2. Learning Outcomes
• Determine the economic effect of tourism and hospitality
• Discuss the social impacts of tourism and hospitality
• Explain the impacts of tourism and hospitality on culture
• Analyze environmental impacts of tourism and hospitality
3. THE POSITIVE ECONOMIC EFFECTS OF
TOURISM AND HOSPITALITY
• INCOME
• EMPLOYMENT
• AREA'S BALANCE OF PAYMENTS
• INVESTMENT and DEVELOPMENT
4. INCOME
• TOURISM INCOME, in general comes from wages and salaries, interest,
rent, and profits.
• It is also generated from interest, rent, and profits on tourism and
hospitality businesses
• Income is also obtained from direct taxation or indirect taxation.
• Tourism and hospitality is both an income generator and income
redistributor.
5. INCOME
• The sum of all income in a country is called
NATIONAL INCOME.
• MULTIPLIERS are means of estimating how
much extra income is produced in an
economy as a result of the initial spending
or injection of cash.
6. EMPLOYMENT
• There are three types of employment generated by tourism and hospitality:
- Direct
- Indirect;
- Induced Employment
7. BALANCE OF PAYMENTS
• BALANCE OF PAYMENTS
• is an accounting of flow of goods, services and funds in
and out of the country during a given period.
• If a country pays or agrees to pay more money
than it receives - deficit
• If it receives more money than it sends or exports -
surplus
8. INVESTMENT AND DEVELOPMENT
• Accelerator concept
• The accelerator theory is an economic
postulation that states that when either
demand or income rises, investment
expenditure rises as well. According to the
theory, when there is excess demand,
businesses can either reduce demand by
raising prices or increase investment to meet
the level of demand.
9. NEGATIVE ECONOMIC ASPECTS OF
TOURISM AND HOSPITALITY
• High inflation and land speculation destination
• High leakages from the economies of developing countries
• Low returns on investments because of seasonal fluctuations
in demand; and
• Overdependence on tourism and hospitality
10. IMPACT CONTROL MEASURES
1. Develop tourism and hospitality gradually.
2. Maintain a scale of tourism and hospitality development that is
appropriate for the local as well as national environment.
3. Involve residents and their spokesmen in planning and decision-
making.
4. Apply the concepts of tourism development zones.
5. Make certain that residents have easy access to tourist attractions,
facilities, and services.
11. IMPACT CONTROL MEASURES
6. Provide incentives to local ownership, management, and operations of
hotels and other tourist facilities and services.
7. Develop strong linkages between tourism and hospitality and other
economic activities.
8. Plan, develop, and organize tourism and hospitality.
9. Train local people to work effectively in all levels of tourism and
hospitality.
12. SOCIAL IMPACTS OF TOURISM AND
HOSPITALITY
• The social impacts of tourism and hospitality
refer to the changes in the quality of life of
residents of tourist destinations.
• The objective of social tourism is to ensure that
tourism is accessible to all people.
13. HOST - VISITOR INTERACTIONS
1. Explorer
2. Elite - "the jet-setter.“
3. Offbeat
4. Unusual Tourist
5. Incipient Mass Tourist
1. Mass Tourist
2. Charter Tourist
14. POSITIVE SOCIAL EFFECTS OF TOURISM
AND HOSPITALITY
1. New medium for social change and multicultural understanding.
2. Adaptation to the realities of modern life and works.
3. Knowledge and use of foreign languages; and
4. Health conditions and disease control.
15. NEGATIVE SOCIAL EFFECTS OF TOURISM
AND HOSPITALITY
• Social saturation
• Changes in the social structure, behavior, and roles
• Community problems; and
• Negative demonstrative effects
16. IMPACT OF TOURISM AND HOSPITALITY
ON CULTURE
• ACCULTURATION
• defined as those changes that occur in a culture through borrowing
from other cultures.
• CULTURAL CONVERGENCE
• is the tendency of world cultures to become more alike.
17. POSITIVE EFFECTS OF TOURISM AND
HOSPITALITY ON CULTURE
• Promotion of intercultural
communication
• Renaissance of native culture
19. ENVIRONMENTAL IMPACT OF TOURISM
AND HOSPITALITY
• The history of tourism and hospitality closely shows that the environment has
contributed to the birth and progress of tourism and hospitality.
• The term "environment" connotes both human and physical characteristics.
20. POSITIVE ENVIRONMENTAL IMPACT OF
TOURISM AND HOSPITALITY
Tourism and hospitality has created environmental awareness in two ways:
1. Contact with scenic areas has raised man's awareness of the earth's beauty and
made it easier for him to see and enjoy it with minimum damage; and
2. Environmental awareness has been heightened by mass tourism which caused
direct and indirect destruction.
21. POSITIVE ENVIRONMENTAL IMPACT OF
TOURISM AND HOSPITALITY
1. Conservation and Preservation of the environment not only benefit the local area
but they also determine the future of tourism and hospitality.
1. local residents benefit from the preservation.
2. tourism and hospitality, for as long as it attract tourists, will continue to be a
socioeconomic and cultural asset.
22. 2. DEVELOPMENT OF ATTRACTIONS
A. HISTORIC PRESERVATION
- Many historical sites in both urban and rural areas have been preserved to
attract tourists.
B. RESIDENT BENEFITS
- Tourism and hospitality benefits the local residents in a number of ways.
23. NEGATIVE ENVIRONMENTAL IMPACT OF
TOURISM AND HOSPITALITY
A. ENVIRONMENTAL CONFLICTS
- Some of the problems affecring the quality of the environment are:
• destruction of the vegetation
• pollution (air, water and noise); and
• destruction of wildlife
24. NEGATIVE ENVIRONMENTAL IMPACT
OF TOURISM AND HOSPITALITY
B. GEOLOGICAL CONFLICTS
- Tourism and hospitality affects geological formations. Some tourists collect
minerals, rocks, fossils, and corals from tourist attractions.
C. RESIDENT CONFLICTS
- Number of conflicts frequently occur between residents and tourists or
tourist developers.
