The document discusses the economic, socio-cultural, and environmental impacts of tourism. It outlines both the positive and negative impacts of each category. The economic impacts section examines concepts like the multiplier effect and how tourist spending circulates in an economy. The socio-cultural impacts section explores topics such as cultural exchange and modification of local lifestyle. The environmental impacts portion analyzes effects on habitat and ways tourism can contribute to pollution. The document also suggests responses to mitigate the negative impacts of tourism.

1. ECONOMIC IMPACTS OF
TOURISM
Prepared By:
Ma'am L

2. OBJECTIVES

Introduction of Economics

Explain the economic impacts of tourism

Discuss the responses of the negative impacts

Case Study/News Article

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ECONOMICS
Oikos
(household)
Nomus
(management)
OIKONOMIA
or
OIKONOMUS

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SCARCITY
Limited resources Unlimited wants
Economics refers to managing of scarce
resources which requires ALLOCATION to
solve scarcity...

5. 4 BASIC
ECONOMIC
QUESTIONS

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10. Much of tourism impacts are predominantly the
work of economists and has concentrated on
the effects of INCOME and EMPLOYMENT.
Ecnomic impacts of tourism are linked to, and
cannot easily be separated from other types of
impact. (MASON, 2008)
ECONOMIC IMPACTS

11. MULTIPLIER EFFECT

A very common tool for assessing economic
impacts of tourism and is frequently has a
prominent place in gov't and int'l reports.

12. MULTIPLIER EFFECT

Takes place when spending is circulated
throughout an economy

Conceptualizes what happens when tourists
spend money on a destination

Shows and distinguish the direct and indirect
income derived from tourism

13. TOURIST SPEND
FOR:
SECOND ROUND
OF
EXPENDITURES
ULTIMATE
BENEFICIARIES
Lodging Wages and
Salaries
Gov't Workers
Food Comissions / Tips Advertisers
Beverage Licenses Engineers
Clothing Utilities Sign Makers
Recreation Return to Gov't Farmers
Souvenirs Advertising Wholesale
Suppliers

14. POSITIVE
IMPACTS OF
TOURISM

15. 
Foreign Exchange Earnings

Contribution to Gov't Revenues

Generation of Employment

International Trade

Balance of Payment

Infrastructure Investment

Contribution to local economies

16. NEGATIVE
IMPACTS OF
TOURISM

17. 
Inflation

Opportunity costs

Dependency

Seasonality

Leakage

Enclave Tourism

Prostitution / Underground Economy

18. INFLATION

Increases in prices of land, houses and food
that can occur as a result of tourism.

Prices for commodities can increase when
tourists place extra demands on local services
at a tourism destination.

19. OPPORTUNITY COSTS

Engaging in tourism rather than another form
of economic activity.
EX:
In a coastal area, with a predominantly rural
farmland, opportunity costs refer to investing
in tourism instead of in arable farming, market
gardening or fishing.

20. OVER-DEPENDENCE ON TOURISM

Over time, the emphasis on tourism becomes
such that there is virtually no other approach
to development. As a result, the country
becomes dependent on tourism revenue to
the extent that any change in demand is likely
to lead to a major economic crisis.

21. RESPONSE TO THE NEGATIVE
IMPACTS

Ensure that the benefits of tourism are spread
as widely as possible throughout the host
community.

Reduce leakage

Making sure that tourists pay for a fair price.

Protect local businesses.

22. RESPONSE TO THE NEGATIVE
IMPACTS

Provide financial incentives, training and other
techniques for local ownership, management
and operation on different tourism facilities.

Develop the capability of local inbound
operators to handle local agency operations.

Expand the variety of available tourist
activities.

23. SOCIO-CULTURAL IMPACTS
OF TOURISM

24. OBJECTIVES

Explain the socio-cultural impacts of tourism

Discuss the responses to the negative impacts

Identify the impacts of tourism to tourists

25. 
Sociology is the study of society and is
concerned with people and groups, their
interaction, their attitudes and their behavior.

Culture is the complex whole that includes
knowledge, belief, art, morals, law, customs
and any other capabilities and habits acquired
by man as a member of a society.

26. CONTACT BETWEEN TOURISTS AND
GUESTS MAY ARISE IN THREE
SCENARIOS:

Tourist purchase of goods and services from local people

Tourists and local residents use of the same facilities

Purposeful meeting to exchange ideas and information

27. FACTORS AFFECTING HOST-GUEST
CONTACT
Cultural Backgrounds of residents and tourists.

Type of tourists and travel motivation

Spatial concentration of tourism development

Relative strength of the cultures of residents and
tourists

Attitudes and perception of residents and tourists

Ratio of tourists to host population

Length of stay of tourists

28. SOCIO-CULTURAL IMPACTS

29. POSITIVE IMPACTS
The beneficial impacts of tourism on society include
the following:

The creation of employment

The revitalization of poor or non-industrialized
regions

Cultural involution

Cross-cultural exchange

Heritage conservation

30. POSITIVE IMPACTS

In developing countries, tourism can
encourage greater social mobility through
changes in employment from traditional
agriculture to service industries and may result
in higher wages and better job prospects
(Mason 2008).

31. NEGATIVE IMPACTS

Stress to both tourists and residents because
of overcrowding.

Traditional activities may decline because of
industrialization

Over dependence to tourism

Modification of their way of life because of
tourism's seasonality

32. NEGATIVE IMPACTS

Altered social values caused by tourist invasion

Commodification of human relationships

Loss of cultural character

Authenticity of handicrafts

Potential for conflict

33. Examples of Customs

Chinese people do not tip

Muslims eat only with their right hand

It is poor manners to Filipinos to eat without
offering food to other people

Germans eat sandwiches with spoon and fork

Most Asian women shave their axilliary hair,
some Europeans don't

34. DEMONSTRATION EFFECT

Observing tourists will lead to behavioural
changes in the resident population

Young people are susceptible to
demonstration effect

Acculturation

35. PROSTITUTION

Only one form of SEX TOURISM (massage
parlors, sex shops, sex cinemas are other
examples)

Institutionalized in some countries

There is a growing scale of sex tourism and
increasingly involved international tourists

36. RESPONSE TO NEGATIVE IMPACTS

37. 
Swarbrooke (2009) stated that sustainable
tourism means tourism which is socially
equitable

Fair Trade in tourism

Proper tourism management so as to maintain
the dignity and sense of pride of the local
community

Increase opportunities for everyone to have a
holiday

38. EQUITY
EQUAL
PARTNERS
EQUAL
OPPORTUNI
TIES
ETHICS
4 E'S

39. IMPACT OF TOURISM TO TOURISTS

40. 
Opportunity to see new parts of the world

Increased interest in cultural tourism

Led to many people buying second homes and
retirement houses

Serves as antidote to stress

Escape from their monotonous lifestyle and
routine

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ENVIRONMENTAL
IMPACTS OF
TOURISM

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The environment is being increasingly
recognized as the major resource for
tourism.
Tourism depends ultimately upon the
environment, as it is a major tourism
attraction itself, or is the context in which
tourism activity takes place.
Tourism-environment relationships are
complex.

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Tourism benefits from being in a good
quality environment and this same
environment should benefit from
measures aimed at protecting and
maintaining its value as a tourist
resource.
Tourism has become a major cause of
environmental damage to the
environment rather than a force for
enhancement and protection in the past
50 years.

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ECOLOGICAL IMPACTS OF TOURISM
The effects on plants as a result of
trampling by visitors.
The modifications to animal
behavior as a result of tourists being
present in their habitat.
Atmosphere pollution caused by
passenger airlines.
The resulting contribution to global
climate change.
Consequent effects on both terrestrial and
marine ecosystem.

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POSITIVE
ENVIRONMENTAL
IMPACTS

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Stimulate awareness to protect the
environment and/or landscape and/or
wildlife.
Tourism can help to promote the
establishment of National Parks and/or
Wildlife Reserves.
Tourism can promote the preservation of
buildings/monuments and the
conservation of wildlife.
Tourism may provide money to maintain
historic buildings, heritage sites
and wildlife habitats.

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NEGATIVE
ENVIRONMENTAL
IMPACTS

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Tourism can lead to the creation of
unsightly human structures
such as buildings that do not fit in
with vernacular architecture.
Tourism may lead to damage
and/or disturbance to wildlife
habitats.
POLLUTION

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CARRYING CAPACITY
Also important in relation to
damage/disturbance in the environment.
ENVIRONMENTAL – physical space
and no. of people in a particular space
ECOLOGICAL – threshold measure,
which if exceeded will lead to actual
damage of habitat
PERCEPTUAL – level of crowding that a
tourist is willing to tolerate before deciding
to go elsewhere.

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Tourists are likely to litter.
Tourism can contribute to congestion
in terms of overcrowding of people as
well as traffic congestion.
Tourism can contribute to the
pollution of water courses and
beaches.
Tourism may result in footpath
erosion.

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RESPONSE TO NEGATIVE IMPACTS
Holistic Thinking : the Concept of Ecosystems
Regulation of the Negative Impacts
Encouraging Good Practice
Keeping a Sense of Proportion
Raising Awareness amongst Tourists and the
Industry
Paying a Price that Covers the Environmental Costs
of Tourism
Maintaining a Balance Between Conservation and
Development