Impacts of Tourism

LEDC or MEDC? Sort the following countries into groups based on whether you think they are less economically developed countries (LEDCs) or more economically developed countries (MEDCs): LEDC Ethiopia Zambia Laos Maldives Solomon Islands MEDC Qatar Denmark Australia Canada Portugal Positive Impacts of Tourism Sort the following positive impacts into groups based on whether they are economic, environmental or socio-cultural impacts: Economic (6) Tourism is consumed at the destination Tourism supports other business activities Tourism is labour-intensive Tourism generates foreign exchange Multiplier effect Tourism infrastructure benefits local populationsand creates jobs Environmental (3) Tourism encourages conservation and sustainability Tourism motivates governments to create laws to protect wildlife in order to attract tourists Redevelopment and regeneration of derelict or decaying parts of a town or city, especially waterfront areas Socio-cultural (5) Upgraded infrastructure improves the quality of life of local people Improved community facilities and services Higher standards of living for local people Preservation and transmission of cultural and historic traditions Traditional things that might otherwise die or not be done are kept going because of the interest of tourists Negative Impacts of Tourism Sort the following negative impacts into groups based on whether they are economic, environmental or socio-cultural impacts: Economic (6) Large-scale of transfer of tourism revenues out of the country Exclusion of local businesses and products Government funds tourist infrastructure rather than schools and hospitals for local people Inflation Over-reliance on tourism means they are susceptible to recession, natural disaster Leakage Environmental (7) Overcapacity Soil erosion Pollution Damage to natural habitats Strain on water resources Litter Increased pressure on endangered animals Socio-cultural (6) Globalisation - –local goods and services aren’t good enough to satisfy the tourist Commodification - traditional things are changed to suit the needs of the tourist Loss of authenticity - –The tourism experiences becomes fake Culture clash - tourists are not sensitive to the customs and traditions of local people Crime - Tourists are easier targets for criminals Sex tourism Leakage LeakageThe direct income for an area is when taxes, profits, wages and imports are subtracted from tourist expenditure. These subtractions are called leakage – In most all-inclusive package tours about 80% of travellers expenditures go to airlines, hotels and other international companies and not to local businesses or workers. Even the small amount that is left at destination level can still be subjected to yet more leakage, there are two main ways that leakage occurs: import leakage and export leakage.Import leakageTourists demand certain standards of equipment, food and other products that the host country can’t supply and so much of the income from tourist expenditure leaves the country to pay for these imports, examples include premium beer, champagne, whiskey, Parma ham, chedder cheese etc.Export leakageExport leakage is caused by multinational companies as they are the only ones that have the capital (money and investment) needed to build tourism infrastructure and facilities. The leakage occurs when the overseas investors who finance the developments take the profits back to their country of origin (repatriation of profits). For example, the government of a Caribbean island wants to build a new airport but unfortunately nobody that lives on the island has the necessary skills to build it, so the government needs to contract an American company to do the work. Once the airport has been built the government will give the company the money and the company will take it back to the USA, thereby making the USA richer and the Caribbean island poorer.