Economic Valuation Of The Negative Externalities Associated On Tourism

Tourism has become a commercial business, which has obvious benefits to the said economy, the environment and society. Often, the positive economic impacts persuade governments, companies and individuals to get involved with the development of tourism. Tourism creates jobs, both

Over the last 60 years, tourism has benefited from continuous growth and diversification, becoming one of the largest as well as the fastest growing world’s economic sectors. Tourism becomes one of the major categories of global trade in services. Nowadays, 7% of global goods and services exports are contributed by international tourism, and for the last four years, it has grown faster than the general global trade.[ Exports from international tourism rise 4% in 2015, (2016, May 6). Retrieved from http://media.unwto.org/press-release/2016-05-03/exports-international-tourism-rise-4-2015]

Tourism plays a vital role in economic development in most countries around the world. The industry has not only direct economic impact, but also significant indirect and influential impacts. There is agreement among experts that the travel and tourism sector is the fastest growing of global economy. According to the latest UNWTO World Tourism Barometer, international tourism receipts surpass US$ 1 trillion in 2011, growing about 3.8%up from 2010 (WTO, 2012).

Britain has been over the news due to the British exit the European Union, which this event is known as Brexit (Hunt, 2016). This decision brought a large impact on every country in Britain, but the Britain has not started negotiate with European Union about adapting regulations to minimize their negative consequences. Before people can list potential impacts of Brexit on Britain’s tourism, it is important for people to understand how well the Britain was doing in the tourism industry. In addition, it is important to analyze and understand what type of tourism impacts on Britain. So, people would know how Brexit will change its policy and what impacts will bring to their current life. It will provide an idea of how the changes of regulations will impact different countries and the region. Thus, it provides an understanding of how tourism helps to develop the Britain in terms of environmental impacts, socio-cultural impacts, and economic impacts.

The current research paper covers the main effects of global tourism, both positive and negative. International tourism is a significant sector of business. For some countries it is one of the main sources of national income. The most important positive economic effects of tourism are as follows: increase in budget revenues, production expansion, stimulation of investments, and improvement in the population’s welfare. Tourism influences social and cultural lives of people in a positive way by stimulating the development and revival of local cultures and encouraging intercultural exchange.

From an environmental perspective, it is apparent that the world is starting to realise that increases in tourism are having a negative impact on the environment. This is due to increases in energy consumption, which in turn heightens the effects of global warming (Neto, 2002). There are many controls that governments are trying to put into place, such as flight rationing (Liverpool Business School, 2009). However, it can be argued that these have not really begun to have a significant effect on tourism, as they are still insufficient to dampen demand. It may become a problem in future years, as the number of controls is likely to increase. Perhaps the largest environmental factor would be natural disasters, like Hurricane Katrina (Cashell, 2005) and the tsunami that hit Asia in December 2004 (Birkland, 2006). These will impact negatively on people’s confidence in visiting places that have been hit severely by such disasters.

Travel & Tourism is a vast industry, which is known to provide numerous facilities, to people all around the world. Travel & Tourism is quite imperative, for many economies to survive, since, some of their source of income is dependent on travel and tourism.

Literature on determinates of tourism gives us a clear picture regarding the factors which affect tourism demand around the globe. These factors have been evaluated in economic and non-economic factors. The main economic factors are world income per capita, relative price, nominal exchange, transportation cost and so on (Martins 2017). While the non-economic factors are natural, cultural and historical places, political instability, terrorism, infra-structure etc. As far as economic factors are concerned, number of tourist arrivals and to tourist receipts have been affected differently. Martins (2017) and Morley et al.(2014) have argued that a

Tourism is the world’s largest and fastest growing industry and can be defined as the totality of the relationship and phenomenon arising from travel and education purposes of people, provided the stay does not imply the establishment of a permanent residence and is not connected with remunerated activity. While it may boost a country’s economy, doubts about the overall benefits of tourism are reinforced by the belief that tourism brings adverse social and cultural effects. As an industry, it may be have several impacts on a country, both good and bad.

Ecosystem services are defined as the benefits natural ecosystems supply to human well-being (Elliff and Kikuchi, 2015). These services directly and indirectly influence our welfare, and are of great interest to stakeholders, but also the community (UNEP-WCMC, 2011). One ecosystem has the ability to provide numerous services and functions. Recognition of ecosystem services is fairly recent, but the concept is something that has been part of human society since ancient times (Elliff and Kikuchi, 2015). The Millennium Ecosystem (MEA) in 2005, advanced the concept of ecosystem services. According to the MEA, these services can be provisioning services, such as food or water, regulating services, such as purification or waste management, habitat services, such as maintaining a species, or cultural services, which would be things such as aesthetic value. This assessment’s goal was to create a foundation of economist and ecologists, in a world where people and institutions appreciate natural resources and systems and recognize

The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized. The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weight age to the tourism industry in their national development agenda. Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international tour operators. Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry

For example, exports and FDI have been the two key ingredients in China’s rapid economic growth. Also, country with more foreign exchange reserves is more manageable at a global economic crisis and a sudden foreign exchange rates. It also helps nation to pay foreign debt in short-term, or long-term. Tourism is a principal export for 83% of developing countries, and it is the most significant source of foreign exchange after petroleum. According to UNWTO, the rate of tourism growth(8-9%) in lower-middle income developing countries and in the 50 least developed countries has been approximately double the world average growth rate(4%) between 1990 and 2005. It is almost triple the growth rate for high income countries which is slightly less than 3%.(UNWTO,2002) Tourism comprises a significant part of the world’s growing service sector; in sub-Saharan Africa, tourism accounts for approximately 55% of service sector exports(UNWTO,2004). According to Alam et el, there is the positive relationship between total number of tourist and foreign direct investment. If total number of tourist from Tourism increases, FDI will also increase and if Total Receipt from Tourism decrease FDI will decrease over 16 years research on Malaysian tourism. According to China Daily Newspaper, China’s tourism developed rapidly after the

According to the World Tourism Organization, tourism is the world's number one export earner, ahead of automotive products and petroleum, with more than 600 million people travelling to foreign countries during 2000, spending more than US$ 400 billion and all the tourism receipts internationally have total to more than US$ 500 billion. With all the people on the move, available space and time, affordable airfares, new, exciting destination and globalization, clearly resulted to the growth of tourism (Burns, 2005).

During this course I learned how to evaluate the importance the factor of economics has in our environment. When evaluating the economics in the environmental science we have to look at a lot of things of importance when finalizing our decision to value the environment and at the same time supporting the economic spectrum. I have learned that we can sustain the environmental resource output and at the same time increased the output of using natural resources to maintain a good economic in any country. My understanding of the environmental economics is that we have to be able to use our natural resources to benefit from it, and at the same time maintain a good usage practice sustaining that natural resources for future generations. A good government has to implement a good environmental policy to deal with environmental economics. These policies have to look at both sides, the environment and the economy of the country using these resources.

The long haul manageability of tourism lay on the capacity of group pioneers and tourism experts to boost its advantages and minimize its expenses. The development of tourism industry has been a noteworthy supporter to increment financial movement all through the United States and the world. Albeit most think tourism as far as financial effects like employments are frequently regular, ineffectively paid and assesses. And additionally destinations subject to tourism can be unfavorably influenced by occasions, for example, terrorism, characteristic calamities and financial subsidence.