Overview
This lecture focuses on the economic, social, cultural, and environmental impacts of tourism and hospitality, highlighting both benefits and challenges for host destinations.
Economic Impacts of Tourism and Hospitality
- Tourism and hospitality generate income through wages, salaries, interest, rent, and profits.
- National income increases quickly from tourism compared to manufacturing.
- Employment is created directly (hotels), indirectly (supply chains), and induced (support services).
- Tourism improves a country's balance of payments by generating foreign exchange.
- Investment in tourism encourages further local development (accelerator concept).
- Negative effects include inflation, land speculation, economic leakage, low returns due to seasonality, and overdependence on tourism.
- Control measures: gradual development, resident involvement, balanced economic sectors, local ownership, and training.
Social Impacts of Tourism and Hospitality
- Host-visitor interactions depend on tourist types (explorer, elite, mass, etc.) and influence local communities.
- Positive effects: social change, multicultural understanding, improved infrastructure, better health and education, increased language learning, and greater social mobility.
- Negative effects: social saturation, changes in family roles and local norms, increased crime and prostitution, community polarization, and negative demonstration effects.
- Control measures: regulate tourist flow, separate hosts and tourists, community education, and social skills training.
Cultural Impacts of Tourism and Hospitality
- Tourism accelerates acculturation (cultural borrowing) and cultural convergence (similarity across cultures).
- Positive effects: promotes intercultural communication and revitalizes native culture through festivals and model villages.
- Negative effects: commercialization and loss of authenticity in traditional arts, destruction of heritage, and architectural homogenization.
- Control measures: enhance intercultural programs, match tourist types to destinations, incorporate local elements in development, and encourage traditional dress and customs.
Environmental Impacts of Tourism and Hospitality
- Tourism creates environmental awareness, conservation, and preservation of nature and historic sites.
- Positive impacts: establishment of parks and monuments, revitalization of attractions, and shared resident benefits from improved amenities.
- Negative impacts: destruction of vegetation, pollution (air, water, noise, visual), disruption of wildlife, geological and resident conflicts.
- Control measures: protective measures (parks, restoration), regulation (zoning, design standards).
Key Terms & Definitions
- Multiplier — Estimate of extra income created by initial tourist spending.
- Balance of Payments — Record of a country's economic transactions with the rest of the world.
- Leakage — Loss of tourism income due to imports, repatriated profits, or marketing costs.
- Acculturation — Changes in culture from borrowing traits from other cultures.
- Carrying Capacity — Maximum development level an area can handle without harm.
- Conservation — Protection and sustainable use of natural and historic resources.
Action Items / Next Steps
- Review the economic, social, cultural, and environmental impacts for understanding.
- Read additional material on tourism management strategies.
- Prepare questions for discussion on impact control measures.