Review of Related Literature

Impact of Tourism

in

Tourism & Hospitality 2

Submitted By:

Azenith Denise O. Perez

BSTM 2A

Submitted To:

Ms. Giylah Ashiyr Labayan

 INTRODUCTION

Tourism has clearly had a significant impact on the industry in each country,
with far impressive performance and continuous improvement. Tourism can have a
positive or negative impact on a country's economy, social life, and environment, and
it can be measured by analyzing data from gathered business sectors, public
sectors, and other industrial organizations. It affects the economy by increasing or
decreasing international tourist arrivals in a country. According to the 2019 edition of
the UNWTO International Tourism Highlights report, it reached about 5% or 1.4
billion international tourist arrivals in 2018. It has an impact on social impacts
because tourists interact with other people. Cultural appreciation and inclusion of the
LGBTQ+ community are examples of positive social impacts in tourism. The
negative social impacts of tourism include an increase in sex tourism or child
exploitation, as well as cultural sensitivity of tourists who ignore or disrespect local
culture. (Westcott & Anderson, n.d.)

Review of Related Literatures

The indirect impact of tourism: An economic analysis

According to the report, indirect effects of tourism should be distinguished

from direct and included effects. The role of tourism in the economy are sometimes
labeled as being limited to the hospitality industry such as cafes, hotels, restaurants
and amusement park. However, the economic impact of tourism in each country has
a greater role, since it also circulates through the economy’s agriculture that is being
exported to other countries, also constructing better infrastructure.

Assessing the economic impacts of tourism is a great help to inform and

conduct new constructive policies in order to have a solution for international,
economic and financial crisis every country faces.

Indirect effects means affecting the production of goods / products and

services in the tourism industry. These are the products or goods that the tourism
industry purchases from their suppliers forming the tourism supply chain such us tour
packages, discount tours, car rentals, airlines, accommodations, health insurances
and many more that is necessary for the tourism industry. Also it is recommended for
the local tourism sectors to produce more local products such as souvenirs and
anything that could promote the local place and the country itself in order to
maximize the tourism revenue in a region or the country. (Vellas, 2015)

The impact of tourism and natural resources on the ecological footprint:

A case study of ASEAN countries

This study shows how the economic growth, energy consumption, tourism,
and natural resources on the ecological footprint in the ASEAN countries has an
impact for years 1995-2016.

The Driscoll-Kraay Panel and The Dumitrescu-Hurlin Panel are the tests and
model used to know the long-run relationship and to determine the paths of
casual interactions. These tests also helped to solved and take actions to the
problem of cross-sectional dependence in panel data analysis. This also proves
that tourism and natural resources helped to improve the environmental quality in
the ASEAN countries listed. (Kongbuamai, Bui, Yousaf, & Liu, 2020)

The impact of Tourism on Sustainable Development of Rural Areas:

Evidence from Romania

According to some studies it is proved that tourism activities had greatly impacted
on rural areas in positive ways such as economic growth, economic diversification,
demographic stabilization, increase of economic value for food products and
stimulation of agricultural development, improvement of socio-economic wellbeing,
and creation of growth of new local enterprises. It is also shows that the residences
had an increase of quality of living when tourism development had been
implemented especially to rural area. Tourism also greatly impacted those teenagers
or young adults to have a job and easily get one with a large of job opportunities in
tourism industries to offer to everyone in which allowing students to apply without
worrying about the qualities and high requirement standards employed since tourism
industries are open to people who graduated at least grade 12. The downside is
discrimination to people working in rural areas especially in agriculture, low industry
and craftsman which gives lower revenue than other tourism jobs in cities.

It is also hardly achieve that tourism had greatly impacted everyone in positive
way since rural areas or rural tourism industries benefits are hardly given and often
overestimated. It is also said in this research that “The simple presence of tourist
infrastructure does not necessarily lead to rural tourism development and most often
only certain dimension of sustainability, or only certain rural areas, truly benefit from
the positive impact of tourism”.

According to Butler and Clark the promotion of tourism in some strong rural
areas has truly a positive impact to the industry, but it only worsens unbalanced
income and employment distributions in weak rural economies, is said that areas
with lower to moderate levels of development are more advantageous to stronger
tourism development.

Rural areas in Romania are considered as a sensitive areas by the literature

because of their given accessibility issues which some tourists find it hard to
reach, difficulties in attracting investments due to low tourist visits, and an overall
low development index. Several plans for the development of the Romania’s rural
areas are issued by national and local authorities, however, all the plans were
rejected and few were addressed for tourism crisis to give a possible solution.
(Ibănescu, Stoleriu, Munteanu, & Iatu, 2018)

Study on the Economic impact of tourism and of agrotourism on local

communities

There are two big mistakes in analyzing the economic impact of tourism, in
general and also in agrotourism. It is mostly analyzed through basing from the
incomes or revenues from the tourism industries and providing or creating new
job opportunities while overlooking the wide range of effect on the alternative
macro-economic context in the tourism practices such as trade liberalization,
 direct effect on the distribution, pressure drop of the taxes on families, with effect
on their welfare.

As according to Stynes, decades ago that for any manager from tourism in
general and agrotourism it is important to know the tourists geographic origin
especially to foreign tourists because they are the ones who contributed a lot in
the tourism industry of the local, or national or regional tourism activities and
products, which also makes from foreign tourists as the only source of economic
impact to specific country, national, local, or regional tourism.

This article shows how the economic impact of tourism on local communities
can be easily schematically represented through (1) In the area where these
activities are repeated money “migrate” from the pockets of visitors and non-
residents or sales to the foreigners. (2) Money spent (income) represent a source
of improvement of the local economy. (3) Multiplier effect stimulates other
expenses (income) and finally lead to creating of new job opportunities. (4)
Economic activity of those local communities increase. (Marin, 2015)

Recommendation & Conclusion

Tourism may give positive or negative impact to every countries in different

approach of the issues of the tourism activities locally, nationally, and regional. There
are forms of way on how to improve the tourism effects by listening to each approach
and concerns of every inch which may affect the tourist performance and tourism
visits to every tourism sites. It is also important to deeply study every people, every
place, and every visitors which may affect the revenue in tourism since tourism
activities are one of the most greatly impacted a country in earning big revenues.
Without tourism activities a country may be forgotten or unrecognized also can result
to low revenue and downgrade of the countries’ economy.

References
Ibănescu, B.-C., Stoleriu, O. M., Munteanu, A., & Iatu, C. (2018, Ocotber 1). The Impact of Tourism on
Sustainable Development of rural areas: Evidence from Romania. Retrieved from MDPI:
https://www.mdpi.com/2071-1050/10/10/3529

Kongbuamai, N., Bui, Q., Yousaf, H. M., & Liu, Y. (2020, April 06). The impact of tourism and natural
resources on the ecological footprint: A case study of the ASEAN countries. Retrieved from
 SpringerLink: https://link.springer.com/article/10.1007/s11356-020-08582-x

Marin, D. (2015). Study on the economic impact of tourism and of agrotourism on local
communities. Research journal of Agricultural Science, 47(4).

Vellas, P. F. (2015, October 25). The infirect impact of tourism: An economic analysis. Retrieved from
pdf: file:///C:/Users/user/Downloads/111020-rapport_vellas_en.pdf

Westcott, M., & Anderson, W. (n.d.). Introduction to tourism and hospitality in BC - 2nd edition.
Retrieved from BCcampus: https://opentextbc.ca/introtourism2e/chapter/1-x-impacts-of-
tourism/