The economic, environmental and
socio‐impact of travel and tourism
Types of tourism impacts
Positive Economic Impacts:
1.Job Creation: Tourism generates employment both
directly (hotels, restaurants, taxis) and indirectly
(supply chain businesses). In remote or rural areas,
tourism can provide critical income sources.
Economic 2.Income Generation: Tourism expenditures contribute
Impacts of to the local economy and stimulate investment,
infrastructure development (transport, sanitation, etc.),
Tourism and other sectors.
3.Foreign Exchange Earnings: Tourism is a top
contributor to foreign exchange in many countries. It is
one of the top five export categories for 83% of the
world's countries.
I can explain both tourism's positive and negative
economic impacts, including job creation, income
generation, and economic leakage.
I can be able to identify and evaluate the environmental
impacts of tourism, distinguishing between resource
depletion, pollution, and the potential for conservation
L.O efforts.
I can Evaluate Socio-Cultural Effects: Students will be
able to assess how tourism affects local cultures,
recognizing both the benefits of cultural exchange and
the challenges of cultural commodification and identity
loss.
Multiplier Effect: Money earned through tourism can
circulate in the local economy, benefiting various
sectors and boosting local businesses.
cont. Reduction of Poverty: In LEDCs, tourism has been
recognized as a means of reducing poverty by
spreading employment opportunities to rural areas.
Economic Leakage: A significant portion of tourism
revenues often leaves the host country through import
leakage (when local resources are insufficient) and
export leakage (multinational companies repatriating
profits).
Negative All-Inclusive Resorts and Cruise Ships: These limit
Economic tourists' interaction with local businesses, reducing the
economic benefits to the local population.
Impacts: Infrastructure Costs: Governments often have to invest
in upgrading infrastructure to support tourism, which
can divert funds from essential public services like
education and healthcare.
Property Price Increase: The demand for land and
buildings in tourist areas may drive up real estate
prices, making it unaffordable for locals and leading to
Cont. displacement.
Positive Environmental Impacts: Conservation Funding:
Tourism can generate funds to conserve natural areas
Environmental and wildlife, particularly through eco-tourism projects.
Impacts of Environmental Awareness: Tourists often gain
Tourism awareness of environmental issues, which can lead to
greater support for conservation efforts.
Negative Environmental Impacts: Resource Depletion:
Tourism can strain local resources such as water, food,
and energy, particularly in fragile environments or
regions lacking infrastructure.
Negative Pollution: Increased waste, sewage, and pollution (air,
Environmental water, and noise) are common issues in popular tourist
destinations.
Impacts Habitat Destruction: Tourism-related activities can lead
to the destruction of ecosystems and wildlife habitats,
particularly in ecologically sensitive areas.
Positive Socio-Cultural Impacts:
Cultural Exchange: Tourism fosters greater cultural
Socio‐Cultural understanding and appreciation between visitors and
local communities.
Impacts of Cultural Preservation: Tourism can provide a platform
Tourism for showcasing and preserving local traditions, arts, and
heritage, especially in areas designated as World
Heritage Sites.
Cultural Commodification: Tourism may commercialize
local cultures, turning traditions and rituals into
performances for tourists, thus eroding their
authenticity.
Cultural Conflicts: Influxes of tourists may create
Negative Socio‐ tensions due to differences in behavior, values, and
Cultural consumption patterns, potentially leading to conflicts
between visitors and local communities.
Impacts: Loss of Cultural Identity: Tourism can lead to the
dilution of cultural identity, where locals may adopt
tourist behaviors and norms, leading to the erosion of
local traditions.
Imagine you are a tourism manager in a developing
country. What steps would you take to ensure that the
economic, environmental, and socio-cultural impacts of
Activity tourism are balanced and sustainable? Provide specific
strategies