Impact of
Tourism and Hospitality
Professor: Christian Moises P. Asia
OBJECTIVES
•Evaluate the benefits
generated from tourism
activities
•Analyze the adverse
effects of tourism
initiatives
•Understand the impact of
the tourism multiplier on
the economy
Tourism is described as the economic miracle that can boost income, investment, and
employment. However, the diversity of the products, services, processes, and industries
involved in tourism as well as the inter-relationships among industry stakeholders from
different sectors can lead to mixed, if not contradictory, results. Thus, tourism can be
seen as both the engine for development, growth, and progress as well as a root of
commercialization, exploitation, and pollution.
Impacts of Tourism
Its impact on politics, society, business, and on the environment is both visible and
undistinguishable. The positive results of tourism initiatives result in increased income, more
employment opportunities, community progress, and heightened infrastructure development,
among others. However, the influx of visitor activity can lead to pollution, damage to property,
over migration to tourist destinations, and commercialization of cultural heritage. Some of these
effects can be seen instantaneously (as with garbage) while some build up overtime. The
balance between progress, sustainability, and the need to preserve traditions needs to be taken
more seriously.
Advantages of Tourism
Tourism can bring economic, political, environmental, and socio-economic benefits. Here are
some of its most important contributions:
Economical
•It creates employment
•It generates foreign and local investments
•It generates an increase in foreign exchange
•It leads to an increase in government income
•It creates a multiplier effect
•It can be developed along with existing products and services
•It provides opportunities for small and medium enterprises to participate thru business
opportunities
•It provides alternative forms of livelihood and employment.
•It encourages the creation of innovative and sustainable sources of income.
Environmental
•It can spur the development of the built environment
•It can be built on available infrastructure
•It helps maintain and preserve attractions. Revenues and income received from the influx of
tourists can be used to care for the destinations for the enjoyment of future generations.
•It can raise environmental awareness
Advantages of Tourism
Tourism can bring economic, political, environmental, and socio-economic benefits. Here
are some of its most important contributions:
Political
•Issues and concerns can be solved by legislation
•Civic action groups can lobby for changes in regulations specific to a town,
city or municipality
•Communities can monitor and police their own ranks
Socio-Cultural
•It helps preserve the heritage of communities. Interest in the arts and culture
of destinations help preserve their history and traditions.
•It promotes understanding of different peoples and their cultures
•It helps improve the quality of life and the standard of living in the
communities
•It promotes the culture of sustainability
•It helps create a favourable impression about a destination
Disadvantages of Tourism
Despite the numerous benefits that can be gained from tourism activities, these can also lead to
problems that can overturn whatever benefits have been gained. Here are some of the issues
arising from tourism development:
Economical
•It may cause inflation
•It may lead to excess demand and /or supply
•It can lead to lack of supply due to high demand for products
Environmental
•It damages the environment by overpopulation. Migrants from other places may find the destinations
attractive due to the possibility of employment.
•The influx of tourists can lead to damage.
•It exacerbates the effects of climate change.
•It causes pollution
•It can lead to a loss of biodiversity
•It can lead to an ecological imbalance
Political
•It may create power struggles.
•It can lead to corruption
Socio-Cultural
•The presence of vandals, petty criminals and prostitutes may adversely impact a destination's image
•It may create social problems due to displacement and migration.
•It can degrade a community's pride in its culture and heritage because of over-commercialization
Climate Change
Tourism is affected by the increase in temperature, sea levels, and
greenhouse gas emissions. Researches show that tourism accounts for
eight percent of global greenhouse gas (GHG) emissions. "The
carbon footprint of global tourism is caused by two major factors:
demand for and carbon intensity of tourism-related goods and
services. These include tourism activities and the carbon embodied in
commodities purchased by tourists such as transportation, food,
accommodation, and souvenirs". (Lenzen et al. 2018, p.522-524).
Mitigation, Adaptation, and Resilience
"Mitigation as actions that reduce the use of natural resources and implement measures that
reduce GHG emissions and benefit the recovery, regeneration, and creation of sinks.
Adaptation refers to the "possible responses of ecosystems to the current and potential impacts
of climate change, seeking to minimize possible anomalies and to explore potential
opportunities."
On the other hand, resilience refers to the "capacity of social, economic, and environmental
systems to cope with a hazardous event or trend or disturbance, responding or reorganizing in
ways that maintain their essential function, identity, and structure.
Since climate change affects all tourism stakeholders, there are several strategies that can
reduce its impact. Lifestyle changes such as walking, use of biodegradable materials,
consumption of organic and farm-to-table ingredients, proper garbage disposal, as well as the
support for sustainable enterprises can significantly help decrease its impact. There are also
several initiatives being undertaken by tourism organizations. According to Nicholls (2014), these
are building-integrated renewable energy systems, such as solar power; energy efficient
lighting, heating, cooling and other appliances; system efficiency, through building codes, and
construction standards, and urban planning
TOURISM MULTIPLIER
The tourism multiplier effect is the movement of spending in the industry. Using the hotel to
explain the concept of a tourism multiplier, here's a shortlist of requirements to successfully
establish and sustain hotel operations:
•Architects and engineers to design and build the hotel; Interior designers to create the
ambiance; personnel to man its numerous departments; tailors and seamstresses for the
uniforms; consultants to review operations; visual artists to create marketing collaterals;
among others.
•Vegetables, fruits, and other ingredients for its food choices complemented by a wide list of
beverage choices; linen, glassware, silverware, chinaware; and cutlery; furniture and
fixtures; flowers décor; among other suppliers.
•Then the money received as revenues, compensation or professional fees are in turn, used to
buy goods and services elsewhere in the local economy. The cycle continues until the money
is "leaked" from the economy thru imports of products and services from abroad.
Leakage refers to taxes, salaries and wages and import charges that are paid outside of the
country. These can be reduced by using locally-produced supplies as well as by employing the
locals in the tourism enterprise.