MODULE 7

BENEFITS OF TOURISM

ECONOMIC BENEFITS
1. Employment
• Tourism is the largest industry in the world. It exceeds the automobile and information
technology. About 500 million or roughly 10% of the entire world population have traveled to
countries other than their own as tourists. Tourism is on of the world’s fastest growing sectors.
Currently over 200 million people work in the industry, representing 11% of global, Gross
Domestic Product (GDP).

2. Revenue Generation
• The business entity generates its revenue through the operation of its tourism programs. On
the
other hand, the government can get it’s revenue share through direct tourist contribution
(travel tax, room tax) and other forms of taxes and permits (value added tax, business permits,
etc.)

3. Foreign Exchange
• Tourism is usually one of the largest foreign exchange contributors especially in countries with
minimal amounts of resources to sell internationally. Tourists traveling to other countries would
usually bring in foreign currencies (usually dollars and euros) and they change their money to
local currencies of places they visit.

4. Income Redistribution
• Many countries, especially the developing ones, would have very few highly developed centers
(usually the capital cities). Economic activities would usually be centered in these areas and
leave much of the countryside with very little income. The populations in the economic centers
would naturally have more disposable income compared to the rural areas. When the more
economically blessed populations travel to other areas, they bring with them money that they
spend in their destinations. Thus, income gets redistributed to the rural areas. To a certain
extent , income from affluent countries gets redistributed to developing nations through tourist
travels.

5. Added Liquidity
• The money brought in by visitors to destinations provides added liquidity and thus helps
increase the economic activities in the areas visited.

6. Multiplier Effect
• There is always a question whether tourism could actually contribute to the economy of the
whole community as there are some perceptions that only few individuals who are directly
involved in the tourism could actually reach most members of the local community. Inns keep
stated that the term “multiplier” is used to describe the total effect, both direct and secondary ,
that an external source of income has on an economy. The money spent by visitors reaches
beyond the walls of tourist facilities and benefits most members of the local community.

SOCIAL BENEFITS
1. Conservation of Cultural Heritage
• Tourism provides a good economic value to numerous cultural heritage sites. People visit the
sites and spend money that is them used to help maintain or manage the sites and provide
economic benefits to the locals.

2. Renewal of Cultural Pride

• Having outsiders visit a particular community gives the locals a sense of pride for their place.
Thus, efforts are consciously made that will help preserve or renew their own local culture.

3. Understanding of One’s Country and Culture

• Tourism is a good medium to help understand and appreciate other cultures. First hand
experiences between visitors and hosts would open up opportunities to understand and respect
the cultures of other people. This works even for domestic tourists who would then learn the
cultural values of their own countrymen.

ENVIRONMENTAL BENEFITS
1. Conservation of Important Natural Areas
• In many countries , nature is the major source of tourism products. Areas such as mountain,
caves and coral reefs are visited and appreciated both by domestic and foreign visitors. Many
governments and tourist service operators realize that in order to continually benefit from
tourist, the quality of the natural areas that tourists visit should be maintained by protecting the
sites from unwanted impacts and degradation. Usually , national parks where recreation is
allowed are the best examples of protected natural areas where tourism serves as a
conservation
strategy.

2. Biological Conservation
• Tourism has been instrumental in protecting significants plants and animals in many countries .
A more sustained, non-consumptive, and benign industry can help save plant and animal
species that would have otherwise been wiped out (logged , fished , eradicated , poached) in a
particular area.
• Some of the biological species that are protected with the help of tourism are the giant pandas
in China, the whale sharks in the Philippines, and the whales and dolphins in many parts of the
world (Hawaii, Alaska , Australia and Argentina)

3. Improvement of Environmental Quality and Enhancement of the Environment

• In some destinations, the self – interest of tourist establishments to make themselves attractive
would
consequently influence how environmental quality is maintained or enhanced. Such influence
would
came in the form of improved landscaping and more efficient utilities (such as water supply and
disposal of waste water). The demands of the industry for a good environment quality also
forces
governments to invest in projects designed to maintain or improve the environment in their
areas.

4. Improvement of Infrastructure
• A successful tourism industry is one that brings about the rise of appropriate infrastructure
support like
roads, airports, bridges and ports. These infrastructures can also be utilized by the host
community. In
fact, tourism is a convenient excuses why certain destination are developed.

5. Increase in Environmental Awareness

• The need to sustain tourism through the maintenance of the quality of the local environment
helps
increase the environmental awareness of local stakeholders (which include the tourist service
providers
and the local communities). For example, instead of taking a tree mainly for its wood value, the
people
in the area discover other intangible values of the resource (such as haven for other animals,
providers
of oxygen, prevents soil erosion , etc.). On the other hand, aside from learning made in the
area, tourists
can bring in fresh environmental information that they can share with the locals (not throwing
rubbish
into the sea, not disturbing the wildlife, not setting up bonfire).