How is the economy of a tourist destination affected by the tourism?
Answers
Spending holidays abroad with family, is trendy these days. People around the world visit different places during summers and winters. I and my family too visit different places during vacations. When in a foreign country, I have always wondered, “How does the country benefit from attracting tourists?” I roughly knew the answer that the money that tourists spend in that particular country is the income of the tourism industry. But after this research, I have now understood that tourism is an important part of an economy and the money it earns is helpful to everyone.
GENERAL IMPACTS:
General Positive effects of tourism:
It creates employment for people of the country.
It promotes cultural awareness and also helps to preserve local culture and traditions.
Money gained from tourism can be used to develop the infrastructure and services e.g. new roads and airports.
In LEDCs money can be invested on developing education, clean water and sanitation.
The foreign money can become aid to local people.
Natural attractions can be protected using income from tourism.
GOOD ECONOMIC IMPACTS:
It generates foreign exchange.
It creates new job and employment opportunities.
It stimulates trade, income and entrepreneurship – especially in small business sectors.
The provision of new infrastructure which is available for non-tourism uses.
It increases regional development – particularly in isolated areas.
It generates greater collection of taxes and revenues.
General Negative impacts:
It can have a negative impact on the environment. It increases air travel and thereby contributes towards air pollution.
Mostly local people are employed in low skill, poorly paid work in unhygienic working conditions.
Travel agents, airline companies and hoteliers benefit more than local companies when holidays are booked to destinations in LEDCs.
Destroys local culture and traditions.
Locally run accommodation companies face competition with foreign companies which build hotels in this new tourist destination.
BAD ECONOMIC IMPACTS:
1) Necessity to import goods increase.
This is especially with small economies which often do not produce what the tourists demand, and therefore import to meet the demands of the tourist.
2) Displacement effects.
When a new tourism project takes customers away from an existing industry or facility, the economy is said to be shifted.
3) Over-dependence on tourism.
When initially developing, the tourism industry is in vigour. The people start investing their money in this industry, resulting in downfall of other industries that were initially present. But soon tourists begin to dislike the particular tourist location and the economy falls.
4) Over-reliance on labour.
As the tourists would increase, the labour required to fulfil their requirements would increase. The industry would extensively rely on labour; therefore these companies would highly exploit labour to meet the tourist demands.
5) Higher land values.
Higher number of tourists would require more accommodation. Therefore hotels, lodges and rest houses are built. These results in shortage of land and the prices shoot up, which affect the locals.
6) Prices of goods increases.
More tourists’ means more needs of supplies example: food, water, electricity, gas supply, etc. Also maintenance and repair would increase. These would make the market more expensive, making difficult for local people.
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