The Impacts ofTourism
By Glenn Kreag
For a tourism-based economy to sustain itself in local communities, the
residents must be willing partners in the process. Their attitudes
toward tourism and perceptions of its impact on community life must
be continually assessed. (Allen et al. 1988)
The long-term sustainability of tourism rests on the ability of community leaders and
tourism professionals to maximize its benefits and minimize its costs.
This fact sheet tabulates 87 tourism impacts within seven categories
and divides the sources of tourism impacts into tourist-based
causes and destination-based ccauses. This information, which
was distilled from recent tourism research, provides a
framework for discussions, directions, and development
regarding tourism. Formally addressing the impacts of
tourism facilitates planning that helps a community
create a sustainable tourism industry.
Introduction
Overview
For decades tourism industry growth has been a
major contributor to increased economic activity
throughout the U.S. and the world. It has created
jobs in both large and small communities and is a
major industry in many places. It is the dominant
economic activity in some communities. Yet, the
impacts of tourism to a community aare not widely
understood – even where tourism is growing
dramatically and should be of the greatest interest
or concern.
Most people think of tourism in terms of economic
impacts, jobs, and taxes. However, the range of
impacts from tourism is broad and often influences
areas beyond tthose commonly associated with tourism.
Leaders as well as residents who understand the potential
impacts of tourism can integrate this industry into their
community in the most positive way.
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Understanding Tourism Conf licts
Different groups are often concerned about different tourism impacts. To generalize,
where one group embraces the e c o n o m i c impacts of tourism, another group experiences
social and cultural i m p a c t s , while another is affected by tourism’s e n v i r o n m e n t a l
impacts. In theory, the interests of each group could be completely separate, as in
Figure 1a. For example, Group A could include the business community and people
who are in need of the jobs offered by tourism. GGroup B might include residents who
feel displaced by an influx of visitors. Group C could be local outdoor enthusiasts
concerned about changes in natural resources. In such a case, each group would have
The impacts of tourism can be sorted into seven general categories:
1. Economic
2. Environmental
3. Social and cultural
4. Crowding and congestion
5. Services
6. Taxes
7. Community attitude
Each category includes positive and negative impacts. Not all impacts are applicable to
every community because conditions or resources differ. Community and tourism
leaders must balance an array of iimpacts that may either improve or negatively affect
communities and their residents. Leaders must be sensitive and visionary, and must
avoid the temptation of glossing over certain difficulties tourism development creates.
Tourism leaders must also balance the opportunities and concerns of all community
sectors by working against conditions where positive impacts benefit one part of the
community (geographic or social) and negative impacts hurt another.
Conversely, community sensitivity to tourism means avoiding undue burdens on the
industry that could thwart its success. Local leaders should not expect tourism to solve
all community problems. Tourism is just one element of a community. While creative
strategic development of tourism amenities and services can enhance the community
or correct local deficiencies, tourism, like all business development, must assure that
its products (attractions and services) attract customers. Overbearing rules and
restrictions, and overburdening taxes can make tourism businesses less attractive or
competitive.
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completely different outlooks
on tourism. Ideally, all groups
could be positively affected and
would support the community’s
tourism efforts. However, when
group interests are divergent,
differing perspectives can
make consensus on tourism
development difficult.
In most cases, groups with
interests in one area of tourism
will also have interests or
concerns about other tourism
impacts as diagramed in Figure
1b. In these situations, there
are common areas of interest
and a greater likelihood that
each group will show more
appreciation for the concerns of
the oother groups. Finding
commonality provides a starting
point for resolving tourism
issues.
Specific plans and actions can
increase tourism’s benefits or
decrease the gravity of a negative impact. It is important for communities to understand
the wide scope of impacts and endeavor to agree on what positive impacts to
emphasize. It is wise to acknowledge and identify possible negative impacts so actions
can be taken to minimize or prevent them. A clear statement of the community’s vision
of tourism should be an integral part of a community’s comprehensive plan. Active
planning directs tourism toward the goals of the community, clarifying tourism’s role
and uniting multiple interests.
The Role of Planning
Figure 1. Interest in Tourism Impacts
Group C
Economic
Impacts
Environmental
Impacts
Social & Cultural
Impacts
Economic
Impacts
Environmental
Impacts
Social &
Cultural
Impacts
Group A
Group C
Group B Group A
Group B
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Tourism Impacts
A goal of developing the tourism industry in a community is maximizing
selected positive impacts while minimizing potential negative impacts.
First, it is essential to identify the possible impacts. To u r i s m
researchers have identified a large number of impacts. Grouping
the impacts into categories shows the types of impacts that could
result from developing tourism in a community. The following
tables list a range of important tourism impacts in a concise
format. Readers needing additional information about specific
impacts should contact appropriate professionals or consult
tourism texts and research papers.
A community will not eexperience every impact. Some are
dependent on particular natural resource features (mountains,
coral reefs) or development and spatial patterns (special
„tourist zones“). Others relate to the social condition of the
c o m m u n i t y, particularly the ability to culturally or socially connect
with tourists. Still others relate to types and intensity of tourism
developments, i.e., approval or hostility toward tourist activities.
The following tables are extensive but not all-inclusive.
Planning is not enough. Active implementation and management of plans and prompt
attention to emerging tourism issues will maximize positive and minimize negative
impacts. Monitoring and addressing community attitudes should be an ongoing part
of the management effort. Good monitoring efforts can identify trouble areas and give
leaders an opportunity to defuse community reactions and make timely changes before
a crisis occurs. Unfortunately, few communities are so proactive.
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Understanding that tourism development may result in many and complex impacts
suggests that local elected officials, the tourism industry, and community residents
need to work cooperatively and carefully to plan for its growth and development.
Planning can help create an industry that enhances a community with minimal costs
and disruptions in other aspects of community life. Having broad community
involvement and embracing different perspectives during planning helps identify and
resolve concerns that would otherwise create problems later.
Economic
Tourism increases
employment opportunities. Additional jobs, ranging from low-wage
entry-level to high-paying professional positions in management and technical fields,
generate income and raise standards of living. Particularly in rural areas, the
diversification created by tourism helps communities that are possibly dependent on
only one industry. As tourism grows, additional opportunities are created for investment,
development, and infrastructure spending. Tourism often induces improvements
Elaboration of Tourism Impacts
ECONOMIC
w Increases price of goods and services
w Increases price of land and housing
w Increases cost of living
w Increases potential for imported labor
w Cost ffor additional infrastructure
(water, sewer, power, fuel, medical, etc.)
w Increases road maintenance and
transportation systems costs
w Seasonal tourism creates high-risk,
under- or unemployment issues
w Competition for land with other (highervalue)
economic uses
w Profits may be exported by non-local
owners
w Jobs may pay low wages
w Contributes to income and standard of
living
w Improves local economy
w Increases employment opportunities
w Improves investment, development, and
infrastructure spending
w Increases tax revenues
w Improves public utilities infrastructure
w Improves transport infrastructure
w Increases opportunities for shopping
w Economic impact (direct, indirect,
induced spending) is widespread in the
community
w Creates nnew business opportunities
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in public utilities such as water, sewer, sidewalks, lighting, parking, public restrooms,
litter control, and landscaping. Such improvements benefit tourists and residents
alike. Likewise, tourism encourages improvements in transport infrastructure
resulting in upgraded roads, airports, public transportation, and non-traditional
transportation (e.g., trails). TTourism encourages new elements to join the retail mix,
increasing opportunities for shopping and adding healthy competitiveness. It often
increases a community’s tax revenues. Lodging and sales taxes most notably
increase but additional tax revenues include air travel and other transportation
taxes, business taxes, and fuel taxes. New jobs generate more income tax
revenues.
When considering the economic impacts of tourism, it is essential to
understand that tourism businesses often include a significant
number of low-paying jobs, often at minimum wage or less. T h e s e
jobs are often seasonal, causing under-employment or unemployment
during off-seasons. Labor may be imported, rather than
hired locally, especially if particular skills or expertise is required,
or if local labor is unavailable. Some tourism-related businesses
are volatile and high-risk ventures that are unsustainable.
Greater demand for ggoods, services, land, and housing may
increase prices that in turn will increase the cost of living.
Tourism businesses may claim land that could have higher- v a l u e
or other uses. Additionally, non-local owners and corporations
may export profits out of the community. The community may
have to generate funds (possibly through increased taxes) to
maintain roads and transportation systems that have become
more heavily used. Similarly, if additional infrastructure (water,
s e w e r, power, fuel, medical, etc.) is required, additional taxes may
also bbe needed to pay for them.
Environmental
Areas with high-value natural resources, like oceans, lakes, waterfalls,
mountains, unique flora and fauna, and great scenic beauty attract
tourists and new residents (in-migrants) who seek emotional and spiritual
connections with nature. Because these people value nature, selected natural
environments are preserved, protected, and kept from further ecological decline.
Lands that could be developed can generate income by accommodating the recreational
activities of visitors. Tourist income often makes it possible to preserve and restore
historic buildings and monuments. Improvements in the area’s appearance through
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cleanup or repairs and the addition of public art such as
murals, water fountains, and monuments (part of making a
community ready for tourism) benefit visitors and residents
alike. Tourism is generally considered a „clean“ industry,
one that is based on hotels, restaurants, shops and
attractions, instead of factories.
Tourism can also degrade an environment. Visitors generate
waste and pollution (air, water, solid waste, noise, and
visual). Natural resource attractions can be jeopardized
through improper uses or overuse. Providing tourist
services can alter the landscape’s appearance. For instance,
visual pollution may occur from billboard proliferation. As
tourism develops, demand for land increases, especially for
prime locations like beachfronts, special views, and
mountains. Without forethought, natural landscape and
open space can be lost. The destruction or loss of flora and
fauna can happen when desirable plants aand animals are
collected for sale or the land is trampled. Tourists or the
businesses that cater to them often remove plants, animals,
rocks, fossils, coral, and cultural or historical artifacts from
an area. Uncontrolled visitation or overuse by visitors can
degrade landscapes, historic sites, and monuments. Where
water is scarce, tourists can overwhelm the available supply.
Travelers can also inadvertently introduce nonindigenous
species, as can increases in the trade of animals and plants.
A constant stream of visitors and domestic pets may disrupt
wildlife by disturbing their breeding cycles and altering
natural behaviors.
Social and Cultural
The social and cultural ramifications of tourism warrant
careful consideration, as impacts can either become assets
or detriments to communities. Influxes of tourists bring
diverse values to the community and influence behaviors
and family life. Individuals and the collective community might try to please tourists
or adopt tourist behaviors. Interactions between residents and tourists can impact
creative expression by providing new opportunities (positive) or by stifling individuality
ENVIRONMENTAL
w Pollution (air, water, noise, solid waste,
and visual)
w Loss of natural landscape and
agricultural lands to tourism
development
w Loss of open space
w Destruction of flora and fauna
(including collection of plants, animals,
rocks, coral, or artifacts by or for
tourists)
w Degradation of landscape, historic sites,
and monuments
w Water shortages
w Introduction of exotic species
w Disruption of wildlife breeding cycles
and behaviors
w Protection of selected nnatural
environments or prevention of further
ecological decline
w Preservation of historic buildings and
monuments
w Improvement of the area’s appearance
(visual and aesthetic)
w A „clean“ industry (no smokestacks)
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with new restrictions (negative). Increased tourism can push a community to adopt a
different moral conduct such as improved understanding between sexes (positive) or
increased illicit drug use (negative). Safety and health facilities and staffing tend to
increase at the same time safety problems such as crime and accidents increase. Tr a d i t i o n a l
ceremonies may be renewed and revived by tourist interest or lost in alternative activities.
Community organizations can be invigorated by facing the opportunities of tourism or
overwhelmed by its associated problems. Calamities such as natural disasters, energy
shortages, terrorism, political upheaval, disease outbreak, a chemical spill, or even
widespread negative publicity could shut down tourism abruptly but sometimes can
attract curious visitors.
Tourism can improve the quality of life in an area by increasing the number of attractions,
recreational opportunities, and services. Tourism offers residents opportunities to
meet interesting people, make friendships, learn about the world, and expose themselves
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