Chapter 3

The Impacts of Tourism

3.1 Introduction
f~wgKv
The long-term sustainability of tourism rests on the ability of community leaders and tourism
professionals to maximize its benefits and minimize its costs. This fact sheet tabulates 87
tourism impacts within seven categories and divides the sources of tourism impacts into tourist-
based causes and destination-based causes. This information, which was distilled from recent
tourism research, provides a framework for discussions, directions, and development regarding
tourism. Formally addressing the impacts of tourism facilitates planning that helps a community
create a sustainable tourism industry.

Potential Negative Impacts of Tourism

For decades tourism industry growth has been a major contributor to increased economic
activity throughout the U.S. and the world. It has created jobs in both large and small
communities and is a major industry in many places. It is the dominant economic activity in
some communities. Yet, the impacts of tourism to a community are not widely understood –
even where tourism is growing dramatically and should be of the greatest interest or concern.
Most people think of tourism in terms of economic impacts, jobs, and taxes. However, the range
of impacts from tourism is broad and often influences areas beyond those commonly associated
with tourism. Leaders as well as residents who understand the potential impacts of tourism can
integrate this industry into their community in the most positive way.
The impacts of tourism can be sorted into seven general categories:
1. Economic
2. Environmental
3. Social and cultural
4. Crowding and congestion
94 Fundamentals of Tourism and Hospitality Management

5. Services
6. Taxes
7. Community attitude
Each category includes positive and negative impacts. Not all impacts are applicable to every
community because conditions or resources differ. Community and tourism leaders must
balance an array of impacts that may either improve or negatively affect communities and their
residents. Leaders must be sensitive and visionary, and must avoid the temptation of glossing
over certain difficulties tourism development creates.
Tourism leaders must also balance the opportunities and concerns of all community sectors by
working against conditions where positive impacts benefit one part of the community
(geographic or social) and negative impacts hurt another.
Conversely, community sensitivity to tourism means avoiding undue burdens on the industry
that could thwart its success. Local leaders should not expect tourism to solve all community
problems. Tourism is just one element of a community. While creative strategic development of
tourism amenities and services can enhance the community or correct local deficiencies,
tourism, like all business development, must assure that its products (attractions and services)
attract customers. Overbearing rules and restrictions, and overburdening taxes can make tourism
businesses less attractive or competitive.
Review Question
1. Give an overview on the impacts of tourism.

3.2 Understanding Tourism Conflicts

ch©Ub Ø›Ø Abyaveb
Different groups are often concerned about different tourism impacts. To generalize, where one
group embraces the economic impacts of tourism, another group experiences social and
cultural impacts, while another is affected by
tourism’s environmental impacts. In theory,
the interests of each group could be completely
separate, as in Figure 1a. For example, Group
A could include the business community and
people who are in need of the jobs offered by
tourism. Group B might include residents who
feel displaced by an influx of visitors. Group C
could be local outdoor enthusiasts concerned
about changes in natural resources. In such a
case, each group would have completely
different outlooks on tourism. Ideally, all
groups could be positively affected and would
support the community’s tourism efforts.
 Chapter -3: The Impacts of Tourism 95

However, when group interests are divergent, differing perspectives can make consensus on
tourism development difficult.
In most cases, groups with interests in one area of tourism will also have interests or concerns
about other tourism impacts as diagramed in Figure 1. In these situations, there are common
areas of interest and a greater likelihood that each group will show more appreciation for the
concerns of the other groups. Finding commonality provides a starting point for resolving
tourism issues.
Review Question
1. Write notes on tourism Conflicts.

3.3 Tourism Impacts

ch©Ub cªfve
Tourism as an industry is very important for the development of any country. It is one of the
fastest growing sectors. It has lots of significance not only in the economy of a country but also
in the social and cultural force of the country. The major contributions from tourism are listed
below:
1. Stimulation of Economic Growth (A_©‰bwZK cÖe„w×i cÖfveK): There are many countries
in the world whose economy is fully dependent on tourism. It greatly influences the
economy of the country. It contributes significantly to a country’s gross domestic product
(GDP). Tourists from the developed countries bring valuable foreign exchange, which is
essential to developing countries like India to offset the balance of payments (BOP)
position. International business experts have predicted that in the 21st century, the global
economy will be driven by three major industries: Technology, Telecommunication and
tourism. Travel and tourism would capture the global market and become the largest
industry in the world.
2. National Income (RvZxh় Avh়): The receipts from international tourism can provide a
valuable source of earnings for many countries, both developed and developing. Tourist
spending generates income for both public and private sectors. Tourism thus forms a very
important source of income for several countries.
3. Maximization of Foreign Exchange Earnings (ˆe‡`wkK gy`«v Avh‡়i me©vwaKxKiY): The
major economic benefit in promoting the tourism industry is, earning of foreign exchange.
Foreign travellers must exchange their currency into local currency for their spending
purposes. This means that initially the foreign exchange earnings of the host country
increase by the amount of tourism expenditure. It helps in generating foreign exchange
without exporting anything out of the country. Foreign exchange spent by a foreign tourist
in a country for various hospitality services results in developing the economic status of
the country. Thus, an inbound tourist is an important source of foreign exchange for any
country. Less-developed nations are constantly increasing foreign exchange requirements
to finance their concerted development plans.
96 Fundamentals of Tourism and Hospitality Management

4. Balance of Payments (†jb‡`‡bi fvimvg¨): The balance of payments shows the

relationship between a country’s total payment to all other countries and its total receipts
from them. In other words, it may be defined as a statement of income and expenditure or
payments and receipts on international accounts.
5. Multiplier Effect / The Tourism Multiplier (¸YK c«fve / ch©Ub ¸YK): A multiplier is a
statically expression of how much income or employment is generated by a certain amount
of tourist spending. Every industry has this concept but however this effect is much
stronger in tourism sector. The multipliers effect denotes the money spent shall be routed
through other related segments and spent and this cycle continues. The higher the
multiplier effect the higher is the benefit to an economy. The flow of money generated by
tourist spending multiplies as it passes through various sections of the economy.
6. Creation of Employment (Kg©ms¯’vb m…wó): Tourism has brought many employment
opportunities to people especially in the service related industries, retail sector, catering
and transport ones. The tourism industry is a highly labour intensive service industry and
hence is a valuable source of direct and indirect employment to millions of people. In
many developing countries, where unemployment problems are very acute, the promotion
of tourism can be great encouragement to economic development and especially,
employment. There are 3 types of employment which may be generated by tourism.
a) Direct: Jobs created as a result of visitor expenditure and directly supporting tourism
activity e.g. hotels, restaurants, travels agencies.
b) Indirect: Jobs created within the tourism supply sector but not as a direct result of
tourism activity such as suppliers to hotel and restaurants etc.
c) Induced: Job created as a result of tourism expenditure as local residents spend money
earned from tourism. A job among direct and direct services helps to employment of
wider section of generation.
It also provides a wide range of jobs to both skilled and unskilled people.
a) Skilled jobs: as tour operating managers, event managers, hospitality managers and so
on.
b) Unskilled jobs: as helper, porters etc.
It greatly contributes to creation of indirect employment with derived growth in other
tourism related sectors.
7. Development of Infrastructure (AeKvVv‡gv Dbœh়b): Development and improvement of
infrastructure is another important benefit of tourism. To become an important commercial
or pleasure destination, any location would require the entire necessary infrastructure. The
investment made in a country on the infrastructure is very much essential. Extending infra
and building new infrastructure would help to meet the needs of the customers and attract
them to visit.
The benefits from tourism infrastructure like airports, roads, water supply and other public
utilities may be widely shared by other sectors of the economy. In addition to development
of new infrastructure, the improvement in the existing infrastructure needs to be
 Chapter -3: The Impacts of Tourism 97

undertaken in order to retain and attract tourists to visit. These improvements greatly
provide benefit to the resident population of that area.
8. Regional Development (AvÂwjK Dbœh়b): The more the area visited by the tourists the
more the area needs to be developed. It leads to the improvement of the region in various
fields. Construction and improvement of new infrastructure provides great benefit to the
resident population of that area. The underdeveloped regions of the country can greatly
benefit from tourism development. It helps in the development of less developed regions of
the country.
9. Promotion of Favorable National Image (AbyK~j RvZxh় fveg~wZ© Dbœqb): Tourism helps
in establishing the own identity of the country in the world. It attracts people from all
countries and makes that country to be known to other people with the help of visitors. It
helps in building the image of the host country and makes it popular among various
countries.
10. Protection of Cultural Heritage (KvjPvivj †nwi‡UR msi¶Y): India’s primary attraction
has been its culture, art, archaeological or historical remains and monuments, architecture,
music, dance, folklore and history. Each year many visitors visit our country and
subsequently go back to their countries with sweet memories of India’s rich cultural
heritage. Foreign tourist’s visit helps them to understand the culture prevailing at the
destination and allow them to get mingled with the diverse cultures and creates an
atmosphere of “unity in diversity”. Government needs to put special efforts to safeguard the
cultural heritage of the tourist destinations, in order to increase the inflow of tourists.
11. Building Social System (mvgvwRK e¨e¯’v MVb): A large number of people travelling to
foreign countries to become acquainted with the customs of the country, visit different
tourist destinations and to admire the handicrafts and works of art. When the tourist comes
in contact with the place he visits and its population, a social exchange takes place.
It helps in building up relationship with the tourist and the host country people. Travel
experiences have a great effect on the tourist as well as on the society. It breaks the barriers
of suspicion that exist between the nations and develops social and cultural understanding
among all people of the world.
12. Human Benefits (gvbweK DcKvwiZv): Travel and holidaying can provide unlikeness by
taking away a person from present, familiar environs to something that is new and
unfamiliar. Travel helps in escaping from the dull daily routine work to exciting new
things. Most of the people welcome change unless it is that drastic. Tourism helps people
to relax and rejuvenate. It acts as a stress reliever and also increases the knowledge
potential of the tourists. In the modern materialistic world tourism plays a key role in
sustaining the human behavior.
13. Health Benefits (¯^v¯’¨ myweav): Health is one of the critical objects for most of the people
to practise travel or tourism. Holidaying is also considered as an investment in health. It is
suggested by many medical specialist that it is relatively more beneficial to go for a
number of vacations at regular intervals for recouping energies both psychologically and
98 Fundamentals of Tourism and Hospitality Management

physically. Tourism, thus, becomes instrumental in breathing new life or rejuvenating an

individual’s moral, ethical health and re-establishing the passionate poise.
14. Educational Benefits (wk¶vMZ myweav): Tourism, no doubt, is the best medium to broaden
the limits of human knowledge. Man’s urge to learn in all likelihood is intrinsic. Travel and
holidaying offer an opportunity to satisfy the urge to learn. Historic buildings, monuments,
battlefields, and shrines are a means of communicating with past. Human learn from an
environment only to the extent that they respond to it. Travel is an enriching experience for
most of the travellers.
15. Professional or Business Lessons (†ckvMZ ev e¨emvhw়K cvV): People travel for trade
purposes also. Professional and business concerns also prove to be a strong motivation for
many to travel. Conventions, conferences and professional/business meetings allure people
from their respective lines of work and walks of life at one forum to interact and/or
transact with each other. On the whole, the basic motive for such a travel is personal
development, enhancement to standing & status and setting up and strengthening of
contacts.
16. Transportation Development (cwienb Dbœh়b): Tourism has witnessed considerable
changes. Each country has its own various needs of transportation to improve tourist visit
to the country. Government of each country is taking important steps to improve the
movement of travellers and making journey enthusiastic and comfortable by introducing
and improving various modes of transport such as Airlines, Railways, Cruise liners, Motor
cars etc.
17. Global Integration (†Møvevj Bw›U‡M«kb): Tourism is viewed as national asset. Tourism is a
great promoter of national and international integration. People of one country visit another
country to avail various services, products and facilities and exchange their thoughts,
culture. It is an effective way of enhancing the international understanding and integration
by bringing and making people intract of different social, cultural and economic
backgrounds together.
18. Environmental Benefits (cwi‡ekMZ DcKvwiZv): Tourism is called smokeless industry,
which can be synonymous with the protection and conservation of the environment. The
improvement & conservation of natural and manmade tourist resources contribute to
tourist product and has no danger to the nation’s resource. Protecting and creating
economic value for local places and resources, which otherwise have no perceived value to
residents is regarded as another significant contribution from tourism. Raising awareness
of environmental issues and stimulating tourist to advocate for conservation through
education and interpretation shall result in environmental appreciation, conservation and
up-gradation, which in turn enhances visitor enjoyment. Tourism can became an
instrument for beautification and improvements of the environment, if it is planned in a
systematic manner.
Review Question
1. Why is Uourism important for development of the Country?
 Chapter -3: The Impacts of Tourism 99

3.4 Elaboration of Tourism Impacts

ch©Ub cªfve -m¤úªmvwiZ
Understanding that tourism development may result in many and complex impacts suggests
that local elected officials, the tourism industry, and community residents need to work
cooperatively and carefully to plan for its growth and development.
Planning can help create an industry that enhances a community with minimal costs and
disruptions in other aspects of community life. Having broad community involvement and
embracing different perspectives during planning helps identify and resolve concerns that would
otherwise create problems later.
1. Economic (A_©‰bwZK): Tourism increases employment opportunities. Additional jobs,
ranging from low-wage entry-level to high-paying professional positions in management
and technical fields, generate income and raise standards of living. Particularly in rural
areas, the diversification created by tourism helps communities that are possibly dependent
on only one industry. As tourism grows, additional opportunities are created for investment,
development, and infrastructure spending. Tourism often induces improvements in public
utilities such as water, sewer, sidewalks, lighting, parking, public restrooms, litter control,
and landscaping. Such improvements benefit tourists and residents alike. Likewise, tourism
encourages improvements in transport infrastructure resulting in upgraded roads, airports,
public transportation, and non-traditional transportation (e.g., trails). Tourism encourages
new elements to join the retail mix, increasing opportunities for shopping and adding
healthy competitiveness. It often increases a community's tax revenues. Lodging and sales
taxes most notably increase but additional tax revenues include air travel and other
transportation taxes, business taxes, and fuel taxes. New jobs generate more income tax
revenues.
When considering the economic impacts of tourism, it is essential to understand that
tourism businesses often include a significant number of low-paying jobs, often at minimum
wage or less. These jobs are often seasonal, causing under-employment or unemployment
during off-seasons. Labor may be imported, rather than hired locally, especially if particular
skills or expertise is required, or if local labor is unavailable. Some tourism-related
businesses are volatile and high-risk ventures that are unsustainable. Greater demand for
goods, services, land, and housing may increase prices that in turn will increase the cost of
living. Tourism businesses may claim land that could have higher- value or other uses.
Additionally, non-local owners and corporations may export profits out of the community.
The community may have to generate funds (possibly through increased taxes) to maintain
roads and transportation systems that have become more heavily used. Similarly, if
additional infrastructure (water, sewer, power, fuel, medical, etc.) is required, additional
taxes may also be needed to pay for them.
ECONOMIC
Positive Impacts Negative Impacts
1. Contributes to income and standard of 1. Increases price of goods and services
living 2. Increases price of land and housing
2. Improves local economy
100 Fundamentals of Tourism and Hospitality Management

3. Increases employment opportunities 3. Increases cost of living

4. Improves investment, development, 4. Increases potential for imported labor
and 5. Cost for additional infrastructure
5. infrastructure spending (water, sewer, power, fuel, medical,
6. Increases tax revenues etc.)
7. Improves public utilities infrastructure 6. Increases road maintenance and
transportation systems costs
8. Improves transport infrastructure
7. Seasonal tourism creates high-risk,
9. Increases opportunities for shopping
under- or unemployment issues
10. Economic impact (direct, indirect,
8. Competition for land with other (higher
induced spending) is widespread in the
value) economic uses
community
9. Profits may be exported by non-local
11. Creates new business opportunities
owners
10. Jobs may pay low wages
2. Environmental (cwi‡ekMZ): Areas with high-value natural resources, like oceans, lakes,
waterfalls, mountains, unique flora and fauna, and great scenic beauty attract tourists and
new residents (in-migrants) who seek emotional and spiritual connections with nature.
Because these people value nature, selected natural environments are preserved, protected,
and kept from further ecological decline. Lands that could be developed can generate
income by accommodating the recreational activities of visitors. Tourist income often
makes it possible to preserve and restore historic buildings and monuments. Improvements
in the area’s appearance through cleanup or repairs and the addition of public art such as
murals, water fountains, and monuments (part of making a community ready for tourism)
benefit visitors and residents alike. Tourism is generally considered a "clean" industry, one
that is based on hotels, restaurants, shops and attractions, instead of factories.
Tourism can also degrade an environment. Visitors generate waste and pollution (air, water,
solid waste, noise, and visual). Natural resource attractions can be jeopardized through
improper uses or overuse. Providing tourist services can alter the landscape's appearance.
For instance, visual pollution may occur from billboard proliferation. As tourism develops,
demand for land increases, especially for prime locations like beachfronts, special views,
and mountains. Without forethought, natural landscape and open space can be lost. The
destruction or loss of flora and fauna can happen when desirable plants and animals are
collected for sale or the land is trampled. Tourists or the businesses that cater to them often
remove plants, animals, rocks, fossils, coral, and cultural or historical artifacts from an area.
Uncontrolled visitation or overuse by visitors can degrade landscapes, historic sites, and
monuments. Where water is scarce, tourists can overwhelm the available supply. Travelers
can also inadvertently introduce nonindigenous species, as can increases in the trade of
animals and plants. A constant stream of visitors and domestic pets may disrupt wildlife by
disturbing their breeding cycles and altering natural behaviors.
ENVIRONMENTAL
Positive Impacts Negative Impacts
1. Protection of selected natural 1. Pollution (air, water, noise, solid waste,
 Chapter -3: The Impacts of Tourism 101

environments or prevention of further and visual)

ecological decline 2. Loss of natural landscape and
2. Preservation of historic buildings and agricultural lands to tourism
monuments development
3. Improvement of the area’s appearance 3. Loss of open space
(visual and aesthetic) 4. Destruction of flora and fauna (including
4. A "clean" industry (no smokestacks) collection of plants, animals, rocks,
coral, or artifacts by or for tourists)
5. Degradation of landscape, historic sites,
and monuments
6. Water shortages
7. Introduction of exotic species
8. Disruption of wildlife breeding cycles
and behaviors
3. Social and Cultural (mvgvwRK Ges mvs¯‹…wZK): The social and cultural ramifications of tourism
warrant careful consideration, as impacts can either become assets or detriments to
communities. Influxes of tourists bring diverse values to the community and influence
behaviors and family life. Individuals and the collective community might try to please
tourists or adopt tourist behaviors. Interactions between residents and tourists can impact
creative expression by providing new opportunities (positive) or by stifling individuality
with new restrictions (negative). Increased tourism can push a community to adopt a
different moral conduct such as improved understanding between sexes (positive) or
increased illicit drug use (negative). Safety and health facilities and staffing tend to increase
at the same time safety problems such as crime and accidents increase. Traditional
ceremonies may be renewed and revived by tourist interest or lost in alternative activities.
Community organizations can be invigorated by facing the opportunities of tourism or
overwhelmed by its associated problems. Calamities such as natural disasters, energy
shortages, terrorism, political upheaval, disease outbreak, a chemical spill, or even
widespread negative publicity could shut down tourism abruptly but sometimes can attract
curious visitors.
Tourism can improve the quality of life in an area by increasing the number of attractions,
recreational opportunities and services. Tourism offers residents opportunities to meet
interesting people, make friendships, learn about the world, and expose themselves to new
perspectives. Experiencing different cultural practices enriches experiences, broadens
horizons, and increases insight and appreciation for different approaches to living. Often,
dwindling interest in host cultures is revived by reawakening cultural heritage as part of
tourism development, which increases demand for historical and cultural exhibits. This
interest by tourists in local culture and history provides opportunities to support
preservation of historical artifacts and architecture. By learning more about others, their
differences become less threatening and more interesting. At the same time, tourism often
promotes higher levels of psychological satisfaction from opportunities created by tourism
development and through interactions with travelers.
102 Fundamentals of Tourism and Hospitality Management

Tourism can come to a community with a dark social and cultural side, too. Illegal activities
tend to increase in the relaxed atmosphere of tourist areas. Increased underage drinking can
become a problem especially in beach communities, areas with festivals involving alcohol,
and ski villages. It is easier to be anonymous where strangers are taken for granted; bustling
tourist traffic can increase the presence of smugglers and buyers of smuggled products.
Lifestyle changes such as alterations in local travel patterns to avoid tourist congestion and
the avoidance of downtown shopping can damage a community socially and culturally.
Hotels, restaurants, and shops can push tourism development into residential areas, forcing
changes in the physical structure of a community. Development of tourist facilities in prime
locations may cause locals to be or feel excluded from those resources. As local ethnic
culture alters to fit the needs of tourism, language and cultural practices may change. In
places where longer- term visitors tend to congregate, social cliques, such as condo tourists
or RVers, may be at odds with local interests and work to influence local issues. The
"demonstration effect" of tourists (residents adopting tourist behaviors) and the addition of
tourist facilities may alter customs, such as dating habits, especially those of a more
structured or traditional culture. The potential of meeting and marrying non-local mates
may create family stress.
SOCIAL AND CULTURAL
Positive Impacts Negative Impacts
1. Improves quality of life 1. Excessive drinking, alcoholism,
2. Facilitates meeting visitors (educational gambling
experience) 2. Increased underage drinking
3. Positive changes in values and customs 3. Crime, drugs, prostitution
4. Promotes cultural exchange 4. Increased smuggling
5. Improves understanding of different 5. Language and cultural effects
communities 6. Unwanted lifestyle changes
6. Preserves cultural identity of host 7. Displacement of residents for tourism
population development
7. Increases demand for historical and 8. Negative changes in values and customs
cultural exhibits
9. Family disruption
8. Greater tolerance of social differences
10. Exclusion of locals from natural
9. Satisfaction of psychological needs resources
11. New cliques modify social structure
12. Natural, political, and public relations
calamities
4. Crowding and Congestion (Mv`vMvw` Ges wfo): People congregate in attractive places.
Tourism often develops around specific locations and concentrates there, providing growth
yet avoiding sprawl. Historic buildings and grounds, which might otherwise slowly
deteriorate, have great appeal for tourism development and can often, be renovated to suit
the industry.
 Chapter -3: The Impacts of Tourism 103

As people congregate, congestion and crowding produces stress, annoyance, anger, and
other negative attitudes. Hordes of visitors may impede local businesses, prevent residents
from accomplishing normal activities, and compete for space. Tourism construction,
especially hotels, may be inappropriate in scale and style with respect to other structures
and the landscape. In some areas, recreational second homes and condominium
developments create major crowding and congestion problems.
CROWDING AND CONGESTION
Positive Impacts Negative Impacts
1. Minimizes sprawl 1. Congestion including interference with
2. Concentrates tourist facilities other businesses
3. Old buildings reused for tourism 2. Overcrowding – exceeding area capacity
3. Conflict
4. Overpowering building size and style
5. Services (cwi‡lev): Tourism creates opportunities to develop new amenities and recreation
facilities that would not otherwise be viable in a community. Tourist expectations can
upgrade service by local shops, restaurants, and other commerce operators. Tourist traffic in
a community creates an opportunity for upgraded fire, police, and medical protection that
also benefits residents.
Traditional services may be forced out or relocated due to competition with tourist interests.
Supply shortages may occur, temporarily, seasonally, or chronically. Water, power, fuel,
and other shortages may be experienced with increased pressure on the infrastructure.
SERVICES
Positive Impacts Negative Impacts
1. Increases availability of recreation 1. Neglect of non-tourist recreation
facilities and opportunities facilities
2. Better standard of services by shops, 2. Effects of competition
restaurants, and other commerce 3. Shortage of goods and services
3. Improves quality of fire protection 4. Increases pressure on infrastructure
4. Improves quality of police protection
6. Taxes (Ki): Increased retail activity from restaurants and tourist shopping will add state and
local sales tax revenue. Lodging tax revenue to the city (or state) should increase since
travelers account for virtually all lodging tax receipts. Increased tax burdens to expand
infrastructure and public services will be passed on to property owners through increased
property taxes.
TAXES
Positive Impacts Negative Impacts
1. Additional state and local sales tax 1. Increases property taxes
revenue
2. Lodging tax revenue to city (or state)
104 Fundamentals of Tourism and Hospitality Management

7. Community Attitude (m¤ú«`vh‡়i g‡bvfve): Visitor interest and satisfaction in the community
is a source of local pride. Seeing visitor interest makes local residents more appreciative of
local resources that are often taken for granted. As tourism develops, local residents will
enjoy more facilities and a greater range of choices. Tourism activities and events tend to
make living in a place more interesting and exciting.
However, heightened tension and community divisiveness can occur over tourism
development, pitting tourism supporters against non-supporters. Also, tension between
residents and tourists can occur. People will often feel stressed over the new, increasingly
hectic community and personal pace of life. They may claim the result is no better than
before or perhaps even worse. Where culture is part of the tourist attractions, over-
amplification of cultural traits and creation of "new" cultural traits to satisfy tourist tastes
may create a phony culture. Residents may experience a sense of exclusion and alienation
over planning and development concerns.
They may feel a loss of control over the community's future as "outsiders" take over
establishments and new development. Over-dependence on non-local developers and an
influx of outside businesses creates a sense that the community is being manipulated and
exploited by outsiders for the sole benefit of those developers or business people. Hotels
built in monolithic cubes or restaurants with standardized franchise designs might clash
with local standards and disrupt the aesthetic appearance of the community, damage unique
community character, and spread "sameness."
COMMUNITY ATTITUDE
Positive Impacts Negative Impacts
1. Heightens pride in community 1. Heightens community divisiveness
2. Greater appreciation of local resources 2. Increasingly hectic community and
3. More facilities and range of choices personal life
available 3. Creates a phony folk culture
4. More interesting and exciting place to 4. Residents experience sense of exclusion
live and alienation over planning and
development concerns
5. Feeling of loss of control over
community future (caused by outsider
development)
6. New building styles fail to "fit"
community
Review Question
1. The tourism development may result in many and complex impacts. - Explain.
2. State the impacts of the following in tourism with positive and negative aspects.
a) Economic
b) Environmental
c) Social and Cultural
 Chapter -3: The Impacts of Tourism 105

d) Crowding and Congestion

e) Services
f) Taxes
g) Community Attitude

3.5 Sources of Impacts

Dr‡mi cªfve
Knowing the nature of tourism impacts won’t automatically lead to solutions. It is equally
important to identify the sources of these impacts (see table below) and how they influence
interactions between tourists and residents, the host community, and the environment.
Researchers generally divide these impact sources into two groups: tourist factors and
destination factors.
a) Tourist factors are those which tourists bring to the destination and include such
elements as demographic characteristics, social differences, and numbers of visitors.
b) Destination factors are those that are part of the destination itself, such as travel
linkage and circulation, local acceptance of tourism, and local vitality and leadership.
Factors influencing interactions between
tourists, residents, host community, and environment
Tourist Factors b) Destination Factors
1. Number and type of visitors 1. Local economic condition
2. Length of stay 2. Diversification of the economy
3. Mass arrivals and departures 3. Degree of involvement in tourism
4. Links to community residents 4. Attitudes of tourism leaders
5. Ethnic/racial characteristics 5. Spatial characteristics of tourism
6. Economic characteristics development
7. Activities selected 6. Viability of the host culture
8. Ability to speak local language/accents 7. History of stability in the community
9. Demonstration effect of tourists 8. Pace of tourism development
9. Fragility of the environment used by
tourists
1. Tourist Factors (ch©Ub welqK)
a) Number and type of visitors (`k©bv_©x‡`i msL¨v Ges aiY):
 Numbers: small numbers of tourists are often relatively unobtrusive and may be a
curiosity or an interesting diversion for community residents. As visitor numbers
increase and they become commonplace, locals may ignore them. When the number of
106 Fundamentals of Tourism and Hospitality Management

visitors reaches a point that residents feel a sense of displacement, obstruction, loss of
community, or safety threat, resentment and resistance may result.
 Demographics: family status, age, education, profession, etc., influence the actions and
activities of tourists and their local visibility.
 Transportation: private vehicle or rental car, bus, train, air, or passenger ship dictates
tourists' movements, influences whether choices are pre-selected, and affects the ease of
reaching attractions and services.
b) Length of stay ( _vKvi ‰`N¨©)
 Day trips have less economic impact.
 Short (2-5 day) stays in a community maximize per-day economic impact for regional
driving destinations, i.e., tourist spending is maximized, but the pace can be hectic.
 Tourists who stay longer have wider range of needs and may spread the direct economic
impact more broadly in the community. Seasonal visitors (1-6 months) may take more
interest in non-tourism community matters.
 Annual events can create a large economic impact in a short period.
c) Mass arrivals and departures (RbmvaviY AvMgb Ges c«¯’vb)
 How and when people arrive (passenger ship, opening of festival) and depart influences
traffic congestion and the availability of attractions and services to tourists.
 Smaller lodgings and restaurants can’t accommodate large groups.
 Transportation options and availability may limit the choice of attractions and services.
d) Links to community residents (m¤úª`vq evwm›`v‡`i m¤úi&K)
 Reduced economic impact when staying with friends or relatives.
 Better understanding of community values.
 High potential for repeat visitation.
e) Ethnic/racial characteristics (RvwZMZ / eY©MZ ‰ewkó¨)
 When the tourist population differs greatly in ethnic or racial origin or economic status
from the local population, more consideration of resident concerns is needed to reduce
the potential for resentment, social conflict, and crime. Careful planning and ongoing
education can reduce points of conflict.
f) Economic characteristics (A_©‰bwZK ‰ewkó¨)
 Influences spending choices.
 Higher incomes may give tourists greater access to environment and have higher
negative impact on the environment.
 Chapter -3: The Impacts of Tourism 107

g) Activities selected (wbe©vwPZ wµqvKjvc)

 Educational, cultural, and historical tourism often has lower social and environmental
impact.
 Recreational activities may have a greater impact on the environment.
 Entertainment activities may conflict with the social values of local residents.
h) Ability to speak local language/accents (¯’vbxq fvlv / D”PviY ejvi ¶gZv)
 Perceived as making more meaningful connections with local people and culture.
i) "Demonstration effect" of tourists
 Local residents copying behaviors of tourists can add new dimensions to
 local culture but sometimes the behavior is not appropriate to local values.
 Locals copying negative behavior of vacationers (excessive drinking, inappropriate
dress, casual sex, etc.) create social problems.
2. Destination Factors (MšÍe¨¯’vb Dcv`vb)
a) Local economic state (¯’vbxq A_©‰bwZK Ae¯’v)
 Troubled economies may benefit from tourism. However, government officials should
plan so that new tourism developments are sustainable.
 Towns with strong economies can look for tourism that complements other community
goals such as preservation of historic buildings, creation of recreational amenities, and
expansion of food/lodging options.
b) Diversification of the economy (A_©bxwZi ‰ewPÎZv)
 Economic diversity helps reduce the influence of negative impacts to the host
community. If tourism has a poor year, other economic activities may offset the impact
and vice versa.
 Degree of local involvement in tourism and attitudes of tourism leaders
 Local involvement helps align tourism with the attitudes of the rest of the community.
Local ownership and management of tourism businesses keep profits from leaving the
community.
 In most cases, if tourism businesses are cooperative in responding to residents'
concerns, the industry will have strong local support.
c) Spatial characteristics of tourism development (ch©Ub weKv‡ki ¯’vwbq ‰ewkó¨)
 Separation of active tourist areas from residential areas reduces conflict.
 Shared commercial areas.
108 Fundamentals of Tourism and Hospitality Management

 A mix of resident-oriented and tourist-oriented businesses adds to the vibrancy of the

retail area. Domination of tourist-oriented businesses pushes locals elsewhere and may
create resentment.
 Shared cultural or recreational amenities (parks, museums,
 plazas, beaches, gardens) can be more successful with tourism.
 Tourist strips can clog streets and may restrict resident access to public resources,
especially beaches and shorelines.
 Gated or exclusionary tourist developments can create a class structure and local
resentment.
d) Viability of the host culture (AvqvRK ms¯‹…wZi m¤¢ve¨Zv)
 A strong and active local culture combats tourism's tendency to change a community.
 Active programs to educate tourists in local cultural practices (especially public taboos)
help reduce conflicts.
 Pride in culture influences tourists to honor local customs and adhere to cultural
restrictions.
e) History of stability in the community (m¤ú«`vqi w¯’wZkxjZvi BwZnvm)
 Strong local economies give leaders more options in influencing tourism development
to fit the community.
 Strong community leaders and active planning can place tourism more appropriately
within the community's geography and can support suitable tourism projects while
resisting inappropriate ones.
f) Pace of tourism development (ch©Ub weKv‡ki MwZ)
 Slower development provides time for residents and leaders to reassess tourism growth
and make changes that better serve the community. Rapid development can strain a
community’s infrastructure and lead to serious resident dissatisfaction.
 Negative environmental impacts are also more likely.
g) Fragility of the environment used by tourists (ch©UK‡`i Øviv e¨eüZ cwi‡e‡ki my¯^v`yZv)
 Many of the most sought-after environments for tourism are also the most fragile.
 Extra effort to plan appropriate access and use of fragile environments helps insure their
long-term viability and continued attractiveness for tourism.
h) Public transportation options (Rb cwienb weKí)
 Availability of local public transportation (bus, trolley, cab, shuttle, train) and
alternative transportation corridors (bicycle, pedestrian) can reduce auto congestion.
 Chapter -3: The Impacts of Tourism 109

 Poor access can make facilities inaccessible for motor coach or public transit.
Review Question
1. What two important sources of impact in tourism? Explain briefly.
2. Explain briefly tourist factors impact in tourism.
3. Explain briefly destination factors impact in tourism.

3.6 Elaboration of Environmental Impact

cwi‡ekMZ cªfv‡ei weeiYvw`
The most outstanding result of environmental
influence of tourism is its impact as the built
environment. A large hotel built overlooking good
scenic beauty, beach. Shops have opened to service the
visitors, the majority of outlets are geared towards the
tourism market. Roads have been indented and built to
enable easier access for coaches and berries. Beyond
the valley, tunnels have been blasted out of mountains to ease access and an airport has been
built in.
Around the globe, tourism is regarded as a pollution free industry as against other
manufacturing industry, which can spoil the environment. Environment pollution is a challenge
in the modern times. It is not common and limited just to places of industrial activity and
urbanization but also spread to places of tourist interest.
Visit of tourists to different places results in the spoilage of the beaches, local, social and living
systems, national parks, mountains rivers etc. The damage may be in the form of writings on
temples and historical places, removing pieces of marble from ancient contractions and
churches, this shall deprive the originality of a structure and affects the beauty of the same.
Below mentioned are some of the environmental issues rising because of tourism.
i. Soil Compaction (g…wËKv msKyPb): Tourism often leads to soil compaction, usually
unavoidable aspects of recreation activities. Compaction packs soil’s loose particles
together and reduces pore space, leading to a reduction in aeration and water infiltration.
This increases water runoff from rain & melting snow, causing reduced water absorption,
a loss of vegetation cover and soil erosion.
ii. Species Habituate (c«RvwZ Af¨vm):
a. Habituation is often mistakenly seen as positive because it brings visitors closer to the
wild life but frequent disturbance to animals is not being tolerated by them and once
their level of tolerance is exceeded they may abandon their habitat.
110 Fundamentals of Tourism and Hospitality Management

b. Due to the cutting of trees and diminishing of forest areas causes serious damage to
the natural habitat to animals, birds and tribes.
c. Urbanization of coastline, sand mining, beach and sand dune erosion, and soil erosion
lead to degradation and loss of wild life habitats.
d. Disruption of habitats puts increased pressure on endangered species.
iii. Water Turbidity (Rj A¯^”QZv): Soil erosion is a frequent result of tourism infrastructure
and recreation.
iv. Plant Life (Dw™¢` Rxeb): Laying down new roads and developing new infrastructure to
stimulate tourism, adversely affects the plant life in the area.
v. Deforestation (AiY¨webvk): With cutting down of trees, habitat loss and fragmentation is
taking place.
vi. Climate (Rjevh়y): With the massive construction of hotels and resorts huge area is
overcrowded with people adversely affective local climate and living.
vii. Deterioration in Ecological Diversity and Biodiversity (cwi‡ekMZ ‰ewPÎ Ges Rxe‰ewP‡Zª¨i
Ae¶h়): Tourism creates significant contribution in reducing levels of biodiversity.
viii. Water Pollution (cvwb `~lY): Water Pollution is caused due to sewage outfall and sea
dumping of waste causes marine water pollution.
ix. Damage to Coastal Areas (DcK~jxh় GjvKvh় ¶wZ): Recreational activities like scuba diving,
snorkelling and sport fishing, leads to damage to coral reefs and subsequent impacts on
coastal protection and fisheries.
x. Vegetation Impact (Dw™¢` c«fve):
a. Agricultural land is used for commercial purpose and results to the loss of area for
production.
b. The development of projects, particularly the road has lead to the destruction of
vegetation in the valley.
Review Question
1. What are some of the environmental issues rising because of tourism?

3.7 Elaboration of Social Impact

mvgvwRK cªfv‡ei weeiYvw`
Tourism is related to the social system in a country and has definite impressions on the social
system present in a society. In turn, society has its influence on the human life and it is evident
from various formal and informal groups one comes across during the course of the life.
Tourism has become a status symbol. People travel as a reflection of their prestige and standing
in the society. But, simultaneously with the development of tourism by allotting separate budget
 Chapter -3: The Impacts of Tourism 111

tourism activity is more planned and organized. With the development of tourism many
facilities are created to motivate people to travel and get relived from the stress and burden of
modern materialistic life. By touring different countries people get acquainted with different
social customs and rituals, this creates a strong bond of relationship with local community and
creates a sense of affinity among different nationals of the world, an essential prerequisite for
universal peace. But, simultaneously there are certain adverse implications of tourism on society
such as:
a) Changing the family system and life styles of people with the invention of modes of
transport and with increased urbanization many joint families are dissolute and nuclear
family concept starting.
b) Under the disguise of tourist anti-social elements are entering into various target countries
to spoil the peace and harmony in the society.
c) With the movement of people, many various types of diseases are also spreading and
creating health-related problems among the host country people.
d) Tourism development leads to increase in number of crime in a locality. Problems like
gambling, eve teasing, molestation, prostitutions and other related crime in the tourist area
causes threat to the movement of people.
e) Tourists may engage in crime and illicit activities such as violent/ drunk behavior, drug
smuggling and sex tourism.
Review Question
1. What are the social impacts of tourism in countries’ economy?

3.8 Elaboration of Cultural Impacts

mvs¯‹…wZK cªfv‡ei weeiYvw`
The concept of cultural tourism has gained prominence as people are interested to know and get
familiar with the life style, arts, music, customs and festivals
of different parts of the world. Tourism allows exchange of
cultures in promoting greater awareness on both sides.
Development of tourism as a vehicle for economic
modernization and diversification almost invariably leads to
changes and developments in the structure of society. This
may be positive or negative. In the positive sense, there may be society wide improvements in
income, employment opportunities, education, local infrastructure and services. On the negative
side, there may be a threat posed to traditional social values, the creation of fractions of society
and adaption or weakening of cultural values. The depth of the negative impacts depends on the
tourist traffic and the diversity of tourists.
Positive impacts of cultural tourism: There are several positive effects of tourism on culture.
It helps to promote the culture of a country. There is an exchange of cultures as a tourist travel
112 Fundamentals of Tourism and Hospitality Management

to different place. He/she learns new culture at the same time imports one’s own culture into the
local community. Cultural tourism promotes the handicrafts and local art. However, the adverse
effect is, that cheap imitations are diluting the advantage and damage the original artwork.
Negative impacts or limitation of cultural tourism: Tourism as a unique and powerful
phenomenon has a tremendous capacity of changing culture. Tourism is seen as having a strong
influence on a culture, understood in the holistic sense, with impacts spreading throughout the
culture.
a) Threat is posed to traditional social values and weakens the cultural values.
b) Exchange of culture tourism is allowing exchange of culture but with this the original
culture is diluting day-by-day.
c) Cultural tourism contributes to universal brotherhood and promotes international place. At
the same time may transform the local craft, folk art and festivals to suit the demands of a
tourist, which shall affect the originality.
Review Question
1. What are the cultural impacts of tourism in countries’ economy?

3.9 The Disadvantages of Tourism

ch©U‡bi Amyweav
Tourism is usually regarded as a boon to a region’s economy. Tourism brings prosperity to the
region and provides employment to the locals of the region. However, when tourism becomes
unsustainable in nature, it can have disastrous consequences on the environment. When the
tourist industry active in the region crosses the legal and ethical barriers to earn more profit, it
can lead to massive degradation of the environment in the area. Local human population, flora,
and fauna, suffer greatly due to such irresponsible and unsustainable tourism. Some of the ways
in which tourism adversely impacts the environment have been mentioned below:
1. Environmental (cwi‡ekMZ). Tourism can often cause environmental damage with risks like
erosion, pollution, the loss of natural habitats, and forest fires. Even if tourists behave
responsibly, the sheer number of them can cause damage. Ancient buildings, monuments,
and temples often struggle to cope with increased traffic and suffer inevitable wear-and-
tear. Reefs and other natural tourist attractions can suffer permanent damage.
2. Cultural (mvs¯‹…wZK). The commercialization of culture can undermine the soul of a tourist
destination. Local traditions that have a rich cultural heritage are reduced to wearing
costumes and putting on acts for the tourists in return for money.
 Chapter -3: The Impacts of Tourism 113

3. Culture Clashes (ms¯‹…wZ msNl©). Tourists often lack respect for local traditions and culture,
refuse to follow local dress standards, get drunk in public, or behave rudely or
inappropriately towards locals.
4. Service Economy (cwi‡lev A_©bxwZ). Although jobs are created by tourism, most are relatively
low-level such as bar work, hotel service, restaurant serving, and so forth. These low-wage,
low-skill workers have little prospect for advancement or promotion.
5. Seasonal Fluctuations (†gŠmywg IVvbvgv). Tourism jobs are quite commonly seasonal and
insecure, with no extra benefits such as pensions, sick pay, or healthcare. Some areas can be
inundated with visitors during busy times, and then virtually deserted for many months.
6. Imbalanced Funding (fvimvg¨nxb Znwej). Money can end up being directed to tourist areas
when it could be used more effectively elsewhere in a country. The locals who don’t live in
specific tourist areas miss out and suffer relative decline.
7. Foreign Poaching (ciivó« †Pviv wkKvi). Oftentimes, most of the tourism industry in a
developing country is owned by big foreign companies. They make the major profits,
leaving local businesses with relatively little benefit.
8. Tourism Dependence (ch©Ub wbf©iZv). Sometimes, tourism becomes so focal that other forms
of income-generation are neglected and an economic dependence on tourism forms. This is
fine in good times, but it can leave the country vulnerable to economic ruin in the long run
and can contribute to political upheaval or natural disasters.
Review Question
1. What are the disadvantages of tourism in countries’ economy?

Exercise: Part A & B

1. Give an overview on the impacts of tourism.
2. Why is tourism important for development of the Country?
3. The tourism development may result in many and complex impacts. - Explain.
4. State the impacts of the following in tourism with positive and negative aspects.
a) Economic
b) Environmental
c) Social and Cultural
d) Crowding and Congestion
e) Services
114 Fundamentals of Tourism and Hospitality Management

f) Taxes
g) Community Attitude
5. What two important sources of impact in tourism? Explain briefly.
6. Explain briefly tourist factors impact in tourism.
7. Explain briefly destination factors impact in tourism.
8. What are some of the environmental issues rising because of tourism?
9. What are the social impacts of tourism in countries’ economy?
10. What are the cultural impacts of tourism in countries’ economy?
11. What are the disadvantages of tourism in countries’ economy?