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Three Major Economic Impacts

of Tourism

Increasing foreign exchange earnings


Increasing income


Increasing employment

Strategies for Maximizing the

Economic Impact of Tourism

Encouraging import substitution


Implementing incentive programs


Dealing with multinational companies

Potentially Negative Sociocultural Impacts of Tourism

Damage to family structures and

subsistence food production.

Displacement of local people to make
way for airports, resorts, nature reserves,
historical and other attraction sites, and
other tourism development projects.
Encouragement of behaviors such as
begging, touting, and other harassment
of visitors.

Potentially Negative Sociocultural Impacts of Tourism

Encouragement of urbanization and

Friction and resentment between local
people and visitors because of overcrowding
and lack of access for residents to
recreational areas and facilities.
Increase in health risks through diseases
such as AIDS, malaria, hepatitis, and

Potentially Negative Sociocultural Impacts of Tourism

Increase in drug abuse and prostitution.
Open antagonism and crimes against

Commercialization of traditional welcome
and hospitality customs.
Loss of cultural identity.
Overcrowding and damage to
archaeological and historical sites and

Positive Socio-cultural
Impacts of Tourism
May encourage attempts to keep culture and

traditions alive.
Traditional ways and goods may be restored
because visitors are interested and are willing
buyers of these.
Festivals staged for visitors help to keep local
cultures alive.

Potentially Negative
Environmental Impacts of
Changes of land use.
Congestion and air pollution.
Contribution to worldwide environmental

Deterioration and disturbance of the
natural ecology.
Deterioration of archaeological,
historical, architectural, and natural sites.

Potentially Negative
Environmental Impacts of
Impacts of foot traffic.
Pollution of beaches, lakes, rivers, and

underground water.
Visual clutter.
Insufficient utility service capacities.

Positive Environmental
Impacts of Tourism
Greater protection of specific

More control of harmful economic
activities such as logging and
commercial fishing.
Part of visitor expenditures may be
reinvested in research and better
conservation programs.
Greater understanding among local
residents of environmental issues.