GEOG II - Chap 7 - Impact of the Growth of Tourism


Published on

Published in: Travel, Business
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

GEOG II - Chap 7 - Impact of the Growth of Tourism

  1. 1. Positive Economic Impact Elaboration Example1. Contribution to revenue When a tourist visits a country, he will spend In Singapore, the tourism on food, accommodation and entertainment industry generated about i. taxation on tourism- which provides earnings/profits to the food, S$22.2 billion in 2011 and related goods hotel, leisure, retail and transport industries S$18.9 billion in 2010. which are charged taxes. ii. development of infrastructure Governments will receive more taxes from the industries and from goods and services taxes/CESS to build physical and social infrastructure to improve the supply factors to attract more tourists and earn more revenue.2. Multiplier effect World Travel and Tourism Council (WTTC) estimates that tourism generates an indirect contribution equal to 100% of direct tourism expenditures. The tourist’s money is circulated through the country and promotes development and as it circulates, its value multiplies to several times its original value. This strengthens the economy in various sectors (esp other industries)3. Creation of employment Tourism, being a labour-intensive industry, According to the World requires large numbers of workers since there Tourism Organisation are many tourist amenities that need to be (WTO), tourism accounts maintained and ran. for 6-7% of jobs worldwide. Direct employment and indirect employment creates jobs for the economy and this reduces unemployment. (*) –minor impact, not so important
  2. 2. 4. Economy diversification Tourism ensures that a country does not fully depend on certain industries (eg. manu- facturing or farming) by having tourism as a back up industry to save them when the niche industries do not do so well due to external factors (eg. reduced demand)5. Improved accessibility Due to increased accessibility, people in rural villages can now work in the towns. As a result, the villagers will earn better incomes and enjoy a higher standard of living. More equal distribution of wealth is a result.6. Creates goodwill When people attend conventions, meetings The 5-year contract to host and exhibitions, they are exposed to the the Formula 1 night race possibility of their putting their invest- has been awarded to ments in Singapore by hosting more of such Singapore for goodwill events in Singapore. has been spread to foreign investors. As a result, more conventions and events are carried out and these investments speed up economic growth of both countries.7. Increase in foreign Foreign investors are attracted by the level Macau has a thriving investments of development in a country with a good textile, electronics and toy tourism industry as they usually have good industry yet it has attracted accessibility. As a result, they will want to set foreign investors into up their new businesses here which will setting up a tourism attract more foreign investors of other industry there where there industries. are a wide range of hotels and resorts.8. Stimulation of To increase the attractiveness of the tourism Peninsular Malaysia’s investment in industry, the local government may be eastern coast is seeing infrastructure driven to make infrastructural improve- rapid development in ments such as better water and sewage infrastructure such as the systems, roads, electricity, telephone and extension of the N-S public transport networks. highway and the construction of airports so This improves the quality of life among locals that it can attract more and facilitates tourism. tourists from the more developed western coast. (*) –minor impact, not so important
  3. 3. Negative Economic Impact Elaboration Example1. Leakage The amount of money that remains locally Of each US$100 spent on after taxes, profits and wages are paid outside a vacation tour by a tourist the area and after imports are purchased is from a DC, only around usually a small amount of the tourist’s total US$5 actually stays in a expenditure. LDC destination’s economy. Import leakage occurs when DCs need to import certain demands of the tourists (eg. Evian mineral water) Tourism leakages: 1. 70% in Thailand Export leakage occurs when DCs need the 2. 80% in Caribbean help of overseas investors to build tourism 3. 40% in India facilities like hotels and take their profits back to their country of origin. 3 main leakages: airlines, hotels, tour agents2. Enclave tourism “All-inclusive” vacation packages reduces the chances of local businesses to earn income from tourists as these packages have everything they need and where they will make all their expenditures. Tourists rather stay in the ships where everything is present than explore the local area where the ship docks for a few hours. 3 eg of enclave tourism: cruises, club meds, resorts3. Inflation Increased demand for basic necessities from Prices of basic necessities tourists will cause prices to increase. like sugar and rice have However, this price hike is not proportional increased in Johor Bahru to the rise in income of the locals. because Singaporeans go there to buy them at Wealthy businessmen who buy homes in DCs cheaper rates, increasing cause prices of the homes to skyrocket if demand there. their numbers attain a certain critical mass. Prices of houses in once- Dominance by outsiders in land markets used-to-be-deserted reduces economic opportunities for the locals Sentosa Cove are as prices of land will increase with skyrocketing due to rapid increasing demand, disempowering residents. development of Sentosa. (*) –minor impact, not so important
  4. 4. 4. Unequal development Governments may wrongly focus their The rural areas are very resources on the tourism industry hence the much less developed as primary and secondary industries are less compared to Kathmandu, developed because it sees tourism as a more the capital city of Nepal as lucrative industry. tourists usually flock to Nepal’s more developed areas.5. Overdependence on As a result of the under-developed primary % revenue from tourism: tourism and secondary industries which earn very 1. 83% in Maldives little as compared to the developed tourism 2. 21% in Seychelles industry, the government may over depend on 3. 34% in Jamaica the tourism industry because it becomes the main revenue earning source for the country. Crises that have occurred: 1. 2008 global meltdown However, this overdependence is risky as 2. 2004 Ind Ocean tsunami unexpected events like terrorist attacks, 3. 2003 SARS natural disasters and global recessions will 4. 2002 Bali Bombing greatly impact tourist numbers and weaken 5. 2001 Sep 11 attacks the economy severely. 6. 1998 haze in SEA 7. 1997 Asian econ crisis6. Seasonal unemployment In certain areas, there are some periods or In Peninsular Malaysia’s seasons when tourism becomes inactive or eastern coast which is dormant because of natural factors like exposed to the NE monsoon rains. monsoon, the off-peak season occurs around Sep- Workers do not earn incomes during these Feb when hotel occupancy off-peak seasons resulting in insecurity, drops and beach resorts difficulty in getting training, medical benefits closes down. and no guarantee in a job next season.7. Infrastructure cost The cost of building and maintaining large Beijing’s Bird Nest and stadiums and specialised buildings is very Japan’s sports stadiums high and often drains money that could be are seen as white elephants channeled to other critical areas like as they are of limited use education and health. after the sporting events they hosted. (*) –minor impact, not so important
  5. 5. Positive Socio-cultural Elaboration Example Impact1. Force for peace When tourists go to another country, the contacts between the locals and tourists builds bridges across societies and communities. This increases chances to develop mutual sympathy and understanding and to reduce their prejudices leading to decrease of tension and world peace.2. Shared use of tourism When the government builds tourist Gardens by the Bay facilities attractions, the locals can also visit the planned to open in 2012 attractions as a form of leisure. This provides free entry to increases living standards with this upgraded Singaporeans besides infrastructure. being a tourist attraction.3. Preservation of heritage Renewal of interest of own culture Shophouses along the Singapore River and in Events and festivals of which local Telok Ayer/Emerald Hill residents have been the primary are preserved to retain the participants are often rejuvenated and heritage. developed to meet tourist demands (renewal of interest of own culture) The Singapore Inter- national Dragon Boat Reduced problems of squatter settlements Festival was rejuvenated to meet the changing The jobs created by tourism can act interests of tourists and as a vital incentive to reduce locals. emigration from rural areas4. Pride in own culture Tourism helps raise local awareness of the Tourism has forced the financial value of natural and cultural sites Balinese to reflect on their and stimulates a feeling of pride in local and artistic output as just one national heritage and interest in its cultural identifier. The conservation. praises of tourists on Balinese art and culture give the Balinese confidence and pride in their art. (*) –minor impact, not so important
  6. 6. Negative Socio-cultural Elaboration Example Impact1. Conflict of resource use Competition for resources may result in According to World Wide local communities having to pay higher taxes Fund for Nature (WWF), for resources such as water and electricity. tourists and tourism facil- This is especially so in countries with water ities in Spain use up to and fuel scarcity. 850l of water/person per day, 4x of a city dweller.2. Commodification Tourism can turn local cultures into The Hangi Feast in New commodities (marketable items produced to Zealand used to be done satisfy wants or needs) when religious rituals, the traditional way using traditional ethnic rites and festivals are altered the earth but due to time to suit tourists’ wants, resulting in what has constraints and hygiene, it been called “reconstructed ethnicity”. is now served buffet style.3. Loss of authenticity, Adapting cultural expressions and The traditional Maori staged authenticity manifestations to the tastes of the tourists dance used to be perf- or even performing shows as if they were ormed only by males but “real life” constitutes “staged authenticity”. now it is also performed by females and involves the tourists also.4. Standardisation Destinations risk standardisation in the process of satisfying tourists’ desire for familiarity. While the culture, food, accommodation must meet the desire for new and unfamiliar, they must not be too strange for them. Hence, tourists look for recognisable facilities in the new environment like international hotels (eg. Hilton, Holiday Inn, Hyatt) and fast-food chains (eg. McDonalds, Starbucks)5. Development of pseudo1 During mass production of local handicrafts, The Capitol Building, an -culture they use cheaper materials and non- old cinema, houses shops traditional production methods. catering to tourists. (pseudo1: fake and not real) Old homely original atmosphere is lost when Shophouses in Singapore buildings are given way for tourist-oriented lose their actual purpose activities. after preservation. (*) –minor impact, not so important
  7. 7. 6. Economic inequality Due to the large income difference between In DCs like Jamaica and the tourism workers in LDCs and the tourists Indonesia, local people from DCs, the copying behaviour of the employed by the industry workers to have what the tourists have may receive only 1% of the cause social and ethnic tensions among them. guest’s income at home.7. Job level friction In DCs, many low level jobs like housemaids and waiters are occupied by unskilled and poorly trained locals while the higher-paying and managerial jobs are occupied by foreigners. This may cause conflict, friction and increases cultural gap.8. Clash of values, Tourists tend to bring behavioural norms and Tourists visiting Muslim irritation due to tourist culture which are not appropriate to local countries often disregard behaviour people (eg. wearing bikinis at the beach of a or are unaware of the prev- conservative country). Locals then pick up alent dress code and stan- more materialistic and extravagant attitudes dard behaviours and it has from them and adopt more liberal attitudes become an incentive for towards sexual behaviour which is contrary locals not to respect their to local customs.This leads to irritation and own traditions and relig- stereotyping among locals towards the ion, leading to tensions tourists. within the local community.9. Crime generation Growth of mass tourism typically increase In Rio de Janeiro, Brazil, crime rates because the large number of tourists staying in beach- tourists and their valuables increases the side 5-star resorts close to attraction for criminals and brings with it extremely poor commun- activities like robbery and drug dealing. ities in “favelas” are at risk of pickpockets.10. Prostitution and sex The commercial sexual exploitation of Some cities and countries tourism children and young women has increased have specialised streets along with the growth of tourism. famous for such activities for example de Wallen in Though tourism is not a direct cause, it Amsterdam and Patpong provides easy access to it because it brings in Bangkok. consumerism to parts of world which did not use to have it. The lure of easy money does cause people to trade their bodies. It has even encouraged sex slavery where children are sold into brothels. (*) –minor impact, not so important
  8. 8. 11. Child labour (*) Poor children in LDCs are forced to work as Child labour is a serious they can be paid very little for their services problem in Jakarta where and are more flexible employees. These some of them are even children are forced to sell small souvenirs and kidnapped for this reason. clean car windows at a junction when cars stop.12. Resettlement of locals(*) In order to provide land for the new tourist The residents in attractions, the people who originally reside Chinatown had to be there have to be moved away from there. This moved to other parts of leads to them losing their historical areas and Singapore so that it could sense of identity. be developed into a tourist destination.13. Old buildings to be Due to competition for scarce land, old and The old RI campus has demolished for new rundown buildings have to be cleared despite been cleared to make way buildings (*) their value to make way for the modern Raffles City Shopping buildings like hotels and shopping centres. Centre, a busy shopping centre in City Hall. Positive Environmental Elaboration Example Impact1. Conservation of natural Potentially valuable tourist destinations such Chek Jawa, a precious areas as beaches, forests and mountains are likely to coastal habitat, has been be conserved and converted to national parks conserved by Nature and wildlife parks. Society Singapore after being threatened by This reduces the destruction of these reclamation. habitats to a bare minimum. (*) –minor impact, not so important
  9. 9. Negative Environmental Elaboration Example Impact1. Pollution Land, sea and air transport, a major feature A single transatlantic of tourism, contributes large amount of return flight emits half as CO2, a greenhouse gas leading to global much CO2 as a person in a warming. year. When tourists visit natural attractions like Littering has become so beaches, they tend to litter contributing to bad in the Andes land and water pollution. mountains that there is a Toilet Paper Trail, a trail Untreated sewage poured into the sea and of litter especially toilet improper waste disposal contributes to water paper. pollution especially in LDCs where water treatment facilities are absent. Cruise ships in the Caribbean produce more than 70 000 tons of waste per year.2. Deforestation To make more land for the tourist attractions, Due to deforestation, forests are cleared on the large scale. This Cameron Highland causes climatic changes, ecosystem changes receives less rainfall at and higher soil erosion which are effects of 2420mm in 2010 as deforestation. compared to 2580mm on average and the temp- erature has risen by 2-3°C.3. Loss of coral reefs Sewage runoff stimulates the growth of algae Coliform bacteria which which cover the filter feeding of corals, have faecal origin have killing them. As a result, eutrophication been found at high levels occurs. in Pattaya, Thailand in 1990s. Sewage pollution can harm human and animal health. Coral harvesting, fishing and snorkelling damage coral reefs which take 50 years to replace. Pleasure boats powered by oil may cause leaks that pollutes the water.4. Impacts of marina Harvesting of sand and the building of hard In the Philippines and development engineering methods at coasts alters the Maldives, dynamiting and coastlines and currents and affects the coral mining for coral for resort reefs and fishes hence destroying the coastal building materials has habitats. damaged fragile coral reefs and depleted the fisheries that sustain locals’ income. (*) –minor impact, not so important
  10. 10. 5. Alteration of ecosystems Habitats can be degraded by activities such In Kenya, tourist activities as wildlife viewing because the noise and have been so disturbing commotion created by tourists stresses the that animals, at times, animals. This changes the behaviour of the neglecting their young or animals. fail to mate.6. Depletion of natural Increased construction of tourism and resources recreational facilities has increased the demand and pressure on the natural resources. Given demand in other industries, the amount of resources being depleted is closing in on what there is left.7. Endanger species (*) Illegal collection of animal parts to be sold to The illegal collection of black markets because of the high prices that turtle eggs of the Giant are offered for it. Leatherback Turtle of the east coast of Peninsular Malaysia causes the number of turtles to dwindle. (*) –minor impact, not so important