The Negative and Positive Effects of Tourism
Submitted by
Arianne Smith
DeVry University
Tourism Management, Warren John Fall 2011
Abstract
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.
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In this way, the government is able to maintain the balance of the budget, which is one of the factors of economic stability.
International tourism contributes to foreign exchange earnings. Tourists usually come to the country of destination with strong, stable, and expensive currency, such as dollar or euro. Then, they exchange it according to the internal rate of the country they stay in. Considering the number of tourists that travel to the same destination, which in some countries can be very large, we can estimate that the amount of foreign currency they leave there is hundreds times larger. Therefore, a host economy benefits from the inflow of foreign currency.
Another aspect of impact of tourism on a country’s economy is that it facilitates the expansion of the market of goods and services. Foreigners come to a country willing to spend money on different goods and services, thus increasing the amounts of sales. This is a great chance for producers and service providers to receive larger profits. This concerns not only hoteliers, tour operators, and souvenir shops owners. Public transportation, retail stores of different kind, restaurants, and cafes benefit from international tourism. Obviously, if these industries are in demand, businesses will be expanding. On the one hand, it means that more money is paid to the budget. On the other hand, profits generated by the owners are spent inside the country, affecting almost all the fields of the
The negative effects of tourism are widely publicised in a number of destinations worldwide; however it is often underdeveloped nations that are home to natural wonders of the world which attract huge tourism levels. This is significant as these underdeveloped nations often rely on the tourist industry as a main source of income and therefore a source of economic development. Increasing tourism levels often requires
The large-scale impacts of Tourism include both positive and negative impacts on environmental, socio - cultural and economic aspects. The concept of sustainability is factored into these tourism impacts, when the size of the impacts becomes large enough to drastically alter economic, socio-cultural and environmental areas of a tourist destination. Especially the sensitive places like conflict-affected regions, these impacts need to be analyzed and evaluated carefully. Apart from obvious and visible effects on the economy and the physical environment, tourism can contribute to social and cultural changes in host societies, including changes in value systems, traditional lifestyles, family relationships, individual behavior or community structure.
n the absence of an established Local Tourism Organisation within the region, the City of Albany is the peak tourism marketing body for the destination. Although destination marketing is not a typical Local Government Authority function, the City continues to deliver innovative strategies to encourage tourism development.
According to Statista, a website that provide the statistic and study from more than 18,00 sources over the world, travel and tourism industry in the United States is one of the largest industry. In 2015, travel and tourism industry has made a total contribution of 1.5 trillion USD to GPD. In addition, they predict that the number will grow up to 2.6 trillion USD by 2027. Annually, travel and tourism directly provides about 5.5 million jobs for American people.
Tourism is one of the most important sectors that apply ICTs which already played a significant role in this industry. It plays an important and vital role in the economic activity of Tunisia; it contributes to budget balancing and solves many economic and social problems.
The tourism industry is one of the greatest drivers to stimulate economic growth in the United Kingdom. According to figures by the government, tourism is the UK’s fifth largest industry, creating around 3 million jobs, generating approximately 127 billion pounds per year, and covering more than 200,000 small and medium sized enterprises (Oxford Economics, 2014). The ever increasing number of small firms in this industry draws attention to the importance of entrepreneurship in the tourism and hospitality business. Statistics show that 98.5 per cent of all hotels and restaurants in the UK employ less than 50 people (Oxford Economics, 2014). This number proves the claim long established by scholars that the tourism and hospitality industry is largely dominated by small to medium-sized entrepreneurial firms (Thomas, 1998, Morrison et al., 1998, Getz, 2004, Buhalis and Main, 1998). There is a body of literature that studies the complex combination of motives that that give rise to small businesses in tourism. It appears that the nature of small-scale entrepreneurship in the tourism industry is very different from that in other economic sectors. Specifically, the vast majority of entrepreneurs in tourism is lifestylers, meaning that they are not motivated by economic factors (Morrison et al., 1999). The significance of lifestyle motives within tourism entrepreneurship presents a particular feature that sets this sector apart from the
Despite wars, political turmoil, natural disasters, terrorist threats, and economic and energy crises in various areas of the globe, the tourism industry surges and has become one of the fastest growing economic sectors in the world. According to the UNWTO World Tourism Barometer, in 2014 over 1 billion tourist traveled to other nations (World Tourism Organization, 2015). The tourism industry is a vital component of the global economy. It helps to promote peace & stability in the developing world by providing jobs for the locals, generate revenue/income, and promote cultural awareness. Put together, tourism generated nearly seven trillion dollars in 2014 worldwide (Statista, 2014). As the years’ progress, so too will the number of tourists.
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.
International tourism formed a vital industry globally and tourism activities generated approximately US $ 3.6 trillion in 2000 (Sadi & Henderson, 2015). Increase in expansion rates heightened the international arrival rates by a mean of 4.3% between 1996 and 2006 (Burns, 2016). Mainly, developing nations form the forefront contributors of such upward trend. That was prompted by positive economic impacts, which included income, foreign exchange, and internal investments. Tourism was also a catalyst for the national growth and diversification means because of some of its disadvantages as a driver for economic development. According to Henderson (2013), it was responsible for 19% of exports in the developing world and at least 40% of the gross domestic product. Besides, Rimmawi and Ibrahim (2015) stated that more than 65% of jobs in developing nations were associated with tourism.
Each Caribbean country is diverse and has its own natural resources and industries. These industries include bauxite/alumina, agricultural-processing, light manufacturing, rum, cement, metal, paper, chemical products, telecommunications, etc. Though energy and manufacturing account for large percentages of GDP in individual countries, tourism is by far the most prevalent industry (The World Factbook, n.d.). According to the CIA’s World Factbook, tourism is top industry in at least 17 of the 26 countries (See Appendix E) (n.d).
The second effect is sociocultural. According to Dogan (1989), tourism development has a great effect on the socio-cultural characteristics of residents like habits, daily routines, social lives and beliefs, and values. They may lead to psychological tension. Firstly, there are many positives from tourism development. Brunt and Courtney (1999) mentioned that tourism can result in improved community services, additional park, recreation and cultural facilities and encouragement of cultural activities. Tourism also encourages cultural activities and improve cultural heritage (Gilbert & Clark 1997). However, this may lead to some negative like traditional family values ( Kousis, 1989); cultural commercialization ( Cohen, 1988); crime (Brunt &
The Travel and Tourism Industry as a business division is collected around items, organizations, customers and extraordinary organization aptitudes to try. This equitable suggests that there is a need to work in an all that much composed framework with extraordinary mechanical assemblies and standards to adequately work in an astoundingly engaged, testing and consistently changing world and business circumstances. Once the above steps are situated up then ascents the need to keep up them improve when central and face unpredicted obstacles that may rise every so often as it is typically expected in any human dealings. Particular models and hypotheses have been set up so organization can apply those to make a business run effectively.
Most countries in the world rely on tourism to help their economy. The tourism sector is expanding at a fast pace, which results in creating more job opportunities, monetary improvement, external transaction and foreign investment. “When there is large contrast between the culture of the receiving society and the origin culture, then it is likely that the impacts will be greatest’’. (Burns and Holden, 1995). The socio-cultural impacts of tourism are the effects on regional society of having direct and indirect relations with the tourist and its management. There is a variation that occur in the structure of society, expression & style, custom and ethics, heritage; as a visitor takes back some of the new habits, a way of life when they
Tourism as a social progress and economic activity has been found to be a blessing particularly in poor development countries. The impact of tourism are felt especially in the third world. The impact has two dimension that is negative and positive. Of course controversies surround some of assumed impacts. Tourism facilities rather
Nowadays, there is no denying the fact that being a tourist is becoming an increasing popular lifestyle in most of the region, such as America, Europe and Asia. Some people think that tourism industry is mutually beneficial, while others consider that tourism brings inequality and exploitation. I am in favor of the idea that the benefits that tourism brings to the CARICOM are short-term while drawbacks that come with are long-term.