RENAISSANCE OF NATIVE CULTURE

17. SOCIAL SATURATION

18. CHANGES IN THE SOCIAL STRUCTURE, AND ROLES