THE IMPACTS OF TOURISM AND

HOSPITALITY
The rapid growth of the tourism and hospitality industry has produced both problems and
benefits for the destination countries. It has visible impact on the socio-cultural, socio-economic,
environment.

Although tourism and hospitality industry can bringadvantages to the destination country, It also
bring serious long-term problems which without careful control and planning can threaten the
society

KEY PERSPECTIVE ON TOURISM IMPACTS

❖ Impacts are multi-faceted.
❖ Tourism impacts can be categorized into three:
economic, socio-cultural and environmental.
❖ It can be positive (beneficial) or negative (detrimental).
❖ The impacts also depends on the value and judgment of the observer.

TYPES OF TOURISM IMPACTS

● ECONOMIC IMPACTS
● SOCIO-CULTURAL IMPACTS
● ENVIRONMENTAL IMPACTS
● SOCIAL IMPACTS
TOURISM AND ITS ECONOMIC IMPACTS

ECONOMIC IMPACTS OF TOURISM

POSITIVE IMPACT
1. Foreign exchange earnings
- Foreign exchange have the limited amount of their own currency that tourist can
bring in and out of the destinations To ensure that foreign currency is used to pay
bills in the host region

2. Contribution to government revenues

- Tourism income comes from the wages, salary, interest, rent, and profit.
- Income is obtained from direct taxation and indirect taxation,
- imposing value added tax on the total bill is an example of indirect tax.
- Examples of interest and rents is the interest paid on loans to an airline in order
to buy aircraft or rent paid to landowner

3. Generation of employment
- The greatest advantage of tourism on developing economy, Tourism generates
employment faster for the developing nation than for the developed ones

● Three types of employment:

○ indirect employment
- Consist of the positions that are associated with other tourism
related activities but are used by the both local and the tourist
 ○ direct employment
- It is generated byproviding good and services directly such as in
hotels. restaurants, bars
○ Induce employment
- Refers to people working in positions only peripherally related to
tourism but generated because of it

4. Balance of payment / trade account balance

- An accounting flow of the goods and services, and funds in and out of the country
During a given period
- If a country pays or agrees to pay more money than what it receives, It has a
deficit on its balance of payments. If it receives more money than what it exports,
It has a surplus on its balance of payment

5. Stimulation of infrastructure investment

- More businessman and government agencies maybe influenced To invest on
tourism and other agencies on that area, This is known by an economist as an
accelerator concept

6. Contribution to local economies

- Assistance aid coming from the government such as 4Ps, SAP, scholarships

NEGATIVE IMPACT
1. Inflation
- Increase prices on certain products and provide more expensive goods and
services
- The growth in tourist trade creates additional demand for land and competition for
potential buyers
2. Opportunity costs
3. Dependency
4. Seasonality
5. Leakage
6. Enclave tourism
7. Seasonal character of jobs
8. Prostitution and the underground economy

ECONOMIC IMPACTS CONTROL MEASURES

a. Develop tourism gradually so that local residents can have sufficient time to adapt to it
and understand it.
 b. Maintain a scale of tourism development that is appropriate for the local as well as
national environment.
c. Involve residents and their spokesmen in planning and decision-making so that they can
participate in determining the future of this sector
d. Apply the concept of tourism development zones
e. Make certain that residents have easy access to tourist attractions, facilities and services
including reduced admission fee if necessary
f. Provide incentives to local ownership, management and operation of hotels and other
tourist facilities and services so that residents can receive direct economic benefits
g. Develop strong linkages between tourism and other economic activities such as
agriculture, fisheries, handicrafts and manufacturing to help develop these sectors.
h. Plan, develop and organize tourism so that no area becomes too congested with
tourists, and residents can easily use community facilities and services
i. Train local to work effectively in all levels of tourism, including managerial and technical
positions in order to reduce the number of imported employees

SOCIAL IMPACTS OF TOURISM

➢ 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
➢ Tourism cause more interactions between people particularly the tourist or the visitors
and the local residents or host.

CLASSIFICATION HOST-VISITOR
1. Explorer
2. Elite
3. Offbeat
4. Unusual Tourist
5. Incipient Mass Tourist
6. Mass Tourist
7. Charter Tourist

POSITIVE SOCIAL IMPACTS OF TOURISM

a. Social Change and Multicultural Understanding
 b. Adaptation to the Realities of Modern Life and Improvement of the Host Country’s
Lifestyle
c. Use of Foreign Language
d. Improved Health Conditions and Disease Control

NEGATIVE SOCIAL IMPACTS OF TOURISM

a. Social Saturation
b. Changes in the Social Structure, Behavior and Roles
c. Community Problems
d. Negative Demonstrative Effects

Social Impact Control Measures

a. Reducing the contract between hosts and guests by limiting the carrying capacity of the
destination and by regulating the tourist flow
b. Separating the hosts and the tourists within tourist enclaves
c. Designing community education and citizen involvement programs centered on tourism
and hospitality development, policy and regulatory issues
d. Expanding human resource development and training programs in all components of the
tourism and hospitality system to include social skills (interpersonal relations and
networking referral tactics)

Tourism and its Socio-Cultural Impacts

CULTURAL IMPACTS OF TOURISM

➢ Acculturation
- Changes that occur in a culture through borrowing from other cultures. These
changes may include technology, language and values.
➢ Cultural Convergence
- the tendency of world cultures to become more alike. Example of this 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

a. Promotional of Intercultural Communication
 b. Renaissance of Native Culture

Promotional of Intercultural Communication

➢ Mobility
- is a prerequisite of tourism necessary for different social groups, nationalities and
cultures to meet and interact
➢ Cross-Cultural
- a communication between tourists and their hosts may promote changes in local
culture while preserving or revitalizing local ethnic and cultural identity

Renaissance of Native Culture

➢ Tourism has stimulated the preservation of traditional art including traditional songs and
dances
➢ Model culture villages create historical and ethnic environments designed to perpetuate
tradition and stimulate awareness of the local area.

SOCIO-CULTURAL IMPACTS OF TOURISM

BENEFIT IMPACT
1. Preservation and restoration of cultural heritage
2. Revival of traditional arts and crafts
3. Cultivation of cultural pride and sense of identity
4. Cross-cultural exchange

NEGATIVE/COST IMPACT
1. Loss of cultural character
2. Loss of authenticity and meaning of traditional arts and crafts
3. Commercialization of human relationships
4. Potential misunderstandings and conflicts between residents and tourists

Negative Cultural Impact of Tourism

a. Destruction of a country’s work of art
b. Resentment of local residents to tourists who think they have a right to the country’s art
whether bought or stolen
SOCIO-CULTURAL CONTROL MESURES
1. Develop programs which enhance tourism and hospitality’s contribution to intercultural
communication and interaction such as matching tourist types with destination
characteristics and designing programs for the interaction of local residents and guests
promoting goodwill “ambassador” tourist education
2. Incorporate local indigenous features within Western- style structures such as decorating
hotel interiors with local paintings, murals, and sculpture and encouraging porters, maids
and waiters to dress in native costumes

Environmental impact

Three Perspectives: (Relationship of Tourism and Environment)

1. Tourist-environment interactions
2. Tourist-host interactions
3. Host-environment interactions

ENVIRONMENTAL BENEFITS
1. Environmental awareness.
2. Enhancements of local environment.
3. Protection and conservation of wildlife.
“Environmental Awareness Raising”
➢ Tourism has the potential to increase public appreciation of the environment and to
spread awareness of environmental problems when it brings people into closer contact
with nature and the environment

Enhancement of Local environments

❖ Retain and increase visitor numbers by improving the general amenity value of the local
environment

Protection and Conservation of Wildlife

● Tourism acts as a force of conservation as it offers an alternative economic use.
● Tourism draws attention to issues relating to biodiversity, endangered species and
human impact on the environment.

ENVIRONMENTAL COSTS
1. Inappropriate development
2. Loss of natural habitat and effects on wildlife
3. Pollution
4. Loss of spirit
5. Overcrowding and traffic congestion
6. Activities (affecting the natural environment)

Inappropriate Development
1. Tourism development may be classed as inappropriate if it fails to be sensitive to the
natural environment.
2. Long-term planning in environment termsshould be done.
3. Costa del Sol – had undergone a powerful colonization of modern kind, it had robbed the
shore of its natural features, displaced headlands and harbors with badly made
structures.
4. Resortsin Pattaya, Thailand – considered to be overdeveloped.
Loss of natural habitats & effects of wildlife
a. Development of facilities and subsequent tourist use may result in rapid or more gradual
effects on habitats.
b. Trampling causes disturbance to vegetation and soil.
c. Not unlike the Galapagos Island, 600 miles of the coast of Ecuador.
Water Pollution
Water pollution is the contamination of water bodies such as lakes, rivers, oceans, and
groundwater.

Air Pollution
Air pollution is the introduction of chemicals, particulate matter, or biological materials that
cause harm or discomfort to humans or other living organisms, or damages the natural
environment, into the atmosphere.

Noise pollution
➢ Noise Pollution (Environmental Noise)
– is displeasing human, animal or machine created sound that disrupts the activity or balance of
human or animal life

Solid waste
Solid Waste is also referred to as rubbish, trash, garbage, or junk depending upon the type of
material and the regional terminology. In living organisms, waste relates to unwanted
substances or toxins that are expelled from them.

Overcrowding and traffic congestion

a. Happens when the volume of tourists exceeds the capacity of an environment.
b. Overcrowding poses an increased risk of environmental damage through erosion and
restricts visitor appreciation of the destination.
c. Inappropriate parking
d. Congestiondamages vegetation, erosion and adds to localized pollution.