Colbourne College

1. Colbourne College WHY DEVELOP TOURISM? • Economic Impacts • Environmental Impacts • Socio- Cultural Impacts

2. The Economic Characteristics of Tourism • The Tourism Product Cannot Be Stored • Demand is Highly Seasonal • Demand is Influenced by outside and unpredictable influences ie. Exchange rates, political instability, weather etc. • Determinant of Motivations ie. People travel for various reasons • Price and Income Elastic

3. Direct Economic Impact • According to the World Tourism Organization, 698 million people traveled to a foreign country in 2000, spending more US$ 478 billion. International tourism receipts combined with passenger transport currently total more than US$ 575 billion - making tourism the world's number one export earner, ahead of automotive products, chemicals, petroleum and food.Source: WTTC

4. Negative Economic Impacts • Leakages The direct income for an area is the amount of tourist expenditure that remains locally after taxes, profits, and wages are paid outside the area and after imports are purchased; these subtracted amounts are called leakage(Source UNEP)

5. Negative Economic Impacts • Import leakageThis commonly occurs when tourists demand standards of equipment, food, and other products that the host country cannot supply. Especially in less-developed countries, food and drinks must often be imported, since local products are not up to the hotel's (i.e. tourist's) standards or the country simply doesn't have a supplying industry. Much of the income from tourism expenditures leaves the country again to pay for these imports.

6. Negative Economic Impacts • Export Leakages Multinational corporations and large foreign businesses have a substantial share in the import leakage. Often, especially in poor developing destinations, they are the only ones that possess the necessary capital to invest in the construction of tourism infrastructure and facilities. As a consequence of this, an export leakage arises when overseas investors who finance the resorts and hotels take their profits back to their country of origin.

7. Negative Economic Impacts • Enclave tourism Local businesses often see their chances to earn income from tourists severely reduced by the creation of "all-inclusive" vacation packages. When tourists remain for their entire stay at the same cruise ship or resort, which provides everything they need and where they will make all their expenditures, not much opportunity is left for local people to profit from tourism.

8. The Organization of American States (OAS) carried out a survey of Jamaica's tourist industry that looked at the role of the all-inclusives compared to other types of accommodation. It found that 'All-inclusive hotels generate the largest amount of revenue but their impact on the economy is smaller per dollar of revenue than other accommodation subsectors.'

9. Inflation of local prices of land and certain goods and services may take place, placing a financial hardship on residents because of the demands of tourism.

10. Negative Economic Impact of Tourism • Infrastructure cost Tourism development can cost the local government and local taxpayers a great deal of money. Developers may want the government to improve the airport, roads and other infrastructure, and possibly to provide tax breaks and other financial advantages, which are costly activities for the government. Public resources spent on subsidized infrastructure or tax breaks may reduce government investment in other critical areas such as education and health.

11. Positive Economic Impacts • Foreign Exchange Earnings • Government Revenues • Customs Duties • Stamp Tax • Fees and Service Charges • Passenger Tax • Employment

12. Negative Environmental Impacts 1.Pollution: • Water pollution resulting from improper development of sewage and solid waste disposal systems for hotels and other facilities. • Air pollution resulting form excessive use of internal combustion vehicles (car, taxis, buses, motorcycles, etc.) in tourism areas. • Noise pollution generated by a concentration of tourist and tourist vehicles. • Visual pollution resulting from several factors – poorly designed hotels and other tourist facilities: badly planned layout of facilities; inadequate landscaping of facilities; use of large and ugly signs; and obstruction of scenic view by tourism development.

13. Negative Environmental Impacts • Waste disposal problems of littering the landscape by tourist, and improper disposal of waste generated by tourism facilities. • Ecological disruptions of natural areas by overuse and misuse by tourist and inappropriate tourism development. Coastal, marine, mountain and desert environments, all-important types of tourism areas, are particularly vulnerable to ecological damage. • Damage to archaeological and historic sites by over use by tourist by tourists and inappropriate tourism development

14. DEFORESTATION • This activity currently affects the tropics • By some estimates about 40% of the world’s rainforests have been lost in the past 50 years

15. DEFORESTATION Some implications are: • higher level of carbon dioxide in the air • The loss of bio-diversity is • Increasing levels of soil erosion and • desertification

16. LAND DEGRADATION • The tourism industry contribute to this degradation in the following ways: • Our demand for oil and gas • Use of land to constructing hotels • Use of land for golf courses and other attractions.

17. Negative Environmental Impacts • Environmental hazards and land problems resulting from poor planning, siting and engineering of tourist attractions and facilities. • Social conflicts generated by the saturation of visitors in comparison with the local population and “unfairly traded tourism“ whereby local communities are unable to share in its benefits; • Tourism can change adestination’s cultural make-up and, if poorly managed, can increase crime, prostitution and other social problem

18. Positive Environmental Impacts • Establishes of grassroot environmental protection associations and promotes general environmental awareness • Encourage preservation of protected areas. • Encourage greater association with environmental agencies eg. Green Globe, Blue Flag. • Highlights a country ‘s natural resources which can lead to economic benefits.

19. Positive Socio-cultural Impacts of Tourism • It has the potential to promote social development through employment creation, income redistribution and poverty alleviation. • Facilities developed for tourist can benefit residents • Strengthening Communities • Revaluation of culture and heritage

20. Negative Impacts of Socio-Cultural of Tourism • Change of Local Identities • Commercialization of local culture • Adapting to tourist demands • Cultural Clashes • Locals not being receptive to tourism development • Irritation due to tourist behaviour

21. Negative Impacts of Socio-Cultural of Tourism • Physical Influences causing Social Stress • Cultural deterioration- removal of cultural or heritage items from land. • Conflicts with land use • Resource use- energy , water etc

22. Negative Impacts of Socio-Cultural of Tourism • Crime Mass tourism is general accompanied by increased crime

23. Sustainable Tourism Development • The optimal use of natural, cultural, social and financial resources for national development on an equitable and self-sustaining basis in order to provide a unique visitor experience and an improved quality of life through partnerships among all stakeholders.(Source CTO)

24. Agenda 21 • Sustainable tourism development represents profound challenges to traditional patterns of economic investment and growth, and requires acceptance and cooperation among the various involved stakeholders. Guidelines for the tourism industry to face these challenges have been identified in the Agenda 21 for the Travel & Tourism Sector: Towards Environmentally Sustainable Development, a document produced by the World Tourism & Travel Council (WTTC), the World Tourism Organization (WTO) and the Earth Council after the United Nations Environment and Development (UNCED), the Earth Summit, in Rio de Janeiro in 1992.