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Impacts of Travel and Tourism ยป Employment and Infrastructure Development

What you'll learn this session

Study time: 30 minutes

  • The different types of employment created by tourism
  • Direct, indirect and induced employment effects
  • How tourism creates employment opportunities in different sectors
  • The positive and negative impacts of tourism on infrastructure development
  • Case studies of tourism employment and infrastructure development
  • How to evaluate the sustainability of tourism-related employment and infrastructure

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Tourism and Employment Creation

Tourism is one of the world's largest industries and a major source of employment. The sector creates jobs in various ways, helping to boost local economies and providing opportunities for people with different skill levels.

Key Definitions:

  • Direct employment: Jobs created specifically to serve tourists (e.g., hotel staff, tour guides).
  • Indirect employment: Jobs created in businesses that supply the tourism industry (e.g., food suppliers, construction workers).
  • Induced employment: Jobs created when tourism workers spend their wages in the local economy.
  • Multiplier effect: How initial tourism spending creates additional economic activity through successive rounds of spending.
  • Seasonality: Fluctuations in tourist numbers throughout the year, affecting employment patterns.

💼 Types of Tourism Employment

Accommodation sector: Hotel managers, receptionists, housekeeping staff, maintenance workers

Food and beverage: Chefs, waiters, bartenders, restaurant managers

Transport: Taxi drivers, bus operators, airline staff, boat captains

Attractions: Tour guides, museum staff, theme park operators

📊 Employment Characteristics

Seasonality: Many tourism jobs are seasonal, creating temporary employment

Skill levels: Mix of skilled (e.g., hotel management) and unskilled (e.g., cleaning) positions

Wage levels: Often lower than other sectors, especially for entry-level positions

Working conditions: Can involve long hours, weekend work and customer-facing pressure

Employment Multiplier Effect

When tourists spend money in a destination, this creates a chain reaction of economic benefits. This concept is known as the multiplier effect and is crucial for understanding tourism's full employment impact.

🏠 Direct Employment

Jobs directly serving tourists:

  • Hotel staff
  • Restaurant workers
  • Tour guides
  • Attraction staff
  • Taxi drivers
📦 Indirect Employment

Jobs in businesses supplying tourism:

  • Food suppliers
  • Construction workers
  • Farmers
  • Marketing agencies
  • Maintenance services
💰 Induced Employment

Jobs created when tourism workers spend wages:

  • Local shops
  • Healthcare
  • Entertainment
  • Housing
  • Education

Infrastructure Development

Tourism often drives significant infrastructure development in destinations. This can benefit both tourists and local communities, but may also create challenges if not managed properly.

Key infrastructure developments include:

  • Transport: Airports, roads, railways, ports and public transport systems
  • Utilities: Water supply, electricity, waste management, telecommunications
  • Public services: Healthcare facilities, emergency services, security
  • Leisure facilities: Parks, sports facilities, cultural venues
  • Commercial: Shopping centres, restaurants, entertainment venues

👍 Positive Infrastructure Impacts

Improved accessibility: Better roads, airports and public transport benefit locals and tourists

Enhanced utilities: Upgraded water, electricity and waste systems improve quality of life

Better public services: Improved healthcare and emergency services

Economic stimulus: Infrastructure projects create jobs and business opportunities

Modernisation: Tourism can accelerate development in rural or less-developed areas

👎 Negative Infrastructure Impacts

Environmental damage: Construction can harm natural environments

Resource pressure: Tourism infrastructure may strain water and energy supplies

Uneven development: Benefits may be concentrated in tourist areas only

Maintenance costs: Local authorities must maintain infrastructure year-round

Displacement: Development may force out local residents or businesses

Case Study: Tourism Employment in Bali, Indonesia

Bali demonstrates how tourism can dominate employment in a destination:

  • Around 80% of Bali's economy depends on tourism
  • Direct employment includes approximately 75,000 hotel workers
  • Indirect employment includes thousands of craft producers, food suppliers and transport providers
  • The COVID-19 pandemic (2020-2021) revealed the vulnerability of tourism-dependent employment when international arrivals dropped by over 90%
  • Unemployment rose dramatically, with many workers returning to traditional farming or fishing
  • This case highlights both the employment benefits of tourism and the risks of over-dependence

Sustainable Tourism Infrastructure

For tourism development to be truly beneficial, infrastructure must be planned with sustainability in mind. This means considering long-term impacts on the environment, local communities and the economy.

🌍 Sustainable Infrastructure Principles

Multi-use design: Infrastructure that serves both tourists and locals

Environmental sensitivity: Minimising ecological footprint of development

Cultural appropriateness: Respecting local architectural styles and heritage

Future-proofing: Building with climate change and changing demands in mind

Community involvement: Including local people in planning decisions

🛠 Infrastructure Planning Considerations

Carrying capacity: Infrastructure sized appropriately for visitor numbers

Seasonality: Designing for peak periods while avoiding waste in low seasons

Funding models: Sustainable financing for maintenance and upgrades

Technology integration: Smart solutions for efficiency and monitoring

Accessibility: Ensuring facilities are accessible to all users

Case Study: Infrastructure Development in Dubai, UAE

Dubai showcases large-scale tourism infrastructure development:

  • Transformed from a small trading port to a global tourism hub in just a few decades
  • Major infrastructure includes Dubai International Airport (one of the world's busiest), the Palm Jumeirah artificial island and the Burj Khalifa (world's tallest building)
  • Transport infrastructure includes the Dubai Metro, an extensive road network and cruise terminals
  • Employment creation has been massive, with the tourism sector employing over 500,000 people
  • However, development has raised sustainability concerns, including high water and energy usage in a desert environment
  • Recent efforts focus on more sustainable approaches, including solar power projects and water conservation

Evaluating Tourism Employment and Infrastructure

When assessing the impacts of tourism on employment and infrastructure, it's important to consider various factors that determine whether development is truly beneficial and sustainable.

Key evaluation questions:

  • Does tourism employment provide fair wages and working conditions?
  • Are jobs accessible to local people or filled by imported labour?
  • Does infrastructure development benefit the wider community or just tourists?
  • Is infrastructure environmentally sustainable and appropriate to the location?
  • How resilient is the employment and infrastructure to changes in tourism patterns?
  • What is the balance between economic benefits and social/environmental costs?

Remember that successful tourism development should aim to create quality employment opportunities while developing infrastructure that serves both visitors and local communities in a sustainable way.

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