Global Tourism

Impacts of Tourism

You should be able to: 1. Explain how tourism activities can

lead to economic, social and environmental impacts

2. Identify and explain the roles of various stakeholders of tourism

By the end of this lesson

The interactions of the various stakeholders (human environment) with a tourism destination (physical environment) results in impacts (both positive and negative)

Economic Impact (+)

1. Tourism is an important source of revenue for many countries

• Accounts for 9.2% of global GDP• Many LDCs such as Thailand are reliant

on their tourism industry

Economic Impact (+)

Economic Impact (+)2. Tourism creates more employment

opportunities for the locals • Accounts for 8.7% of global employment• The tourism industry, which is a service

industry, is largely labour intensive

Economic Impact (+)2. Tourism creates more employment

opportunities for the locals • The unskilled local population can also

hone a skill in the service sector• E.g. 56.7% of Maldives’ population

involved in tourism industry

Economic Impact (+)3. Propel development of Infrastructure• Tourists expect a certain level of

infrastructural standards in a destination• Governments would invest in upgrading

infrastructure to attract tourists• E.g. $42 billion invested for infrastructure

prior to Beijing Olympics

Economic Impact (+)

Beijing Olympic Stadium (Bird Nest)

Beijing Olympic Aquatic Centre(Water Cube)

Economic Impact (-)

1. Leakage of Tourism Revenue• Main components of tourism are

dominated by a few vertically-integrated players located mainly in developed countries

Economic Impact (-)1. Leakage of Tourism Revenue• Thailand -70% of all money spent by tourists

ended up with foreign-owned tour operators, airlines, hotels, imported drinks and food, etc.

• Estimates for other Third World countries range from 80% in the Caribbean to 40% in India.

• Host country may be exploited for its natural/ human resources but getting marginally in return

Economic Impact (-)2. Price Inflation for Locals• Tourism can lead to an increase in the

prices of goods and services, causing inflation in the host country

• Local residents would then experience a higher cost of living and a decreasing real income

Economic Impact (-)3. Over-reliance on Tourism Revenue• Tourism suffers from both regional

fluctuations and seasonal fluctuations• Seasonal fluctuation refers that there are

peak and non-peak seasons within a year for tourism

• Revenues may be affected due to such fluctuations leading to livelihood problems

Socio-Cultural Impact (+)1. Preservation and Promotion of Local Culture

and Heritage • Tourists moving away from mass tourism and

are increasingly interested in authentic local cultures and heritage

• E.g. Tourism has revived Balinese interest in their own traditions and the admiration of foreign visitors for Balinese culture have reinforced the sense of cultural identity and pride of the people of Bali

Socio-Cultural Impact (+)

Cultural Tourism in Bali

Socio-Cultural Impact (+)

Temple Stay Experience, South Korea

Socio-Cultural Impact (+)

1. Preservation and Promotion of Local Culture and Heritage

• Important sites of heritage and culture are also preserved and restored to their former glory due to tourism

• E.g. Korean palaces (e.g. Gyeongbokgung)

Socio-Cultural Impact (+)

Gyeongbokgung Palace and Secret Garden, Seoul, South Korea

Socio-Cultural Impact (+)2. Positive Exchanges and Interaction• Tourism increases the interaction between

local residents and tourists• Increasing number of volunteer tourism

where tourists help to improve infrastructure or social well-being of local residents

Socio-Cultural Impact (+)

Volunteering at Home for the Dying, Calcutta, India

Socio-Cultural Impact (-)1. Dilution/ False Representation of Local

Culture• Tourism may dilute or misrepresent local

culture through focusing on visual spectacles to attract tourists

• Culture is being manipulated by tour operators to maximise economic benefits

Socio-Cultural Impact (-)1. Dilution/ False Representation of Local

Culture• E.g. Criticism from aboriginal leaders in

Taiwan on the failure to interpret cultural or historical background hidden in aboriginal activities or festivals

• Instead, there is a focus on superficial elements such as dance, music and handicraft

Socio-Cultural Impact (-)

Aboriginal Culture, Taiwan

Socio-Cultural Impact (-)2. Disrespect of local cultures and customs • Tourists may be insensitive to local customs

and practices and may offend the locals• E.g. Public intimacy/ drunkenness in

Muslim countries (e.g. UAE, Saudi Arabia)• E.g. Blatant cultural invasion in Hawaii

when sacred places (including burial grounds) are removed to make way for development

Socio-Cultural Impact (-)

Socio-Cultural Impact (-)2. Disrespect of local cultures and customs • “Zooification” of local tribes where they are

treated and looked upon as “savages” and “exhibits”

• E.g. Padaung women of Burma and Mursi women of Ethiopia often objectified because of their unique accessories

Socio-Cultural Impact (-)

Padaung and Mursi Women

Socio-Cultural Impact (-)3. Increased Crime and Social Problems• The influx of wealthy travelers may

increase instances of petty crime • Criminals often see tourists as an easy

target because they:– typically carry large sums of money and other

valuables– Are more likely to be relaxed and off guard while on

vacation– Are less likely to report crimes or to testify against

suspects, wishing to avoid problems

Socio-Cultural Impact (-)3. Increased Crime and Social Problems• Tourism may also bring about some social

problems that may affect both tourist and local population

• E.g. Street prostitution in Thailand and rising trend of STDs

• E.g. Gambling related problems in Singapore such as broken families, incurrence of huge debts

Socio-Cultural Impact (-)

Socio-Cultural Impact (-)

Environmental Impact (+)1. Increased Awareness on Environmental

Protection• More emphasis has been put into

conserving natural areas and lowering carbon footprint

• Carbon footprint refers to the total Greenhouse Gas emissions caused by an organization, event, product or person

Environmental Impact (+)1. Increased Awareness on Environmental

Protection• E.g. Lake District Tourism and

Conservation Partnership has raised over £300,000 from tourists to support local conservation and visitor management schemes

• Increasing trend of Eco-tourism where tourists are educated about the importance of conservation

Environmental Impact (+)

Scenic Lake District, Midlands, UK

Environmental Impact (-)1. Destruction of Natural Habitat• Pristine environments are destroyed by

human development to build tourism facilities

• E.g. Tourists visiting the Galapagos Islands have unknowingly brought with them invasive species which threaten to destroy native species

Environmental Impact (-)

Galapagos Land Iguana- Flattened by Vehicles Waved Albatross- Caught in Fishing

Nets

Pinta Island Tortoise- Now Extinct

Environmental Impact (-)2. Pollution • All forms of pollution, water, air, land,

visual and noise, are intensified when there is an influx of tourists into an area

• Air pollution as a result of fossil fuel burning to provide electricity and vehicle emissions due to increased tourist transportation

Environmental Impact (-)2. Pollution • Water pollution when resorts dump

untreated waste into water bodies• Land pollution when tourists dispose their

litter in pristine environments• E.g. Trekkers in Himalayas leave behind

their gas cylinders and plastic bottles during their trek, polluting the environment

Environmental Impact (-)

Land Pollution in the Himalayas

Water Pollution in Bali

Air Pollution in Beijing

What are Stakeholders?

• Individuals or groups with multiple stakes or interests in an organisation or decision

• Any group or individual who can affect or is affected by the achievement of an organisation’s objectives

Stakeholders in Tourism

Everyone wants a share of the tourism pie.

Stakeholders in Tourism

Role-Play Activity• Your group will randomly select one of the

various tourism stakeholders• You are to imagine that you are the

particular stakeholder• You have 20 minutes to discuss and pen

down your thoughts with regards to the questions on the A3 paper

• Appoint 2 spokespersons to present your discussion

Role-Play Activity

Learning Points • Each stakeholder has a/ a set of specific

interest(s) that they want to derive from tourism

• Tourism activities has resulted in economic, social and environmental impacts for people and communities at different scales