IMPACTS OF TOURISM

MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY

 ECONOMIC IMPACTS

SOCIAL IMPACTS

IMPACTS CULTURAL IMPACTS

OF ENVIRONMENT IMPACTS
TOURISM
POLITICAL IMPACTS

TECHNOLOGICAL IMPACTS
 ECONOMIC IMPACTS

IMPACTS
OF
TOURISM
ECONOMIC IMPACTS

POSITIVE
NEGATIVE
ECONOMIC IMPACTS
POSITIVE INCOME
EMPLOYMENT
BALANCE OF
PAYMENT
INVESTMENT &
DEVELOPMENT
 INCOME
•Since tourism and hospitality is
labor-intensive, the greatest
proportion of its income is derived
from salaries, profits, rentals, and
interest.
 EMPLOYMENT
• Direct – services are provided by hotels,
restaurants, bars and the like.
• Indirect – services provided by suppliers to
hotels, restaurant, etc.
• Induced – services provided by construction
workers, and professionals who service the
employees working directly in tourism-related
positions.
 BALANCE OF PAYMENT
• is an accounting flow of goods, services, and
funds in and out of the country.
• If a country pays or agrees to pay more money
than it receives, it has a deficit in its balance of
payments.
• If it receives more money than it sends or
exports, it has a surplus in its balance of
payments.
 INVESTMENT & DEVELOPMENT

•Once an area has become

economically successful,
businessmen and government
agencies may be influenced to
invest in tourism and hospitality
and other industries in that area.
ECONOMIC IMPACTS
NEGATIVE Inflation and Land
Values
High Leakages
Seasonality
Overdependence on
Tourism and
Hospitality
 Inflation and Land Values
•Rich tourists can afford to buy items
at a higher price that usually locals
can’t afford.
•Increasing land values that lead to
local residents paying more than their
homes.
 High Leakages
1.Occurs from the cost of goods and services
that must be imported to satisfy the needs of
tourists.
Ex. Importing transportation such as cars,
buses, trains to satisfy the needs of the
tourists.
Ex. Trains in manila being imported
 High Leakages
2. Remittance of profits and wages to outside
sources.
Ex. If foreign capital is invested in one country’s
tourism and hospitality, plant interest payment,
rent, or profits may have to be paid to the foreign
country; thereby reducing profits to destination
area.
Ex. Low foreign exchange rate.
 High Leakages
3. Expenditure for promotion and publicity,
to encourage tourists to visit a certain
destination.
The cost of advertisement is a large expense
that reduces the earnings of a destination
area.
 Seasonality
Low returns on investment
because of seasonal fluctuations
in demand.
•Hotels
•Tour Operators
 Overdependence on Tourism and
Hospitality
Some destinations have made themselves
vulnerable to changes in tourist demand by
becoming overdependent on tourism and
hospitality for their livelihood.
Ex. Pandemic, changes in tourist prefences
in destination.
 ACTIVITY
¼ sheet of paper

1. Based on your own understanding, do

you think without the positive economic
impact of tourism and hospitality, the
tourism sector will grow?
 ECONOMIC IMPACTS

SOCIAL IMPACTS

IMPACTS
OF
TOURISM
 SOCIAL IMPACTS
•Social impacts of tourism refer to
the changes in the quality of life of
residents of tourist destinations.
•The objective of social tourism is to
ensure that tourism is accessible to
all people.
 Host-Visitor Interaction
•The tourism and Hospitality Industry
causes more interaction between Tourists
and Locals.
•To better understand the social impact of
tourists on an area, the characteristics of
various types of visitors and the level of
interaction of locals and tourists should
be clarified.
 Classification of Tourist(Visitor)
1. Explorer 5. Incipient Mass Tourist

2. Elite 6. Mass Tourist

3. Offbeat 7. Charter Tourist
4. Unusual Tourist
 Classification of Tourist(Visitor)
1. Explorer
•active participant-observer
•Easily adapts to local lifestyles
and does not need special
tourist accommodations.
 Classification of Tourist(Visitor)
2. Elite
•Can afford to pay well.
•Travelers who travel for
pleasure(rich).
•Usually, tours are made by travel
agent
 Classification of Tourist(Visitor)
3. Offbeat
•adapts well to simple
accommodations and services
provided for the guest.
 Classification of Tourist(Visitor)
4. Unusual Tourist
•loves sub-exotic cultural sites.
•likes to explore rare to finds
sites.
 Classification of Tourist(Visitor)
5. Incipient Mass Tourist
•a traveler who seeks for both
pleasure and business.
 Classification of Tourist(Visitor)
6. Mass Tourist
•middle-class tourist.
•arrives at a destination with
other travelers.
•wants to get what they pay for.
 Classification of Tourist(Visitor)
7. Charter Tourist
•looking for a high degree of
service or standardization of
service.
•travelers who come in group, all
together.
 SOCIAL IMPACTS

POSITIVE
NEGATIVE
 SOCIAL IMPACTS

POSITIVE
 SOCIAL IMPACTS
POSITIVE
Social Change
and
Multicultural
Understanding
 Social Change and Multicultural
Understanding
•the changes in human interaction that were
brought by travelers/visitors.
•able to appreciate and understand the beliefs
and cultures of different races.
•Ex. Students who learn about different cultures during their
education feel more comfortable and safe with these differences
later in life.
 SOCIAL IMPACTS
POSITIVE
Adaptation to the
Realities of Modern
Life and
Improvement of the
Host Country’s
Lifestyle
 Adaptation to the Realities of
Modern Life and Improvement of
the Host Country’s Lifestyle
•Development of infrastructure(housing,
water system)
•medical care, social assistance, and the
opportunity to study.
•changes in attitude, values, and
social concern.
•increased social mobility
resulted to employment
opportunities in tourism and
hospitality.
•Changes in family relations
through the employment of
women outside the home.
•Increases of family income.
 SOCIAL IMPACTS
POSITIVE
Use of
Foreign
Language
 Use of Foreign Language
•brings people in contact with
those other language groups.
•create interest in locals to learn
more about another language.
 SOCIAL IMPACTS
POSITIVE Improved
Health
Conditions
and Disease
Control
Improved Health Conditions and
Disease Control
•improvement in public health
facilities.
•through tourism and hospitality,
locals become aware of health
problems and good hygiene.
SOCIAL IMPACTS
NEGATIVE
SOCIAL IMPACTS
NEGATIVE

Social
Saturation
 Social Saturation
•leads to tourist congestion.
•Congestions in public
transportation, streets, and
shops.
SOCIAL IMPACTS
NEGATIVE
Changes in
Social
Structure,
Behavior, Roles
 Changes in Social Structure,
Behavior, Roles
•Tourism changes the traditional forms
of employment.
•Lowering the status of agricultural
workers, migration of the population,
and breaking of families.
•disregards respect for the
elders.
•young women change their
way of clothing.
SOCIAL IMPACTS
NEGATIVE

Community
Problems
 Community Problems
•increasing number of
Prostitution.
SOCIAL IMPACTS
NEGATIVE

Negative
Demonstrative
Effects
Negative Demonstrative Effect
•values and materialism being
copied from tourist by locals.
Ex. Nude bathing,
inappropriate manner of
dressing
•hiring workers from more
developed countries instead of
hiring locals.
 ECONOMIC IMPACTS

SOCIAL IMPACTS

IMPACTS CULTURAL IMPACTS

OF
TOURISM
CULTURAL IMPACTS

POSITIVE
NEGATIVE
CULTURAL IMPACTS

POSITIVE
CULTURAL IMPACTS
POSITIVE

Intercultural
Communication
Intercultural Communication
•movement/mobility in tourism
and hospitality creates
interaction with different
cultures.
•Cross-cultural communication
between locals and tourist
promote changes in culture
while preserving local ethnic
and cultural identity.
CULTURAL IMPACTS
POSITIVE

Renaissance of
Native Culture
Renaissance of Native Culture
•Preservation of traditional arts,
crafts to remind tourist about
the locals history and culture.
Ex. Museum, dances, traditional
clothings.
CULTURAL IMPACTS
NEGATIVE

Destruction of
the works of
Arts
•while locals restore and maintain
their culture, the congestion of
tourists leads to the destruction
of works of arts and culture.
•locals being persuaded to sell
their traditional objects.
•The increasing demand for
artifacts has led to changes in
its form and function as an art
objects.
•The artifacts may no longer be
represented as traditional arts
due to the following reasons:
1.Mass production due to
an increase in demand
results to losing the
careful and precise
product workmanship;
2. The impersonal
nature of the tourist
market has decreased
the spiritual relevance
of the artist’s work;
3. Art is produced
according to the taste of
tourist which, in Africa
means carving animals,
grotesqueness, gigantism
Grotesque Arts

Unnatural in shape,
appearance
Gigantism Art in Africa
4. The increase demand
has led to the
misrepresentation of the
age or authenticity of
objects resulting in large
number of limitations.
 ECONOMIC IMPACTS

SOCIAL IMPACTS

IMPACTS CULTURAL IMPACTS

OF ENVIRONMENT IMPACTS
TOURISM
 Environment Impacts
The history of tourism and
hospitality closely shows that
the environment has
contributed to the birth and
progress of tourism and
hospitality
•In the early days of tourism,
people would travel to explore
their surroundings, drawn by
the beauty of nature and the
unique cultures and landscapes
of different places.
Today, the environment is still a
major factor in people's decisions
about where to travel, with many
people seeking out destinations that
offer opportunities for outdoor
activities, nature experiences, and
ecotourism.
ENVIRONMENTAL IMPACTS
POSITIVE

Conservation
 Conservation
•Rehabilitation of existing
historic sites, buildings and
monument.
ENVIRONMENTAL IMPACTS
NEGATIVE

Environmental
Conflicts
 Environmental Conflicts
Air Pollution – results from the gas
fumes emitted by automobiles, buses,
aircrafts, and factories. Areas with large
numbers of vehicles usually suffer from
air pollution.
 Environmental Conflicts
Water Pollution – results from the
discharge of untreated waste from
resorts, rivers, lakes, and springs.
This could also result to some diseases.
 Environmental Conflicts
Noise Pollution – associated with traffic
congestion on land and on air.
ENVINRONMENTAL IMPACTS
NEGATIVE

Geological
Conflicts
 Geological Conflicts
Tourism and Hospitality affects
geological formations. Some tourist
collects minerals, rocks, fossils, and
corals from tourist attractions; others
destroy natural formations by
vandalizing.
ENVIRONMENTAL IMPACTS
NEGATIVE

Resident
Conflicts
 Resident Conflicts
Because of tourism and hospitality,
some undeveloped areas are being
adapted into high-rise buildings for
accommodation in the cities, which
forces residents to move away from the
area.
 ECONOMIC IMPACTS

SOCIAL IMPACTS

IMPACTS CULTURAL IMPACTS

OF ENVIRONMENT IMPACTS
TOURISM
POLITICAL IMPACTS
A tourism policy gives the direction to
the tourism. This policy is a set of rules,
regulations, guidelines, and directives for
the development and promotion of
tourism. It provides a framework with
which collective and individual decisions
affect tourism development. The
government can create a code of conduct
for a tourist.
POLITICAL IMPACTS
POSITIVE

Political
Stability
 Political Stability
Safely and security at any tourist
destination attracts large
number of tourists.
POLITICAL IMPACTS
POSITIVE

Law and
Order
 Law and Order
Law and order is the concern of the
government. If it is well managed, it
helps in the inflow of the tourists.
Beautification of a site and
safety provision without
much alteration to the
natural landscape also
attracts the tourists
tremendously.
POLITICAL IMPACTS
POSITIVE

Political Will-
power
 Political Willpower
•Political willpower is the extent to
which political decision-makers are
committed to supporting a particular
policy solution to a particular problem.
It is the determination and resolve of
leaders to overcome obstacles and
achieve a desired outcome.
Political willpower in Tourism and
Hospitality helps to establish
infrastructures in tourist attraction
areas encourages tourism. It
facilitates the easy access,
accommodation, provision of
guidance and other facilities required
for the tourists.
POLITICAL IMPACTS
NEGATIVE

Geopolitical
Uncertainty
 Geopolitical Uncertainty
Political instability and conflict can
have a negative impact on tourism, as
people may be less likely to travel to
countries that are perceived as being
unsafe.
The war in Ukraine is a recent example
of this.
POLITICAL IMPACTS
NEGATIVE

Terrorism
 Terrorism
Terrorism can also pose a barrier to the
future development and expansion of
the travel and tourism industry.
This is because tourists are less likely to
travel to countries that are perceived as
being dangerous due to terrorism.
 ECONOMIC IMPACTS

SOCIAL IMPACTS

IMPACTS CULTURAL IMPACTS

OF ENVIRONMENT IMPACTS
TOURISM
POLITICAL IMPACTS

TECHNOLOGICAL IMPACTS
Technology has had a profound impact
on the travel and tourism industry, and
this trend is only going to continue in
the future.

Here are some of the ways that

technology is impacting the industry:
Digital Technology
In the past, travelers had to rely on
travel agents or guidebooks to plan
their trips.
•Today, there are a wide variety of
online tools that make it easy to
research destinations, book flights and
hotels, and even create itineraries.
Marketing Strategy
Artificial Intelligence (AI).
Internet of Things (IoT)