Unit II: Impact of Tourism 7 hours

Tourism impacts on the economy and the environment, Socio-Cultural

impact of tourism, Environmental impact of Tourism, Economic impact
of Tourism, 2.3.1(BOP, GDP, Inflation),Benefits and cost of Tourism,
Preservation of Culture and tourism.

Impacts of Tourism
In most modern tourism projects the benefits accrued are also bringing in a
conflict of land use and environmental damage through hotel construction,
tourist pressure and waste disposal. However, these can be attributed to
mismanagement of tourism rather than tourism itself. Secondly, most Third
World countries do not estimate leakages on the tourism account correctly.
The outbound and inbound expenditures are co-related, without counting the
infrastructure and support costs or the import content of tourism services.
Today, with management contracts and franchises on the increase, the
leakages are likely to be greater.
1 .Economic Impacts
2. Socio-cultural Impacts
3. Environmental Impacts
Impacts of Tourism on Economy
Positive Negative
Foreign Exchange Earning Inflation

Contribution to Government Revenue Opportunity Cost

Employment Generation Dependency

Balance of payment / Trade Account Seasonality

balance

Stimulation of Infrastructure Leakage

Investment

Contribution to Local Economy Seasonal Character of Job

Impacts of Tourism on Environment
Positive Negative
Afforestation Natural Calamities

Conservation of Wildlife's, national Parks Natural habitat loss

,Buffer Zone
Raising Environmental Awareness Increased pressure on endangered species

Protection and Preservation of Depletion of Natural Resources

environment

Improved Environmental Management Pollution on Air, Water ,Soil, Noise

and Planning

Tourism Activities like Jungle Depletion of Ozone layer

safari ,Elephant Safari, Bird watching

Global warning Climate Change

Impacts of tourism on Socio-Cultural
Positive
Preservation & restoration of
Cultural Heritage
Revival of traditional arts and
craft
Sense of national identity
Cross-culture Exchange
Negative
Accultralization
Superstitious beliefs
Conflict between tourist &
society
Loss of authenticity and
meaning of traditional arts &
crafts
Loss of Cultural Character
Prostitution
Balance of payment
Balance of payment may be described as the balance of receipts over the
payment that a country transacts with other countries in a given fiscal
year .Tourism is known as an invisible export industry that affects a
country’s balance of payment significantly ,International tourist pay for
using services at various places in the host country .As a result they
produce a huge amount of foreign currency for the host country to make
adjustment of the receipt against the payment .The foreign currency
spent in a host country becomes an invisible receipt for the country ,and
it has a massive on GDP and the national income .Similarly When a
citizen of a country go abroad and use national currency to avail
themselves of services ,their payments becomes an invisible .For
example a us citizen visiting Nepal brings invisible receipt Where as a
Nepali spending in Singapore makes invisible payments .Thus the
balance value of receipt against payment during a financial year is called
balance of payment on the tourism account
Inflation
• The development of tourism causes undue pressure
on scares supplies at destinations.There is an
increase inprice especilally in land,property and
goods .Local residents face shortage of