Professional Documents
Culture Documents
©Ramakrishna Kongalla
Introduction
• Tourism itself is an abstraction
• It doesn’t exist, at least in the same sense as a residence
• Tourism is not even a discipline
• Tourism is a field made up of many physical program and action
parts
• It is only the components of tourism and their aggregates that can
be planned
• It has no owner, it is controlled by multitude of owners, mostly
with in three categories
– Government
– Non Profit organisations &
– Private commercial enterprises
• Tourism is influenced by a great many other factors that can make
or break planning process and its implementation, such as local
residents, financial institutions and market demand
• 1. Individual level
• 1. State Level
• 2. Firm Level
• 2. National Level
• 3. Industry Level
• 3. Regional Level
• 4. Economy as a whole
• Saving
– Some money received by hotel and facility
owners will be kept as profit
• Spend
– Owners of businesses who receive money from
tourists, spends on wages for
employees, supplies (stock) in the local economy
or outside local area (imports)
• Local items
– Employees and locals spend wages in local shops
R'tist@Tourism, Pondicherry University
e.g. supermarkets 20
Negative Economic Impacts
• Leakages
Leakages • Money spent on goods and
services outside local
Opportunity Costs economy
Inflation • Money saved (in banks etc)
Tourism Dependency • Investment from MNCs or
TNCs means that some
money earned by that
organization will leave the
local economy e.g.
headquarters in a different
destination
• Importing goods means
another economy is
benefitting from spending
e.g. bananas in the UK
R'tist@Tourism, Pondicherry University 21
Opportunity Costs Inflation
• Also known as ‘displacement • Increase in demand leads to
effect’ increase in inflation
• “developing tourism at the • Inflation = value and price of
expense of other activities or land, and products increases
areas of investment” (Page • Locals may not be able to afford
and Connell, 2006) to live in a particular area, local
• Public money invested in businesses may suffer
tourism that is not invested – Can lead to negative socio-cultural
elsewhere e.g. local impacts
infrastructure at another Tourism Dependency
location • Some countries rely heavily on
• Cost-benefit analysis best way tourism in order to maintain
to minimise opportunity costs the country’s economy
• Occurs quite often in
developing countries
• If tourism suffers in a
country, the whole economy
suffers – a huge negative
impact
R'tist@Tourism, Pondicherry University 22
Positive Environmental Impacts
Conservation and Conservation and
preservation preservation
Enhancement of • Can be done by ‘zoning’
environment areas of the natural
Environmental awareness environment e.g. national
parks
Financial contributions – Strict guidelines to follow for
Protection developments, and visitors
• Built or man-made
constructions can also be
preserved
– Restricted access to certain
areas
– Money raised from visitors
can help restorations
– E.g. castles, cathedrals etc.