NATURE AND SCOPE OF TOURISM B.

Component of Tourism

CHAPTER 4

A .Nature of tourism

•Tourism is travel for pleasure or business; also the

theory and practice of touring, the business of
attracting, accommodating, and entertaining
tourists, and the business of operating tours.
Tourism may be international, or within the
traveller’s country.

•The World Tourism Organization defines tourism

more generally, in terms which go “beyond the
common perception of tourism as being limited to
holiday activity only”, as people “traveling to and Accessibility(Reachability/Transportation)
staying in places outside their usual environment for
not more than one consecutive year for leisure,  Accessibility means reachability to the place
business and other purposes” of destination through various means of
transportation. Transportation should be
•Tourism can be domestic or international, and regular, comfortable, economical and safe.
international tourism has both incoming and  Today there are various means of
outgoing implications on a country’s balance of transportation like airlines, railways, surface
payments. Today, tourism is a major source of and water transportation.
income for many countries, and affects the economy  The transportation should be there for all
of both the source and host countries, in some cases kinds of tourists and destinations.
being of vital importance.
Accommodation
•Tourism suffered as a result of a strong economic
slowdown of the late-2000s recession, between the  It is a place where tourists can find food and
second half of 2008 and the end of 2009, and the shelter provided he/she is in a fit position to
outbreak of the H1N1 influenza virus, but slowly pay for it. There are various types of
recovered. accommodation from a seven star deluxe
hotel to a normal budget class hotel.
•International tourism receipts (the travel item in
the balance of payments) grew to US$1.03 trillion Attraction
(€740 billion) in 2011, corresponding to an increase
 Attraction means anything that creates a
in real terms of 3.8% from 2010.
desire in any person to travel in a specific
•International tourist arrivals surpassed the tourist destination or attraction.
milestone of 1 billion tourists globally for the first  The locale may be used to include the
time in 2012, emerging markets such as China, holiday destination and what it offers to the
Russia, and Brazil had significantly increased their tourist.
spending over the previous decade. The ITB Berlin is  The holiday destination may offer natural
the world’s leading tourism trade fair. attractions.
 Fashion is an important factor in the
demand for various tourist attractions and
 amenities. The tourist who visits a particular  Facilities are very essential for any tourist
place for its natural beauty may decide to centre. They are considered necessary aid
visit some other attractions due to a change to the tourist centre. For a seaside resort
in fashion. facilities like swimming, boating, yachting
surf riding and such other facilities like
C. Elements of tourism deeming recreations
 There are two types of amenities wise,
1. Pleasing weather
natural and man made. Beaches, sea-
 Fine weather with warm sun shine is one of bathing, fishing, climbing, trekki ng, viewing
the most important attractions of any etc. are come under the former category.
tourist place. Particularly good weather As like entertainments
plays an important role in making a holiday
6. Safety and Security
pleasant or an unpleasant experience.
 Safety and security are vital to providing
2. Scenic attractions
quality in tourism. More than any other
 No doubt scenic attractions are very economic activity, the success or failure of a
important factors in tourism. Scenery tourism destination depends on being able
consisting of mountains, lakes, waterfalls, to provide a safe and secure environmeru
glaciers, forests, deserts, is strong forces for visitors.
attracting people to visit them.
7. Other factors
3. Historical and cultural factors
 hospitality is one such factor among the
 Historical and cultural interest exercised variety of factors. It is the duty of the host
tremendous influence over travelers country to be hospitable towards tourists.
 Large numbers of tourists are attracted For this French and Indian governments
every year as like Tajmahal (India), Ajanta have done a lot.
and Ellora caves (architecture painting)  A series of short films on various themes
like "being courteous", "cleanliness" and
4. Accessibility "welcoming a visitor were prepared and
exhibited through wide network cinema a
 Accessibility is another important factor of
theatres all over the country.
tourism. There should be accessibility for
 Slogans like "welcome a visitor-send back a
each and every location of tourist
friend" were displayed at various important
attractions. If their locations are
exists and entry points like railway stations,
inaccessible by the normal means of
airports and seaports.
transport, it would be of little importance.
 Following the above methods, many other
All kinds of transport facilities are to be
countries launched "Be nice" campaigns. It
made available for such locations. The
means that the tourists must be treated as
distance factor also plays am important role
friends.
in determining a tourist's choice of a
destination. Longer distance cost much than D. Causes of Rapid Growth of Tourism
to short distances.
 10 Unique Factors Responsible For the
5. Amenities: Growth of International Tourism
Socio-economic factors like income,
 mobility, age, education and cost are crucial trip to travel supermarket, where the shopper walks
in the evolution of demand. Together with in and selects the destination from any one of the
leisure, these are responsible for thousands of choice.
determining the growth of international Although, there are hundreds of thousands
tourism. circumscribed by a number of factors. These include
The most comprehensive list of factors time, attitude, family responsibilities, finance,
influencing the growth of tourism, however, education, physical health and well- being.
comes from Louis Erdi of the Swiss Federal Travel Motivators can be defined as those factors
University. that create a person’s desire to travel. Motivators
are the internal psychological influences affecting
The list includes; individual’s choices.
Motivations operate on individuals travel purchase
Greater affluence and more leisure for an increasing
choices within the framework already set by the
number of people particularly, in the developed
determinants of demand.
countries.
Several attempts have been made to study as to why
The emancipation of the young, and the relatively
people wish to travel or become tourists. Mcintosh
higher wages they possess (when they have no
has stated that basic travel motivators may be
family responsibilities), enabling them to travel.
grouped into following three broad categories.
Transport facilities, especially air, very much better (i) Physical Motivators:
and cheaper and there is a high rate of car These are related to physical relaxation and rest,
ownership. sporting activities and specific medical treatment.
An enormous growth in international business, The entire above are concerned with the individual’s
necessitating travel. Package tours allow people, not bodily health and well-being.
used to making their own arrangements, to travel (ii) Interpersonal Motivators:
with an easy mind and are good value because of These are related to a desire to visit and meet
bulk buying of transport and hotel accommodation. relatives, friends or forge new friendships or simply
Relief from adverse climatic conditions in the home to escape from the routine of everyday life.
country may be found abroad. Travel has become a (iii) Status and Prestige Motivators:
status symbol. Conferences and business meeting These are identified with the needs of personal
are proliferating. esteem and personal development. These
motivators also relate to travel for business or
Better education has interested a large section of the professional interests, for the purpose of education
public in cultural tourism. World exhibitions and or pursuit of hobbies.
trade fairs have becomes very popular. Motivations for travel cover a broad range of human
Publicity has become more and more aggressive, behaviour and experiences. Breaking down and
whetting the appetite of even those most unwilling elaborating these will give reasons as to why more
to travel. and more people engage in tourism.
Ideological pressure groups (Political, Cultural,
Scientific, etc.) organize more and more annual 2. Pleasure:
conventions and conferences, etc. Getting away from the routine of everyday life is
perhaps the most important motive of all in recent
Factors: times. The individual desire and need for pure
1. Travel Motivations: pleasure is very strong. An individual likes to have
Without people’s motivation to travel, there would fun excitement and a good time whenever possible.
be no tourist industry. The prospective traveler’s The significance of the pleasure factor is widely
selection of a destination is sometimes likened to a
utilized by travel agents and tour operators who are festivals, theatre and other cultural events of
astute psychologists when it comes to selling tours. importance. Curiosity has been one of the major
Various brochures and folders particularly emphasise reasons for tourism.
the pleasure aspect of holidays and travel. There has always been curiosity in man about
foreign lands, people and places. In the present day
3. Relaxation, Rest and Recreation: world, technological developments in the area of
Industrialisation and urbanization has created great mass media have made it possible for people to
pressures on modern living. The stress and strain of read, see and hear about different places.
modern city life has made it more necessary than
ever before for people to get away from all this and The increasing interest shown by many in
relax in an atmosphere which is more peaceful and architecture, act, music, literature, folklore, dance,
healthy. paintings and sports, in other people’s culture or in
Relaxation is very essential to keep the body and archaeological and historical remains and
mind healthy. There may be various forms of monuments, is but another aspect of man’s curiosity
relaxation and rest. To some, it is secured by a to seek more knowledge.
change in the environment. Others seek relaxation in This curiosity has been stimulated by pore
seeing new places, meeting strangers and seeking education. International events like Olympic Games,
new experiences. Asian Games, national celebrations, exhibitions,
special festivals, etc. attract thousands of tourists.
4. Health:
The development of spas during the Roman Empire 7. Ethnic and Family:
was the result of people’s desire to seek good This includes visiting one’s relatives and friends,
health. The subsequent establishment of many meeting new people and seeking new friendships. A
sanatoria in Switzerland was the result of an large number of people make travel for
awareness of the various benefits of good health. interpersonal reasons. There is considerable travel
These sanatoria1 laid the foundations for future by people wanting to visit friends and relatives.
resort developments. A large number of Americans visit European
Many travel to spas, and clinics for curative baths countries in order to see their families or because,
and medical treatment. In some countries is given to they feel they are visiting their homeland. Every year
spa treatment. thousands of people visit India for ethnic reasons.
Many friendships have been made as a result of
5. Participation in Sports: holiday acquaintances.
There has been an increasing participation in a wide
variety of sporting activities such as mountaineering, 8. Spiritual and Religious:
walking, skiing, sailing, fishing, sunbathing, trekking, Travel for spiritual reasons has been taking place
surf-riding, etc. More and more people these days since a long time. Visiting religious places has been
are taking holidays involving physical activities. one of the earliest motivators of travel. A large
In recent years there has been a big increase in number of people have been making pilgrimages to
sporting holidays. The visitor; go to places primarily religious or holy places.
to indulge in a sporting activity to which all their This practice is widespread in many parts of the
energies are directed. world. In the Christian world, for instance, a visit to
Jerusalem or the Vatican is considered to a great act
6. Curiosity and Culture: of faith.
An increasing number of people are visiting different
lands, especially those places having important 9. Status and Prestige:
historical or cultural associations with ancient past This relates to ego needs and personal development.
or those places holding special art festivals, music Many people undertake travel with a view to talk
about it to their relives and friends. They like to Social Causes:
impress them by relating their experiences in the The social causes of the rapid growth of tourism on
various places visited. the other hand can be linked with new attitudes
They also travel because, they think it is fashionable towards travel and leisure. Traditionally considered a
to do so and, perhaps, show that they can afford to luxury, travel now is considered to be a normal
do it. ‘Foreign tour’ is a magic world and people like activity and an indispensable part of lifestyles and
to mention it to their friends and other consumption patterns of a large majority of people
acquaintances. enjoying a higher standard of living.
The present day tourist, having a different kind of a
10. Professional or Business: background than a traveller of the past, is much
Attending conventions and conferences related to more informed. His ideas about travel are quite
the professions, industry or commerce or to some different and he comes from a wider social
organisation to which the individual belongs has background. His tastes and desires are much more
become very popular. The ‘convention travel’ has varied.
made great strides in recent times. A large number of people are now going abroad to
Many countries, in order to attract more tourists, participate in more exciting, challenging and exotic
have established grand convention complexes where activities like mountaineering, water skiing, trekking,
all kinds of modern facilities are provided for winter sports, underwater swimming and the like.
business meetings, seminars and conventions.
Large hotels also provide facilities for conventions as Technological Causes:
a large number of peoples travel for business and The technological causes of the rapid growth of
professional reasons. tourism can be associated with the advancements
Conventions and conferences associated with made in modernizing transport and communication
education, commerce, industry, politics and various systems.
professions are increasingly being held in various The impact of the modern transport technology,
parts of the world. Although, some topple travel especially in the aviation field has brought about a
strictly for business purposes, the majority link completely new meaning to travel and tourism.
business travel with pleasure. Travel to even remote destinations has now become
a reality.
E. Social and Technological Causes for the Rapid The technological developments have now made it
Growth of Tourism possible for an increasing number of people to travel
to faraway place which only a few decades ago.
The principal causes of the rapid growth of demand
for tourism in the highly developed industrialized F. Impacts of Tourism
countries in the course of recent decades can be
summed up as economic, social and technological in The study of the effect that tourism has on
nature. environment and communities involved is relatively
Rising per capita incomes, coupled with increasing new. Impacts are not easily categorized, having
prosperity, had given higher purchasing power and direct and indirect components. Also tourism is
an increase in discretionary incomes to a large often seasonal, and impacts only become apparent
majority of people. As a result this has made tourism after time, with varying effects, and at different
and travel accessible to many. stages of development.
A larger proportion of people can now afford an Three main categories.
‘annual holiday’. In fact, many can even afford to 1.Environmental impacts: impacts that affect the
take a ‘second holiday’ for a shorter or a longer carrying capacity of the area, vegetation, air quality,
duration. The economic prosperity has also resulted bodies of water, the water table, wildlife, and
in many more people owning a private motor car. natural phenomena.
2. Sociocultural impacts: associated with As the destination develops, more tourists seek out
interactions between peoples and culture the experience. Their impacts increase accordingly.
background, attitudes and behaviors, and their The requirement for water for washing, waste
relationships to material goods. The introduction of disposal, and drinking increases. Rivers can be
tourists to sensitive areas can be detrimental, cause altered, excessively extracted, and polluted by the
a loss of culture, or, alternatively, contribute to the demands of tourists.
preservation of culture and cultural sites through Noise pollution has the capacity to disturb wildlife
increased resources. and alter behavior, and light pollution can disrupt
3. Economic impacts: usually seen as positive, the feeding and reproductive behaviour of many
contributing to employment, better services, and creatures. When power is supplied by diesel or
social stability. Yet these impacts can also gasoline generators there is additional noise and
contribute to high living costs within the community, pollution.
pushing local business out of the areas, and raising General waste and garbage are also a result of the
costs for locals facilities. As more tourists arrive there is an increase
in food and beverages consumed, which in turn
1. Environmental Impacts creates waste plastic and non-biodegradable
products.
Ecotourism, nature tourism, wildlife tourism, and
Tourist activities
adventure tourism take place in environments such
For many tourists the main reason for their vacation
as rain forests, high alpine, wilderness, lakes and
is to engage in various types of physical activities,
rivers, coastlines and marine environments, as well
and enjoy interacting with nature in a way that they
as rural villages and coastline resorts.
would not ordinarily be able to do. These activities,
Peoples' desire for more authentic and challenging
such as hiking, trekking, kayaking, bird watching,
experiences results in their destinations becoming
wildlife safaris, surfing, snorkelling, and scuba-diving
more remote, to the few remaining pristine and
all affect the local ecology. Even the most
natural environments left on the planet.
environmentally aware tourist cannot help but cause
The positive impact of this can be an increased
some degree of impact while partaking in their
awareness of environmental stewardship. The
activity.
negative impact can be a destruction of the very
There are a range of impacts from hiking, trekking,
experience that people are seeking.
and camping that directly affect the activity area.
There are direct and indirect impacts, immediate
The most obvious is the erosion and compaction of
and long-term impacts, and there are impacts that
the trail itself. The daily use of the trail by hikers the
are both proximal and distal to the tourist
trail wears the trail down and compacts it. If there
destination.
are any obstacles such as fallen trees or puddles of
These impacts can be separated into three mud, then the trail becomes widened or informal
categories: trails are created to bypass the obstacle.
Facility Impacts There are a number of other direct impacts on the
Facility impacts occur when a regional area evolves treaded area, such as damage or removal of
from "exploration" to "involvement" and then into vegetation, loss of vegetation height, reduction in
the "development" stage of the tourist area life foliage cover, exposure of tree root systems,
cycle. migration of trampled vegetation, and introduction
During the latter phase there can be both direct and of non-native species.
indirect environmental impacts through the
As well as the direct impacts, there are indirect
construction of superstructure such as hotels,
impacts on the trails, such as a change in soil
restaurants, and shops, and infrastructure such as
porosity, changes to microflora composition,
roads and power supply.
problems with seed dispersion and germination, and caused by trophy hunting.
degradation of soil nutrient composition. There is a continued discussion at federal and
As many hikers and trekkers take multi-day trips, a international government level as to the ethics of
large number will camp overnight either in formal or funding conservation efforts through hunting
random campgrounds. There are similar impacts on activities.
campgrounds such as soil compaction, erosion and
composition, loss of vegetation and foliage, plus the Another tourism destination activity is scuba diving.
additional issues of campfires for cooking and There are many negative direct environmental
warmth. Informal trails are created around the impacts caused by recreational diving. The most
campsite in order to collect firewood and water, and apparent is the damage caused by poorly skilled
trees and saplings can be trampled, damaged, or cut- divers standing on the reef itself or by accidentally
down for fuel. The heat of campfires may damage hitting the fragile coral with their fins. Studies have
tree-root systems. shown that "naïve" divers who engage in
In formal campgrounds, tent pad areas are normally underwater photography are considerably more
devoid of any vegetation while random camping can likely to accidentally damage the reef.
damage sensitive plants and grasses during a single As the cost of underwater photography equipment
overnight stay. has declined and its availability increased, it is
inevitable that there will be an increase of direct
As with most recreation activities, including hiking damage to reefs by divers. Other direct impacts
and camping, there will be waste generated, food include over-fishing for "marine curios",
scraps, and human waste. This can cause human- sedimentation, and in-fill.
wildlife interactions, such as the habituation of There is also direct environmental impact due to
wildlife to human contact and unusual food sources. disturbed and altered species behaviour from fish
This can have a detrimental effect on the wildlife and feeding, as well as import of invasive species and
pose dangers for the human. Provision for deposit, pollution caused by dive-boats. There are also
collection, and removal of all waste will also have a indirect impacts such as shoreline construction of
direct impact on the local environment. superstructure and infrastructure.
Another activity that can have severe direct and
indirect impacts on the environment is wildlife Transit effects
viewing. This happens in a range of formats, on land Since 2009 there has been a steady yearly increase in
and in the ocean. As with every human-wildlife the number of tourist arrivals worldwide of
interaction, there is a change in the natural approximately 4.4 percent. In 2015 there were 1.186
interaction of the species. The mere presence of billion tourist arrivals worldwide, of which 54
humans can increase the heart rate and stress percent arrived by air (640 million), 39 percent (462
hormones of even the largest animal. million) by motor vehicle, 5 percent by water (59
Other changes in behavior have been recognized. million), and 2 percent by rail (23.7 million).
For example, baboons and hyenas have learnt to A seven-hour flight on a Boeing 747 produces 220
track tourist safari vehicles to lead them to cheetah tonnes of CO2, which is the equivalent of driving an
kills, which they then steal. This direct impact of can average size family saloon car for a year, or the
severely damage the delicate balance of the food energy requirement of an average family home for
webs and keystone species. nearly 17 years.
There is a small but significant number of tourists With the ever-increasing number of tourist arrivals,
who pay considerable sums of money in order to there is an ever-increasing quantity of global
trophy hunt lions, rhino, leopards, and even giraffes. greenhouse gasses (GHG) being produced by the
It has been argued that there is a positive and tourism industry. In 2015 it is estimated that 5
negative, direct and indirect, environmental impact
percent of global GHG emissions was attributable to volume of tourism at work, but the types of social
air travel alone. interactions that occur between tourist and host.
There are three broad effects at the local level:
As more eco-tourists seek remote, pristine, -the commodification of culture
undeveloped regions, and practise low-impact, -the demonstration effect
"leave no trace" adventure vacations, their GHG -the acculturation of another culture.
contributions have increased exponentially.
As a result of the accumulation of GHGs the annual Commodification Of Culture
average global temperature is rising each year. New
records were set in 2014, 2015 and it is predicted Commodification of culture refers to the use of a
that 2016 will yet again exceed the previous highest cultural traditions and artifacts in order to sell and
average global temperature. profit for the local economy. With the rise of
It is causing the oceans to warm and causing tourism, authors argue that commodification is
increased frequency of abnormal weather events inevitable.
such as floods and hurricanes. There are both positive and negative sociocultural
The increase in the amount of CO2 dissolved into the impacts of commodification on a culture. One
oceans is changing its chemical composition, leading positive is the creation of business and jobs for local
to acidification of the oceans, which in turn has led craftsmen, who are able to sell their goods to
to bleaching of coral reefs worldwide. tourists. Rural tourism is seen as a “cure” for poverty
and leads to the improvement of transportation and
In 2016 it was determined that the world's largest development of telecommunications in an area.
coral reef, the Great Barrier Reef, is so badly affected For the tourist, commodification creates an interest
by bleaching that only 10 percent remained for traditional arts and social practices.
unspoiled and the remaining 90 percent has varying However, critics of commodification believe that
degrees of degradation. tourists are not interested in cultural beliefs and
A recently discovered issue in the Pacific Northwest traditions of the locals, but are rather obsessed with
caused by acidification, is the decreased survival of owning a part of it. The argument that by monetizing
pteropods, a key source of food for salmon. These cultural artifacts locals lose the value to their culture
microscopic invertebrates, known as sea butterflies, also exists. It then leads to the belief that tours are
are unable to form their outer shells and die. no longer authentic experiences. However,
These tiny creatures make up a significant portion of development economists will argue that culture can
the salmon diet. Without this nutrition available to be utilized just as any other natural resource.
the salmon, they may not grow to maturity to return
to their spawning grounds to reproduce and provide Researchers look at the impact of tourists on a
food for bears. Bears cycle nutrients through the culture and in short, many argue that the contact
forest, where tourists come to view or hunt the with the secular West leads to the destruction of
bears. Thus the food web is disturbed. pre-tourist cultures.
Anthropogenic climate change has both a direct and In addition, the “development cure”, the idea that
indirect impact on tourism. increasing tourism will spur economic change while
2. Sociocultural impacts of tourism strengthening local culture, is claimed to lead to new
diseases, such as “drug addiction, crime, pollution,
An inherent aspect of tourism is the seeking of prostitution, and a decline in social stability” as well
authenticity, the desire to experience a different as growth of capitalist values and a consumer culture
cultural setting in its natural environment.
Although cultural tourism provides opportunities for Demonstration Effect
understanding and education, there are serious
impacts that arise as a result. It is not only the
The demonstration effect was introduced to tourism become more authentic. The community and the
when researchers were looking into the effects of tourists both benefit from community participation,
social influences from tourism on local communities. as it boosts their respect for the traditional lifestyle
The demonstration effect argues that local and values of the destination community. Most
inhabitants copy the behavioral patterns of tourists. destination community members are also the ones
There are a number of social, economic and most impacted by tourism, therefore there is an
behavioral reasons as to why the demonstration importance in their involvement in tourism planning.
effect comes into play. One economic and social
reason is that locals copy the consumption patterns Some researchers will argue that some of the
of those higher up the social scale in order to negative impacts of tourism might be avoided and
improve their social status. the positive impacts maximized through community
Tourism has also been accused of affecting social participation in the planning process
behavior of the younger members of a host
community, who may imitate what tourists do, Acculturation
impacting traditional value systems. Acculturation is the process of modifying an existing
Criticisms of the demonstration effect culture through borrowing from the more dominant
There are many criticisms to the demonstration of cultures. Typically in tourism, the community
effect in tourism. Firstly, tourism is seen as only one being acculturated is the destination community,
aspect of change in a society. Local people will also which then experiences dramatic shifts in social
see examples of foreign lifestyles and consumption structure and world view.
in advertisements, magazines, on television, and in Societies adapt to acculturation in one of two ways.
films, and therefore tourism is not the only influence Innovation diffusion is when the community adopts
on local culture. practices that are developed by another group;
In addition, the demonstration effect implies that a whereas cultural adaptation is less adoption of a
culture is “weak” and needs to be protected by new culture and more the process of changing when
outside influences. In many cases, the demonstrative the existing culture is changed.
effect is seen as a negative consequence, but it is Acculturation is often seen as a method of
argued that “all cultures are in a continual process of modernizing a community and there are many
change”, therefore tourism should not be considered opposing views to the concept of modernization.
destructive. One argument against modernization is that it
Also, there are arguments that the demonstration contributes to the “homogenization of cultural
effect works the opposite as well, where a local differences and the decline of traditional societies”.
culture will influence tourists, and the tourists will This means that communities will advertise their
imitate local behavior. modernity to attract tourists, and will disregard their
traditional customs and values.
Community Participation On the other hand, others argue that acculturation
Community participation refers to the collaboration and modernization will help traditional communities
between community members for the purposes of adjust in a modern world. The idea being that
achieving common goals, improving their local teaching people to adapt will save the community
community and pursuing individual benefits. from future extinction.
Local community members are actively involved in Positive socio-cultural impacts
tourism, rather than passively benefiting from it. There are number of benefits for the host
Community participation strengthens communities community as a result of tourism. This includes
and help to create a sense of belonging, trust and economic benefits such as opportunities for local
credibility among members. businesses which allows for increased trade among
By involving local community members, tourism can the increased number of visitors and then develops a
variety of local businesses. impacts are differences in social and moral values
In addition, tourism also brings employment among the local host community and the visiting
opportunities, enhances the economy of the region, tourist. Outside of affecting the relationship
and creates revenue for the local government. between tourist and local, it can also cause friction
Tourists also use public services, creating funding for between groups of the local population.
public services, such as health, the police and the fire
department, as well as increasing the demand for In addition, it can cause drifts in the dynamics
public transport. between the old and new generations. Tourism has
Other public facilities, such as parks and benches are also correlated to the rise of delinquent behaviors in
also well kept by the community for the tourists, local host communities.
improving the overall aesthetics of the host Crime rates have been seen to rise with the increase
community. of tourists. Crimes are typically those of rowdy
On a more social level, tourism leads to intercultural behavior, alcohol and illegal drug use, and loud
interaction. Tourists often engage and learn from the noise. In addition, gambling and prostitution is
locals. Tourism can also increase pride in locals. They increased due to tourists looking for a “good time”.
want to show off their community that tourists have Tourism has also caused more disruption in host
chosen to visit. communities. Crowding of locals and tourists may
The increase in people also leads to creating more create a vibrant ambiance, it also causes frustration
social venues and experiences where locals and and leads to the withdrawal of local residents in
tourists can interact in. Entertainment and many places. Increased tourists also results in
recreational facilities will allow for more opportunity increased traffic which can hinder daily life of the
to socialize and engage with each other. local residents.
Tourism can be beneficial for the host community as
3. Economic impacts
it provides the financial means and the incentive to
preserve cultural histories, local heritage sites, and Global tourism in 2014 contributed 3.7 percent
customs. It stimulates interest in local crafts, (US$2.5 billion) to the world's GDP, with its total
traditional activities, songs, dance, and oral histories. contribution rising to almost 10 percent of world
GDP.
It also opens up the community to the wider world,
new ideas, new experiences, and new ways of
thinking. The GDP increase comes from the over one billion
international tourists worldwide, a number that has
Negative sociocultural impacts been growing by 5 percent annually since 2012.
There can be negative effects from cultural Visits and boosts to GDP are expected to continue to
interactions. rise in the near future as falling oil prices contribute
In terms of economic disadvantages, local to reduced living costs and increased available
communities need to be able to fund the tourist income for households, as well as reduced costs for
demands, which leads to an increase of taxes. The air travel.
overall price of living increases in tourist destinations
in terms of rent and rates, as well as property values Tourism can be divided into subcategories into
going up. This can be problematic for locals looking which impacts fall:
to buy property or others on a fixed income. ✓spending from visitors on tourism experiences like
In addition, to balance out tourist destinations, the beach holidays and theme parks (domestic and
number of locals to tourists must be relatively equal. international)
This can be more problematic for tourists as their ✓spending on leisure items like bicycles,
access could be denied. Other negative sociocultural
✓business spending communities related to the economic impacts of
✓capital investment tourism in their communities.
A positive impact can refer to the increase in jobs, a
The economic contribution of tourism is felt in both higher quality of life for locals, and an increase in
direct and indirect ways, where direct economic wealth of an area. Tourism also has the advantage of
impacts are created when commodities like the rebuilding and restoring historic sites and
following are sold: accommodation and encouraging the revitalization of cultures.
entertainment, food and beverages services, and A positive impact is to increase or to make better
retail opportunities. either for the tourist, the host community and
Residents, visitors, businesses, and various levels of residence and/or the tourist destination. Positive
governments (municipal to federal) all influence impacts are related more to the materialistic well-
direct tourism impacts through their spending in or being, rather than to the happiness of a host
near a given tourism area. community or tourist
The key component of direct economic impacts of
tourism is that they occur within a country's borders The tourist destination enjoys positive impacts, if
and are implemented by "residents and non- there have been improvements to the natural
residents for business and leisure purpose environment such as protection, national parks, or
man-made infrastructure, waste-treatment plants.
In contrast, indirect economic impacts of tourism Tourism provides the economic stimulus to allow for
can be found in investment spending surrounding a diversification of employment and income potential,
tourism offering from private and governmental and develop resources within the community.
interests. This investment may not explicitly be Improvements in infrastructure and services can
related to tourism, but benefits the tourist and local benefit both the locals and the tourists.
stakeholders all the same. Whereas, heritage tourism focuses on local history
Indirect impacts of tourism are exemplified by the or historical events that occurred in the area, and
purchase and sale of intermediary items like tends to promote education.
additional supplies for restaurants during the high Positive impacts begin when there is an increase in
tourism season, or widened sidewalks in busy job opportunities for locals as the tourism industry
downtown centres. becomes more developed. There is also an increase
Indirect economic impacts (the supply chain, in average income that spreads throughout the
investment, and government collective) account for community when tourism is capitalized on.
50.7 percent of the total GDP contribution from
travel and tourism in 2014 In addition, the local economy is stimulated and
diversified, goods are manufactured more locally,
Induced spending, the re-circulation of a tourist and new markets open for local business owners to
dollar within a community, is another way that expand to.
tourism indirectly has an impact on a community. Unfortunately, these benefits are not universal nor
For example: invulnerable. While more employment may be
A foreign tourist injects money into the local available, tourism-related jobs are often seasonal
economy when he spends a dollar on a souvenir and low-paying.
made by a local at the tourism destination. That Prices are known to fluctuate throughout the year.
individual goes on to spend that dollar on lunch from They rise in the high tourist season to take
a local vendor, and that vendor goes on to spend it advantage of more tourist dollars, but have the side
locally effect of pricing goods above the economic reach of
local residents, effectively starving them out of a
Positive and negative economic impacts of tourism
place that was once their home
There are both positive and negative effects on
Negative impacts are the effects, that are caused in necessary to accommodate these travel products
most cases, at the tourist destination site with (airports, harbours, etc.)
detrimental impacts to the social and cultural area,
as well as the natural environment. Tourism Satellite Account (TSA)
The World Travel and Tourism Council (WTTC)
As the population increases so do the impacts, tourism satellite account (TSA) is a system of
resources become unsustainable and exhausted, the measurement recognized by the United Nations to
carrying capacity for tourists in a destination site define the extent of an economic sector that is not
may become depleted. so easily defined as industries like forestry or oil and
Often, when negative impacts occur, it is too late to gas
impose restrictions and regulations. Tourist Tourism does not fit neatly into a statistical model;
destinations seem to discover that many of the because it is not so much dependent on the physical
negative impacts are found in the development movement of products and services, as it is on the
stage of the tourism area life cycle (TALC). position of the consumer.
Therefore, TSAs were designed to standardize these
Additionally, the economics of tourism have been many offerings for an international scale to facilitate
shown to push out local tourism business owners in better understanding of current tourism
favour of strangers to the region. circumstances locally and abroad.
Foreign ownership creates leakage (revenues leaving The standardization includes concepts,
the host community for another nation or classifications, and definitions, and is meant to
multinational business) which strips away the enable researchers, industry professionals, and the
opportunity for locals to make meaningful profits. average tourism business owner to view
Foreign companies are also known to hire non- international comparisons.
resident seasonal workers because they can pay
those individuals lower wages, which further Before TSAs were widely implemented, a gap existed
contributes to economic leakage. Tourism can raise in the available knowledge about tourism as an
property values near the tourism area, effectively economic driver for GDP, employment, investment,
pushing out locals and encouraging businesses to and industry consumption; indicators were primarily
migrate inwards to encourage and take advantage of approximations and therefore lacking in scientific
more tourist spending and analytical viewpoints.
This gap meant missed opportunities for
Employment development, as tourism stakeholders were unable
Employment, and both its availability and exclusivity, to understand where they might be able to better
are subsets of economic impacts of tourism. establish themselves in the tourism economy. For
Travel and tourism create 10.7 percent of the total example, a TSA can measure tax revenues related to
available jobs worldwide, in both the direct and tourism, which is a key contributor to the level of
indirect tourism sectors. enthusiasm any level of government might have
Direct tourism jobs, those that provide the visitor towards potential tourism investment
with their tourism experience include, but are not
limited to: accommodation (building, cleaning, In addition, Tyrrell and Johnston suggest that
managing), food and drink services, entertainment, stakeholders in tourism benefit from the TSA
manufacturing, and shopping because it:
Indirect tourism employment opportunities include •provides credible data on the impact of tourism
the manufacturing of aircraft, boats, and other and the associated employment
transportation, as well as the construction of •is a framework for organizing statistical data on
additional superstructure and infrastructure tourism
•is an international standard endorsed by the UN
Statistical Commission
•is an instrument for designing economic policies
related to tourism development
•provides data on tourism's impact on a nation's
balance of payments
•provides information on tourism human resource
characteristics
Through collection of more qualitative data and
translating it into a more concise and effective form
for tourism providers, TSAs are able to fill the
previous knowledge gap.
Information delivered and measured by a TSA
includes tax revenues, economic impact on national
balances, human resources, employment, and
"tourism's contribution to gross domestic product"