Tourism comprises the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes.” (UNWTO 2016b). As one of the world’s largest industries, there are a number of advantages and disadvantages for both the host country and tourist; this essay will discuss these and come to a conclusion on whether the advantages outweigh the disadvantages.
The economic revenue and benefits of the industry are one of the main driving forces behind the development of tourism, as well as having been key players in the development of a number of countries. According to the WTTC (2016) one in 11 people across the world are employed within tourism, this is over 7x more than the automotive industry. Overall the industry contributed 9.8% of global GDP in 2015, and this is around $7.2 trillion. It is also worth noting that this figure continues to grow year on year, with 3.1% growth in 2015, which follows 7 years of positive growth (WTTC, 2016).
Firstly, a significant advantage of tourism is it’s distinct cross industry nature; a range of goods and services are purchased and are often used in sequence. An example of this is the reservations agents, airlines, accommodation provider, etc. This not only creates a significant amount of revenue, but also employment opportunities. An example of the beneficial boost in employment that tourism brings is Torremolinos, this tourist destination in the Malaga province of Spain. 21% of its 67,353 inhabitants are directly employed by the leisure and tourism industry (Gutiérrez-Domènech 2014, INE, 2014). A further 44% are employed by the service industry, strengthening the local economy and creating opportunities for local business growth. This employment and tax revenue from local businesses is not only beneficial to the individuals and their families, whom they support, but also provides important tax revenue helping both on a national and local level. Employment also gives people a greater propensity to spend, this is especially important in the Malaga province as a whole has an unemployment rate of 28.97% and this is significantly higher among those under 25 (Eurostat, 2015).
Overall the employment creates a multiplier effect, leading to greater consumer spending in the economy, which is especially important in countries such as Spain which are recovering from recession (Cooper, Fletcher et al, 2008, Gonzales 1995, WTTC, 2016). Furthermore, the growth of the service sector and economic diversification is particularly important in developing which are progressing towards the tertiary sector and away from the primary in order to improve wages and living conditions (Sinclair, Stabler and Papatheodorou 2009, WTTC, 2016). Additionally, in a macroeconomic sense tourism also helps contributes to the countries balance of payments through its foreign exchange earnings (Heakal 2003).
Having said this employment created by tourism does have a number of negative aspects. To start, the jobs created are often seasonal, as many places have a high season and a time of year when they are deserted. This is negative as it means jobs are seasonal and unstable, also it is worth noting that jobs are often low paid, and have little prospect of promotion or higher wages. Due to the nature of the jobs, they are also likely to carry few benefits such as pensions, sick pay and health benefits. It has been found that in the United Kingdom 8% of tourism related jobs are temporary contracts , this extends to 44% when looking at Cyprus (Eurostat, 2016) In countries such as Bulgaria, Cyprus and Greece the proportion of temporary workers in tourism are 3-4 times higher than the proportion in stable industries such as Non-financial business (Eurostat, 2016) The highest number of temporary workers can be found in the accommodation industry where 1 in 4 workers do not have permanent contracts. Furthermore, in only 5 of the EU member states the average hourly wage for an individual of the tourism industry is higher than that of the average for an economy as a whole, these include Finland, Luxembourg and Latvia (Eurostat, 2016, UNWTO, 2016).
Furthermore, leakages from the economy also occur and high import costs also a proportion of the income is spent on importing goods to meet tourist needs (Cooper, Fletcher and Fyall 2008). Moreover, the overall positive economic impact of tourism may lead to an overdependence on tourism which may later have negative connotations for the host country as trends change and external factors impact demand, an example of this is Tunisia and Turkey (suffering a 41% fall in demand in 2015) which is now suffering the consequences of a fall in demand due to terrorist attacks of 2015 (Butler 2016, Parkinson and Heyden 2015).
Tourism also carries a number of socio-cultural impacts, a number of which are positive for both the host country and tourists, and others of which are negative. Socio-cultural impacts are among those least documented Firstly, a positive socio-economic impact of tourism is the fact that a local sense of pride is created as tourists are interested in the ceremonies, traditions and heritage of the country (United Nations Environment Programme 2015). This may help revive it for locals also as locals may have become jaded by them and have lost interest, but tourism may have brought new life to them, strengthening the community and creating peace (Cooper, Fletcher et al, 2008). Peace is also created due to the fact that tourism and travelling helps expand people’s horizons, understanding and knowledge of other places whether local or international, creating a cultural exchange. According to Harrison (1992) “tourism provides new opportunities and instigates social changes”. An example of this is the opportunities that have arisen as a consequence of tourism may include the new skills which locals have learnt as a result of employment in the industry, these skills lead to changes and improvements in everyday life and which are also aided by the incomes, this has been prominent in places such as Bali and Kenya, where tourism has driven social development and change (United Nations Environment Programme 2016). Furthermore, it has been said that tourism and the employment opportunities it has created have played an important role in the erosion of gender segregation as discrimination is less prominent, allowing women to have economic independence, allowing social change and flexible working (Crompton and Sanderson, 1990 and Urry, 1991).
Having said this, a number of writers have researched the negative socio-cultural aspects of tourism. Most notable including Mathieson and Wall (1982), saying that tourism modifies and changes the internal structure of a community by dividing it into individuals and companies relating to tourism and those who do not. The socio-cultural issues which arise in relation to tourism include sex tourism which has been linked to sexual exploitation and the spread of AIDS in a number of places including Thailand and the Gambia. (Cooper, Fletcher et al 2008). Commodification is also a problem as culture becomes a demand from tourists, it becomes exploited and loses authenticity, this also links to the problem of staged authenticity which is explored by Urry (2002) in “The Tourist Gaze’. The concept of the tourist gaze relates to the pre-determined expectations which tourists have previous to visiting a destination which they believe relate to an “authentic experience”; this is often not the case and means a number of things become stages, such as crafts, ceremonies and rituals (Urry and Larsen 2011).
Crime generation is also an issue, an example of this is crime generated relating to tourist activities such as drinking and gambling, this is a particular problem in Brazil, Las Vegas and Thailand, and subsequently creates friction between locals and tourists and puts tourists at risk. (United Nations Environment Programme 2015) Social-cultural impacts are also created due to the overall economic benefit of tourism, an example of this the income inequality and job level friction created as particularly in places like Malaysia, where individuals in the tourism industry earn up to 3 times as more as those living off the land still. United Nations Environment Programme 2015) Moreover, tourists also often fail to respect or understand local customs, morals and values leading to irritation. An example of this is the strict moral standards which stand in many Muslim countries, these are often disregarded by tourists who continue to wear shorts, skirts and bikinis, creating tensions between locals and tourists (Smith and C.A.B. International 2007).
When considering socio-cultural impacts of tourism, it is difficult to argue whether the benefits outweigh the drawbacks as it depends which stakeholder is in consideration. It is often the case that tourism is overall beneficial and positive for the tourist involved, however at the cost of the authenticity and interests of the host country or region.
In addition to the sociocultural and economic aspects of tourism, there are also a number of environmental impacts of tourism, the scale of these vary widely from place to place so a number of examples will be used to discuss this. “The environment, whether natural or artificial, is the most fundamental ingredient of the tourism product” (Cooper, Fletcher et al, 2008, 161). Tourism demand in many ways can be seen as an important stimulus for the preservation of natural and heritage sites, this is especially as the demand for tourism to more natural areas has grown year on year. (Wall and Mathieson, 2005) This can relate to sites such as the Taj Mahal, Great Pyramids and Stonehenge, which have all benefited from preservation as a result of tourist demand and the revenue generated from tourism, similarly it has also led to the creation of national parks and wildlife parks such as Yellowstone, the Masaai Mara and the Fjord Land National park (Cooper, Fletcher et al, 2008). The revenue generated is especially important in the role of preserving wildlife and marine parks which are helped greatly by entrance fees and the small charges for guided tours, occasionally tourists are charged as little as a few pounds or dollars for parking which helps contribute to the upkeep. Eco-tourism in particular helps conserve and create awareness about the importance and beauty of nature, one main benefit of this is that areas such as rainforests are regarded as tourist assets. (Simm 2015) An example of this is the Kruger National Park in South Africa, 70% of the parks income is derived from tourist revenue which includes concession fees, entrance fees and accommodation. Not only does tourism create a demand for the environment, it also creates an awareness and drives a changing attitude (especially when considering eco-tourism) towards conservation (Castley 2011).
On the other hand, however, tourism is often called unsustainable due to its environmental impact, mass tourism especially due to its impact on the natural environment, and pollution. According to the UNEP, the three main impact areas are the depletion of water resources, pollution and land degradation (United Nations Environment Programme 2016). Firstly, it has been discovered that in hot dry countries, such as the Spain, a single tourist can use up to 440 litres of water a day, this is far greater and almost double what the average inhabitant of a Spanish city may use (Sunlu 2013). Likewise, in Bali, the tourism industry can use up to 65% of the islands fresh water resources each year (Chafe 2014).Water usage is especially high in these areas due to the abundance of swimming pools, golf courses and hotels. Furthermore, water usage is not only a concern but also the use of fertilisers which help of the upkeep of areas such as golf course, in Thailand, up to 1,500kg of fertilisers and pesticides are used on the average golf course each year (Cooper, Fletcher et al, 2008). Similarly, tourism can also lead to land degradation especially due to this strain which intense construction of tourist facilities puts on the land and it’s scarce resources. An example of this and a direct impact which tourism has on the environment, is the erosion of paths at the pyramids in Giza, similarly littering both here and other places such as the Base Camp at mount Everest (Cooper, Fletcher et al, 2008).
The main issue when it comes to whether the environment is protected or disregarded and mal-treated through tourism comes down to the hosts and importance they place on the environment (Cooper, Fletcher et al, 2008). This needs careful consideration and often links to the development of the country, as developed countries such as the UK may see conservation and protection before revenue, however developing countries such as Kenya, may see economic development as a higher priority to the detriment of the environment (Cooper, Fletcher et al, 2008). The balancing of interests is what is often needed when considering whether tourism is beneficial or negative for the environment, an example of this is the Lake District National Park, the National Parks Authority must choose a balance between tourism and conservation.
To conclude, it is hard to decide whether the advantages of tourism outweigh the disadvantages as each destination needs to considered case by case, overall it is arguable that the theory of Allen et al (1988) is most appropriate “low to moderate levels of tourism development are more likely to be beneficial”. Overall the level of tourist development and the size of the industry relates to whether the advantages outweigh the disadvantages, therefor the statement must be discussed on a destination by destination basis.