Eulogio “Amang” Rodriquez Institute

Of Science and Technology

MULTIPLIER EFFECTS OF TOURISM INDUSTRY TO DESTINATION, LOCAL,

NATIONAL AND PROBLEMS BROUGHT ABOUT BY TOURISM INDUSTRY

A Written Report Passed and Presented to Professor: Loida R. Banzuelo

By EARIST BS Hospitality Management 1-1

In Partial Fulfillment of the Course Requirement in Macro Perspective of Tourism

and Hospitality

Cao, Irish Joy

Gaelon, Edrievic

Peralta, Miguel

Tolentino, Erica Joyce

Presenters

2019

Table of Contents
I. Introduction Miguel Peralta

II. Subtopics Edrievic Gaelon

Erica Joyce Tolentino

III. Summary/Conclusion Miguel Peralta

IV. Definition of Terms Irish Joy Cao

V. References

VI. Curriculum Vitae

I. INTRODUCTION

This report mainly discusses the multiplier effect of tourism as well as the
problems brought about by the tourism industry. The concept of multiplier effect
is a major contribution to a country’s economy. It tells us how the money
circulates all throughout the country. In addition, tourism doesn’t only create jobs
in the tertiary sector; it also encourages growth in the primary and secondary
sectors of industry. Money spent in a hotel helps to form jobs directly within the
hotel; however it additionally creates jobs indirectly elsewhere within
the economy. The hotel, as an example, needs to take
out from native farmers; who might pay cash on chemical or garments. The
demand for native product will increase as tourists usually get souvenirs that will
increase secondary employment. The number result continues till the
cash eventually 'leaks' from the economy through imports. On the other hand, the
increase in tourism has brought benefits but it has also caused some negative
effects to the community. Having the aim to develop such businesses, different
aims can sometimes conflict and tourism may be one of the biggest challenges in
the society.

II. SUB-TOPICS

1. Effect of Tourism Industry to:

1.1 DESTINATION

The phenomenon of tourism is one particularly complex. It has, by virtue

of its activity, implications in the social, political, cultural and economic areas of
activity. The sheer volume and complexity of the offer of tourist services have led
to the development of travel and tourism industries. Because of this, the
phenomenon of tourism should be regarded as a separate branch of the
economy. This branch of the economy is closely linked with the development
levels and growth of the other branches of the economy. The diversity of
activities incorporated in the tourism industry as well as the overlapping character
of some of them in the structure of other economic branches makes tourism an
economic branch highly based on association and interconnectivity. This
determines the magnitude and complexity of the links between tourism and other
parts of the economy. (Minciu, 2004) Although travelers, having a similar
motivation to that of the modern meaning of tourists, have engaged in this type of
activity since the 1600s, the use of the word “tourist” is first recorded in the
1800s. (Lanquar, 1992) Tourism, in its modern form, has emerged as a
consequence of recent history socioeconomic transformations. However, in its
turn, this branch stimulates the development of other branches of the economy
by the object of its activity. Tourism, in the economic context of the 21st century,
is an essential activity in the structure of the economic mechanism and has an
active role in the development and modernization of the economy and society.
The importance and the economic contribution of this activity fluctuate from
nation to nation. Although there are countries whose economy relies largely on
tourism, its role is so well integrated in contemporary economies that the
economic impact is relevant even to the less important countries in terms of
tourism related activities.

The destination is the place or geographical space where a visitor or a tourist

stops either for a night or for a period of time, or the terminal point of a tourist’s
holiday, whether they are travelling for tourism or business purposes. The place
or terminal point can be a country, a region, an area or a town and is an
attraction where tourists can spend most of their time. (Stăncioiu, 1999) The
destination represents the catalyst link that unites, maintains and drives all
sectors of the tourism industry, namely transport, accommodation, food and
entertainment, being a complex and specific item for tourism. (Heath & Wall,
1992) We can categorize as destinations places separated by a real or artificial
boundary, such as the physical border of an island, political boundaries and
market-created boundaries. The latter may be exemplified by tours in several
countries in a given region, while other countries in that particular area are being
excluded on grounds of political instability or inadequate infrastructure. The
complexity consists in the fact that a destination is a product and at the same
time, more products. In this respect, the concepts of micro-destinations and
macro destinations are used. Macro-destinations (countries, areas, etc.) are the
sum of several destinations (regions, towns, resorts, etc.).(Stăncioiu, 2004) A
macro destination such as the United States of America contains thousands of
microdestinations, including regions, States, cities and even multiple destinations
in one town.(Kotler, Bowen, & Makens, 2014) In Romania, for example, we can
characterize the entire Black Sea coast as a macro destination, while micro-
destinations located here are represented by the sea resort-towns of Mamaia,
Eforie Nord, Venus, Neptune, etc.

1.2 EMPLOYMENT

As per UNWTO report on the assessment of the opportunities and

challenges which face women with respect to employment in tourism conducted
in 2011 noted that unskilled or semi-skilled women tend to work in the most
vulnerable jobs, where they are more likely to experience poor working
conditions, inequality of opportunity and treatment, violence, exploitation, stress
and sexual harassment. In developing countries, additional factors such as low
level of education and training, widespread poverty, poor maternal health and
lack of sex education together with socio- cultural factors have prevented women
from being empowered as economic actors. Businesses can be located at some
distance from residential areas, particularly in poorer countries and communities,
imposing both travel and time costs on women who frequently have limited
access to both financial and time-flexibility resources. The other issue is that
lower levels and occupations with few career development opportunities being
dominated by women while key managerial positions are dominated by men
(Vargas, N.d). Women are under-represented in managerial and senior positions.
For example, women represent only 32 per cent of managers in companies
within the EU, 10 percent of members of management boards of the largest
companies, and 29 per cent of scientists and engineers across Europe.

Family and care responsibilities are still not equally shared. The task of
looking after dependent family members is largely borne by women. Far more
women than men choose to take parental leave. This fact, together with the lack
of facilities for child care and elder care, means that women are often forced to
exit the labour market: the employment rate for women with dependent children
is only 62.4 per cent compared with 91.4 per cent for men with dependent
children [12]. Vergas had also noted that in contrast to other industries,
employment in Hotel Catering and Tourism tends to be oriented towards people
under 35 years of age. In Spain 43.4 per cent of workers in the sector are aged
25-34. Swarbrooke had emphasized that Employers frequently reject women
applicants who are over a certain age (usually 35 age limit) and demand photos
of female applicants for jobs. The tourism industry also has a poor record on the
employment and promotion of people with disabilities.

1.3 DEVELOPMENT

The rapid development of the tourism industry has brought about a series
of damage, which requires the introduction of low-carbon mode in the tourism
industry to achieve sustainable development. Low-carbon tourism is a part of
low-carbon economy and the basis of sustainable development of tourism
industry. In the context of global warming, low-carbon tourism plays a very
important role. According to the research results, some suggestions can be
provided for the development of low-carbon tourism economy:

The first suggestion is to raise the level of economic development and

increase investment in tourism. The improvement of economic development level
can promote the improvement of national income level and per capital
consumption level, thus promoting the increase of tourism consumption demand
and tourism consumption capacity, making people have higher economic
expenditure on tourism, and promoting the growth of tourism economy. Tourism
economy, especially the development of land-stall tourism economy, needs
higher costs. In order to promote low-carbon level, infrastructure and green
products in the process of tourism need a lot of funds, and research and
development of low-carbon technology and carpet products also need financial
support. Therefore, increased investment in tourism funds can better build
infrastructure of tourism industry, improve the low-carbon level, and thus promote
the growth of low-carbon tourism economy.

The second suggestion is to establish low-carbon tourism scenic spots

and improve infrastructure construction. Tourism resources are an important part
of the development of low-carbon tourism economy. Low-carbon scenic spots
should be constructed by adhering to strategy of sustainable development and
reasonably developing tourism resources. Energy saving, emission reduction and
green and environmental protection should be paid attention to in the
construction process of scenic spots. The construction of star-rated hotels and
travel agency should be strengthened and the transportation routes in travel
region should be perfected to provide thoughtful service for tourists. Some
studies have found that 90% of tourism carbon emissions come from
transportation. The improvement of urban road construction can play a certain
role in reducing carbon emission and promoting the economic growth of low-
carbon tourism.

The last suggestion is to increase education capital investment and

strengthen the concept of low carbon education. Education can not only promote
the progress of technology, but also improve tourists’ awareness of
environmental protection, make them correctly understand the importance of
implementing low-carbon tourism, strengthen the understanding of sustainable
development. Implementing low-carbon concept in the process of tourism and
practicing low-carbon economy can promote the economic growth of low-carbon
tourism.

2. Problems brought about by Tourism Industry:

2.1 SOCIAL

Any development requires some interference with nature.

Overdevelopment comes at the cost of nature. There may be damage to the
natural flora and fauna. Local people have displaced for want of coastal area
development. With more people in the area, more natural resources may require,
which leads to the depletion of natural resources. Waste disposal problems crop
up, and without proper measures to handle this problem, it may worsen the
situation. Due to more footfalls, more transport, more noise, improper waste
disposal, pollution increases in the area and disturbs the ecological balance of
the region. Due to the heavy traffic in the region, the infrastructure may not be
able to cope up the increased rush thus leading to overcrowding, poor sanitation
which may further lead to diseases bot to the tourists as well as local people. The
intrusion of outsiders in the area may disturb the local culture and create unrest
among the people. The local people may copy the lifestyles of tourists through
the demonstration effect, and the result could be the loss of native customs and
traditions. Some people may enter into criminal activities to fetch easy money
from a tourist, who leads to increased crime, and anti-social activities and loss of
moral and religious values.

Commodification’s of culture refers to the use of cultural traditions and

artifacts in order to sell and profit for the local economy. With the rise of tourism,
authors argue that commodification is inevitable. Critics of commodification
believe that tourist are not interested in cultural beliefs and traditions of the
locals, but are rather obsessed with owning a part of it. Demonstration Effect was
introduced to tourism when researchers were looking into the effects of social
influences from tourism on local communities. The demonstration effects argue
that local inhabitants copy the behavior patterns of tourist. Negative Sociocultural
Impacts are differences in social and moral values among the local host
community and the visiting tourist. Outside of affecting the relationship between
tourist and local, it can also cause friction between groups of the local population.
In addition, it can cause drifts in the dynamics between the old and new
generations. (Ex. Korean)

II.2 ECONOMIC

An economic impact analysis (EIA) examines the effect of an event on the

economy in a specified area, ranging from a single neighborhood to the entire
globe. It usually measures changes in business revenue, business profits,
personal wages, and/or jobs. The economic event analyzed can include
implementation of a new policy or project, or may simply be the presence of a
business or organization. An economic impact analysis is commonly conducted
when there is public concern about the potential impacts of a proposed project or
policy. An economic impact analysis typically measures or estimates the change
in economic activity between two scenarios, one assuming the economic event
occurs, and one assuming it does not occur (which is referred to as the
counterfactual case). This can be accomplished either before or after the event
(ex. ante or ex. post).

Several studies have pointed out that tourism industry generally exhibits a
huge degree of leakage. Leakage generally created by foreign ownership,
interest payment or foreign loans and the payment of the franchise and
management fees to foreign companies. Tourism development of infrastructure
(airports, roads, etc.) can cost the local government a great deal of money. May
inflate property values and price of goods and service. Research has shown
that the amount spent by visitors to an area is re-circulated in the local
economy. Tourism’s ability to create jobs is one of the main reasons why
governments encourage its development. Direct employment in tourism occurs
in areas such as hotels, transport operators, travel agencies, tourist
attractions, tour guides, government Departments and tour operators (Lieper,
1979). Tourism also creates indirect employment in industries not directly
associated with the sector, for example in construction, banking, design
and transport companies. Mathieson and Wall (1982) and Kumar and
Hussain (2014a) reports that beside generating revenue and creating jobs,
tourism development also contributes to infrastructure improvements in
destination areas, e.g. road and rail improvements, airport developments,
improvements in telecommunications and utilities such as water and power
supply. In this way, local people can benefit from improved facilities that
are provided for tourists. Even though the economic impacts of tourism are
generally positive, it can have some negative economic effects, including
leakage, decline of traditional employment and seasonal unemployment.

II.3 ENVIRONMENTAL

The impacts of tourism include the effects of tourism on the environment

and on destination communities, and its economic contributions. It has been part
of the tourism discourse since the 1970s, with attention growing in recent years
due to debates on over tourism. Impacts are not easily categorized, having direct
and indirect components. Tourism is also often seasonal, and impacts only
become apparent over time, with varying effects, and at different stages of
development. Tourism impacts fall into three main categories. Environmental
impacts affect the carrying capacity of the area, vegetation, air quality, bodies of
water, the water table, wildlife, and natural phenomena. Sociocultural impacts are
associated with interactions between people with differing cultural backgrounds,
attitudes and behaviors, and relationships to material goods. The introduction of
tourists to sensitive areas can be detrimental, cause a loss of culture, or,
alternatively, contribute to the preservation of culture and cultural sites through
increased resources. Economic impacts are usually seen as positive, contributing
to employment, better services, and social stability. Cultural education may also
be improved, which can be overlooked. Yet these impacts can also contribute to
high living costs within the community, pushing out local businesses, and raising
costs for local residents.

Rampant construction of tourist facilities like hotels, cafes, restaurants,

etc., in an area without proper arrangement for safe disposal of sewage, can lead
to disastrous consequences. Wastewater carrying sewage from such areas often
pollutes nearby water bodies. It can lead to the eutrophication of water bodies
and the loss of the balance in aquatic ecosystems. Pollution of water bodies with
sewage can also lead to health issues and even epidemics that can ultimately
wipe out large populations of aquatic flora and fauna and also impact human
health adversely.

Tourist facilities built to earn a profit without any concern about integrating
the design with the natural features of the place can lead to aesthetic pollution.
Large resorts of disparate designs can dominate the landscape and spoil the
natural beauty of a place.

When tourism is encouraged in an area with inadequate resources, it will

have a negative impact on the ecosystem of the area. In such areas, the local
flora and fauna might be deprived of the resources needed to sustain their lives.
For example, large volumes of water are consumed to cater to the needs of the
tourists, run hotels, swimming pools, maintain golf courses, etc. This can
degrade the quality of water and decrease the volume of water that is available
for the local population, plants, and animals. It is not only the water resources
that are depleted. Unsustainable practices by the tourist industry can also put
pressure on other resources like food, energy, etc.

III. SUMMARY/CONCLUSION

It is really important to recognize the diversity of the industry and the

significant contribution that tourism makes to a country’s economic value. It is
also necessary for us to know how the multiplier effect works in a country’s
economy for us to be able to have knowledge on how money circulates
throughout the country and how it contributes to the growth of both primary and
secondary sector of the country.

The infrastructural development must be equally distributed

in each business enterprise destinations. The numbers of tourists are
often enhanced by protective cultural and non-secular sites, launching
cleanliness programs. If people will begin to accelerate their movement toward
sustainable tourism, the tourism crisis can indeed be a wonderful opportunity to
improve the lives of many people, reduce poverty, improve the environment, and
most importantly, help our world to get on a more sustainable path.

IV. DEFINITION OF TERMS

Amenity – a desirable or useful feature or facility of a building or place.

Detrimental - tending to cause harm.

Enormous - very large in size, quantity, or extent.

Inevitable - certain to happen; unavoidable.

Inflate - increase (something) by a large or excessive amount.

Land Degradation - is a process in which the value of the biophysical

environment is affected by a combination of human-induced processes acting
upon the land.
Leakage - takes place when revenues from its economic activities are not
available for reinvestment or consumption of goods and services within the same
destination. Leakage also occurs when tourism-relatedgoods, services, and
labor are imported.

Primary sector – extraction of raw materials – mining, fishing and agriculture.

Secondary / manufacturing sector – concerned with producing finished goods,
e.g. factories making toys, cars, food, and clothes.

Service / Tertiary sector – concerned with offering intangible goods and

services to consumers.

V. REFERENCES

A. Books

Lim, Romeo D. (2019). A MACRO PERSPECTIVE ON TOURISM AND

HOSPITALITY.  Mindshapers Co., Inc. Intramuros, Manila

B. Online Articles

Rusu, Sergiu. (2011). Tourism multiplier effect. Journal of Economics and

Business Research, ISSN: 2068-3537, E–ISSN (online) 2069–9476, ISSN–
L=2068–3537 Year XVII, No.1, 2011, pp.70-76. XVII.

C. Websites

https://www.worldatlas.com/articles/what-are-the-negative-effects-of-tourism-on-
the-environment.html

https://geographyfieldwork.com/TouristMultiplier.htm?
fbclid=IwAR2ZqKTFxQkaeW7lh87GVBoV0KhqAp0cyQ14BWMM9yVyyb7z1_Ilb7
bKzLY

https://www.linkedin.com/pulse/positive-negative-effects-tourism-social-cultural-
prince-mdusman

https://www.longdom.org/open-access/employment-opportunities-and-
challenges-in-tourism-and-hospitalitysectors-2167-0269-1000256.pdf

https://ibimapublishing.com/articles/JEERBE/2016/143495/143495.pdf

https://en.m.wikipedia.org/wiki/Impacts_of_tourism
https://en.m.wikipedia.org/wiki/Environmental_issue

https://en.m.wikipedia.org/wiki/Economic_impact_analysis

https://nationalparks.uk/students/ourchallenges/tourism/impactsoftourism

https://www.researchgate.net/publication/
277411573_POSITIVE_VS_NEGATIVE_ECONOMIC_IMPACTS_OF_TOURISM
_DEVELOPMENT_A_REVIEW_OF_ECONOMIC_IMPACT_STUDIES
 VI. CURRICULUM VITAE

Irish Joy C. Cao

Blk 29, Ovelooking Valley Brgy. San Roque Antipolo City
Mobile Number: 09565376226
Email Address:Caoirish74@gmail.com

OBJECTIVE
To enhance and improve my communicational skills. Work well and give my best.
Also to obtain a job within my chosen field that will challenge me and allow me to
use my skills, and have experiences in a way that we will both benefits and allow
for future growth and advancement.

SKILLS

Social skills VII. Time management

Organize Professional at handling work

PERSONAL BACKGROUND

Birth Date: March 12 ,2000 Weight: 59 kg.

Birth Place: Cabanatuan, City VIII. Civil Status: Single
Age: 19 yrs. Old IX. Height: 5’ 3

EDUCATIONAL BACKGROUND

EULOGIO “AMANG” RODRIGUEZ INSTITUTE OF SCIENCE AND

TECHNOLOGY
2019-present
Nagtahan,Sampaloc,Manila
BSHM
Tertiary Education
SAN ROQUE NATIONAL HIGH SCHOOL
2017-2019
#15 Marigman St. Brgy San Roque, Antipolo City

SAN ROQUE NATIONAL HIGH SCHOOL

2017-2019
#15 Marigman St. Brgy San Roque, Antipolo City
Secondary Education

LORES ELEMENTARY SCHOOL

2006-2012
Baht St. Lores Country Homes, Brgy. San Roque
Antipolo, City
Primary Education
Edrievic T. Gaelon
#46 M. Gonzales St. Barangka
Marikina City
Mobile Nuber: 09999099034
Email Address: edrievictbrcgln@gmail.com

OBJECTIVE

To be a part of a company that works at the field of hospitality industry that

will enhance my knowledge and skills about our country’s hospitality industry.

SKILLS

Willing to learn more Good Communication Skills

Flexible Hardworking

PERSONAL BACKGROUND

Birth Date: May 15, 2001 Civil Status: Single

Birth Place: Quezon City Height: 5’ 7

Age: 18 yrs. Old

Weight: 70 kg

EDUCATIONAL BACKGROUND

EULOGIO “AMANG” RODRIGUEZ INSTITUTE OF SCIENCE AND

TECHNOLOGY
2019-present
Nagtahan,Sampaloc,Manila
BSHM
Tertiary Education

BARANGKA NATIONAL HIGH SCHOOL

Barangka, Marikina City
SHSTVLTTS 2017-19
Caregiving
BARANGKA NATIONAL HIGH SCHOOL 2013- 2017
Barangka, Marikina City
Secondary Education

BARANGKA ELEMENTARY SCHOOL 2007-2013

Antipolo City, Rizal
Primary Education
 Miguel Angel G. Peralta
Crown Alley St. Valley Golf
Cainta, Rizal
Mobile Nuber: 0975-2193778
Email Address: miguelgperalta00@gmail.com

OBJECTIVE
To secure my position where I can utilize my skills and knowledge in Customer
Service.

SKILLS

Passionate X. Self-motivated
Punctual
Hardworking

PERSONAL BACKGROUND

Birth Date: August 26,2000 Civil Status: Single

Birth Place: Cainta, Rizal Height 5’ 8
Age: 19 yrs. Old

Weight: 74 kg.

EDUCATIONAL BACKGROUND

EULOGIO “AMANG” RODRIGUEZ INSTITUTE OF SCIENCE AND

TECHNOLOGY
2019-present
Nagtahan,Sampaloc,Manila
BSHM
Tertiary Education

POLYTECHNIQUE UNIVERSITY OF THE PHILIPPINES- HASMIN

Sta. Mesa Manila
SHSTVLHES 2017-19
Cookery
Senior High School
CASIMIRO A. YNARES SR. MEMORIAL NATIONAL HIGH SCHOOL
2013- 2017
Taytay, Rizal
Secondary Education

SAN ISIDRO ELEMENTARY SCHOOL 2011-2013

Taytay, Rizal
Primary Education
 Erica Joyce R. Tolentino
082, Purok Street, Brgy. Abiawin
Infanta Quezon
Mobile Nuber: 09984248084
Email Address: ericajoycetolentino8@gmail.com

OBJECTIVE
Seeking for a career to apply my knowledge and skills in an oriented environment
that gives equal career opportunity based on skills and performance.

SKILLS

Hardworking
Can work with or no supervision
Amenable to work on shifting schedules
I am a multi- tasker
Customer service skill

PERSONAL BACKGROUND

Birth Date: november 8, 2000 Civil Status: Single

Birth Place: Manggahan Vacca Weight: 58 kg.
Center, Subic Zambales Height 5’8
Age: 19 yrs. Old

EDUCATIONAL BACKGROUND

EULOGIO “AMANG” RODRIGUEZ INSTITUTE OF SCIENCE AND

TECHNOLOGY
2019-present
Nagtahan,Sampaloc,Manila
BSHM
Tertiary Education

POLYTECHNIQUE UNIVERSITY OF THE PHILIPPINES- MAIN CAMPUS

Sta. Mesa Manila
SHSABM 2017-19
BINULASAN INTERGRATED SCHOOL
2013- 2017
Binulasan, Infanta Quezon
Secondary Education
ABIAWIN ELEMENTARY SCHOOL
2011-2013
Abiawin, Infanta Quezon
Primary Education