Chapter 2 Tourism Impacts

The Tourism System 6th edition Kendall Hunt Publishing Company

Chapter 2 Tourism Impacts

Robert C Mill and Alastair M Morrison © 2013 1

Chapter 2 Tourism Impacts on the

Economy, Society, Culture and the Environment

© 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint

Copyright - VisitScotland/ScottishViewpoint

Contents Explains the economic, social and cultural, and

environmental impacts of tourism on destination areas.

Identifies both the negative and positive impacts of tourism.

Recognizes the importance of sustainable tourism development.






Purpose: Having learned about the economic, social and cultural, and environmental impacts of tourism on destination areas, students will be able to suggest ways that the benefits of tourism can be maximized.



Learning Objective 1: Economic Impacts of Tourism Explain the three major economic impacts of tourism on destination areas and how these impacts are measured.






Three Major Economic Impacts of Tourism Increasing foreign exchange earnings Increasing income Increasing employment


Increasing Foreign Exchange Earnings: Six Leakages from an Economy in Tourism Purchasing goods and services to satisfy the needs of

visitors. Importing goods and materials for infrastructure and

buildings required for tourism development. Paying foreign factors of production. Spending abroad for promotion, public relations and

publicity, and similar services. Transfer pricing. Exempting duties/taxes for foreign-owned companies

or offering financial inducements to attract investment.






Increasing Income Tourism economic impact measurement techniques The ad hoc or simple multiplier Input-output analysis Economic impact models (e.g., TEIM and TEAM) Tourism satellite accounts (TSAs)



The Multiplier Measures Three Levels of Income Direct: The first round of spending by visitors in the

destination area. Indirect: The second round of expenditures by

businesses who receive the first round of visitor spending.

Induced: The third and subsequent rounds of expenditures after the second round.






Input-Output Analysis and TSAs Tourism satellite accounts (TSAs) are based on input-output

analysis. According to the Office of Travel & Tourism Industries: “Travel and

Tourism Satellite Accounts form an indispensable statistical instrument that allows the United States to measure the relative size and importance of the travel and tourism industry, along with its contribution to gross domestic product (GDP). Approved by the United Nations in March 2002 and endorsed by the U.N. Statistical Commission, TTSAs have become the international standard by which travel and tourism is measured. In fact, more than fifty countries around the world have embraced travel and tourism satellite accounting.”



Increasing Employment Tourism development produces many jobs Primary or direct employment (lodging, restaurants,

attractions, transportation, sightseeing) Indirect employment (construction, agriculture,

manufacturing) More labor intensive than other industries Must consider cost per job; high in early stages of

tourism development Tourism often highly seasonal and affects employment






Learning Objective 2: Strategies to Maximize Economic Impact of Tourism

Describe the strategies to maximize the economic impact of tourism and how tourism’s role in economic development can be analyzed.



Economic Development Considerations and Analysis Cost/benefit analysis Structural analysis Satellite national accounting Tourism and regional development






Tourism Satellite Accounts (TSAs) The purpose of a tourism satellite account is to analyze in detail all the aspects of demand for goods and services associated with the activity of visitors; to observe the operational interface with the supply of such goods and services within the economy; and to describe how this supply interacts with other economic activities (Francesco Frangialli, Secretary General, World Tourism Organisation, 2008).



Modifying the Host Destination’s Socioeconomic Structure Maximizing tourism’s positive economic impacts Encouraging import substitution Implementing incentive programs






Dealing with Multinational Tourism Companies Hotel and restaurant chains, travel agencies and tour

operators Criticized for operating to benefit their own

profitability at the expense of destination areas May engage in policies that run counter to national

tourism plans Limited opportunities for locals to take management

positions



Learning Objective 3: Potential Negative Social and Cultural Impacts of Tourism

Discuss the potentially negative social and cultural impacts of tourism on destination areas.







Potentially Negative Social and Cultural Impacts of Tourism

1. Damage to family structures and subsistence food production.

2. Displacement of local people to make way for airports, resorts, nature reserves, historical and other attraction sites, and other tourism development projects.

3. Encouragement of behaviors such as begging, touting, and other harassment of visitors.



Potentially Negative Social and Cultural Impacts of Tourism

4. Encouragement of urbanization and emigration. 5. Friction and resentment between local people and

visitors because of overcrowding and lack of access for residents to recreational areas and facilities.

6. Increase in health risks through diseases such as AIDS, malaria, hepatitis, and influenza.






Potentially Negative Social and Cultural Impacts of Tourism 7. Increase in drug abuse and prostitution. 8. Open antagonism and crimes against visitors. 9. Commercialization of traditional welcome and hospitality

customs. 10. Loss of cultural identity. 11. Overcrowding and damage to archaeological and

historical sites and monuments.


Learning Objective 4: Positive Social and Cultural Impacts of Tourism

Identify the positive social and cultural impacts that may result from tourism.







Positive Social and Cultural Impacts of Tourism

May encourage attempts to keep culture and traditions alive.

Traditional ways and goods may be restored because visitors are interested and are willing buyers of these.

Festivals staged for visitors help to keep local cultures alive.


Learning Objective 5: Potential Negative Environmental Impacts of Tourism Describe the potentially negative environmental impacts of tourism on destination areas.







Potentially Negative Environmental Impacts of Tourism

1. Changes of land use. 2. Congestion and air pollution. 3. Contribution to worldwide environmental problems. 4. Deterioration and disturbance of the natural ecology. 5. Deterioration of archaeological, historical,

architectural, and natural sites.



Potentially Negative Environmental Impacts of Tourism

6. Impacts of foot traffic. 7. Pollution of beaches, lakes, rivers, and underground

water. 8. Visual clutter. 9. Insufficient utility service capacities.





Learning Objective 6: Positive Environmental Impacts of Tourism Identify the positive environmental impacts that may result from tourism.




Positive Environmental Impacts of Tourism

1. Greater protection of specific ecosystems. 2. More control of harmful economic activities such as

logging and commercial fishing. 3. Part of visitor expenditures may be reinvested in

research and better conservation programs. 4. Greater understanding among local residents of

environmental issues.





Learning Objective 7: Principles of Sustainable Tourism Development Explain the principles of sustainable tourism development.




Sustainable Tourism Development Adopting the principles of sustainable tourism

development is the key to achieving an acceptable balance between the positive and negative impacts of tourism.

Sustainable development “meets the needs of the present without compromising the ability of future generations to meet their own needs” (World Commission on Environment and Development, 1987).






Principles of Sustainable Tourism Development Ecological sustainability Social and cultural sustainability Economic sustainability

THE TOURISM SYSTEM

© 2013

Chapter Summary Highlights

Chapter 2

Photos: Copyright - VisitScotland/Scottish Viewpoint

Tourism development can cause potentially negative and potentially positive impacts on destinations.

These impacts are in three main groups: (1) economic; (2) social and cultural; and (3) environmental.

Destination planners and tourism operators must take action to minimize the negative impacts and enhance the positive impacts of tourism.

The principles of sustainable tourism development should be followed in all destinations.

Chapter 2 Tourism Impacts

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