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e Im.pacts of Tourism and Hospitality


· The rapid growth of tourism and hospitality in the twentieth century has
produced both problems and benefits for destination countries. It has had visible
impacts on the sociocultural and socioeconomic environment. Although t ourism·
and hospitality can bring economic advantages to a destination country, it also brings
with it serious long term problems which_, without careful control and planning, can
threaten the societ.y.

The Positive Economic Effects of Tourism and Hospitality

Like any other industry, tourism and hqspitality· aff ects the economy ·of those
areas in which it takes place. The area affected may be··a re ort, r egion,· or· a ' ,'

the
entire nation. Notwithstanding the size of the affected a.re a, the economic eff ect·s of·
tourism and hospitality may be classified into four groups, namely: effects income; on
on employment; on the area's balance of payments with ·t he outside· world; and ' 6 n
investment and d_evelopment. ;_ · · 1 · ••

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r,

Income
,i I · • ', )• .- I : ·. •• •,

The tourism and hospitality indust ry . obviously . g enerates: income within a


destination country. Nations wanting to increa' se their income have used tourism '
and hospitality as a m eansr for
I ·, reasonably
quick·development: Experience has shown
us that it takes less time to increase income f om -t ouris·m and hospitality than from
manufactured goods or other available options... ·
Tourism income, in general, come_s • 1 '

fr om wages an d._ sal ri s,. interest, ren,t; ·


and profits. Since tourism and hospitality is a labor-intensive industry, the great est• .
proportion of its income is derived from wages a·n d salaries. Income is also generated
from interest, rent, and profits on tourism and h·ospitalit y businesses such as.interests
paid on loans to an airline in order to_ buy aircraft, or rent paid t_o a.la .li d owner ,f r a
car park. Income is also obtained from direct taxation or indirec taxa on. Imposing value-
added tax (VAT) on hotel bills·; s exam, pl e' of indirec ta a on. . . .
T uris and hospitality is both an_inc m ,i '
r t0f: r,d" fJ com .recii tr ibutor.
re:1
r.i n.i
Most of the tourist receipts go to the developin_g na qns of the orld such as in
East Africa and the Padfi .· Because of the ow. o apital froi:n one c9untry to
another,
many countries Hmit the amount of currency th national ma take abroad for fo eign ..
I .\ ' t. '
travel. ' .::'_.:
1 M ... f h ·• me t the internati onal . and national level is business income •
ucu· o t e mco · · . d d···································· · ·
>ti
. . f :
wh ·d n,·zations buying and .selling goo s an services .to tourists. ·. r'
1ch 1s generate Y . · . · · h f - .. ,-:-;
b nd hosp'itality offers developing countries 1st e range o -.'
· fl
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One. advantage
, • that.tc;,unsm .
vide to tourists. .
It includes local f ood , d rm
· k s, and owers f or . •• \:·•
\ tl.
businesses
h need.ed to pro ft,s . l
fort
1 et oun
t souto r bu , y· local cafe.s and. r.estaurant, s.,,.t
• -, ;:
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•. ·
t he resort areas, 1oca era t , 1s e rvices· · local cultural events; shops.for-t ouri st ' _ ,..;:t-
f
gu1·des m
t ·r ete rs·
erp , . rav h· pens.ions and small inns. . _:. :.-·.
d. loca I e .
an as .·..
needs; and specialized local hous, g sue . · · _: ;{'·
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invets ment and Development
Once an area hasb - -
. ecome econ . II
agencies may be influencedt O . o ica Y successful, businessmen and government
5t
that area. This is knownb inve in tourism and hospitality and other industries in
Y ec.onomists as an accelerator concept. .

Negative Economic Aspects 0f 1i • _


. ourism and Hospitality
While most countries enc . - ·.
t he re are some negativ ourage tourism and hospitality for its economic benefits,
e economic as t f . . .
i de nti fi ed and discussed. pee so toun_s m and hospitality that have to be
These are high inflanon a d n. .. ·
1 d
eco nomies of developin coun a. speculation destination high leakages from the
flutcua in demandg ntnes, 7ow returns on investments because of seasonal
tiosn a n d overdependenceon tourism and hospitality.

In flation and Land Values


The·infl ati onary
.effect ft • · •. · ·
so oun sm and ho spita l ity can arise in dif ferent .ways.Rich
tou ri sst ca afford to buy items at high prices. Retailers, re-alizing that their profits can
be great increased by catering to s. , increase the.ir pri.-ces on cert.ain products
ly_ t oun•st
and provide ore expensive goods and services. Such stores can compete more
successf ull y ,th those catering to local residents. They can afford to pay higher
rents an taxes which are passed on to the customers through higher prices. Thus,
local resi dent s·ha ve to pay more for their goods.

Inflation within destination areas. is also caused by increasing land values.


Gro wth in the tourist trade creates additional demand for land, and competition from
pot enti al buyers increases the price of land. The demand for more hotels vacation
homes, and tourist facilities may bring more income to builders, real estate' agents,
and landowners, but local residents are forced to- pay more for their .homes b ec·aus
e
of the increased value of . ·
land-. . . . ......
••0< I

High Leakages
Leakage occurs•from a variety of sourc e_s. It occurs from the cost of goads and
services that must be impo,:te_d to satisfy th_ needsof tourists. Examples of these
are developing countries which have to import cars, buses, manufactured materials, and
technolog y from devei"oped nations to meet the demands of tourists. Another
source of leakage is the remittance of profits and wages to outside so.urces. If
foreign capital is invested in the country's tourism and hospitality industry, plant interest
payments,
ern t,s or profits may have to.b e paid to the foreign country; thereby reducing profits in

S canned wiith Cam Scanne


the destination country. A third source of leaka_geis the expenditu,re for promotion and
publicity to encourage tourists to visit a ert_ain destin tio . The cost ofa dve rtsi emen_ t
isa large expense that reduces the earnings ofa destina on ar _a. .

·. ,, - - - 11111111--.........:. .:,.·__:-:. . .,_:

S canned wiith Cam Scanne


Seasonality
Many tourist regions experience low returns on investment ecause f seasono,
fluctuations in demand. The seasonality of demand is reflectedm _ hotel occupancy
rates. Many hotels experience greatly reduced revenu_ es during the off season.
Nevertheless most hotels prefer to remain open all year round to secure as much
revenue as p ssible. Accommodation investments are not the only nes wita low
rate of return; tour operators also face similar problems.

Overdependence on Tourism and Hospitality


Some destinations have made themselves vulnerable to changes in tourist
demand by becoming overdependent on tourism and hospitality for their liyelihood.
Tourisrn is highly susceptible to changes from within and outside the industry.
Exa mple-s bf changes from within are price and fashions; _-while global economic
trends, political situations, and energy availability are examples of outside changes.
M ny tourists avoid destinations which are politically unstable but they usually select
an alternati The decrease in demand for a des.tination results in
under.utilization of s' e- -rv,ic. es; unemployment, and loss of income.

Impact Control Measures


.. , , j .. ,.,,
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, There are a number of ways to maximize the benefits of.tourism and hospitaD
to the destination area. Edward Inskeep (1991), a consult an.t for the Unit d N tio
World Tourism Organization (UNWTO), has suggested the following.: .
1. . Develop tourism and h_ospitality gra ually so that Io.cal esidents ca.r . _.
sufficient time to adapt to it and un erstand it. It would also allow
government to properly plan, organize, and monitor o iism and·hospita
• •• -1. -

2. Maintain a scale of tourism and hospitality development that is appr p ,.


for the local as well as national environment. If - possible, devel,o·
p6
_ economic sectors so that there is a balanced economy and emplof :
structure. In some areas, small-seal and dispersed forms 0 ( tourism
more suitable than concentrated mass tourism development; ··
3. · involve residents and their spokesme, n in planning nd decision-
maid: that they can parti cipa_t e in termini g the future of
this sector_·;, -- :
4. Apply the concepts of tourism development zones· •.: .
I ' I ' )-

5. Make ce ai that esidents have easy access to t o'urlst attractions, fa·


and s· ervfices including reduced admission fee if necessa.rv · d th at· 1· m
,,a n
amenity eatures_have public access and are not preempted bytourr
6. ,Pr? vide incentives t_o local ownership, management a ;.,.,· · ',.;·.· :
h ot eI s and oth er t oun·s,t f ac·,1·tt·ies and serv·ices sot h-·a t- , ' ·•nd··u ·op.·_,··,e.
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7. De e_l p strong linkagesb . .
acti viti es such asa . etweentounsmandhospitalityandothereconomic
help develop the gnculture, fisheries, handicrafts and manufacturing to
. se secto rs r d I ,
import substituti , e uce eakage of f oreign exch nge through
nd
hospitality; on,a. spread the econ mic benefits of- t9 urism . and
8. Plan, develop and • · • · · ' ,· ·. · · ·
O
too congested 'th rga ize tourism_ and hospitality so that no area becomes
and services; a .toun 5,st and r_es1dentsc_an e sily µse c mrnu ityfacilities
9. Train local peoplet 0 .k . . , · ' . ·_ .
includ· . war effectively mall leyels of tourism and hospitality,
f. mg managerial and technical positions, in order t o·reduce.the number
, ported employees and .t'c{ I esseri possible· misund ·erst an ding
between ounsts and local employees. ·,•:' i· 1

. ., . ' . ,., •.: .· ;' ... ;)':,: . , ·:r .{-;: i/ ;· ..,


Social Impacts Of Touri - nd Hso
pti
lit. · ·'• .: _- ..;::--· ·, . :T ·.,:;· ·.<;i, \\ \ ,·, ..•·
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••

The social impacts of tourism :an d ospitaliw sh uld. nbt b -onfus e, d Wit.h • th e .
po pular term "social tou ism." The social impac' t of tour'ism and hospitaiit y' -'r efer
to the changes in the quality of life of residents of tourist desti na ti ons: The' obej·
ctivi e 1
soc al o,tourism
f; is to ensure that·tourism· is accessible to·all people. . ..: · ,. .. ·.·· ._1
: / '':· ·.
·. . ·,
:· ,<·.· / ··:·' ; .
5. Incipient Mass Tourist - This is a visitor who looks for the amenities of
Western societies in hotels and other travel-related facilities. He is a
mixture of both pleasure seeker and business traveler;
6. Mass Tourist - He comes from the middle class. He arrives in a destination
with other tourists. There is a diversity of tastes among them and their
attitude is "you get what you pay for"; and
7. Charter Tourist - The charter tourist comes "en masse" with others of his
kind creating an extremely high amount of business and receiving· a high
. degree of standardization in services an.d products. The interaction
between the visitors and the hosts is limited and impersonal.

... ; .

Table 1. Frequency and Types of Tourists and Their Adaptati n to Local Norms

.
•C
'.
·y.v.pei
. .
1 :af:i &O t\Yo
· ·. \•'-: •-•-, .•J . , ;., ...

Explorer r

Elite Rarely seen Adapts fully ·

Offbeat Uncommon but seen - Adapts well I••

Unusual Occasional Adapts slightly


Incipient Mass Steady flow Seeks Western amenities
Continuous influx Expects Wester ameni ti s.
Massive arrivals . Demands Western amenities
Source: Smith, Velene L. "Hosts and Guests." The Anthropology of Tourism, 1997.
' . .

. l
The level of interaction between the hosts and guests is ill ust.ra ted in Table 1 for
each type of tourist.
. ' . .
The impact increases with each level of tourist. The explorers and elite tourists
usually have little impact on the local culture because of their limited number. The
offbeat and· un usual tourists generally use the s·ame: h otels and services as the
local travelers. With the incre se in number, and g'r eater expectations and demand for
special facilities and services, a corresponding change in the local area occurs.
Against this background, it is possible to discuss the positive and negative social
impacts of tourism an·d hospitality on a tourist destination. ·

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positi ve Social Effects of Ti •
our, sm and Hospitality
rn o f the positive effect s Of touri.sm and hospitality are the following:

I It t creat es a new med·ium f or soc!al change and multicultural understanding;


enco ura ges adaptation .. . . ..
im p rov i ng the host count o th reailties of modern life and works toward
ry s environment and lifestyle options; .
I t prom otes knowledge and use of foreign languages; a·nd; .
I t improves health cond"lti•ons and disease control:

social Change and Multicultural Understanding .


One of he most important benefits of tourism and hospitality is the bringing
tog e t h e r of diverse people tO help them understand one anbthE!i: Poi>eP i .usX iito c he d·
o n t h i s aspect _of t ouri sm and hospitality when he spoke of."subjectingone s l f ,j"o 'yfu l y
_'
o r sorrowfully, to the inconveniences, grea·-t r small, which canw i t .h d i f i'ciil ty b.e
av o i de d. " The United Nations vyorld Tourism Organization (UNWTO) considers to'l.Jrism ·..
a s an encounter between a person and a destination in its natural setting. Above all,
t he UNWTO believes it is an exchange or eritounter between individual groupsp f •
p e o p le as well as between social groups. Thus, it becomes an encounter be tw
e·en · n a toi n s and an exchange of values. The impact of this exchange is significantly
different be tw een industrialized nations and developing agricultural nations. The
more isolated
t he country visited, the more significant the social changes are likely to be.
' .
. . . I

Aadp ta tion to the Realities of Modern Li/ and Improvement of theHo,st Country·

Lif est yle -,


This positive social benefitis the result of the following:
The qualti Y. of lif.e improves in places whe_re tourism and hospitality is
1. b .- d ·1 oped by bringing both the urban infrastructure(w _a te,r ousmg,
emg eve . •1 • t h Is)
sewerage) and population be efits (medi Icare, , s c1aas SI S_/ n,ce,, s 00
together; .. : .. . , . .. . . , _..· . . -. ·, , .
· · · : ··· h. t ccurin ·occupation nd income patterns cr atea n:uddle
2 T h e c ha n ge s t a .Q · · · d
, c 1 3 ss w it h it s ( i f e r :en t ttitu d s, value s, an
· I ·
so c,a concern s.,., . . ·. . ..
Increased socia.l mobility . results in new mployment opportunities '"
3, tourism and hospi\ality; and. . . . , • ,' ' " . , . . . , .
. . I ti ns occur· t hr oug,h t he employment of women
4. Changes in familyTrh a_nocreases the family income and gives the worker's
h home is,
outsi e t e
d · rt itY for higher education. ·
children more oppo. u motes progress and modernization through
Thus tourism and hosp1tal1j prolt brings about improvements in facilities and ,
exposure o other attitudes and v ut lifestyles and quality of life of the residents of
; rovernents in
services as well as imP . · ..
the host country.
positive Social Effects of 1i •
ourism and Hospitality - .
some of the positive effects of to . . . - - -
1. t1 creates a new mediumf unsm and hospitality are the following:
. -
or social c ange and multicultural understanding;
2. I t encourages adaptatio ·. . _ · · •., .·
0 th
i m p ro ving the hostc n ; realities of modern life and works toward
ountrys environment and lifestyle options· . . ·
3. It promotes knowled d · ' '·
ge an use of foreign languages; and_; , : (- ,-
4. It improves health conditions and diseasecon tr o l: < - - ·. ,

So cai l Change and Multicultural Understanding -

One of he most important benefits of t ourism' and hospitality is the bringing toget
er of diverse people t.o help them u'nderstand one arfbt h er ?Po p. eP• ius X lit o c he d
on this aspecto_ f t ou r is m and hospitality when he spoke of."subjecti ng·_onei lf,' jp yfully.
or sorrowfully, to the ni conveniences· , grea·t ·or small,
which can with difficulty b_e
avoided." The United Nations vyorld Tourism Organization (UNWTO) considers tourism
as an encounter between a person and a destination in its natural setting. Above all, ·
the U NWTO believes it is an exchange or encnunter betwee.n individual groups 9f
people as well as between· social groups. Thus, it become·s an encounter bet een nations
and an exchange of values. The impact of this exchange is· sig nifi cant ly different
between industrialized nations and developing agricultural nations. The more, is_ ol at ed
the country visited, the more significant.the social changes are likely to
• • .
be..............,
• ' :- !,• .

Adaptation to the Realities of Modern L_ife and Improvement of the Hos t untry-'s
Lifestyle ·
.I·

·
• • • .

·
This positive social benefit.is the result of he foll wing: ·
1. The quali_t
y of life _ improves in plac,es _\Nh er tourism .and ospi ality- is
being developed by bringing both the ur an_ infrastru_ctu_re (wa_ er, hou sin_g,
sewerage) and population _be efit s (":1 d1c I car.e, s c._1al ass1s. anc,e, s ools)
together; : · • ' -- - . . · - -- . . . ,_ ·, , _ -·.,. . , . . · .. . .-., . r • •

2. , ch, a··_n; -r occupati on nd incom patt er_ns cr_ ate a rtJiddle


Th e
e
g _ s t h· -a- ·t . .i
n 1 • • , • , • .-

oc- ,
clas-s wit h.it s iff ere:nt ttitud s, values, a d social conce_rns; - . .

_3 lncre sed social .m obilit-y ,r esults in .,:1ew ,employmen t opportunities•' in J _'. '.

tourism .c;in d hospi ality;a d . . . ' · ·· _ J;: ·


· - · f · ·1 relati·ons occur ·t hrough :the employment of women·· _i - .· •
4 Changes m am, Y • · d · h k ' I _ ··:
· outside the home. This increase_s the family _mc me an gives t e w or. rs _ \ _ :· , '.-
children more opportunity for high.er education.- . . _. . . ,-: .,:"- · ,..
i:; ,.-.
. h ·tality promotes progress and modern1zat_i on thr g _,_·: · -:·
:
Thus, t ou rsim_ a d e s: d values. It brings about improvements in faci_liti . s nd . 1· \ ] ·:if•.
exposure to other ttitud n t s in• the lifestyles and quality of life of the re_idef!tS ,-·· : : (,:;( :,·::
services as well as 1mproveme · ·. . · •_"' .: ·_ ... :: ·· ·-..-- . . ':·-..: · .:' t --
;-. _
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the host country. . ._... - · ,. ·· · - - ··. ·, . .·, ..- ·.-·- -::J ; .--\ · _.v.: .;..-- ,.:•, .:·•.·::..<.
• • • , , 1•· I • , .,, ' .'·,

t
chnag es in the Social Structure B h .
, e avmr, and Roles . . . , -
Tourism and hospitalit h · . . . • . .,
ult s in the /ow . Y c ang s the traditio I forms of employme t which
th 5
r nd the breakin er g: e tus 0 1 agricultural workers, migration of the popu/a'tion,
fa m i li es. They al o !sre fam,/Jes_. Many young p ople demand freedom from their
. Y gard social norms such as respect·f or elders and close family
tise .. ou n g hw om en who enter the workforce have changed their tradi ti on a·l dress to
wun st .c1ot es. · · ·

Tourism and. hospitality · in some areas leads to other soqal


· · .' · · m the
problems
.
·
fam il:. Some WIV S who work in tourism and t,ospitality establishments have higher
sa \ ries than their husbands. This often leads to the loss of sel(confidence among t he ir
husbands. !n addition, their improved way of dressir,g and groorriing.cau_sest heir
hus ban ds to be Jealous and suspicious. This has led to a h' igh er divorce rate.., . -
This disruption in the kinship system reduces c
communit y, thus hanging th population charact eristi ·hesive ess ·in th w hole -
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C om munit y Problems
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·

Prostitution, often called the "oldest professi n/ -c:ert ainl.y exist d b f >.r the
grow t h of mass tourism. It is difficult to say how r_esponsible tourism nd hos_pit ality
has been for the rise of prostitution in tourist destinations.. -· .• ,..: ,. :. : _.>: . 1 _:'. .

• I " • ' , ..: ;, ' ' • t I ; , I • • 1 • • ,• '•• .._ , • ·,

The following are some of the reasons .for the increase 'of prosti uti on• in •t ouri st
1

resorts: · ·.-, ·· · · ··· · · · · ;·., .. > · · i · · •


Scanned wiit lh CamScanne r
Cahn g esin the Social Structure, Behavior, and Roles
To_urism and hospitality changes the traditional forms of ·employm ent which
ers u ItsnI t he lowering of the status of agriculturai workers, migration of the
population,
an d. he breaking up of families. Many young people demand freedom from their
fam ilies. They also disregard social norms such as respect-for elders and close family
ties. Young women who enter the workforce h·ave chan_ge d their traditional dress
to tourist clothes. · ·· · · · ·

Tourism and hospitality in some areas leads to other so ial problems in the
family. Some wives who work in' tourism and hospit alit-y establis riie11t ·s have higher
sala ries than their husbands. This often leads to the loss of self confidence among
their husbands. In addition, their improved way of dres ing and groofning causes their
husbands to be jealous and suspicious. This has led to a ·higher divorce rate.
This disruption i the kinship system reduces ohesive ess· in . the :·whol
e communit y, thus changing the population characteristics.
''

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Community Problem.
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,
Prostitution, often called the "oldest profession," ·cert ainly e,:ci sted. befo're
the growth of mass tourism. It is difficult to say how responsible tou'rism and hospitality
has been for the rise of prostitution in tourist desti na ti ons.. .,
The following are some of the reas f or the increase' of pro sti t uti on' in .tourist
on--: resorts; . . . '. .
.· ,, . .
• I • ., • , ,

1. The processes of tourism and· hospita lity . have created locations


and environments which attrac·t prosti t l:Jt e·s and_ t heir cli·er,t s; ·. ·· - . ·
. ''

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Scanned with Cam Scanne r
, forms will be necessary to It
. ti
i s expe ct ed that some change in _pre-exd1s hng ·1tality can either be
·ti·es
carefully tounsm an
cc omm odat e mass tourism. However, . osp
nd employment opportunt
.
controlled
the by • mize economica d
. government to maxi . pact· or it can be change
d phys1caI .1m , . . as l•

. cultur,a an
whil e reducing ,ts social, . . ttractive to both the guests and
en ha nce the physical environment and make it morea . .. .
t h e local residents. · · f ·. and hospitality
.. d negative aspects o touns ,.
An analysis of the positiv: an anagement particularly of water and
d urage wise resources· m ,· · b

:'
i n dicat es a nee to enco . d llution as well as the problem of
gar age
energy, and the pro?lems of n 1s an ·st activities. The environmental
benefits
a n d fire hazards which may arise ram oun o . d , . .·
.
and negative impacts of tourism an.d h ospitalit y need o be _rec g 1ze. =·'= j • -. '. •

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Positive Environmental Impact of Tourism and Hosp i t_a li fy ·. · · . .· _ -,· ' : ;' _ : :.:,· . :·.• .
. . • . .• I•.
Tourism and hospitality has created environ entai awae_rn e.ss . in t o "a;'y ,.. · '. .., ·'. .·
1. contact with scenic areas has raised .man's awa- ren s f t h_e eda r-W s.
beau:v
and made it easier ror him to see and enjoy it with mjn1mum amage; n
2. Environmental awareness has been heightenE:d bym a·ss· .tour
is. w_ ci
h·.:
caused direct and indirect destruction. ·· · ·· ·· · · •· ' · .:: , .·.; · ·. · ·
. .
·
.
In developed countries, several nati ·orial parks and_ nionum rits have..
been created to preserve the natural, cultural, and ·r ecreati onal r esourc es of the
la- . f?r the enjoyment, appreciation, and education of present and fu_t ur e gene ati
ons: The
development of parks was intended to open up ar e_ as for viewing as w ell - as to co_n
rol
the flow of traffic within the park. · . · . . . -!. • ·• • , .;-- , • : •••• :. • , ·
. Tourism and hospitali:tv has pr v,ded reaso·ns .f or the ·pre servati on of
histo'rical buildings and the creatio of museu s. At present, manv• .devep ping
nation r.e realizing
that their monuments mean tourists and.income. Thus, desire 'to· preserve: their
national monuments have fncr·eased. In developed countries; u spoiled nat_u ral
attractions are becoming more and more rare.. Hence,' people travel to develo'ping
nations where nature is still unspoiled or where the remains of andent civilii ati o·n s
are located. Developing nati o·ns realize that th'eir historical sites or traditi on·aI t o
wnf an'd
n ighborho.ods untouched by .progress are economic assets. Lighthouses, harbors /
and fishing .piers are ideal tourist ·att ractions. · , · . · . . - _._, ·
-
/· • ' • • , , , : ,.
. . •,.·· · .' • l

:ourism nd hospitality h s created appreciation of the ·e·n viro riment b\ /


bringihg,,
scenic attractions to the atte tion of the public. ln Switzerland for example\. mo
·.·•· t'ain d ti. b th · · · ' - un
spo_rts a.n vaca on s : ? m w mterr . and. sun:1mer, have mu hro. _om .d ,.a. ;s·.; \ '. r
s·' {t;q
rap1dtounstgrowth. . ·. ' 1· ., - • .,., .,:··: _;, y _/ ·
.,,;
..· -. , ,. .• ,' - ..: . = -- - ... . · ·._. .;;.,." ,· - '_).'
:".·\ \' >·' ; · ; { ! .

Scanned wi th Cam Scann er

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