Negative Economic Impacts of Tourism Essay

There argon many recondite bes to phaetonry, which croup take on unfavorable frugal effects on the host community. Often rich countries are infract able to remuneration from tourism than poor ones. Whereas the least developed countries bring forth the well-nigh urgent need for income, employment and general rise of the standard of living by means of tourism, they are least able to realize these benefits. Among the reasons for this are magnanimous-scale transfer of tourism r raseues out of the host country and exclusion of topical anesthetic businesses and products.LeakageThe direct income for an range is the amount of touring car expenditure that clay loc eachy after taxes, put ons, and remuneration are paid outside the area and after conditional relations are purchased these subtracted amounts are called escape valve. In most all-inclusive megabucks tours, about 80% of workers expenditures go to the airlines, hotels and disparate international companies (wh o often have their headquarters in the travelers home countries), and none to topical anesthetic businesses or workers. In addition, momentous amounts of income actually retained at depot level can leave again through escapism. A study of tourism leakage in Thailand estimated that 70% of all gold dog-tired by tourists terminate up leaving Thailand (via impertinent-owned tour operators, airlines, hotels, trade drinks and food, etc.). Estimates for new(prenominal) Third humanness countries range from 80% in the Caribbean to 40% in India.Of each US$ 100 spent on a vacation tour by a tourist from a developed country, only around US$ 5 actually stays in a developing-country destinations economy. The figure below shows how the leakage happens.There are two briny tracks that leakage occursImport leakageThis commonly occurs when tourists motivation standards of equipment, food, and other products that the host country cannot supply. Especially in less-developed countries, foo d and drinks must often be imported, since topical anesthetic products are not up to the hotels (i.e. tourists) standards or the country simply doesnt have a proviso pains. Much of the income from tourism expenditures leaves the country again to pay for these imports. Theaverage import-related leakage for most developing countries today is between 40% and 50% of vulgar tourism earnings for small economies and between 10% and 20% for most advanced and diversified economies, according to UNCTAD.Export leakageMultinational corporations and large foreign businesses have a substantial share in the import leakage. Often, especially in poor developing destinations, they are the only ones that get the necessary capital to invest in the construction of tourism radical and facilities. As a consequence of this, an export leakage arises when overseas investors who finance the resorts and hotels take their profits back to their country of origin. A 1996 UN report evaluating the persona of tourism to national income, gross levels of incomes or gross foreign exchange, run aground that net earnings of tourism, after deductions were made for all necessary foreign exchange expenditures, were much more significant for the industry. This report found significant leakage associated with (a) imports of materials and equipment for construction (b) imports of consumer goods, oddly food and drinks (c) repatriation of profits earned by foreign investors (d) overseas promotional expenditures and (e) amortization of external debt incurred in the festering of hotels and resorts.The impact of the leakage varied greatly across countries, depending on the complex body part of the economy and the tourism industry. From the data presented in this study on the Caribbean, St. Lucia had a foreign exchange leakage rate of 56% from its gross tourism receipts, Aruba had 41%, Antigua and Barbuda 25% and Jamaica 40%.Source Caribbean VoiceEnclave tourism topical anaesthetic businesses often see their chances to earn income from tourists severely abased by the creation of all-inclusive vacation packages. When tourists remain for their entire stay at the same cruise ship or resort, which stick outs everything they need and where they will make all their expenditures, not much opportunity is left for local people to profit from tourism. The Organization of American States (OAS) carried out a survey of Jamaicas tourist industry that looked at the role of the all-inclusivescompared to other types of accommodation. It found that All-inclusive hotels hand over the largest amount of revenue but their impact on the economy is smaller per dollar of revenue than other accommodation subsectors. It also concluded that all-inclusives imported more, and employed fewer people per dollar of revenue than other hotels.This learning confirms the concern of those who have argued that all-inclusives have a smaller trickle-down effect on local economies The cruise ship industry provid es another example of economic enclave tourism. Non-river cruises carried some 8.7 million international passengers in 1999. On many ships, especially in the Caribbean (the worlds most popular cruise destination with 44.5% of cruise passengers), guests are encouraged to spend most of their time and money on board, and opportunities to spend in some ports are closely managed and restricted. other negative impactsInfrastructure approach touristry development can equal the local government and local taxpayers a great deal of money. Developers may want the government to improve the airport, roads and other infrastructure, and possibly to provide tax breaks and other financial advantages, which are costly activities for the government. Public resources spent on subsidized infrastructure or tax breaks may reduce government investment in other critical areas such as education and health.Increase in pricesIncreasing demand for basic service and goods from tourists will often cause price hikes that negatively affect local residents whose income does not increase proportionately. A San Francisco State University study of Belize found that, as a consequence of tourism development, the prices for locals increase by 8%. tourism development and the related rise in real estate demand may dramatically increase building costs and land values. non only does this make it more difficult for local people, especially in developing countries, to meet their basic daily needs, it can also terminus in a dominance by outsiders in land markets and immigration that erodes economic opportunities for the locals, eventually disempowering residents. In Costa Rica, close to 65% of the hotels belong to to foreigners. Long-term tourists living in second homes, and the so-called amenity migrants (wealthyor retired people and liberal professionals moving to attractive destinations in order to whoop it up the atmosphere and peaceful rhythms of life) cause price hikes in their new homes if t heir metrical composition attain a certain critical mint candy. Economic dependence of the local community on tourismDiversification in an economy is a sign of health, however if a country or region becomes open for its economic survival upon one industry, it can put major filter upon this industry as well as the people involved to action well. Many countries, especially developing countries with little ability to explore other resources, have embraced tourism as a way to boost the economy. In The Gambia, for instance, 30% of the workforce depends directly or indirectly on tourism. In small island developing states, percentages can range from 83% in the Maldives to 21% in the Seychelles and 34% in Jamaica, according to the WTO. Over-reliance on tourism, especially mass tourism, carries significant risks to tourism-dependent economies. Economic recession and the impacts of natural disasters such as tropic storms and cyclones as well as changing tourism patterns can have a anni hilating effect on the local tourism sector. inureal worker character of pondersThe seasonal character of the tourism industry creates economic problems for destinations that are heavily dependent on it. Problems that seasonal workers face include job (and therefore income) insecurity, usually with no guarantee of employment from one season to the next, difficulties in getting t rain downing, employment-related medical benefits, and recognition of their experience, and unsatisfactory housing and workings conditions.Other industry impacts affecting tourismEconomic crises, like the Asiatic crisis that hit Thailand, Malaysia and Indonesia a few years ago, can be devastating to inbound tourism flows. The financial turmoil triggered a sharp thole in tourism flows to impact countries during 1997 and 1998. In the Filipinos, the crisis and the temporary closure of Philippine Airlines affected inbound arrivals significantly as there was a ebb of almost 3.3% in 1998.Economic set up Po sitiveTourism creates jobs, both through direct employment within the tourism industry and indirectly in sectors such as retail and transportation. When these people spend their wages on goods and services, it perishs to what is known as the multiplier effect, creating more jobs. The tourism industry also provides opportunities for small-scale business enterprises, which is especially important in inelegant communities, and leaves extra tax revenues, such as airport and hotel taxes, which can be used for schools, housing and hospitals.Economic set up NegativeSuccessful tourism relies on establishing a basic infrastructure, such as roads, visitor centers and hotels. The cost of this usually falls on the government, so it has to come out of tax revenues. Jobs created by tourism are often seasonal and poorly paid, until now tourism can push up local property prices and the cost of goods and services. Money generated by tourism does not always benefit the local community, as some of it leaks out to huge international companies, such as hotel chains. Destinations dependent on tourism can be adversely affected by events such as terrorism, natural disasters and economic recession.Social Effects PositiveThe improvements to infrastructure and new leisure amenities that result from tourism also benefit the local community. Tourism encourages the preservation of traditional customs, handicrafts and festivals that cogency otherwise have been allowed to wane, and it creates civic pride. Interchanges between hosts and guests create a better cultural understanding and can also help raise orbiculate awareness of issues such as poverty and human rights abuses.Social Effects NegativeVisitor behavior can have a poisonous effect on the quality of life of the host community. For example, crowding and congestion, drugs and intoxicant problems, prostitution and increased crime levels can occur. Tourism can even infringe on human rights, with locals being displaced from t heir land to make way for new hotels or barred from beaches. Interaction with tourists can also lead to an erosion of traditional cultures and values.Environmental Effects PositiveTourism particularly nature and ecotourism helps promote conservation of wildlife and natural resources such as rain forests, as these are now regarded as tourism assets. It also helps generate funding for maintaining animal preserves and marine parks through hoodwink charges and guide fees. By creating alternative sources of employment, tourism reduces problems such as over-fishing and disforestation in developing nations.Environmental Effects NegativeTourism poses a threat to a regions natural and cultural resources, such as water supply, beaches, coral reefs and heritage sites, through overuse. It also causes increased pollution through traffic emissions, littering, increased sewage production and noise.Tourism and Travel1. Define the following termsHospitalityTourism unemployedTravelAttractions (2 0mks) 2. In your own opinion, what will make you choose to travel to Country A than to Country B during your holiday? (20mks) 3. What are the plus economic impacts of Tourism in Kenya? (20mks) 4. People do travel for a particular purpose therefore what are the different types of tourism? (20mks) 5. The no. of tourist in a destination varies over time, what are the different reasons for that to happen? (20mks)