1 Macro-Perspective-Of-Tourism-And-Hospitality-Prelim

MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY MODULE FOR PRELIM
PIMSAT COLLEGES
DAGUPAN CITY & SAN CARLOS CITY CAMPUS
College Of International Hospitality Management
EXCELLENCE HOSPITALITY PROFESSIONALISM INTEGRITY LEADERSHIP
MODULE: PRELIM PERIOD

MACRO PERSPECTIVE OF TOURISM
AND HOSPITALITY INDUSTRY
1ST YEAR: BS HOSPITALITY MANAGEMENT
PIMSAT COLLEGES INC. CIHM Page 1 of 23

MODULE TITLE
MODULE TITLE
MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY
LEARNING OBJECTIVES
At the end of this topic the learners will be able to:
1. To determine the economic effects of tourism.

2. To discuss the social impacts of tourism.
3. To explain the impact of tourism on culture.
LEARNING CONTENTS
Lesson: THE IMPACT OF TOURISM
1.1. THE ECONOMIC EFFECTS OF TOURISM

1.2. NEGATIVE ECONOMIC ASPECTS OF TOURISM
1.3. SOCIAL IMPACTS OF TOURISM
1.4. IMPACT OF TOURISM ON CULTURE
MODULE OVERVIEW
The rapid growth of tourism in the twentieth century has produced both problems and
benefits for destination countries. It has had visible impacts on the sociocultural and
socioeconomic environment. Although tourism can bring economic advantages to a
destination country, it also brings with it serious long-term problems which, without careful
control and planning, can threaten the society.
1.1. THE ECONOMIC EFFECTS OF TOURISM
Like any other industry, tourism affects the economy of those areas in which it takes place.
The area affected may be a resort, a region, or the entire nation. Notwithstanding the size
of the affected area, the economic effects of tourism may be classified into four

groups, namely: effects on income; on employment; on the area’s balance of payments

with the outside world; and on investment and development.
Income
The tourism industry obviously generates income within a destination country. Nations
wanting to increase their income have used tourism as a means for reasonably quick
development. Experience has shown us that it takes less time to increase
income from tourism than from manufactured goods or other available options.
Tourism income in general comes from wages and salaries, interest, rent, and profits.
Since tourism is a labour-intensive industry, the greatest proportion of its income is
derived from wages and salaries. Income is also generated from interest, rent, and profits
on tourism businesses such as interest paid on loans to an airline in order to buy aircraft,
or rent paid to a landowner for a car park. Income is also obtained from direct taxation or
indirect taxation. Imposing Value Added Tax (VAT) on hotel bills is an example of indirect
taxation.
Tourism is both an income generator and an income redistributor. Most of the tourist
receipts go to the developing nations of the world such as East Africa and the Pacific.
Because of the flow of capital from one country to another, many countries limit the
amount of currency the nationals may take abroad for foreign travel.
Much of the income at the international and national level is business income which is
generated by organizations buying and selling goods and services to tourists. One
advantage that tourism offers developing countries is the range of businesses
needed to provide to tourists. It includes local food, drinks, and flowers for the resort
areas; local crafts for the tourists to buy; local cafes and restaurants; tour guides and
interpreters; local travel services; local cultural events; shops for tourists' needs,
and specialized local housing such as pensions and small inns.
The sum of all income in a country is called the national income. The importance of
tourism to a country's economy can be measured through the national income created by
tourism. The most common method for estimating the income generated from tourism is
by determining the multiplier for a destination. Multipliers are means of estimating how
much extra income is produced in an economy as a result of the initial spending or
injection of cash.

Employment
Employment, from local to national, benefits as well from tourism. In general, the tourist
industry offers more employment opportunities than other economic sectors. Generating
employment is perhaps the greatest advantage of tourism on a developing economy.
Tourism generates employment faster for developing nations than for the developed
ones. In general, tourism employees in developed nations are usually paid less.
In developing countries the opposite is true.
There are three types of employment generated by tourism. These are the direct,
indirect, and induced employment.
 Direct employment – is generated as a result of providing goods and services

directly to tourists in hotels, restaurants, bars, nightclubs, and the like.
 Indirect employment – consist of those positions that are associated with other
tourism-related activities but are used by both the local resident and the tourist.
Shops and food wholesalers are considered to be sources of indirect employment.
 Induced employment – refers to people working in positions only peripherally

related to tourism but generated because of it. Examples are construction workers,
merchants and professionals, such as doctors and accountants who service the
employees working directly in tourism-related positions.
Balance of Payments
Tourism has a major influence on the country's balance of payments. Balance of
payments – is an accounting of the flow of goods, services, and funds in and out of the
country during a given period. If a country pays or agrees to pay more money
than it receives, it has a deficit in its balance of payments. If it receives more money than
it sends or exports, it has a surplus in its balance of payments.
Most countries, particularly those with good tourism facilities but little industrial or
agricultural export potential, appreciate the contribution that incoming tourists can make
to their balance of payment account.

They therefore take steps to maximize their tourist receipts through the development of
new attractions, promotions, subsidized exchange rates, and other measures. They also
try to keep their own residents within the country by taxation on outgoing tourists,
limitation on foreign exchange availability, or refusal to grant exit permits (as in many
communist countries).
Investment and Development

Once an area has become economically successful, more businessmen and government
agencies may be influenced too invest in tourism and other industries in that area. This
is known by economists as an accelerator concept.
1.2. NEGATIVE ECONOMIC ASPECTS OF TOURISM
While most countries encourage tourism for its economic benefits, there are some
negative economic aspects of tourism that have to be identified and discussed.
These are high inflation and land speculation destinations, high leakages from the
economies of developing countries, low returns on investment because of
seasonal fluctuations in demand, and overdependence on tourism.
Inflation and Land Values

The inflationary effects of tourism can arise in different ways. Rich tourists can afford to
buy items at high prices. Retailers, realizing that their profits can be greatly increased
by catering to tourists, increase their prices on certain products and provide more
expensive goods and services. Such stores can compete more successfully with those
catering to local residents. They can afford to pay higher rents and taxes which are
passed on to the consumers through higher prices. Thus, local residents have to pay
more for their goods.
Inflation within destination areas is also caused by increasing land values. Growth in
the tourist trade creates additional demand for land, and competition from potential buyers
increases the price of land. The demand for more hotels, vacation homes, and tourist
facilities may bring more income to builders, real estate agents, and landowners, but local
residents are forced to pay more for their homes because of the increased value of land.

High Leakages
Leakage occurs from a variety of sources. It occurs from the cost of goods and services
that must be imported to satisfy the needs of tourists. Examples of these are developing
countries which have to import cars, buses, manufactured materials, and technology from
developed nations to meet the demands of tourists. Another source of
leakage is the remittance of profits and wages to outside sources. If foreign capital is
invested in the country's tourism, plant interest payments, rents, or profits may have to
be paid to the foreign country; thereby reducing profits in the destination country. A third
source of leakage is the expenditure for promotion and publicity to encourage tourists
to visit a certain destination. The cost of advertisement is a large expense that reduces
the earnings of a destination area.
Seasonality
Many tourist regions experience low returns on investment because of seasonal
fluctuations in demand. The seasonality of demand is reflected in hotel occupancy
rates. Many hotels experience greatly reduced revenues during the off season.
Nevertheless, most hotels prefer to remain open all year round to secure as much
revenue as possible. Accommodation investments are not the only ones with a low rate
of return; tour operators also face similar problems.
Overdependence on Tourism
Some destinations have made themselves vulnerable to changes in tourist demand by
becoming over dependent on tourism for their livelihood. Tourist is highly susceptible
to changes from within and outside the industry. Examples of changes from within are
price and fashions; while global economic trends, political situations, and energy
availability are examples of outside changes. Many tourists avoid destinations
which are politically unstable but they usually select an alternative. The decrease in
demand for a destination results in underutilization of services, unemployment, and loss
of income.

IMPACT CONTROL MEASURES

There are a number of ways to maximize the benefits of tourism to the destination area.
Edward Inskeep (1991), a consultant for World Tourism Organization (WTO), has
suggested the following:
1. Develop tourism gradually so that local residents can have sufficient time to adapt
to it and understand it. It would also allow the government to properly plan,
organize, and monitor tourism;
2. Maintain a scale of tourism development that is appropriate for the 1ocal as well
as national environment. If possible, develop other economic sectors so that there
is a balanced economy and employment structure. In some areas, small-scale and
dispersed forms of tourism are more suitable than concentrated mass tourism
development;
3. Involve residents and their spokesmen in planning and decision-making so that

they can participate in determining the future of this sector;
4. Apply the concept of tourism development zones.
5. Make certain that residents have easy access to tourist attractions, facilities, and
services including reduced admission fee if necessary, and that important amenity
features have public access and are not pre-empted by tourism;
6. Provide incentives to local ownership, management and operation of hotels and

other tourist facilities and services so that residents can receive direct economic
benefits;
7. Develop strong linkages between tourism and other economic activities such as
agriculture, fisheries, handicrafts and manufacturing to help develop these sectors,
reduce leakage of foreign exchange through import substitution and spread the
economic benefits of tourism;
8. Plan, develop, and organize tourism so that no area becomes too congested with
tourists, and residents can easily use community facilities and services; and

9. Train local people to work effectively in all levels of tourism, including managerial
and technical positions, in order to reduce the number of imported employees and
to lessen possible misunderstanding between tourists and local employees.
1.3. SOCIAL IMPACTS OF TOURISM
The social impacts of tourism should not be confused with the popular term “social
tourism” Social impacts of tourism refer to the changes in the quality of life of residents of
tourist destinations. The objective of social tourism is to ensure that tourism is accessible
to all people.
Host-Visitor Interactions
Tourism causes more interaction between peoples particularly between the tourists
or visitors and the local residents or hosts. To understand the social impact tourists
have on an area, the characteristics of various types of visitors and the level of interaction
with the hosts should be clarified. Smith (19977), categorized tourists into several types
and outlined her views on the intensity of interaction between the tourists (visitors) and
the local residents (host). Her classifications are as follows:
1. Explorer – this type of visitor is interested in being an active participant-observer

among the host population. The explorer easily adapts to local lifestyles and does
not need special tourist accommodations;
2. Elite – this type of tourist is few in number. He can afford to pay well for unusual
vacations. He is well-travelled and usually known as the “jet-sets”. He differs from
the explorer in his attitude. His arrangements are either made by a travel agent or
may be pre-planned. Although he is willing to sample the local lifestyle, he requires
some degree of comfort;
3. Off-Beat – this tourist adapts well to dimple accommodations and services
provided for the occasional guest;

4. Unusual Tourist – this tourist loves sub-exotic cultural sites, and the unusual or
primitive sites as long as he can quickly and safely return to more familiar
surroundings and group;
5. Incipient Mass Tourist – this is a visitor who looks for the amenities of Western
societies in hotels and other travel-related facilities. He is a mixture of both
pleasure seeker and business traveller.
6. Mass Tourist – he comes from the middle class. He arrives in a destination with
other tourists. There is a diversity of tastes among them and their attitude is “you
get what you pay for”; and
7. Charter Tourist – the charter tourist comes “en masse with others of his kind
creating an extremely high amount of business and receiving a high degree of
standardization in services and products. The interaction between the visitors and
the hosts is limited and impersonal.

Table I. Frequency and Types of Tourists and their Adaptation to Local

Norms
TYPE OF TOURIST NUMBER OF TOURIST ADAPTATION TO

LOCAL NORMS
Explorer Very limited Adapts fully
Elite Rarely seen Adapts fully
Off-beat Uncommon but seen Adapts well
Unusual Occasional Adapts slightly
Incipient Steady flow Seeks western amenities
Mass Continuous influx Expects western

amenities
Charter Massive arrivals Demands western

amenities

Source: Valerie L. Smith. Hosts and Guests. The Anthropology of Tourism, 1997
The level of interaction between the hosts and guests is illustrated in table I for each type
of tourist.
The impact increases with each level of tourist. The explorers and elite tourists usually
have little impact on the local culture because of their limited number.
The off-beat and unusual tourists generally use the same hotels and services as the local
travellers. With the increase in number, greater expectations and demand for special
facilities and services, a corresponding change in the local area occurs.
Against this background, it is possible to discuss the positive and negative social impact
of tourist destination.
Positive Social Effects of Tourism
Some of the positive social effects of tourism are the following:
1. It creates a new medium for social change and multicultural understanding.

2. It encourages adaptation to the realities of modern life and works toward improving
the host country’s environment and lifestyle options;
3. It promotes knowledge and use of foreign languages;

4. It improves health conditions and disease control.
Social Change and Multicultural Understanding
One of the most important benefits of tourism is the bringing together of diverse people
to help them understand one another. Pope Pius XII touched on this aspect of tourism
when he spoke of “subjecting oneself, joyfully or sorrowfully, to the inconveniences, great
or small, which can with difficulty be avoided. “The World Tourism Organization (WTO)
considers tourism as an encounter between a person and a destination in its natural
setting. Above all, the WTO believes it is an exchange or encounter between individual
groups of people as well as between social groups. Thus, it becomes an encounter
between nations and an exchange of values. The impact of this exchange is significantly
different between industrialized nations and developing agricultural nations. The more
isolated the country visited, the more significant the social changes are likely to be.
Adaptation to the Realities of Modern Life and Improvement

of the Host Country’s Lifestyle
This positive social benefit is the result of the following:
1. The quality of life improves in places where tourism is being developed by bringing
both the urban infrastructure (water, housing, sewerage) and population benefits
(medical care, social assistance, schools) together;
2. The changes that occur in occupation and income patterns create a middle class
with its different attitudes, values, and social concerns;
3. Increased social mobility results in new employment opportunities in tourism; and
4. Changes in family relations occur through the employment of women outside the
home. This increases the family income and gives the worker’s children more
opportunity for higher education.

Thus, tourism promotes progress and modernization through exposure to other

attitudes and values. It brings about improvements in facilities and services as well as
improvements in the lifestyle and quality of life of the residents of the host country.
Use of Foreign Language
Use of a foreign language brings people in contact with those of other language groups.
The need and the desire to communicate increase interest in both the host and visitor to
learn another language.
Visitors to other destinations often want to learn a language to improve the quality of
future experiences. They may rent tapes or buy books to assist them in learning a
language. Many popular tourist destinations have developed short-term language
courses to assist visitors.
Improved Health Conditions and Disease Control
The desire of tourists for high quality public health facilities can contribute to the
maintenance and improvement of those facilities in destination areas and provide
additional sources of revenue which, in turn, can be invested in upgrading water and
sewage disposal facilities.
Through tourism, local residents can become aware of both health problems and hood
hygiene. This awareness can lead to a change in the health infrastructure of a destination.
Improvement in one community then paves the way for improvement of the whole region.
Negative Social Effects of Tourism

While tourism has enabled different people to strengthen the social structure, mass
tourism has brought with it expenses and problems. Among these are: social saturation;
changes in the social structure, behaviour, and roles; community problems; and
negative demonstrative effects.
Social Saturation
The presence of large numbers of tourists in particular places at specific time’s results in
saturation or congestion of facilities and services and competition for limited resources.
The local residents frequently resent having to share their facilities and services with
visitors.
In destinations that attract a large number of tourists, public transportation is so crowded

with tourists that there is hardly any room for local residents. Shops are full of travellers,
forcing the natives to change their shopping patterns. Streets are full of visitors resulting
to traffic jams. Thus, saturation or congestion brought about by tourism is often cited as
a social cost.
Changes in the Social Structure, Behaviour, and Roles
Tourism changes the traditional forms of employment which results in the lowering of
the status of agricultural workers, migration of the population, and the breaking up
of families. Many young people demand freedom from their families. They also disregard
social norms such as respect for elders and close family ties. Young women who enter
the work force have changed their traditional dress to tourist clothes.
Tourism in some areas leads to other social problems in the family. Some wives who work
in tourism establishments have higher salaries than their husbands. This often leads to
the loss of self confidence among their husbands. In addition, their improved way of
dressing and grooming causes their husbands to be jealous and suspicious.
This has led to a higher divorce rate. This disruption in the kinship system reduces
cohesiveness in the whole community, thus changing the population characteristics.

Community Problems
Prostitution, often called the "oldest profession" certainly existed before the growth of
mass tourism. It is difficult to say how responsible tourism has been for the rise in
prostitution in tourist destinations. The following are some of the reasons for the increase
of prostitution in tourist resorts:
1. The processes of tourism have created locations and environments which attract
prostitutes and their clients;
2. By its very nature, tourism means that people are away from the puritanical bonds
of normal living, anonymity is assured away from home, and money is available to
spend hedonistically. These circumstances are conducive to the survival and
expansion of prostitution;
3. As tourism affords employment for women, it mav upgrade their economic status.
This, in turn, may lead to their liberalization and eventually to their involvement in
prostitution to maintain or acquire new economic levels; and
4. Tourism may be used as a scapegoat for the general loosening of morals.
The use of erotic pictures and suggestive slogans in an advertisement leads some tourists
to anticipate sun, sea, sand, and sex as part of their vacation experience.
An increase in visitors increases criminal activity. Wealthy tourists present tempting

targets. Lin and Loeb (1977), identified the following three factors in the relationship
between crime and tourism:
1. Population density during the tourist season increases, creating the availability of
a large number of targets and congestion.
2. The differences in income between hosts and tourists encourage robbery; and
3. The proximity of resorts to an international border may attract undesirable

migrants, resulting in increased expenditures for law enforcement and monetary
losses for businesses that become targets.

Negative Demonstrative Effects
Negative demonstrative effects consist of tourist behaviours which can be considered

socially and economically inappropriate. One of the major results of negative
demonstrative effects is the polarization of the hosts from the tourists, which happens
in a number of ways. First, tourists often demand commodities and facilities beyond
the economic capacity of local residents. Rich tourists frequently eat in fine
restaurants and live in luxurious hotels in areas characterized by hunger, unemployment,
and limited economic opportunity. This disparity has led, in some cases, to militant
revolutionary action by the local residents.
Second, the social norms of the tourists that are very different from the local
customs give rise to social problems. Also, the values and materialism of young
travellers are copied by the young local people. Examples are nude bathing, inappropriate
manner of dressing, and irresponsible behaviours.
A third factor which initiates polarization is the importation of foreign workers from more
developed countries. These workers who are more skilled than the local people
generally get better- paying jobs and are usually supervisors of the less skilled native
people. These foreign workers also compete more favourably for goods and services than
the natives. Thus, the natives begin to resent the foreigners. The opposite is true in the
case of some of the developed countries where less skilled immigrants take lower paying
jobs. Thus, forming a lower social and economic group. This association sometimes
creates social problems since the immigrants are not aware of the norms and standards
of the host country. There are changes in the consumption patterns in some tourist areas.
In some places, the importation of foreign foods has little impact on their life, while in
others, a considerable change has occurred. The people almost abandon their native
foods in favour of imported foods such as fast food from Kentucky Fried Chicken,
McDonald's, Burger King, Wendy's, and the like.

A number of control measures can be adopted to decrease the negative change in an

area. Some of these are:
1. Reducing the contact between hosts and guests by limiting the carrying of the
destination and by regulating the tourist flow;
2. Separating the hosts and the tourists within tourist enclaves;
3. Designing community education and citizen involvement programs centered on

tourism development, policy, and regulatory issues; and
4. Expanding human resources development and training programs in all

components of the tourism system to include social skills (interpersonal relations
and networking referral tactics).
1.4. IMPACT OF TOURISM ON CULTURE
Tourism increases the acculturation process as well as the cultural convergence of

peoples. Acculturation is defined as those changes that occur in a culture through
borrowing from other cultures. These changes may include technology, language, and
values. Cultural convergence is the tendency of world cultures to become more alike. A
very good example of this is the adoption of many European ways by people of less
developed countries because of their exposure to European culture and technology.
The urban areas of the world are becoming more and more alike. Modernization and
change from an agricultural society to an industrialized one bring about changes in
people's attitudes, beliefs, and way of life. Part of this change occurs through contact with
tourists. Tourism is a vital force in acculturation since it causes more interaction between
peoples. People who change the least are the isolated ones-those who live in regions of
extreme environmental conditions such as deserts, jungles, and Polar Regions.
Intercultural Communication

Mobility, which is a prerequisite of tourism, is necessary for different social groups,

nationalities, and cultures to meet and interact. Such interaction may contribute to the
removal of social or national prejudices and the promotion of better understanding and
positive social change. Cross-cultural communications between tourists and their hosts
may promote changes in local culture while preserving or revitalizing local ethnic and
cultural identity. The quality of cross-cultural communication is of prime importance if it
contributes to the promotion of understanding between tourists and their hosts.
Renaissance of Native Culture
Tourism may be important to the host country to remind its people of its history and
culture. In Eastern and Western Europe. Many traditional folk customs and costumes are
preserved for the benefit of tourists. Folk culture festivals are organized to
attract visitors. Model cultural centers in both developed and developing countries have
been highly profitable and have helped maintain interest in their cultures.
Traditional art forms have been revived in several countries. Tourism has stimulated the
preservation of traditional art including traditional songs and dances.
Negative Cultural Impact of Tourism
While tourism has enabled different people to restore and maintain interest in their own
cultures; it has also led to the destruction of a country's work of art. The local residents
resent tourists who think they have a right to the country's art whether bought or stolen.
Several tourists persuade the natives to sell traditional objects which have been used for
generations. The greed for money which induces people to part with family heirlooms
explains the destruction of archaeological sites or the desecration of monuments in Egypt,
Bali, India, or Central America.
Moreover, the increasing demand for artifacts has led to changes in its form and functions
as art objects. The artifacts may no longer be represented as traditional arts due to the
following reasons:

1. Mass production due to increase in demand results to losing the careful and
precise product workmanship;
2. The impersonal nature of the tourist market has decreased the spiritual relevance
of the artist's work;
3. Art is produced according to the tastes of tourists which, in Africa, means carving
animals, grotesqueness, and gigantism; and
4. The increased demand has led to the misrepresentation of the age or authenticity
of objects resulting in a large number of imitations.
Even model cultural villages may be encouraging the loss of culture. Tourists who want
to keep up with their schedules as well as entertainment, require shorter and therefore
less authentic activities.
Thus, the entertainment loses its cultural value. Cultural villages and large hotels giving
floor shows may manipulate authentic host traditions and events to conform to the time
schedules and tastes of tourists. This effort to turn folklore, religious or secular
ceremonies, and artistic productions to material advantage leads to commercialism. Thus,
prostituting the values of the local residents. The architectural designs of most
international hotels are of Western styles and often exhibit little knowledge of, and
appreciation of the social traditions of the local inhabitants.
The following control measures may be adopted to reduce the negative impact of tourism
on culture:
1. Develop programs which enhance tourism's contribution to intercultural

communication and interaction such as matching tourist types with destination
characteristics and designing programs for the interaction of local residents and
guests promoting goodwill "ambassador" tourist education; and

2. Incorporate local indigenous features within Western- style structures such as

decorating hotel interiors with local paintings, murals and sculpture, and
encouraging porters, maids, and waiters to dress in native costumes.
“Winners embrace hard work. They love the discipline of it, the trade-off they’re making to
win. Losers, on the other hand, see it as punishment. And that’s the difference.”
– Lou Holtz, American football coach
Prepared by: Recommending Approval:
LALAINE C. EDEN, LPT ADONIS CARINO, MBA

Faculty, College of International Hospitality Mgt. Dean, College of International Hospitality Mgt.
Approved by:
ALFREDO F. AQUINO Ed.D.

VP of Research & Planning/OIC, Academic Affairs
LEARNING POINTS:
Student’s Name:
ACTIVITY NO.1
(20 points)
Let’s do this…
Instruction: In an essay form, discuss the topic given below with your own words and
understanding. Write your answer on the lines provided below.
TOPIC: ECONOMIC EFFECTS OF TOURISM

ANSWER:
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LEARNING POINTS:
Student’s Name:
ACTIVITY NO.2
(20 points)
Let’s do this…
TOPIC: SOCIAL IMPACT OF TOURISM

ANSWER:
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LEARNING POINTS:
Student’s Name:
ACTIVITY NO.3
(20 points)
Let’s do this…
TOPIC: IMPACT OF TOURISM ON CULTURE

ANSWER:
______________________________________________________________________
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MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY MODULE FOR PRELIM

MODULE: PRELIM PERIOD

PIMSAT COLLEGES INC. CIHM Page 1 of 23

MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY

At the end of this topic the learners will be able to:

1. To determine the economic effects of tourism.

Lesson: THE IMPACT OF TOURISM

1.1. THE ECONOMIC EFFECTS OF TOURISM

1.1. THE ECONOMIC EFFECTS OF TOURISM

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groups, namely: effects on income; on employment; on the area’s balance of payments

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 Direct employment – is generated as a result of providing goods and services

 Induced employment – refers to people working in positions only peripherally

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Investment and Development

1.2. NEGATIVE ECONOMIC ASPECTS OF TOURISM

Inflation and Land Values

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IMPACT CONTROL MEASURES

3. Involve residents and their spokesmen in planning and decision-making so that

4. Apply the concept of tourism development zones.

6. Provide incentives to local ownership, management and operation of hotels and

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1.3. SOCIAL IMPACTS OF TOURISM

1. Explorer – this type of visitor is interested in being an active participant-observer

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Table I. Frequency and Types of Tourists and their Adaptation to Local

TYPE OF TOURIST NUMBER OF TOURIST ADAPTATION TO

Explorer Very limited Adapts fully

Elite Rarely seen Adapts fully

Off-beat Uncommon but seen Adapts well

Unusual Occasional Adapts slightly

Incipient Steady flow Seeks western amenities

Mass Continuous influx Expects western

Charter Massive arrivals Demands western

PIMSAT COLLEGES INC. CIHM Page 10 of 23

Positive Social Effects of Tourism

Some of the positive social effects of tourism are the following:

1. It creates a new medium for social change and multicultural understanding.

PIMSAT COLLEGES INC. CIHM Page 11 of 23

4. It improves health conditions and disease control.

Social Change and Multicultural Understanding

Adaptation to the Realities of Modern Life and Improvement

This positive social benefit is the result of the following:

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Thus, tourism promotes progress and modernization through exposure to other

Use of Foreign Language

Improved Health Conditions and Disease Control

Negative Social Effects of Tourism

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In destinations that attract a large number of tourists, public transportation is so crowded

Changes in the Social Structure, Behaviour, and Roles

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4. Tourism may be used as a scapegoat for the general loosening of morals.

An increase in visitors increases criminal activity. Wealthy tourists present tempting