Tourism » Benefits and negative impacts of tourism

What you'll learn this session

Study time: 30 minutes

The economic, social and environmental benefits of tourism
The negative impacts of tourism on economies, societies and environments
How to evaluate the overall impact of tourism on different places
Case studies of tourism impacts in different locations
Strategies to manage tourism impacts

Tourism: A Double-Edged Sword

Tourism is one of the world's largest industries, bringing both opportunities and challenges to destinations. For many countries, tourism is a vital source of income and jobs, but it can also put pressure on local communities and environments. Understanding these impacts helps us develop more sustainable approaches to tourism.

Key Definitions:

Tourism: Travel for leisure, business, or other purposes, usually involving staying away from home.
Mass tourism: Large numbers of people visiting popular destinations, often in package holidays.
Ecotourism: Responsible travel to natural areas that conserves the environment and improves the welfare of local people.
Sustainable tourism: Tourism that takes full account of current and future economic, social and environmental impacts.

Benefits of Tourism

💰 Economic Benefits

Job creation: Tourism creates direct jobs in hotels, restaurants, tour companies and attractions. It also creates indirect jobs in sectors that supply the tourism industry, like food production and construction.
Income generation: Tourist spending brings money into local economies through accommodation, food, souvenirs and activities.
Foreign exchange: International tourists bring foreign currency into the country, helping its balance of payments.
Infrastructure development: Tourism often leads to improved roads, airports, water systems and telecommunications that benefit locals too.
Multiplier effect: Money spent by tourists circulates through the local economy, creating additional economic activity.

🌎 Social Benefits

Cultural exchange: Tourism encourages understanding between different cultures and peoples.
Preservation of traditions: Tourist interest can help keep traditional crafts, festivals and customs alive.
Improved facilities: Locals benefit from new or improved recreational facilities, parks and cultural venues.
Education: Tourism can raise awareness about local history, culture and environmental issues.
Quality of life: Tourism revenue can fund community services and improve living standards.

🌲 Environmental Benefits

Conservation funding: Tourism revenue can fund national parks, wildlife reserves and conservation projects.
Environmental awareness: Tourism can increase appreciation for natural environments and support for their protection.
Sustainable practices: Eco-tourism encourages environmentally friendly business practices.
Preservation of landscapes: Areas of natural beauty may be protected for tourism rather than developed for other industries.
Restoration projects: Tourism can fund the restoration of degraded environments and historic buildings.

Negative Impacts of Tourism

💸 Economic Negatives

Leakage: Much tourism income may leave the local economy through foreign-owned hotels, imported goods and repatriated profits.
Seasonal employment: Many tourism jobs are seasonal, creating unemployment during off-seasons.
Economic dependency: Over-reliance on tourism makes economies vulnerable to external shocks like terrorism, natural disasters, or economic downturns.
Inflation: Tourism can drive up local prices for goods, services and property, making life more expensive for locals.
Opportunity costs: Investment in tourism may divert resources from other sectors like education or healthcare.

👥 Social Negatives

Cultural commodification: Local traditions may be cheapened or changed to appeal to tourists.
Demonstration effect: Locals may adopt tourist behaviours and consumption patterns, changing traditional ways of life.
Overtourism: Too many visitors can overwhelm local communities and services.
Crime: Tourism areas may see increases in theft, scams, drug use, or sex tourism.
Loss of authenticity: Places may lose their unique character as they cater to mass tourism.
Displacement: Local people may be forced out of areas due to rising costs or development projects.

🏠 Environmental Negatives

Pollution: Tourism increases air pollution from transport, water pollution from sewage and noise pollution.
Resource depletion: Tourism puts pressure on water supplies, energy and land.
Habitat destruction: Development of hotels, attractions and infrastructure can damage natural habitats.
Wildlife disturbance: Tourist activities can disrupt animal behaviour and habitats.
Waste generation: Tourists produce large amounts of waste, which may overwhelm local waste management systems.
Carbon footprint: Air travel especially contributes significantly to greenhouse gas emissions.

Case Studies of Tourism Impacts

🌴 Case Study: Bali, Indonesia

Benefits:

Tourism accounts for 80% of Bali's economy
Created thousands of jobs in hospitality, transport and retail
Funded preservation of temples and traditional arts
Improved infrastructure including roads and airports

Negative impacts:

Water shortages as hotels use up to 3,000 litres per room per day
Produces 3,800 tonnes of waste daily, with much ending up in the ocean
Traditional rice fields replaced by hotels and villas
Traffic congestion and air pollution from increased vehicles
Rising property prices forcing locals to move away from tourist areas

🌋 Case Study: Venice, Italy

Benefits:

Tourism contributes €3 billion annually to Venice's economy
Supports 30,000 jobs in the city
Funds restoration of historic buildings and art
Preserves traditional crafts like Murano glass-making

Negative impacts:

Overtourism with 30 million visitors annually overwhelming a city of 55,000 residents
Local population has halved since the 1950s as residents leave
Traditional shops replaced by souvenir stores and fast food
Cruise ships damage fragile foundations and cause water pollution
Housing prices have risen beyond what locals can afford

🏝 Case Study: Costa Rica - Ecotourism Success

Costa Rica has developed a successful ecotourism model that maximises benefits while minimising negative impacts:

Tourism generates $3.4 billion annually (about 8% of GDP)
Over 25% of land is protected as national parks or reserves
Certification for Sustainable Tourism program encourages eco-friendly practices
Local communities directly involved in tourism management
Focus on small-scale, low-impact accommodation and activities
Tourism has funded conservation of rainforests and wildlife
Visitors learn about environmental conservation through educational programs

This approach has allowed Costa Rica to benefit economically from tourism while protecting its natural resources and involving local communities.

Managing Tourism Impacts

Sustainable tourism aims to balance economic benefits with social and environmental protection. Here are some strategies used to manage tourism impacts:

📈 Economic Strategies

Encourage locally-owned businesses
Promote year-round tourism to reduce seasonality
Diversify the economy beyond tourism
Use tourism taxes to fund local services
Develop linkages between tourism and local suppliers

🏢 Social Strategies

Involve local communities in tourism planning
Limit visitor numbers in sensitive areas
Educate tourists about local customs and traditions
Preserve authentic cultural experiences
Ensure locals have access to affordable housing

🌱 Environmental Strategies

Implement renewable energy in tourism facilities
Establish protected areas with controlled access
Promote public transport and walking/cycling
Reduce water use and waste generation
Use environmental impact assessments for new developments

Evaluating Tourism Impacts

When evaluating whether tourism is beneficial or harmful to a place, consider:

Scale: Small-scale tourism often has fewer negative impacts than mass tourism
Type: Different forms of tourism (beach, cultural, adventure, etc.) have different impacts
Management: Well-managed tourism can maximise benefits and minimise problems
Location: Some environments and communities are more vulnerable than others
Stage of development: Impacts change as tourism develops in an area
Alternatives: Compare tourism with other possible economic activities

Remember that tourism impacts are rarely all good or all bad. The key is finding a balance that works for each destination, considering its unique environmental, social and economic circumstances.

💡 Exam Tip

For questions about tourism impacts, always:

Consider economic, social AND environmental aspects
Use specific examples and case studies to support your points
Discuss both positive AND negative impacts
Consider different stakeholders (locals, businesses, government, tourists)
Suggest how negative impacts could be managed or reduced