| — LTT LOY Ianspert Socey AND Tonerim SIGNIFICANCE OF TOURISM. CONTENTS i 1.0 Introduction 2.0 Objectives 3.0 Main Content 3.1 Benefits of Tourism 3.2 Impact of Tourism 3.3 Products of Tourism 4.0 Conclusion 5.0 Summary 6.0 Tutor-Marked assignment 7.0 Reference/Further Readings 1.0 Introduction The unit describes the benefits, impact and products of tourism. The benefits explore tourism as one of the major revenue earning of many countries. The impact of tourism has to do with economic, social, cultural and environment factors influencing tourism while tourism products examine physical and psychological contentment of tourists while holidaying. 2.0 Objectives At the end of this unit students should be able to: + List the benefits of tourism + Explain the impact of tourism + Clarify the products of tourism 3.0 Main Content 3.1 Benefits of Tourism Tourism and hospitality, which are inextricably linked to each other, are among the major revenue-carning enterprises in the world. They happen to be among the top employers too. There has been an upmarket trend in tourism over the last few decades as travel has become quite common. People travel for business, vacation, pleasure, adventure or even medical treatments. With several business-related activities associated with tourism, the industry has a tremendous potential of generating employment as well as earning foreign exchange, There are many countries in the world, such as Mauritius, Malaysia, Singapore, Fiji, Dubai and the Caribbean, whose economies are primarily driven by tourism. Tourism can contribute to the economic growth of @ country in many ways. These include employment generation, infrastructural development, foreign exchange earnings, culture propagation, and international recognition, Page 23 of 108Employment Generation It creates a large number of jobs among direct services providers (such as hotel, restaurants, travel agencies, tour operators, guide and tour escorts, etc.) and among indirect services providers (such as suppliers to the hotels and restaurants, supplementary accommodation, etc.} Infrastructure Development Tourism spurs infrastructure development, In order to become an important commercial or pleasure destination, any location would require all the necessary infrastructure such as good connectivity via rail, road, and air transport, adequate accommodation, restaurants, a well-developed telecommunication network, and, medical facilities, among others. Foreign Exchange The people who travel to other countries spend a large amount of money on accommodation, transportation, sightseeing, shopping etc. Thus, an inbound tourist is an important source of foreign exchange for any country. The World Travel and Tourism Council (WTTC) predict in 1997 that the twenty-first-century economy would be dominated by three industries: telecommunications, information technology, and tourism, The travel and tourism industry has grown by 500 percent in the last 25 years. 3.2 Impacts of Tourism Establishing or developing a tourism industry involves expenditure as well as gains, costs, and benefits. If these impacts are taken into consideration from the outset of planning, strengths and opportunities can be maximized while weaknesses and threats can be minimized. Each destination will be different in terms of tourism characteristics. The costs and benefits of tourism varies in each destination and changes over time, depending on tourism and other activities in a destination’s local and regional context. Economic Impacts Tourism activities impact the country’s economy as well as the local economy of the destination. Economics benefits: Tourism generates local employment, directly in the tourism sector and in support and resource management sectors, Tourism stimulates profitable domestic industries, hotels and other lodging facilities, restaurants and food services, transportation systems, handicrafts, and guide services. Tourism generates foreign exchange for the country and injects capital and new money into the local economy. Tourism helps to diversify the local economy. Improved tourism infrastructure and © increase tax revenues from tourism. Page 24 of 108Economic costs: Higher demand created by tourism activity may increase the price of land, housing and a range of commodities necessary for daily life. Demands on health services provision and police service increase during the tourist seasons at the expense of the local tax base. Social Impacts Tourism also affects the society of the destination in good as well as bad ways. It benefits and costs the local communities. Social benefits: The quality of a community can be enhanced by economic diversification through tourism. Recreational and cultural facilities created for tourism can be used by local communities as well as domestic/international visitors. Public spaced may be developed and enhanced through tourism activity. Tourism Enhances local community’s esteem and provides an opportunity for greater understanding and ‘communication among people of diverse background. Social costs: Rapid tourism growth can result in the inability of local amenities and institutions to meet service demands, Without proper planning and management, litter, vandalism, and crime often accompany tourism development. Tourism can bring overcrowding and traffic congestion. Visitors bring with them material wealth and apparent freedom. The youths of the host community are particularly susceptible to the economic expectations these tourists bring and can result in complete disruption of traditional community ways of life. The community structure may change, eg. community bonds, demographics, and institutions. The authenticity of the social and cultural environment can be changed to meet tourism demands. Cultural Impacts Tourism activities also affect the culture of the host country. There are many positive and negative cultural impact of tourism. Cultural benefits: Tourism can enhance local cultural awareness. Tourism can generate revenue to help pay for the preservation of archaeological sites, historic buildings, and districts. Despite criticism about the alteration of culiures to unacceptable levels, the sharing of cultural knowledge and experience can be beneficial for hosts and guests of tourism destinations and can result in the revival of local traditions and crafts. Cultural costs: Youth in the community begin to emulate the speech and attire of tourists. Historic sites can be damaged through tourism development and pressures. There can be long-term damage to cultural traditions and the erosion of cultural values, resulting in cultural change beyond a level acceptable to the host destination. Environmental Impacts Tourism impacts on the environment in positive as well as negative way. These impacts are following below. Page 25 of 108Environmental benefits: Parks and nature preserves may be created and ecological Preservation supported as a necessity for nature-based tourism. Improved waste management can be achieved. Increased awareness and concem for the environment can result from nature-based tourism activities and development. Environmental costs: A negative change in the physical integrity of the area. Rapid development, over-development, and overcrowding can forever change the physical environment and ecosystems of an area. Also, degradation of parks has its impacts, 3.3 Products of Tourism Tourism or tourist products are totality of the physical and psychological satisfaction it provides to tourists, during their ‘traveling and sojourn’ en route at the destinations. Since travel and tourism industry is an agglomeration of numerous sectors that promote travel related services. These sectors are referred to as travel vendors and, . their services and goods are called ‘travel products’. A tourism product includes five main components such as physical plant, services, hospitality, freedom of choice, and a sense of involvement. Thus, whatever the natural and man-made resources, services brought about the consumption of tourists is termed tourism products. Characteristics of Tourism Product Understanding tourism products is important, but describing the characteristics of the products is equally fundamental, Thus, the features of tourism products include intangibility, psychological, perishability, composite products, instability in demand. Intangible: Tourism is an intangible product means tourism is such kind of product which cannot be touched or seen and there is no transfer of ownership, But the facilities are available for specified time and for a specified use. For e.g. a room in the hotel is available for a specified time. Psychological: The main motive to purchase tourism product is to satisfy the psychological need after using the product, by getting experience while interacting with a new environment, And experiences also motivate others to purchase that product. Highly Perishable: Tourism product is highly perishable in nature means one cannot store the product for a long time. Production and consumption take place while a tourist is available. If the product remains unused, the chances are lost i.e. if tourists do not purchase it. A travel agent or tourism operator who sells a tourism product cannot store it. Production can only take place if the customer js actually present, And once consumption begins, it cannot be stopped, interrupted or modified. If the product Page 26 of 108,remains unused, the chances are lost i.e. if tourists do not visit a particular place, the opportunity at that time is lost. It is due to tourism reason that heavy discount is offered by hotels and transport generating organizations during the offseason. 4 Composite Products: Tourist product is a combination of different products. It has not a single entity in itself. In the experience of a visit to a particular place, various service providers contribute like transportation. The tourist product cannot be provided by a single enterprise, unlike a manufactured product. The tourist product covers the complete experience of a visit to a particular place. And many providers contribute to the tourism experience. For instance, airline supplies seats, a hotel provides rooms and restaurants, travel agents make bookings for stay and sightseeing, etc. Unstable Demand: Tourism demand is influenced by seasonal, economic political and others such factors. There are certain times of the year which see a greater demand than others. At these times there is a greater strain on services like hotel bookings, employment, and the transport system, etc. 4.0 Conclusion It can be concluded that the tourism benefits and its social, economic, cultural and environmental impacts increased awareness and concern for nature-based tourism activities and development. Also, the physical and psychological satisfaction tourism provides for tourists at destination and en route destinations promote travel related services. 5.0 Summary In this study unit we assess the benefits, impacts and products of tourism. The unit further describes the highpoints of tourism benefits and impacts as well explain the characteristics of tourism products.