Effects of tourism development

Tourism plays a significant part in the economic life because is one of the fastest growing service sectors. Dynamic development stimulate different needs and motives, which are result of social, cultural and political changes. Every year, international tourism is growing dynamically. Forecasts for the next few years assume the further development of the tourism.

Tourism, being a social phenomenon, carries both positive and negative consequences for the local communities and for the tourists.

Positive Impacts of Tourism Development

The economic benefits are the main effects of tourism development.

• Increasing local revenues - the longer tourists stay, the more money they spend
• Contribution to GDP - positive impact on the economy depends on the participation of local capital in GDP. The higher ratio, the more money stays in the destination.
• Tourism growth and investment opportunities
• Increasing exports, imports of goods and services - the demand for articles, equipment etc.
• Tourism infrastructure development
• Reducing unemployment - tourism creating new jobs opportunities
• Impact on the culture - the interest of art, music, folklore, dance, customs, etc.
• Construction of new tourist facilities and the modernization

Negative impacts of Tourism Development

• Outflow of funds - no benefit, because they do not feed the local economy. The most common reasons are:

1. importing consumer goods, especially food
2. importing materials and equipment
3. debt repayment
4. cost of promoting

• Environmental destruction - water and air pollution, fauna and flora degradation, increase the amount of garbage.
• Raise the prices - the impact on local residents, who need to pay much more
• Commercialization of local culture - products and services standardization
• Changes in the social environment
• Decreased quality of life associated with noise and pollution
• Negative interactions between residents and tourists

See also:

• Alternative tourism

Effects of tourism development — recommended articles

Tourism and hospitality — Globalization — Basic industry — Economic factors affecting business — Examples of threats — Cost inflation — Over-valued currency — External environment — Domestic demand

References

• Brohman, J. (1996). New directions in tourism for third world development. Annals of tourism research, 23(1), 48-70.
• Johnson, J. D., Snepenger, D. J., & Akis, S. (1994). Residents' perceptions of tourism development. Annals of Tourism Research, 21(3), 629-642.
• Pearce, D. G. (1981). Tourist development. Longman Group Limited..

Author: Gabriela Brzęk