Impacts of tourism and hospitality.pptx

Macro Perspective of Tourism and Hospitality

1. Impacts of Tourism and Hospitality

2. Positive Effect Negative Effect Impact Control Measure 03. Economic 02. 01. 04. Social Culture Environment

3. The Positive Economic Effect of Tourism and Hospitality TOURISM INCOME In general, it comes from wages and salaries, interest, rent, and profits. . Since tourism and hospitality is a labor intensive industry, the greatest proportion of its income is derived from wages and salaries. Income is also obtained from direct or indirect taxation ( e.g VAT is an indirect taxation). Tourism and hospitality is both an income generator and an income redistributor. The sum of all income in a country is called national income.

4. The Positive Economic Effect of Tourism and Hospitality EMPLOYMENT Tourist industry offer more employment opportunities than other economic sector. 3 types of Employment Generated by TH Industry Direct - providing services directly to tourist. Indirect - associated with other tourism related activities but are used by both local resident and tourist. Induced - people working in positions only peripherally related to tourism and hospitality but generated because of it. (construction workers, engineers, and architects)

5. The Positive Economic Effect of Tourism and Hospitality BALANCE OF PAYMENT Tourism and hospitality has a major influence on the country’s balance of payments. A balance of payment is an accounting of flow of goods, services and funds in and out of the country. If a country pays or agrees to pay more money than it receives, it has a deficit in its balance of payment. If it receives more money than it sends or exports, it has a surplus in its balance of payment.

6. The Positive Economic Effect of Tourism and Hospitality INVESTMENT AND DEVELOPMENT Once an area has become economically succesful, businessmen and government agencies may be influenced to invest in tourism and hospitality and other industries in that area. This is known by the economists as an accelerator concept.

7. The Negative Economic Aspect of Tourism and Hospitality INFLATION AND LAND VALUES Inflation with in destination ares is also caused by increasing land values. The demand for more hotels, vacation homes and tourist facilities may bring more income to builders, real estate agents and land owners, but local residents are forced to pay more for their homes because of the increased value of land.

8. HIGH LEAKAGES Leakages occcurs from a variety of sources. It occurs from: cost of goods and services that must be imported to satisfy the needs of tourist. expenditure for promotion and publicity to encourage tourist to visit a certain destination. All of this is a large expense that reduces the earnings of destination area. The Negative Economic Aspect of Tourism and Hospitality

9. SEASONALITY Many tourist regions experience low return on investment because of seasonal fluctuations in demand. The seasonality demand is reflected in hotel occupancy rates. Many hotel experience greatly reduced revenues during the off season. Nevertheless, most hotel prefer to remain open all year round to secure as much revenue as possible. Accommodation investment are not the only ones with a low rate of return; tour operators also face similar problems. The Negative Economic Aspect of Tourism and Hospitality

10. OVERDEPENDENCE ON TOURISM AND HOSPITALITY Some destination have made themselves vulnerable to change in tourist demand by becoming overdependent on tourism and hospitality for their livelihood. Tourism is highly susceptible to changes from within and outside the industry. Examples of changes from within are price and fashions; while global economic trends, political situations, and energy availability are examples if outside changes. The Negative Economic Aspect of Tourism and Hospitality

11. There are ways to maximize the benefits of tourism and hospitality to the destination area. Edward Inskeep (1991), a consultant for the United Nations World Tourism Organization has suggested the following: Develop ourism and hospitality gradually so that local residents can have sufficient time to adapt to it and understand it. Maintain a scale of tourism and hospitality development that is appropriate for the local as well as national environment. Involved residents and their spokesmen in planning and decision making so that they can participate in determining the future of this sector. Apply the concepts of tourism development zones. Make certain that residents have easy access to tourist attractions, facilities, and services including reduced admission fee if necessary and that important amenity features have public access and are not preempted by tourism. Provide incentive to local ownership, management and operations of hotels and other tourist facilities and services so that residents can receive direct economic benefits. Impact Control Measure

12. Social Impacts of Tourism and Hospitality The social impacts of tourism and hospitality should not be confused with the popular term “social tourism”. It refers to the changes in the quality of life of residents of tourist destinations. The objective of social tourism is to ensure that tourism is accesible to all people. HOST-VISITOR INTERACTION Tourism and hospitality cause more interaction between people particularly between the tourist or visitors and the local residents or hosts. Smith (1997) categorized tourist into several type and outlined her views on the intensity of interaction between tourist and the local residents. Her classifications are: a. Explorer - an active observer, can easily adapt to local lifestyle and does not need speacial tourist accommodation

13. b. Elite - this type of tourist is few in number. He can afford to pay well for unusual vacations. He is a well traveled and usually known as “jet-setter”. His arrangement are either made by a travel agent or may be pre-planned. Although he is willing to sample the local lifestyle, he requires some degree o comfort. c. Offbeat - the tourist adapt well to simple accommodation and service provided for occasional guest. d. Unusual Tourist - this tourist loves sub-exotic cultural sites and the unusual or primitive sites as long as he can quickly and safely return to more familiar surroundings and group. e. Incipient Mass Tourist - This is a visitor who looks for the amenities of Western Societies in hotels and other travel-related facilities. He is a mixture of both pleasure seeker and business traveler. f. Mass Tourist - Comes from middle class. He arrives in a destination with other tourist. There is a diversity of taste among them and their attitude is “you get what you pay for”. g. Charter Tourist - the charter tourist comes en masse with others of his kind creating an extremely high amount of business and receiving a high degree of standardization in services nd products. The interaction between the visitors and the hosts is limited and impersonal.

14. Positive Social Effects of Tourism and Hospitality SOCIAL CHANGE AND MULTICULTURAL UNDERSTANDING ADAPTATION TO THE REALITIES OF MODERN LIFE AND IMPROVEMENT OF THE HOST COUNTRY’S LIFESTYLE USE OF FOREIGN LANGUAGE IMPROVED HEALTH CONDITIONS AND DISEASE CONTROL

15. Negative Social Effects of Tourism and Hospitality While tourism and hospitality has enabled different people to strengthen the social structure, mass tourism has brought with its expenses and problems. SOCIAL SATURATION - The presence of large number of tourist in particular places at specific times result in saturation or congestion. CHANGES IN SOCIAL STRUCTURE, BEHAVIOR AND ROLES - Changing the population characteristics. COMMUNITY PROBLEMS - Prostitution and Criminal Activities NEGATIVE DEMONSTRATIVE EFFECTS - It consist of behavior which can be considered socially and economically inappropriate. One of the major results of negative demonstrative effect is the polarization of the host from the tourist, which happens in a number of ways: 1. Tourist often demand commodities and facilities beyond the economic capacity of local residents. 2. Social norms of tourist are very different from the local customs give rise to social problems. 3. Importation of foreign workers from more developed countries.

16. A number of control measures can be adapted to decrease the negative change in an area. Some of this are: Reducing the contact between host and guest by limiting the carrying capacity of the destination. Separating the hosts and the tourist within tourist enclaves. Designing community education and citizen involvement programs centered on tourism and hospitality development, policy and regulatory issues Expanding human resource development and training programs in all components of the tourism and hospitality system to include social skills. Impact Control Measure

17. Tourism and hospitality increases the acculturation process as well as the cultural convergence of people. Acculturation is defined as those changes that occur in a culture through borrowing from other culture. These changes may include technology, language and values. Cultural convergence is the tendency of world cultures to become more alike. Tourism and hospitality is a vital force in acculturation since it causes more interaction between people. Impacts of Tourism and Hospitality on Culture

18. Positive Effects of Tourism and Hospitality on Culture RENAISSANCE OF NATIVE CULTURE Tourism and hospitality may be important to the host country to remind its people of its history and culture. Many traditional folks customs and costumes are preserved to attract visitors. Folk culture festival are organized to attract visitors and tourism has stimulated the preservation of traditional art including traditional song and dances. The establishment of the model culture village has contributed largely to the Renaissance of native traditions and crafts. it creates historical and ethnic environments designed to perpetuate traditions and stimulate awareness of the local area. Two main purpose of cultural modern village: provide a location where visitors may observe and participate in a articular culture without disrupting the everyday life of people who live in the area. portray the past history of the area. INTERCULTURAL COMMUNICATION Interaction may contribute to the removal of social or national prejudice and the promotion of better understanding and positive social change. The quality of cross-cultural communication is the prime importance if it contributes to the promotion of understanding between tourists and their hosts.

19. Negative Cultural Impact of Tourism and Hospitality While tourism and hospitality has enabled different people to restore and maintain interest in their own culture, it has also led to the destruction of a country’s work of art. The local residents resent tourists who think they have the right to the country’s art whether bought or stolen. Several tourist persuade to sell traditional objects which have been used for generations. Even model cultural village may be encouraging the loss of culture. Tourist who want to keep up with their schedule as well as entertainment require shorter and therefore less authentic activities. Thus, the entertainment loses its cultural value.

20. Impact Control Measures The following control measures may be adapted to reduce the negative impact of tourism and hospitality on culture: Develop programs which enhances tourism and hospitality’s contribution to intercultural communication and interaction such as matching tourist types with destination characteristic and designing programs for the interaction of local residents and guests promoting good will “ambassador” tourist education. Incorporate local indigenous features as decorating hotel interiors with local painting, murals and sculpture and encouraging porters, and hoteliers and waiters to dress in native costumes.

21. 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.

22. Positive Environmental Impact of Tourism and Hospitality CONSERVATION Conservation and preservation of the environment not only benefit the local area but also determine the future of tourism and hospitality. The local residents benefit from the preservation. Tourism and hospitality, for as long as it draws tourists, will will continue to be a socioeconomic and cultural assets. Mathieson and Wall (cited by Landberg, 1995) identified four ways in which tourism andd hospitality has been important to conservation. Stimulating the rehabilitation of existing historic sites, building and monuments Stimulating the transformation of old buildings and locations into new tourist facilities Creating the impetus for the conservation of natural resources Bringing about the introduction of administrative and planning control necessary to maintain the quality of the environment to ensure a satisfying and rewarding experience for the tourist.

23. Positive Environmental Impact of Tourism and Hospitality DEVELOPMENT OF ATTRACTIONS. A. Historic Preservation Many historical sites in both urban and rural area have been preserved to attract tourist. Example: Intramuros in the Philippines. This restoration and rejuvenation process of an area are intended to impress tourist. B. Resident Benefits Tourism and hospitality benefits the local residents in a number of ways. Result of conservation and preservation can be enjoyed by the local community as well as by the tourist. The development of coastal areas or the coastal resort in more specific can access for free by the tourist and local residents.

24. Negative Environmental Impact of Tourism and Hospitality Exceeding the carrying capacity and saturation level of an area will negatively affect the area. ENVIRONMENTAL CONFLICT - some of the problems affecting the quality of the environment are destruction of the vegetation, pollution, destruction of wild life. GEOLOGICAL CONFLICTS - affect geological transformation. RESIDENT CONFLICT - conflict between tourists and the local residents may also arise because of damage to the area brought about by littering, vandalism and traffic congestion.

25. Impact Control Measures Two measures which will reduce the negative impact of tourism and hospitality have been identified, thus creating a quality environment for both residents and tourists. The general proactive measures - designed to safeguard the various aspects of the environment-endangered animals and plants, beaches and forests through the creation of national parks and wilderness areas. Regulation and control of tourist development - refers to zoning and land use, and planning specifications on the facilities being built as to height, appearance, open space and overall design among other things.

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