Term Paper on "Positive and Negative Effects of Tourism on Environment Community Economy"

Term Paper 4 pages (1160 words) Sources: 6 Style: APA

[EXCERPT] . . . .

Positive and Negative Effects of Tourism on Environment, Community, Economy

Positive & Negative Economic Impacts of Tourism on the Environment:

Tourism has several positive economic impacts. Visiting tourists to an area play an important part in boosting the income of an area by means of augmenting sales, profits, jobs and tax revenues. The frontline tourism sectors comprising of hotels, restaurants, transportation, and leisure and retail business enjoy the direct impact of growth of tourism. Moreover, through secondary effects, tourism impacts majority of the sectors of the economy. Undertaking an economic impact analysis of the tourism activity generally lays emphasis in sales, income and wage generation in an area from tourism activity. (Stynes, Economic Impacts of Tourism)

The economic impact of tourism of an area can be seen through an example. Suppose for example, a tourist area draws 100 more tourists and each one would be able to spend $100 per day, this translates into $10,000 in new daily spending in the area and if continued over a 100 day season, the area would get a million dollar in fresh sales. This million dollar spent will be spread over to hotels, amusement, and businesses depending on the spending pattern of $100. Maybe about 30% of the million dollars would go to the region immediately to include the costs of goods bought by the tourists which are not manufactured in the local area. The retail profits for these items must generally be included as direct sales effects. The rest of the $700,000 in direct sales might generate $350,000 in income within the tourism industries and provide assistance to 20 direct tourism jobs. In fact tourism industries involve a lot of labor and income thereby converting a substantial amount of sales into income and corresponding jobs. In effect, the tourism industry, purchases goods as well as services from other businesses which are prevalent in the region, and pays out a major part of the $350,000 in income in terms of wages as well as salaries to its employees. This facilitates the secondary positive economic impacts in the area. (Stynes, Economic Impacts of Tourism)

In spite of its positive impacts, the tourism industry also brings about its negative economic impacts. There are several hidden costs which accrue from tourism, which could create negative economic impacts on the host country. Particularly in the less-developed countries, food as well as drinks needs to be often imported to suit the demands of the tourists, because locally produced goods do not match up with the tourist's standards or because the host country does not possess a supplying industry. As a result, most of the income derived as a result of tourism expenditures tends to leave the country in order to make payments for these imports. Multinational corporations - MNC's as well as large foreign enterprises play a major part in this import leakage. The local businesses tend to witness their opportunities to make income from the tourism industry being seriously affected due to the formation of an all-inclusive vacation packages. For example, the cruise ship industry shows the economic enclave tourism which prevails. In the year 1999, non-river cruises had carried about 8.7 million international passengers. On several ships, particularly in the Caribbean, these passengers are being promoted to spend a major part of their time as well as money on the ship itself, and as a result the facilities to spend money in certain ports are being completely restricted. This creates problems in getting these areas developed… READ MORE

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