1. Global Tourism
Impacts of Tourism

2. By the end of this lesson
You should be able to:
1. Explain how tourism activities can
lead to economic, social and
environmental impacts
2. Identify and explain the roles of
various stakeholders of tourism

3. The interactions of the various stakeholders
(human environment) with a tourism
destination (physical environment) results in
impacts (both positive and negative)

4. Economic Impact (+)
1. Tourism is an important source of
revenue for many countries
• Accounts for 9.2% of global GDP
• Many LDCs such as Thailand are reliant
on their tourism industry

5. Economic Impact (+)

6. Economic Impact (+)
2. Tourism creates more employment
opportunities for the locals
• Accounts for 8.7% of global employment
• The tourism industry, which is a service
industry, is largely labour intensive

7. Economic Impact (+)
2. Tourism creates more employment
opportunities for the locals
• The unskilled local population can also
hone a skill in the service sector
• E.g. 56.7% of Maldives’ population
involved in tourism industry

8. Economic Impact (+)
3. Propel development of Infrastructure
• Tourists expect a certain level of
infrastructural standards in a destination
• Governments would invest in upgrading
infrastructure to attract tourists
• E.g. $42 billion invested for infrastructure
prior to Beijing Olympics

9. Economic Impact (+)
Beijing Olympic Stadium (Bird Nest)
Beijing Olympic Aquatic Centre
(Water Cube)

10. Economic Impact (-)
1. Leakage of Tourism Revenue
• Main components of tourism are
dominated by a few vertically-integrated
players located mainly in developed
countries

11. Economic Impact (-)
1. Leakage of Tourism Revenue
• Thailand -70% of all money spent by
tourists ended up with foreign-owned tour
operators, airlines, hotels, imported drinks
and food, etc.
• Estimates for other Third World countries
range from 80% in the Caribbean to 40%
in India.
• Host country may be exploited for its
natural/ human resources but getting
marginally
in
return

12. Economic Impact (-)
2. Price Inflation for Locals
• Tourism can lead to an increase in the
prices of goods and services, causing
inflation in the host country
• Local residents would then experience a
higher cost of living and a decreasing real
income

13. Economic Impact (-)
3. Over-reliance on Tourism Revenue
• Tourism suffers from both regional
fluctuations and seasonal fluctuations
• Seasonal fluctuation refers that there are
peak and non-peak seasons within a year
for tourism
• Revenues may be affected due to such
fluctuations leading to livelihood problems

14. Socio-Cultural Impact (+)
1. Preservation and Promotion of Local Culture
and Heritage
• Tourists moving away from mass tourism and
are increasingly interested in authentic local
cultures and heritage
• E.g. Tourism has revived Balinese interest
in their own traditions and the admiration
of foreign visitors for Balinese culture have
reinforced the sense of cultural identity
and pride of the people of Bali

15. Socio-Cultural Impact (+)
Cultural Tourism in Bali

16. Socio-Cultural Impact (+)
Temple Stay Experience, South Korea

17. Socio-Cultural Impact (+)
1. Preservation and Promotion of Local
Culture and Heritage
• Important sites of heritage and culture are
also preserved and restored to their former
glory due to tourism
• E.g. Korean palaces (e.g. Gyeongbokgung)

18. Socio-Cultural Impact (+)
Gyeongbokgung Palace and Secret
Garden, Seoul, South Korea

19. Socio-Cultural Impact (+)
2. Positive Exchanges and Interaction
• Tourism increases the interaction between
local residents and tourists
• Increasing number of volunteer tourism
where
tourists
help
to
improve
infrastructure or social well-being of local
residents

20. Socio-Cultural Impact (+)
Volunteering at Home for the
Dying, Calcutta, India

21. Socio-Cultural Impact (-)
1. Dilution/ False Representation of Local
Culture
• Tourism may dilute or misrepresent local
culture through focusing on visual
spectacles to attract tourists
• Culture is being manipulated by tour
operators to maximise economic benefits

22. Socio-Cultural Impact (-)
1. Dilution/ False Representation of Local
Culture
• E.g. Criticism from aboriginal leaders in
Taiwan on the failure to interpret cultural or
historical background hidden in aboriginal
activities or festivals
• Instead, there is a focus on superficial
elements such as dance, music and
handicraft

23. Socio-Cultural Impact (-)
Aboriginal Culture, Taiwan

24. Socio-Cultural Impact (-)
2. Disrespect of local cultures and customs
• Tourists may be insensitive to local customs
and practices and may offend the locals
• E.g. Public intimacy/ drunkenness in
Muslim countries (e.g. UAE, Saudi Arabia)
• E.g. Blatant cultural invasion in Hawaii
when sacred places (including burial
grounds) are removed to make way for
development

25. Socio-Cultural Impact (-)

26. Socio-Cultural Impact (-)
2. Disrespect of local cultures and customs
• “Zooification” of local tribes where they are
treated and looked upon as “savages” and
“exhibits”
• E.g. Padaung women of Burma and Mursi
women of Ethiopia often objectified
because of their unique accessories

27. Socio-Cultural Impact (-)
Padaung and Mursi Women

28. Socio-Cultural Impact (-)
3. Increased Crime and Social Problems
• The influx of wealthy travelers may
increase instances of petty crime
• Criminals often see tourists as an easy
target because they:
– typically carry large sums of money and other
valuables
– Are more likely to be relaxed and off guard while
on vacation
– Are less likely to report crimes or to testify against
suspects, wishing to avoid problems

29. Socio-Cultural Impact (-)
3. Increased Crime and Social Problems
• Tourism may also bring about some social
problems that may affect both tourist and
local population
• E.g. Street prostitution in Thailand and
rising trend of STDs
• E.g. Gambling related problems in
Singapore
such
as
broken
families, incurrence of huge debts

30. Socio-Cultural Impact (-)

31. Socio-Cultural Impact (-)

32. Environmental Impact (+)
1. Increased Awareness on Environmental
Protection
• More emphasis has been put into
conserving natural areas and lowering
carbon footprint
• Carbon footprint refers to the total
Greenhouse Gas emissions caused by an
organization, event, product or person

33. Environmental Impact (+)
1. Increased Awareness on Environmental
Protection
• E.g.
Lake
District
Tourism
and
Conservation Partnership has raised over
£300,000 from tourists to support local
conservation and visitor management
schemes
• Increasing trend of Eco-tourism where
tourists
are
educated
about
the
importance of conservation

34. Environmental Impact (+)
Scenic Lake District, Midlands, UK

35. Environmental Impact (-)
1. Destruction of Natural Habitat
• Pristine environments are destroyed by
human development to build tourism
facilities
• E.g. Tourists visiting the Galapagos
Islands have unknowingly brought with
them invasive species which threaten to
destroy native species

36. Environmental Impact (-)
Galapagos Land Iguana- Flattened by
Vehicles
Waved Albatross- Caught in Fishing
Nets
Pinta Island Tortoise- Now Extinct

37. Environmental Impact (-)
2. Pollution
• All forms of pollution, water, air, land,
visual and noise, are intensified when
there is an influx of tourists into an area
• Air pollution as a result of fossil fuel
burning to provide electricity and vehicle
emissions due to increased tourist
transportation

38. Environmental Impact (-)
2. Pollution
• Water pollution when resorts dump
untreated waste into water bodies
• Land pollution when tourists dispose their
litter in pristine environments
• E.g. Trekkers in Himalayas leave behind
their gas cylinders and plastic bottles
during their trek, polluting the environment

39. Environmental Impact (-)
Water Pollution in Bali
Land Pollution in the Himalayas
Air Pollution in Beijing

40. What are Stakeholders?
• Individuals or groups with multiple stakes
or interests in an organisation or decision
• Any group or individual who can affect or
is affected by the achievement of an
organisation’s objectives

41. Stakeholders in Tourism
Everyone wants a share of the tourism pie.

42. Stakeholders in Tourism

43. Role-Play Activity
• Your group will randomly select one of the
various tourism stakeholders
• You are to imagine that you are the
particular stakeholder
• You have 20 minutes to discuss and pen
down your thoughts with regards to the
questions on the A3 paper
• Appoint 2 spokespersons to present your
discussion

44. Role-Play Activity

45. Learning Points
• Each stakeholder has a/ a set of specific
interest(s) that they want to derive from
tourism
• Tourism activities has resulted in
economic, social and environmental
impacts for people and communities at
different scales