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Managing the-visitor-and-their-impacts


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Business Tourism
Prof. Josefino Tulabing Larena ,AB,CPS,CPE,MPA

Published in: Business
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Managing the-visitor-and-their-impacts

  1. 1. Managing the visitor and their impacts
  2. 2. The geography of tourism: Its application to impact analysis
  3. 3. • Geography is about the study of the environment, people and the coexistence of man with the environment at different scales, ranging from the international through the national and regional to the local level. More advanced studies of tourism have shown that the contribution of geography can be significant, with its interest in place and space because tourism is an inherently dynamic activity that requires movement from an origin to destination area.
  4. 4. European tourism: Trends and patterns
  5. 5. • According to the European Travel Commission (ETC) (2007), France and Spain are the leading tourist destinations in the EU. • In Spain, an interesting trend is the tendency for up to half of tourists to make their own travel arrangements using the internet, which reflects the impact of the low-cost airlines in creating demand for seat-only sales.
  6. 6. According to the ETC, the scale of tourism growth in 2007 can be gauged from the following facts: • Europeans made trips 279 million trips abroad (though not necessarily all by air given the large number of land borders in the EU) in 2007 • Leisure travel grew at 6 per cent 2006–2007 • Travel patterns were influenced by a strong Euro, improved economic performance across the EU, and the growth in low-cost airlines and cheap flights • The top eight European markets generated almost two thirds of the total volume of trips (i.e. Germany, UK, France, Italy, the Netherlands, Russia, Spain and Switzerland)
  7. 7. The geography of European tourism based on air transport: Key trends and impacts
  8. 8. 2 techniques: 1. Simple analysis and mapping of tourism flows between origin and destination countries 2. Study their activity patterns (what they do when, where, for how long and the variations according to market segment)
  9. 9. Simple analysis and mapping of tourism flows between origin and destination countries
  10. 10. • At the EU level, the largest tourist flows occur from the UK to Spain whilst the next most important flow is Germany to Spain. The top city- to-city flows of travellers are dominated by holiday and business travel. The top ten city–city pairs account for around 50 per cent of all intra- regional travel in the EU. • In addition markets that are near to a land border and a popular destination have a strong propensity to use car-based travel, which results in seasonal effects upon the roads and airports in each respective destination area.
  11. 11. • Research by Eurostat (the European Statistical Agency) on the stability of tourism flows in the EU based on hotel occupancy data shows that tourism is largely concentrated in the June– September months although this does vary by country. These variations therefore highlight the importance of understanding the timing of tourist trips and where they are destined if one is to begin to identify where impacts will occur. • This historic pattern for 1999 has changed significantly with the introduction of low-cost airlines which now have almost 20 per cent of the market for air travel in Europe.
  12. 12. • The UK had almost 570 daily low-cost flights serving domestic destinations. This was followed by 366 on the Spain–UK route, 281 on German domestic services and 196 on UK– Ireland flights and 173 on France–UK flights.
  13. 13. Study their activity patterns (what they do when, where, for how long and the variations according to market segment)
  14. 14. • Geographical Information Systems (GIS) uses sophisticated computer programs, typically the industry standard ArcInfo and variants, to collect data on tourism with a geographical dimension. The geographical elements of the data can then be recorded, mapped and modelled to understand how overall patterns of tourist activity exist in a location or region.
  15. 15. • GIS is a powerful, yet greatly under-utilized research tool in tourism. It has an enormous potential application to assist in managing, developing and understanding the dynamics of tourism.
  16. 16. • The integration of different data sources in GIS has a major potential to visually illustrate the dynamics of tourism, and the different impacts that exist, by linking other sources of data together (e.g. records of land degradation, environmental pollution, economic data). • This helps us to identify and understand some of the impacts of tourism and where management measures will need to be developed. Therefore, with these issues in mind, attention now turns to the different impacts to understand what relationships exist with tourism, how to measure them and what management tools may be used.
  17. 17. Analysing the impact of tourism
  18. 18. • One of the major problems facing planners in assessing tourism impacts is the establishment of an appropriate baseline against which to measure the existing and future changes induced by tourism. • This is a problem mentioned in scientific studies of Environmental Assessment (EA) which seek to combine different data sources to understand how tourism development affects the environment.
  19. 19. • EA acknowledges the practical problems of establishing baseline studies and in disaggregating the impact of tourism from other economic activities since it is hard to isolate tourism from other forms of economic development.
  20. 20. • The complex interactions of tourism with the built and physical environments make it virtually impossible to measure impacts with any degree of text box precision. Even so, impacts may be large scale and tangible (e.g. where a destination is saturated by visitors) or small scale and intangible.
  21. 21. • Further factors complicating the analysis of tourism’s impact are the extent to which the effect of tourism is necessarily continuous in time and the geography of tourism activity tends to concentrate in certain locations such as destinations where the supply of services and facilities occurs. • At this point, one needs to begin to identify specific indicators of tourism impacts chosen to represent the complex interaction of tourism and the destination to guide the impact assessment. Whilst this involves complex methods of analysis which may be aided by GIS and computer modelling, it is clear that impacts are more than just costs and benefits for specific destinations.
  22. 22. • One useful starting point in analysing the impact of tourism in a practical context is to establish how to measure visitation levels as a basis for calculating visitor numbers for a destination. Yet one of the ongoing problems with visitor surveys is their value, as they are often undertaken at visitor attractions or based on accommodation occupancy rates as a means to establish the scale of visitors. Their ability to yield a representative sample of visitation at the destination, and thus their reliability, is debatable. • Therefore, where visitor information is collected, it needs to be related to other forms of statistical information to establish the volume of tourism.
  23. 23. The economic impact of tourism
  24. 24. • Ogilvie estimated average expenditure by visitors to show that UK residents spent over £24 million in 1921 using an adjusted Cost of Living Index which rose to over £33 million in 1928 but then dropped due to the stock market crash and subsequent recession. What is interesting from Ogilvie’s study is that he observed a £10–£11 million deficit in the 1920s and early 1930s in the balance of UK outbound tourist spending and inbound tourism from other countries. This is one of the most notable studies to make the vital point that tourism is important to the economy of many countries.
  25. 25. • On the basis of this early economic analysis, one can see why tourism is used by many national and local governments as a mechanism to aid the development and regeneration of economies. Politicians and decision-makers see that it offers renewed opportunities for work, income and revenue for the local economy as places are affected by global, national and local economic restructuring. • There is a prevailing perception among national and local governments that economic benefits accrue to tourism destinations, which then create employment opportunities and stimulate the development process in resorts and localities.
  26. 26. Tourism is not necessarily a stable source of income for destinations because tourists are not noted for their high levels of customer loyalty to tourism destinations. Page and Hall (2002) identify a number of features to support this argument based on urban tourism destinations:
  27. 27. • tourism is a fickle industry, being highly seasonal, and this has implications for investment and the type of employment created. Tourism employment is often characterized as being low skill, poorly paid and low status, and lacking long- term stability • the demand for tourism can easily be influenced by external factors (e.g. political unrest, unusual climatic and environmental conditions) which are beyond the control of destination areas • the motivation for tourist travel to urban destinations is complex and variable and constantly changing in the competitive marketplace
  28. 28. • in economic terms, tourism is price and income elastic, which means that it is easily influenced by small changes to the price of the product and the disposable income of consumers • many cities are becoming alike, a feature described as ‘serial reproduction’. This means that once an idea for urban economic development is successful in one location, the concept diffuses to other places. The example of waterfront revitalization is a case in point; many projects are similar in structure and character across the world.
  29. 29. Pearce (1989: 192) argued that ‘the objective and detailed evaluation of the economic impact of tourism can be a long and complicated task’. This is because there is little agreement on what constitutes the tourism industry although it is normally classified in relation to:
  30. 30. • accommodation • transport • attractions • the travel organizers’ sector (e.g. travel agents) • the destination organization sector.
  31. 31. Hospitality and ancillary services are also important. Understanding the economic impact of these disparate sectors of the economy requires a method of analysis that allows us to isolate the flow of income in the local tourism economy. This is notoriously difficult because of attributing the proportion of tourist expenditure on goods and services in relation to the total pattern of expenditure by all users of the destination (e.g. residents, workers and visitors). What we usually need to do is identify the different forms of tourist expenditure and how they affect the local economy. Typically these include:
  32. 32. • the nature of the destination area and its products, facilities and physical characteristics • the volume and scale of tourist expenditure • the state of the economic development and economy in the destination • the size and nature of the local economy (i.e. is it dependent on services or manufacturing or is it a mixed economy?) • the extent to which tourist expenditure circulates around the local economy and is not spent on ‘imported’ goods and services • the degree to which the local economy has addressed the problem of seasonality and extends the destination appeal to all year round.
  33. 33. On the basis of these factors, it is possible to assess whether the economic impact will be beneficial or have a detrimental effect on the economy. In this respect, it is possible to identify some of the commonly cited economic benefits of tourism: • the generation of income for the local economy • the creation of new employment opportunities • improvements to the structure and balance of economic activities within the locality • the encouragement of entrepreneurial activity.
  34. 34. In contrast, there is also a range of costs commonly associated with tourism and these include: • the potential for economic over-dependence on one particular form of activity • inflationary costs in the local economy as new consumers enter the area, and potential increases in real estate prices as the tourism development cycle commences and tourism competes with other land uses • depending on the size and nature of the local economy, a growing dependence on imported rather than locally produced goods, services and labour as the development of facilities and infrastructure proceeds • seasonality in the consumption and production of tourism infrastructure and services leading to limited returns on investment • leakages of tourism expenditure from the local economy • additional costs for city authorities.
  35. 35. Constructing the economic impact of tourism
  36. 36. Direct Expenditure • by tourists on goods and services consumed (e.g. hotels, restaurants and tourist transport services), although this is not a definitive account of expenditure due to leakage of tourist spending to areas and corporations outside the local economy
  37. 37. Indirect Expenditure • by visitors is often estimated by identifying how many tourism enterprises use the income derived from tourists’ spending. This money is then used by enterprises to pay for services, taxes and employees, which then recirculates in the urban economy. • In other words, tourist expenditure stimulates an economic process which passes through a series of stages (or rounds).
  38. 38. Induced Impact • by calculating the impact of expenditure from those employed in tourism and its effect on the local economy.
  39. 39. • The figure above introduces the concept of leakage, in which expenditure is lost from the local system to other areas. For planners and managers, maximizing local economic linkages (e.g. buying local produce and employing local people) can enhance the benefits of tourism to a locality. Where the local economy is very vulnerable, and dependent upon a large number of imports (e.g. labour, goods and services), leakage will be high and so reducing the openness of the tourism economy will help to improve the impact locally. Many rural areas are characteristically open economies and high levels of leakage in tourism occur there, whereas in urban areas leakage is reduced as the economy is more closed. In many less developed countries and island nations that depend upon tourism, the leakage is also high due to external control by multinational companies and a reluctance of tourism businesses to use local products. Instead, high- volume imports reduce the beneficial local effects of tourism.
  40. 40. More recently, governments have tried to understand how tourism affects the national economy. In conjunction with the UN-WTO and Organization for Economic Co-operation and Development, some countries have developed tourism satellite accounts (TSA) to measure more precisely the economic impact of tourism. In 1999 the New Zealand government launched the results of its TSA updating it in 2006, which used a wide range of economic data to identify six main themes regarding the impact of tourism:
  41. 41. 1.the direct impact of tourism on GDP 2. tourism expenditure expressed as a percentage of GDP 3. the level of tourism employment in the economy 4. the proportion of international travel-related expenditure as a percentage of total travel- related expenditure 5.domestic personal expenditure as a percentage of total travel expenditure 6.domestic business and government expenditure as a percentage of total travel expenditure.
  42. 42. Social and cultural impacts of tourism
  43. 43. • Tourism can emerge as a source of conflict between hosts and visitors in destinations where its development leads to perceived and actual impacts. There has been a wealth of studies of the social and cultural impacts by anthropologists and sociologists, embodied in the influential studies by Valene Smith (1977, 1992). • The attitudes of residents towards tourism represent an important way in which this stakeholder group contributes to policy and public support for or dissent towards tourism.
  44. 44. The focus of any analysis of host–guest impacts is a function of the interaction between these two groups and will be dependent upon: • the nature and extent of social, economic and cultural differences between tourists and hosts • the ratio of visitors to residents • the distribution and visibility of tourist developments • the speed and intensity of development • the extent of foreign investment and employment.
  45. 45. Pearce (1989) cited a range of other social and cultural impacts result - ing from tourism including: • the impact of migration from rural areas to urbanized tourism resort areas to secure employment in service industries due to the higher income levels. This can often modify the population structure in des - tinations, putting pressure on services • changes in occupational structure, as the demand for low-skill, female and seasonal labour expands • changes in social values, with greater levels of community turnover
  46. 46. • the impact of gentrification in inner city districts where urban regen - eration with a strong tourism element transforms the local hous - ing market, and leads to residents having to move to accommodate development • increased levels of crime when special events and hallmark events, such as the Olympics, are held • potentially negative effects related to the increase in prostitution and gambling to meet visitor needs. In some destinations such as Sydney, Bangkok and Amsterdam a distinct sex zone has emerged, changing the social structure of the area • a decline in the use of native language because the universal method of conversation in tourism is in European languages (English and French).
  47. 47. Based on Doxey’s (1975) study, in which resident responses in the Caribbean and Canada were observed to identify a series of stages through which they passed. These were: • Euphoria-following the initial development of tourism • Apathy-as tourism developed further and becomes part of the local way of life • Annoyance- as tourism began to interfere with everyday life and cause a level of disturbance • Antagonism- where residents became tourist averse and tensions, con - flict and anti-tourism feeling became widespread.
  48. 48. Tourism and the environment
  49. 49. • In the 1950s it was viewed as being one of coexistence … However, with the advent of mass tourism in the 1960s, increasing pressure was put on natural areas for tourism developments. Together with the growing environmental awareness and concerns of the early 1970s the relationship was perceived to be in conflict. During the next decade this view was endorsed by many others … at the same time a new suggestion was emerging that the relationship could be beneficial to both tourism and the environment. (Dowling 1992: 33) • In the absence of an attractive environment, there would be little tourism. Ranging from the basic attractions of sun, sea and sand to the undoubted appeal of historic sites and structures, the environment is the foundation of tourism.
  50. 50. • Because of the highly dynamic nature of the coastal environment and the significance of mangroves and the limited coral sand supply for island beaches in particular, any development which interferes with the natural system may have severe consequences for the long-term stability of the environment.
  51. 51. As a result, inappropriate tourism development on coastal areas creates: • erosion, where vegetation clearance exposes the beach to sea storms, and building activity on beaches makes sand deposits loose and more vulnerable to erosion • the salination of fresh ground water sources, which are usually in limited supply • sewage outfall into shallow waters, which cause nutrients to build up and algal growth that adversely affects coral reefs.
  52. 52. Furthermore, the modification of mangrove swamps on lowland areas to create harbours and marinas, or for land reclamation, leads to loss of ecological diversity and a rich environment for wildlife. It also removes a barrier to sediment build-up. As a result tourism’s environmental impacts on Pacific islands create: • environmental degradation and pollution • the destruction of habitats and ecosystems • the loss of coastal and marine resources • coastal pollution • impacts on ground water.
  53. 53. In the South Pacific, Hall (1996) indicated that ecotourism could be construed in two ways: • as green or nature-based tourism, with a niche market as part of special interest tourism (e.g. scuba diving) • as any form of tourism development that is considered to be environmentally responsible.
  54. 54. In many island microstates (IMS) in the Pacific, the significance of environmental issues in tourism are apparent as a number of common themes characterize tourism’s development and the pressures on the resource base: • scale, where impacts can easily be damaging to fragile resources • the high levels of dependency on external international tourism interests that do not have a long-term stake in the local environment
  55. 55. • an absence of indigenous sources of capital to develop tourism, removing many opportunities for sustainable tourism development that is community owned and locally managed • the predominance of colonial patterns of control in the tourism sector limiting the permeation of new ideas such as environmentalism • an economic system characterized by outward migration, a dependence upon remittances back to families, aid to assist economic survival, and bureaucracy (known as the MIRAB model) • increasing competition among IMS for tourists in the Pacific and resulting compromises in tourism planning and development to attract visitors.
  56. 56. In many ways the environmental impacts in the Pacific islands can be combined with the more general problems that Mathieson and Wall (1982) identify in resort areas, which include: • architectural pollution owing to the effect of inappropriate hotel development on the traditional landscape • the effect of ribbon development and urban sprawl in the absence of planning and development restrictions (as is the case on many Spanish resorts in the Mediterranean)
  57. 57. • the resort infrastructure becomes overloaded and breaks down in periods of peak usage • tourists become segregated from local residents • good quality agricultural land may be lost to tourist development • traffic congestion may result in resort areas • the local ecosystem may be polluted from sewage • litter and too many visitors in the peak season.
  58. 58. The tourism industry response
  59. 59. • The hotel industry has responded with environmental initiatives in the 1990s such as the International Hotels Environment Initiative, which promotes recycling, codes of conduct, best practice among members, accreditation schemes and improved standards of energy efficiency. • These elements of environmental management are non mainstream. In some hotels, waste minimization strategies have resulted from environmental audits of the tourism and hospitality operations to reduce costs. They may include purchasing more eco-friendly products, waste reduction (i.e. not laundering guests’ towels every day), reusing resources and packag - ing and adopting a green policy towards operational issues.
  60. 60. • In Germany the ecotax has been called ‘limon - adenstener’, a lemonade tax, because hotel owners have been giving guests drink vouchers in lieu of the tax. It has also been dubbed a ‘Kurtax’ (a cure tax) that has raised ecological issues among visitors. This approach to attempting to remedy the impacts of mass tourism development is at least beginning to move the sector towards a greater understanding of its effect on the environment.
  61. 61. Visitor Management
  62. 62. • Visitor management develops and adapts many of the principles and practices used in the outdoor recreation and leisure areas. There are two types of mea - sures which are usually used – ‘hard measures’, which are place extensive and place permanent restrictions on visitor activity, and ‘soft measures’, which involve improving marketing, interpretation, planning and visitor coordination.
  63. 63. • With the global spread of tourism, the growth in the demand for domestic and international travel is creating an insatiable demand for leisure spending in the new millennium. As new outbound markets such as China and India develop, there will be a huge increase in the rate of tourism growth in certain regions such as Asia-Pacific. The consequences of such growth if it is allowed to develop in an unplanned, unconstrained and unmanaged manner is clear: the continued impact on the environ - ment, people and ecosystems that will be irreversibly damaged by tour - ism consumption
  64. 64. • Since tourism is a powerful force in many economies, some degree of planned intervention by the public sector, as well as the increasing number of public–private sector partnerships, will be essential in terms of implementing visitor management plans and tools. If the example of Venice tells us one thing, it is that the excesses of tourism can quickly destroy the visitor experience, the resource base and the potential for sustainable tourism if it goes unchecked.
  65. 65. Future issues for visitor management
  66. 66. • In the future, the impacts of tourism will continue to pose ethical dilemmas for planners and managers. On the one hand, governments are seeking to develop more socially inclusive societies, where principles such as ‘Tourism for All’ are pursued to facilitate a greater inclusion of special needs by tourism businesses and agencies, argues against management measures to limit access to those with the purchasing power. • Running counter to such ideological arguments on tourism is the recognition that visitor management needs to limit rather than expand the access to many tourist sites and resources.
  67. 67. Future issues for Visitor Management
  68. 68. • These principles can be modified and refined for application in resorts and urban tourism destinations to achieve a more coordinated and rational approach to tourism. In sum, the activities and freedom of tourists will have to be curtailed in the future as resorts, destinations and sites realize the imperative of visitor management tools to implement a more rational and managed use of resources. This is to maintain a viable and dynamic tourism industry. To do this will require more innovative thinking and planning, partnerships between stakeholders and good communication to explain to visitors the rationale and need for such measures. The resolution of conflict, balancing tourism, non-tourism and other interests, will require planners and tourism managers to cooperate in the best interests of the locality in an increasingly competitive marketplace.
  69. 69. Thank you! 