13 impacts of tourism

Monday, April 10, 2023 Dr. Nimit Chowdhary

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Tour Guiding Series

Impacts of tourism

Dr. Nimit Chowdhary Professor

Indian Institute of Tourism and Travel Management


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Agenda

• Impacts of tourism

• Sources of impacts– Tourist impacts– Destination impacts


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Tour Guiding Series

7 categories of tourism impacts

Economic impactsEnvironmental impactsSocial and cultural impactsCrowding and congestionServicesTaxesCommunity attitude


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Tour Guiding Series• Contributes to income and standard of

living

• Improves local economy

• Increases employment opportunities

• Improves investment, development and infrastructure spending

• Increases tax revenues

• Improves public utilities infrastructure

• Improves transport infrastructure

• Increases opportunities for shopping

• Economic impact (direct, indirect and induced spending) is wide spread in the community

• Creates new business opportunities


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Tour Guiding Series• Increases prices of goods and services

• Increases price of land and housing

• Increases cost of living

• Increases potential for imported labour

• Cost for additional infrastructure (water, sever, power, fuel, medical, etc.)

• Increases road maintenance and transportation systems costs

• Seasonal tourism creates high-risk, under- or unemployment issues

• Competition for land (higher value) with other economic uses

• Profits may be exported by non-local owners

• Jobs may pay low wages


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• Protection of selected natural environments or prevention of further ecological decline

• Preservation of historic buildings and monuments

• Improvement of area’s appearance (visual and aesthetic)

• A “clean” industry (no smoke stacks)


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Tour Guiding Series

• Pollution (air, water, noise, solid waste and visual)

• Loss of natural landscape and agricultural lands to tourism development

• Loss of open space

• Destruction of flora and fauna (including collection of plants, animals, rocks, corals, or artifacts by or for tourists)

• Degradation of landscape, historic sites, and monuments

• Water shortages

• Introduction of exotic species

• Disruption of wildlife breeding cycles and behaviours


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• Improves quality of life

• Facilitates meeting visitors (educational experience)

• Positive changes in customs and values

• Promotes cultural exchange

• Improves understanding of different communities

• Preserves cultural identity of host population

• Increases demand for historical and cultural exhibits

• Greater tolerance for social differences

• Satisfaction of psychological needs


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Tour Guiding Series• Excessive drinking, alcoholism, gambling

• Increased underage drinking

• Crimes, drugs, prostitution

• Increased smuggling

• Language and cultural effects

• Unwanted lifestyle changes

• Displacement of residents for tourism development

• Negative changes in values and customs

• Family disruption

• Exclusion of locals from natural resources

• New cliques modify social structure

• Natural, political and public relations calamities


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• Minimizes sprawl

• Concentrates tourist facilities

• Old buildings reused for tourism


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• Congestion including interference with other businesses

• Overcrowding- exceeding area capacity

• Conflict

• Overpowering building size and style


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Tour Guiding Series

• Increases availability of recreation facilities and opportunities

• Better standard of services by shops, restaurants, and other commerce

• Improves quality of fire protection

• Improves quality of police protection


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Tour Guiding Series

• Neglect of non-tourist recreation facilities

• Effects of competition

• Shortage of goods and services

• Increases pressure on infrastructure


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• Additional state and local sales tax revenues

• Lodging tax revenue to city (or state)

• Service tax revenues

• Increased income tax payers


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• Increases property taxes


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• Heightens pride in community

• Greater appreciation of local resources

• More facilities and range of choices available

• More interesting and exciting place to live


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• Heightens community divisiveness

• Increasingly hectic community and personal life

• Creates a phony folk culture

• Residents experience sense of exclusion and alienation over planning and development concerns

• Feeling of loss control over community future ( caused by outsider development)

• New building styles fail to “fit” community

13 impacts of tourism

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