social and economic impact of tourism
Understanding the socialimpacts of tourism on communities is extremely important for government at all levels so that action can be taken to reduce the likelihood of a community backlash against tourists and tourism development. Given that the residents of many tourism destinations are a fundamental part of the tourism ‘product’, resident attitudes and behaviour have a sizable impact on the success or otherwise of a destination. Research on the socialimpacts of tourism on communities is substantial and ongoing and while advances have been made in the area, the research has not addressed some of the deep seated issues faced by tourist destinations.
Today, tourism is one of the largest and dynamically developing sectors of external economic activities. Its high growth and development rates, considerable volumes of foreign currency inflows, infrastructure development, and introduction of new management and educational experience actively affect various sectors of economy, which positively contribute to the social and economic development of the country as a whole.
Businesses and public organizations are increasingly interested in the economic impacts of tourism at national, state, and local levels. One regularly hears claims that tourism supports X jobs in an area or that a festival or special event generated Y million dollars in sales or income in a community. “Multiplier effects” are often cited to capture secondary effects of tourism spending and show the wide range of sectors in a community that may benefit from tourism.
Tourism’s economic benefits are touted by the industry for a variety of reasons. Claims of tourism’s economic significance give the industry greater respect among the business community, public officials, and the public in general. This often translates into decisions or public policies that are favorable to tourism. Community support is important for tourism, as it is an activity that affects the entire community. Tourism businesses depend extensively on each other as well as on other businesses, government and residents of the local community.
Economic benefits and costs of tourism reach virtually everyone in the region in one way or another. Economic impact analyses provide tangible estimates of these economic interdependencies and a better understanding of the role and importance of tourism in a region’s economy.
According to recent statistics, tourism provides about 10% of the world’s income and employs almost one tenth of the world’s workforce. All considered, tourism’s actual and potential economic impact is astounding. Many people emphasize the positive aspects of tourism as a source of foreign exchange, a way to balance foreign trade, an “industry without chimney”
Tourism activity also involves economic costs, including the direct costs incurred by tourism businesses,
government costs for infrastructure to better serve tourists, as well as congestion and related costs borne by individuals in the community. Community decisions over tourism often involve debates between industry proponents touting tourism’s economic impacts (benefits) and detractors emphasizing tourism’s costs. Sound decisions rest on a balanced and objective assessment of both benefits and costs and an understanding of who benefits from tourism and who pays for it.
Tourism’s economic impacts are therefore an important consideration in state, regional and community planning and economic development. Economic impacts are also important factors in marketing and management decisions. Communities therefore need to understand the relative importance of tourism to their region, including tourism’s contribution to economic activity in the area.
Ensuring that the impacts of tourism on a destination are monitored and managed is important for a sustainable tourism industry. Tourism development and management in a destination that is in line with the aspirations of local communities provides for a more authentic tourist experience and also attracts stronger community support for tourism. As a consequence, a growing number of destinations want to ensure that local residents have a say in how tourism evolves.
Consider a region that includes both a coastal fringe and a hinterland, for example. There could be very serious congestion and behaviour problems caused by tourism on the coastal area but no such problems anywhere else in the region. Whilst the problems experienced by locals on the coastal fringe would be identified if a study was conducted in that area, it is possible that these problems would be averaged out if the study was undertaken across the entire region. This means that the congestion and behaviour problems may not be highlighted as major issues, even though they are impacting on the coastal area.
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