impacts of the tourism industry

Generation of Employment p

Along with the increased tourist arrivals in a destination, comes the creation of tourism jobs and businesses. Tourism needs human resources to man hotels, restaurants, transportation, souvenir shops, and other tourism-related businesses.

Overcommercialization of Traditional Arts and Crafts n

Commercialization and loss of authenticity of traditional arts and crafts, customs, and ceremonies can result if these are changed/performed to suit tourist demands. An example is when traditional dances and music are performed out of context because tourists demand to witness such, defeating their cultural authenticity.

Leakages n

Economic leakages in tourism occur when money does not remain in the country, limiting tourism's economic benefits to the host country.

Indirect

Effects are derived from the intermediate consumption by suppliers of tourism goods and services

Waste Disposal Problems N

Improper solid waste disposal from hotels, restaurants, and resorts can cause litter and environmental health problems from vermin, disease, and pollution. An example of this is the incident in Boracay wherein it was shut down due to pipes carrying raw effluence directly into the sea.

Tourism Overdependence

Opportunity costs result in overdependence on tourism. Some countries become so dependent on tourism revenue that any change in demand will lead to a major economic crisis.

Overcrowding and Loss of Amenities for Residents n

Overcrowded amenities, shopping, and community facilities and congestion of transportation systems by tourists may lead to residents not being able to use these facilities themselves. Hence, they will become irritated and resentful of tourism.

Ecological Disruption N

Overuse of the natural environment by tourists can lead to ecological damage. Examples are the stunted vegetation growth in parks because tourists walk through them and trees cut by hikers and campers to make campfires.

Environmental Hazards N

Poor engineering design of tourist facilities can result in erosion, landslides, flooding, and avalanches. Environmental disruption may result in the destruction or damage to tourist facilities by earthquakes, strong winds, and flooding.

Government Revenues p

The continuous growth of tourism resulted in the expansion of ventures and employment creation. Each sector in the tourism industry provides significant tax revenue each year through property taxes, airport taxes, sales taxes, park entrance fees, and employee income taxes, which the government uses for its development projects.

induced

The income of workers and business owners provided by tourism revenue is spent acquiring different goods and services, leading to induced effects

Cultural Clashes n

These occur because of the differences in cultures, ethnic and religious groups, values, lifestyles, and languages. This negative impact can also be exasperated by the fundamental cultural differences between the hosts and the tourists. For instance, leaving tips in Japan is considered an insult, resulting in arguments and misunderstandings between tourists and locals.

Air Pollution N

This can result from the excessive use of internal combustion vehicles, such as cars, buses, and motorcycles, used by tourists in major tourist attraction sites. Air pollution may also occur if the exhaust systems of the vehicles are not properly maintained.

Demonstration Effect n

This impact results when there are visible differences between tourists and residents. It is common in many developing countries where behavioral changes occur in the resident population by simply observing tourists. The demonstration effect is disruptive when the locals become resentful because they cannot obtain the goods and lifestyles shown by the visitors and may result in a crime. Young people are usually susceptible to the demonstration effect.

Noise Pollution N

This is generated by the concentration of tourists, recreation vehicles, airplanes, motorboats, amusement parks, car, and motorcycle racetracks in a destination.

Inflation n

This is the progressive increase in the general level of prices of land, houses, and food brought about by tourism.

Water Pollution N

This may occur if a proper sewage disposal system is not installed for hotels, resorts, and other tourist facilities. Surface water pollution in rivers, lakes, and seawater also results from motorboats that spill oils and gas into the water, especially in enclosed harbors.

Visual Pollution N

This occurs because of the following: o Poorly designed hotels and other tourist facility buildings that are incompatible with the local architectural style; o Use of unsuitable building materials; o Inappropriate landscaping; o Use of unattractive advertising signs; o Overhead electric and telephone lines and poles; and o Poor building maintenance.

Creation of Employment p

This refers to new employment opportunities for residents and a chance for new income opportunities to the tourist area. People with jobs are also happier and more social than those without income.

Conservation of Cultural Heritage p

Tourism can be a major factor in conserving the important elements of the cultural heritage of a tourist area. These elements consist of preservation of archaeological sites, conservation and revitalization of traditional arts, handicrafts, dance, music, drama, customs, ceremonies, dress, and other aspects of traditional lifestyles, and lastly, financial assistance for the maintenance of museums, theaters, and other cultural facilities and activities.

Cross-cultural Exchange p

Tourism can promote cross-cultural exchange between tourists and residents when they learn more about one another's culture, resulting in mutual understanding and respect for their values and traditions.

economic impacts p

Tourism contributes greatly to a nation's economy. The economy is defined as the process or system by which goods and services are produced, sold, and bought in a country or region.

Foreign Exchange Earnings p

Tourism expenditures generate income to the host economy by exporting and importing all related goods and services. Travelers from foreign countries trading their original currency with the currency of their destination is a common scenario for this.

Contribution of the local economies

Tourism is an essential part of local economies. The environment is a basic component of the tourism industry's assets, and tourism revenues are often used to measure the economic value of protected areas.

sociocultural impacts

Tourism is an interactive service which means that host-guest interaction is inevitable. Society is concerned with people in groups, their interactions, attitudes, and behavior. Culture is about the social interaction of people, their social relations, and material artifacts. According to Burns and Holden, culture consists of behavioral patterns, knowledge, and values that have been acquired and transmitted through generations.

Renewal of Cultural Pride p

Tourists appreciating the culture of a host community gives the residents a renewed sense of pride.

multiplier effect

a concept in economics introduced by British economist John Maynard Keynes in the 1930s. The concept applies to changes in demand for any industry's output, thus not solely related to tourism activity.

Imports

a portion of companies' and individuals' expenditures is allocated for purchasing imported goods and services.

direct

effects of this revenue are experienced by the providers of tourist goods and services, generating income for various economic agents and directly increasing a country's gross domestic product (GDP).

Land Use Problems N

if not developed following proper planning principles. For instance, hotels constructed too close to the shoreline have been damaged by high waves during storms.

multiplier

is derived from the fact that the value of tourism spending is multiplied by some estimated factor to determine the total economic impact

Economic leakage

is the act of money leaving the host country and ending up elsewhere

Opportunity Costs n

it refers to the cost of engaging in tourism instead of other forms of economic activity. For instance, opportunity costs refer to investing in tourism instead of farming, gardening, or fishing in rural areas.

Savings

part of the income of workers and business owners is saved and is not used to consume goods and services. This money leaving circulation decreases the induced effects of tourism spending.

Taxes

the resources collected by the government through direct (paid by individuals) and indirect taxes leave circulation, reducing the purchasing power of individuals and businesses. Consequently, taxes reduce indirect and induced impacts from one round to the next.

Acculturation n

when two (2) cultures come in contact for any length of time and an exchange of ideas and products take place, that through time, it produces various levels of convergence between the cultures that they become similar. The acculturation process is generally not balanced since one culture is stronger than the other.