THE IMPACTS OF TOURISM AND HOSPITALITY LEARNING OUTCOMES: 1. Determine the hospitality; economic effects of tourism and 2. Discuss the social impacts of tourism and hospitality; 3. Explain the impacts of tourism and hospitality on culture; and 4. Analyze the environmental impacts of tourism and hospitality. The Impacts of Tourism and Hospitality The rapid growth of tourism and hospitality in the twentieth century has produced both problems and benefits for destinations countries. It has had visible impacts on the sociocultural and socioeconomic environment. The Positive Economic Effects of Tourism and Hospitality Income - Tourism income, in general, comes from wages and salaries, interest, rent, and profit. • The sum of all income in a country is called National Income. • 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. The Positive Economic Effects of Tourism and Hospitality Employment – The tourist industry offers more employment opportunities than other economic sectors. There are three types of employment generated by tourism and hospitality. • Direct Employment is generated as a result of providing goods and services directly to tourist in hotels, restaurant, bars, nightclub and the like. • Indirect Employment consists of those positions that are associated with other tourism-related activities but are used by both the local resident and the tourist. • Induced Employment refers to people working in positions only peripherally related to tourism and hospitality, but generated because of it. The Positive Economic Effects of Tourism and Hospitality Balance of Payments – is an accounting of 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 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. The Positive Economic Effects of Tourism and Hospitality Investment and Developments – Once an area has become economically successful, businessmen and government agencies may be influenced to invest in tourism and hospitality and other industries in that area. This is known by economists as an accelerator concept. Negative Economic Aspects of Tourism and Hospitality Inflation and Land Values – The inflationary effects of tourism and hospitality can arise in different ways. Inflation within destination areas is also caused by increasing land values. 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. Seasonality – The seasonality of demand is reflected in hotel occupancy rates. Overdependence on Tourism and Hospitality – Tourism is highly susceptible to changes from within and outside the industry. Social Impacts of Tourism and Hospitality The social impacts of tourism and hospitality should not be confused with the popular term “ social tourism”. The social impacts of tourism and hospitality refer to the changes in the quality of life of residents of tourist destinations. Host – Visitor Interactions Tourism and hospitality 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 (1997), categorized tourists into several types and outlined her views on the intensity of interaction between the tourists (visitors) and the local residents (hosts). Her classifications are as follows: 1. Explorer – This type of visitor is interested in being an active participant observer among the population. 2. Elite – This type of tourist is few in number. 3. Offbeat – This tourist adapts well to simple 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. 6. Mass Tourist – He comes from the middle class. 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. Table 1. Frequency and Types of Tourists and their Adaptation to local norms Types of Tourists Number of Tourists Adaptation to Local Norms Explorer Very Limited Adapts fully Elite Rarely Seen Adapts fully Offbeat Uncommon but seen Adapts well Unusual Occasional Adapts slightly Incipient Mass Steady flow Seeks Western amenities Mass Continuous influx Expects Western amenities Charter Massive arrivals Demands Western amenities Positive Social Effects of Tourism and Hospitality Some of the positive effects of tourism and hospitality 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 towards improving the host country’s environment and lifestyle options; 3. It promotes knowledge and use of foreign languages; and; 4. It improves health conditions and disease control. 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 visitors to learn another language. 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 destinations areas and provide additional sources of revenue which, in turn, can be invested in upgrading water and sewage disposal facilities. Negative Social Effects of Tourism and Hospitality • Social Saturation – The presence of large numbers of tourists in particular places at specific times results in saturation or congestion of facilities and services and competition for limited resources. • Changes in the Social Structure, Behavior and Roles – Tourism and Hospitality 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. • Community Problems – Prostitutions, often called the “oldest profession”, certainly existed before the growth of mass tourism. It is difficult to say how responsible tourism and hospitality has been for the rise of prostitution in tourist destinations. • Negative Demonstrative Effects – consists of tourist behaviors which can be considered socially and economically inappropriate. Impact Control Measures A number of control measures can be adapted to decrease the negative change in an area. Some of these are: 1. Reducing the contact between hosts and guests by limiting the carrying capacity 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 and hospitality development, policy, and regulatory issues; and 4. Expanding human resource development and training programs in all components of the tourism and hospitality system to include social skills (interpersonal relations and networking referral tactics). Impact of Tourism and Hospitality on Culture Tourism and hospitality increases the acculturation process as the cultural convergence of people. • Acculturation is defined as those changes that occur in a culture through borrowing from other cultures. • Cultural convergence is the tendency of world cultures to become more alike. Positive Effects of Tourism and Hospitality on Culture • Intercultural Communication – Mobility which is a prerequisite of tourism and hospitality, is necessary for different social groups, nationalities and cultures to meet and interact. • Renaissance of Native Culture – Tourism and hospitality may be important to the host country to remind its people of its history and culture. Negative Cultural Impact of Tourism and Hospitality While tourism and hospitality has enable different people to restore and maintain interest in their own cultures , it also led to the destruction of a country’s work of art. Impact Control Measures 1. Develop programs which enhance tourism and hospitality’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 Westernstyle structures such as decorating hotel interiors with local paintings, murals and sculpture and encouraging porters, maids, and waiters to dress in native costumes. Environmental Impact of Tourism and Hospitality The history of tourism and hospitality closely shows that the environment has contributed to the birth and progress of tourism and hospitality. The term “environment” connotes both human and physical characteristics. Positive Environmental Impact of Tourism and Hospitality Tourism and hospitality has created environmental awareness in two ways: 1. Contact with scenic areas has raised man’s awareness of the Earth’s beauty and made it easier for him to see and enjoy it with minimum damage; and 2. Environmental awareness has been heightened by mass tourism which caused direct and indirect destruction. Conservation Conservation and preservation of the environment not only benefit the local area but they also determine the future of tourism and hospitality. Development of Attractions Historic Preservation Many historical sites in both urban and rural areas have been preserved to attract tourists. Residents Benefits Tourism and hospitality benefits the local residents in a number of ways. The first benefit is that the results of conservation and preservation can be enjoyed by the local community as well as by the tourists. Another benefit which results from tourism and hospitality development can be seen in coastal areas. Negative Environment Impact of Tourism and Hospitality • Environment Conflicts – Some of the problems affecting the quality of the environment are destruction of the vegetation, polluted (air, water, and noise) and the destruction of wildlife. • Geological Conflicts – Tourism and hospitality affects geological formations. • Resident Conflicts – A number of conflicts frequently occur between residents and tourists or tourism developers.