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Chapter 2 Tourism Impacts

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PowerPoint slides for The Tourism System 7th ed. by Robert C. Mill and Alastair M. Morrison, published by Kendall/Hunt, 2012.

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Chapter 2 Tourism Impacts

  1. 1. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts Chapter 2 Tourism Impacts on the Economy, Society, Culture and the Environment © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint 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. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 1
  2. 2. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts 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. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Learning Objective 1: Economic Impacts of Tourism Explain the three major economic impacts of tourism on destination areas and how these impacts are measured. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 2
  3. 3. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts Three Major Economic Impacts of Tourism  Increasing foreign exchange earnings  Increasing income  Increasing employment Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint 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. © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 3
  4. 4. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts 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) Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint 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. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 4
  5. 5. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts 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.” Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint 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 Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 5
  6. 6. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts 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. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Economic Development Considerations and Analysis  Cost/benefit analysis  Structural analysis  Satellite national accounting  Tourism and regional development Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 6
  7. 7. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts 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). Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Modifying the Host Destination’s Socioeconomic Structure  Maximizing tourism’s positive economic impacts  Encouraging import substitution  Implementing incentive programs Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 7
  8. 8. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts 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 Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Learning Objective 3: Potential Negative Social and Cultural Impacts of Tourism Discuss the potentially negative social and cultural impacts of tourism on destination areas. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 8
  9. 9. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts 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. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint 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. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 9
  10. 10. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts 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. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Learning Objective 4: Positive Social and Cultural Impacts of Tourism Identify the positive social and cultural impacts that may result from tourism. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 10
  11. 11. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts 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. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Learning Objective 5: Potential Negative Environmental Impacts of Tourism Describe the potentially negative environmental impacts of tourism on destination areas. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 11
  12. 12. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts 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. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint 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. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 12
  13. 13. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts Learning Objective 6: Positive Environmental Impacts of Tourism Identify the positive environmental impacts that may result from tourism. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint 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. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 13
  14. 14. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts Learning Objective 7: Principles of Sustainable Tourism Development Explain the principles of sustainable tourism development. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint 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). Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 14
  15. 15. The Tourism System 6th edition Chapter 2Kendall Hunt Publishing Company Tourism Impacts Principles of Sustainable Tourism Development  Ecological sustainability  Social and cultural sustainability  Economic sustainability Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint THE TOURISM SYSTEM Chapter 2 Chapter Summary Highlights  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. © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 15

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