Chapter 6 The Impacts of Tourism and Hospitality
Chapter 6 The Impacts of Tourism and Hospitality
Chapter 6 The Impacts of Tourism and Hospitality
Learning Outcomes
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 tourism 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 society.
Like any other industry, tourism and hospitality affects the economy of those areas in which it
takes place. The area affected may be a resort, a region, or the entire nation. Notwithstanding the size
of the affected area, the economic effects of tourism and hospitality may be classified into four
groups, namely: effects on income; on employment; on the area's balance of payments with the
outside world; and on investment and development.
Income
The tourism and hospitality industry obviously generates income within a destination
country. Nations wanting to increase their income have used tourism and hospitality as a
means for reasonably quick development. Experience has shown us that it takes less time to
increase income from tourism and hospitality than from manufactured goods or other
available options.
Tourism income, in general, comes from wages and salaries, interest, rent, and profits.
Since tourism and hospitality is a labor-intensive industry, the greatest proportion of its income
is derived from wages and salaries. Income is also generated from interest, rent, and profits
on tourism and hospitality businesses such as interests paid on loans to an airline in order to
buy aircraft, or rent paid to a landowner for a car park. Income is also obtained from direct
taxation or indirect taxation. Imposing value-added tax (VAT) on hotel bills is an example of
indirect taxation.
Tourism and hospitality is both an income generator and an income redistributor. Most
of the tourist receipts go to the developing nations of the world such as in East Africa and the
Pacific. Because of the flow of capital from one country to another, many countries limit the
amount of currency the nationals may take abroad for foreign travel.
Much of the income at the international and national level is business income which is
generated by organizations buying and selling goods and services to tourists. One advantage
that tourism and hospitality offers developing countries is the range of businesses needed to
provide to tourists. It includes local food, drinks, and flowers for the resort areas; local crafts
for the tourists to buy; local cafés and restaurants; tour guides and interpreters; local travel
services; local cultural events; shops for tourists' needs; and specialized local housing such as
pensions and small inns.
The sum of all income in a country is called the national income. The importance of
tourism and hospitality to a country's economy can be measured through the national income
created by tourism and hospitality. The most common method for estimating the income
generated from tourism and hospitality is by determining the multiplier for a destination.
Multipliers are means of estimating how much extra income is produced in an economy as a
result of the initial spending or injection of cash.
Employment
Employment, from local to national, benefits as well from tourism and hospitality. In
general, the tourist industry offers more employment opportunities than other economic
sectors. Generating employment is perhaps the greatest advantage of tourism and hospitality
on a developing economy. Tourism and hospitality generates employment faster for
developing nations than for the developed ones. In general, tourism and hospitality employees
in developed nations are usually paid less. In developing countries the opposite is true.
There are three types of employment generated by tourism and hospitality. These are
the direct, indirect, and induced employment. Direct employment is generated as a result of
providing goods and services directly to tourist in hotels, restaurants, bars, nightclub, and the
like. Indirect employment consists of those positions that are associated with other tourism-
related activities but are used by both the local resident and the tourist. Shops and food
wholesalers are considered to be sources of indirect employment. Induced employment refers
to people working in positions only peripherally related to tourism and hospitality, but
generated because of it. Examples are construction workers, merchants, and professionals
such as doctors and accountants who service the employees working directly in tourism-
related positions.
Balance of Payments
Tourism and hospitality has a major influence on the country's balance of payments.
Balance of payments is an accounting of flow of goods, services, and funds in and out of the
country during a given period. If a country pays or agrees to pay more money than it receives,
it has a deficit in its balance of payments. If it receives more money than it sends or exports, it
has a surplus in its balance of payments.
Most countries, particularly those with good tourism and hospitality facilities but little
industrial or agricultural export potential, appreciate the contribution that incoming tourists
can make to their balance of payments account. They therefore take steps to maximize their
tourist receipts through the development of new attractions, promotions, subsidized
exchange rates, and other measures. They also try to keep their own residents within the
country by taxation on outgoing tourists, limitations on foreign exchange availability, or
refusal to grant exit permits (as in many communist countries).
Investment and Development
While most countries encourage tourism and hospitality for its economic benefits,
there are some negative economic aspects of tourism and hospitality that have to be identified
and discussed.
These are high inflation and land speculation destination, high leakages from the
economies of developing countries, low returns on investments because of seasonal
fluctuations in demand, and overdependence on tourism and hospitality.
The inflationary effects of tourism and hospitality can arise in different ways. Rich
tourists can afford to but at high prices. Retailers, realizing that their profits can be greatly
increased by catering to tourists, increase their prices on certain products and provide more
expensive goods and services. Such stores can compete more successfully with those catering
to local residents. They can afford to pay higher rents and taxes which are passed on to the
customers through higher prices. Thus, local residents have to pay more for their goods.
Inflation within destination areas is also caused by increasing land values. Growth in
the tourist trade creates additional demand for land, and competition from potential 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 because of the increased value of land.
High Leakages
Leakage occurs from a variety of sources. It occurs from the cost of goods and services
that must be imported to satisfy the needs of tourists. Examples of these are developing
countries which have to import cars, buses, manufactured materials, and technology from
developed nations to meet the demands of tourists. Another source of leakage is the
remittance of profits and wages to outside sources. If foreign capital is invested in the
country's tourism and hospitality industry, plant interest payments, rents, or profits may have
to be paid to the foreign country; thereby reducing profits in the destination country. A third
source of leakage is the expenditure for promotion and publicity to encourage tourists to visit
a certain destination. The cost of advertisement is a large expense that reduces the earnings
of a destination area.
Seasonality
There are a number of ways to maximize the benefits of tourism and hospitality to the
destination area. Edward Inskeep (1991), a consultant for the United Nations World Tourism
Organization (UNWTO), has suggested the following:
1. Develop tourism and hospitality gradually so that local residents can have
sufficient time to adapt to it and understand it. It would also allow the
government to properly plan, organize, and monitor tourism and hospitality;
2. Maintain a scale of tourism and hospitality development that is appropriate for
the local as well as national environment. If possible, develop other economic
sectors so that there is a balanced economy and employment structure. In
some areas, small-scale and dispersed forms of tourism are more suitable than
concentrated mass tourism development;
3. Involve residents and their spokesmen in planning and decision-making so that
they can participate in determining the future of this sector;
4. Apply the concepts of tourism development zones;
5. Make certain that residents have easy access to tourist attractions, facilities,
and services including reduced admission fee if necessary, and that important
amenity features have public access and are not preempted by tourism;
6. Provide incentives to local ownership, management, and operations of hotels
and other tourist facilities and services so that residents can receive direct
economic benefits;
7. Develop strong linkages between tourism and hospitality and other economic
activities such as agriculture, fisheries, handicrafts, and manufacturing to: help
develop these sectors, reduce leakage of foreign exchange through import
substitution, and spread the economic benefits of tourism and hospitality;
8. Plan, develop, and organize tourism and hospitality so that no area becomes
too congested with tourists, and residents can easily use community facilities
and services; and
9. Train local people to work effectively in all levels of tourism and hospitality,
including managerial and technical positions, in order to reduce the number of
imported employees and to lessen possible misunderstanding between
tourists and local employees.
Social Impacts of Tourism and Hospitality
The social impacts of tourism and hospitality should not be confused with the popular term
"social tourism." The social impacts of tourism and hospitality refer to the changes in the quality of life
of residents of tourist destinations. The objective of social tourism is to ensure that tourism is
accessible to all people.
Host-Visitor Interactions
Table 1. Frequency and Types of Tourists and Their Adaptation to Local Norms
Against this background, it is possible to discuss the positive and negative social impacts of
tourism and hospitality on a tourist destination.
Some of the positive effects of tourism and hospitality are the following:
One of the most important benefits of tourism and hospitality is the bringing together
of diverse people to help them understand one another. Pope Pius XII touched on this aspect
of tourism and hospitality when he spoke of "subjecting oneself, joyfully or sorrowfully, to the
inconveniences, great or small, which can with difficulty be avoided." The United Nations
World Tourism Organization (UNWTO) considers tourism as an encounter between a person
and a destination in its natural setting. Above all, the UNWTO believes it is an exchange or
encounter between individual groups of people as well as between social groups. Thus, it
becomes an encounter between nations and an exchange of values. The impact of this
exchange is significantly different between industrialized nations and developing agricultural
nations. The more isolated the country visited, the more significant the social changes are likely
to be.
Adaptation to the Realities of Modern Life and Improvement of the Host Country's Lifestyle
1. The quality of life improves in places where tourism and hospitality is being
developed by bringing both the urban infrastructure (water, housing, sewerage)
and population benefits (medical care, social assistance, schools) together;
2. The changes that occur in occupation and income patterns create a middle class
with its different attitudes, values, and social concerns;
3. Increased social mobility results in new employment opportunities in tourism and
hospitality; and
4. Changes in family relations occur through the employment of women outside the
home. This increases the family income and gives the worker's children more
opportunity for higher education.
Use of a foreign language brings people in contact with those of other language
groups. The need and the desire to communicate increase interest in both the host and visitors
to learn another language.
Visitors to other destinations often want to learn a language to improve the quality of
future experiences. They may rent tapes or buy books to assist them in learning a language.
Many popular tourist destinations have developed short-term language courses to assist
visitors.
The desire of tourists for high quality public health facilities can contribute to the
maintenance and improvement of those facilities in destination areas and provide additional
sources of revenue which, in turn, can be invested in upgrading water and sewage disposal
facilities.
Through tourism and hospitality, local residents can become aware of both health
problems and good hygiene. This awareness can lead to a change in the health infrastructure
of a destination. Improvement in one community then paves the way for improvement of the
whole region.
While tourism and hospitality has enabled different people to strengthen the social structure,
mass tourism has brought with it expenses and problems. Among these are: social saturation; changes
in the social structure, behavior, and roles; community problems; and negative demonstrative effects.
Social Saturation
Tourism and hospitality in some areas leads to other social problems in the
family. Some wives who work in tourism and hospitality establishments have higher
salaries than their husbands. This often leads to the loss of self confidence among their
husbands. In addition, their improved way of dressing and grooming causes their
husbands to be jealous and suspicious. This has led to a higher divorce rate.
Community Problems
Prostitution, often called the "oldest profession," certainly existed before the
growth of mass tourism. It is difficult to say how responsible tourism and hospitality
has been for the rise of prostitution in tourist destinations.
The following are some of the reasons for the increase of prostitution in tourist
resorts:
Second, the social norms of the tourists that are very different from the local
customs give rise to social problems. Also, the values and materialism of young
travelers are copied by the young local people. Examples are nude bathing,
inappropriate manner of dressing, and irresponsible behavior.
There are changes in the consumption patterns in some tourist areas. In some
places, the importation of foreign foods has little impact on their life, while others, a
considerable change has occurred. The people almost abandon their local foods in
favor of imported foods such as fast food from Kentucky Fried Chicken, McDonald's,
Burger King, Wendy's, and the like.
1. Reducing the contact between hosts and guests by limiting the carrying
capacity of the destination and by regulating the tourist flow;
2. Separating the hosts and the tourists within tourist enclaves;
3. Designing community education and citizen involvement programs
centered on tourism and hospitality development, policy, and regulatory
issues; and
4. Expanding human resource development and training programs in all
components of the tourism and hospitality system to include social skills
(interpersonal relations and networking referral tactics).
Tourism and hospitality increases the acculturation process as well as the cultural
convergence of people. Acculturation is defined as those changes that occur in a culture
through borrowing from other cultures. These changes may include technology, language, and
values. Cultural convergence is the tendency of world cultures to become more alike. A very
good example of this is the adoption of many European ways by people of less-developed
countries because of their exposure to European culture and technology.
The urban areas of the world are becoming more and more alike. Modernization and
change from an agricultural society to an industrialized one bring about changes in people's
attitudes, beliefs, and way of life. Part of this change occurs through contact with tourists.
Tourism and hospitality is a vital force in acculturation since it causes more interaction
between peoples. People who change the least are the isolated ones those who live in regions
of extreme environmental conditions such as deserts, jungles, and polar regions.
The two most important positive effects of tourism and hospitality on culture are the
promotion of intercultural communication and the renaissance of native culture.
Intercultural Communication
Tourism and hospitality may be important to the host country to remind its people of
its history and culture, In Eastern and Western Europe, many traditional folk customs and
costumes are preserved for the benefits of tourists. Folk culture festivals are organized to
attract visitors. Model cultural centers in both developed and developing countries have been
highly profitable and have helped maintain interest in their cultures.
Traditional art forms have been revived in several countries. Tourism and hospitality
has stimulated the preservation of traditional art including traditional songs and dances.
The establishment of the model culture villages (living museums) has contributed
largely to the renaissance of native traditions and crafts. Model culture villages create
historical and ethnic environments designed to perpetuate tradition and stimulate awareness
of the local area. There are two main purposes for cultural model villages. The first is to provide
a location where visitors may observe and participate in a particular culture without disrupting
the everyday life of the people who live in the area. The second is to portray the past history
of the area. An example of a cultural model village is the Polynesian Cultural Center in Hawaii
which was designed to keep the traditional art forms and practices alive, giving the visitors a
chance to view some limited historical aspects of lifestyle as it once was. As a cultural living or
museum, the center concentrates on certain dynamic and tangible aspects of culture. In order
to make the visit meaningful, each of the villages developed a specific activity such as husking
a coconut, learning to play a percussion instrument, involvement in a game of skill, or
performing a dance that encourages tourist participation. Some museums that are designed
to display culture are Bangkok's Rose Garden, Tiiijan Orchid Island, and Alaska's Nana Museum
of the Arctic.
While tourism and hospitality has enabled different people to restore and maintain
interest in their own cultures, it has also led to the destruction of a country's work of art. The
local residents resent tourists who think they have the right to the country's art whether
bought or stolen. Several tourists persuade the natives to sell traditional objects which have
been used for generations. The greed for money which induces people to part with family
heirlooms explains the destruction of the archeological sites or the desecration of monuments
in Egypt, Bali, India, or Central America.
Moreover, the increasing demand for artifacts has led to changes in its form and
functions as art objects. The artifacts may no longer be represented as traditional arts due to
the following reasons:
1. Mass production due to increase in demand result to losing the careful and precise
product workmanship;
2. The impersonal nature of the tourist market has decreased the spiritual relevance
of the artist's work;
3. Art is produced according to the taste of tourists which, in Africa, means carving
animals, grotesqueness, and gigantism; and
4. The increased demand has led to the misrepresentation of the age or authenticity
of objects resulting in a large number of imitations.
Even model cultural villages may be encouraging the loss of culture. Tourists who want
to keep up with their schedules, as well as entertainment, require shorter and therefore less
authentic activities. Thus, the entertainment loses its cultural value. Cultural villages and large
hotels giving floor shows may manipulate authentic host traditions and events to conform to
the time schedules and taste of tourists. This effort to turn folklore, religious or secular
ceremonies, and artistic productions to material advantage leads to commercialism, thus,
prostituting the values of the local residents.
The architectural designs of most international hotels are of Western styles and often
exhibit little knowledge and appreciation of the social traditions of the local inhabitants.
The following control measures may be adapted to reduce the negative impact of
tourism and hospitality on culture:
The history of tourism and hospitality closely shows that the environment has
contributed to the birth and progress of tourism and hospitality. The term "environment"
connotes both human and physical characteristics. Speakers and writers often refer to it as
human environment, physical environment, or a combination of both. A term that describes
the human and physical characteristics of an area is pre-existing forms.
An analysis of the positive and negative aspects of tourism and hospitality indicates a
need to encourage wise resources management, particularly of water and energy, and the
problems of noise and pollution, as well as the problem of garbage and fire hazards which may
arise from tourist activities. The environmental benefits and negative impacts of tourism and
hospitality need to be recognized.
1. Contact with scenic areas has raised man's awareness of the earth's beauty and made it
easier for him to see and enjoy it with minimum damage; and
2. Environmental awareness has been heightened by mass tourism which caused direct and
indirect destruction.
In developed countries, several national parks and monuments have been created to
preserve the natural, cultural, and recreational resources of the land for the enjoyment,
appreciation, and education of present and future generations. The development of parks was
intended to open up areas for viewing as well as to control the flow of traffic within the park.
Tourism and hospitality has provided reasons for the preservation of historical
buildings and the creation of museums. At present, many developing nations are realizing that
their monuments mean tourists and income. Thus, desire to preserve their national
monuments have increased. In developed countries, unspoiled natural attractions are
becoming more and more rare. Hence, people travel to developing nations where nature is
still unspoiled or where the remains of ancient civilizations are located. Developing nations
realize that their historical sites or traditional towns and neighborhoods untouched by
progress are economic assets. Lighthouses, harbors, and fishing piers are ideal tourist
attractions.
Conservation
Conservation and preservation of the environment not only benefit the local
area but they also determine the future of tourism and hospitality. First, the local
residents benefit from the preservation. Second, tourism and hospitality, for as long
as it draws tourists, will continue to be a socioeconomic and cultural asset. The aim of
the National Park Service, with the inclusion of conservation, is much broader now
than it was in the past. The national parks in East Africa, Kenya, and Tanzania were
founded to protect wildlife.
In some places, bird sanctuary is one of the major attractions for tourists who
want to seek a change from their sun, sea, and sand experiences. Natural trails and
bird-watching areas have been established to help the visitors enjoy the area and to
maintain the quality of the environment.
Gunn (cited by Valene, 1995) gave the following factors which led to the
conservation movement:
1. There was a social concern to which the park movement owes its
beginnings. The growth of industry and commerce and their associated ills
stimulated a demand for the parks and open space. The provision for public
lands was seen as an antidote to the immoral values of urban society and
as an escape from the routine work and urban living;
2. There was an emphasis on the efficiency of resources being used,
particularly on nonrenewable resources. Early expectations stressed
maximum utilization but with a minimum of environmental degradation;
3. Conservation also incorporated aesthetic enhancement. This is particularly
significant as one major tourist activity is sightseeing which depends
heavily on the qualities of the natural environment; and
4. Protecting the natural environment from irresponsible human
manipulation.
Mathieson and Wall (cited by Landberg, 1995) identified four ways in which tourism
and hospitality has been important to conservation. These are:
It can be concluded that tourism and hospitality provides incentives and the economic
means and incentives for the conservation and preservation of natural and historic sites. Many
monuments, historic houses, villages, and old churches cannot be maintained without the
tourist income.
Development of Attractions
Several countries around the world are identifying areas which have the potential to
attract tourists. In the Caribbean island of St. Croix, the US National Park Service has
established and developed an underwater national park. This unique site attracts snorkelers
and those interested in corals. It helps preserve the area and creates an awareness of the
character of the coral reefs and the sea floor.
High mountain areas have been developed. A very good example is Jungfran in
Switzerland which boasts of having the highest railway in Europe. Other examples are the
Banaue Rice Terraces and Baguio City in the Philippines.
A. Historic Preservation
Many historical sites in both urban and rural areas have been preserved to
attract tourists. Examples are Intramuros or Walled City in the Philippines, Jamestown
and Colonial Williamsburg in Virginia, USA, Mont. St. Michel in France, and the
Plymouth Plantation in Massachusetts, USA. This restoration and rejuvenation process
is occurring throughout the world and serves as major characteristics of an area
intended to impress tourists.
B. Resident Benefits
Tourism and hospitality benefits the local residents in a number of ways. The
first benefit is that the results of conversation and preservation can be enjoyed by the
local community as well as by the tourists. The creation of national parks and
monuments provides quick access to a variety of nature's wonders and outdoor
activities to both local residents and visitors.
Another benefit which results from tourism and hospitality development can
be seen in coastal areas. The development of a coastal resort allows free access to
tourists and local residents.
Exceeding the carrying capacity and saturation levels of an area will negatively affect that area.
The term "carrying capacity" is the degree of development a certain area can take without having
detrimental effects on the environment. If the tourist development becomes saturated, the very
attractions which draw visitors to a place may be destroyed, causing the decline in quality and
popularity of a certain tourist destination.
The saturation levels and the types of environment between developed and developing
countries are different.
Some environments with significant differences in their saturation levels are wilderness, rural,
coastal, mountain, urban, and the developed versus the developing areas. The difference between
developed and developing areas lies in the cultural dissimilarities and the measure of control used to
handle the development. In developing countries, there is a lack of control measures because of
cultural differences, lack of technical skills, and lack of financial resources needed to implement plans.
Environmental Conflicts
Some of the problems affecting the quality of the environment are destruction of the
vegetation, pollution (air, water, and noise), and the destruction of wildlife. The destruction of
the vegetation occurs because of the large number of tourists who trample on the vegetation.
In many parks, campers have cut branches of trees and completely cut down small trees. In
areas such as ocean fronts and islands, many visitors going to and from the area destroy the
vegetation cover, thus changing the natural habitats for birds and animals and, in some cases,
even changing the temperature of the area. Sometimes, the loss of vegetation leads to soil
erosion and the further debasement of the environment.
Air pollution results from the gas fumes emitted by automobiles, taxis, buses, aircrafts,
and factories. Areas with large numbers of vehicles usually suffer from air pollution.
Water pollution is the result of the discharge of untreated waste from resorts or boats
into seas, rivers, lakes, and springs. The lack of an effective sewerage system in some areas
has led to the widespread pollution of the inshore waters making fish consumption inadvisable
and swimming unhealthy. Moreover, such diseases as cholera, typhoid, viral hepatitis, and
dysentery are caused by seafood from polluted) waters.
Noise pollution is associated with traffic congestion on land and on air. Many
recreational vehicles such as motorcycles, motorboats, and aircrafts cause a lot of noise.
Problems associated with wildlife results from killing of animals such as birds and the
disruption of the normal habits of feeding and breeding. A very good example is the killing of
elephants for tusks, zebras for hides, antelopes for their heads, lion claws for necklaces,
monkeys for skin throw-rugs, gazelles for hoof key-rings, and the like. The prevalence of many
tourists in an area changes the breeding habits and living patterns of much of the wildlife. The
animals are forced to move to a less traditional habitat.
Geological Conflicts
Tourism and hospitality affects geological formations. Some tourists collect minerals,
rocks, fossils, and corals from tourist attractions; others destroy natural formations by
vandalizing.
Resident Conflicts
Conflict between tourists and the local residents may also arise because of damage to
the area brought about by littering, vandalism, and traffic congestion. In rural areas, the
damage to crops, farm buildings, and livestock are common complaints of farmers, together
with the increasing value of lands, competition for labor, and land erosion.
Impact Control Measures
Two measures which will reduce the negative impact of tourism and hospitality have been
identified, thus, creating a quality environment for both residents and tourists. First, the general
protective measures and second, regulation and control of tourist development. The protective
measures are designed to safeguard the various aspects of the environment-endangered animals and
plants, beaches, and forests through the creation of national parks and wilderness areas.
Regulation and control refers to zoning and land use, and planning specifications on the
facilities being built as to height, appearance, open space, and overall design, among other things.
These are rapidly done in some countries like Switzerland where builders must follow certain
architectural styles before permission is given for development. These are done to prevent
unattractive tourist development.