IMPACTS OF TOURISM, PARTITCULARLY IN DEVELOPING COUNTRIES: IMPORTANCE OF SUSTAINABLE TOURISM DEVELOPMENT

IMPACTS OF TOURISM, PARTICULARLY IN DEVELOPING COUNTRIES: IMPORTANCE OF SUSTAINABLE TOURISM DEVELOPMENT

Mustafa Boz (Ph. D.)

Kseniya Trublenkova

ABSTRACT

Tourism is one of the largest industries in the world. Tourism business activities can have considerable impact on local development trends. For many countries, especially developing ones, the tourism industry is seen as an important income source. Employment opportunities, environmental consciousness and protection, and an influx of foreign currency to the host nation are just a few examples of the contributions that tourism industry can make to the economy of a country. But it is necessary to carefully study that impact of a rapidly developed tourism industry in developing economies since there may be many unforeseeable economic, cultural and environmental implications due to the development of the tourism industry.

This article tries to determine impacts, particularly negative impacts of unplanned, uncontrolled rapid development of tourism. And the importance of sustainable development of tourism in developing countries.

Key words: Impacts of tourism, sustainable tourism, leakages in tourism, Developing and Least Developed Countries

1. INTRODUCTION

The tourism sector is probably the only service sector that provides concrete and quantified trading opportunities for all nations, regardless of their level of development. (UNTACT, 2004) For many developing countries tourism is one of fundamental pillars of their development process because it is one of the dominant activities in the economy.K Tourism development if properly developed and supported, can indeed be a “quick – win” in overcoming the economic and social conditions the prevail in LDCs (Least Developed Countries) in accelerating their integration into the world economy. (WTO, 2007)

However, it is also a sector where there is clearly an uneven distribution of benefits, which is threatening the social, economic and environmental sustainability of tourism in some developing countries (Benavides, 2001)

2. THE IMPACTS OF TOURISM DEVELOPMENT

2.1. The Importance and Positeve Impacts of Tourism for Developing Countries

There are several reasons that make tourism an especially suitable economic development sector for LDCs and developing countries. Such as;

1. Tourism is consumed at the point of production.

2. Most LDCs have comparative advantage in tourism over developed countries.

3. Tourism is a more diverse industry than many others.

4. Tourism is labor intensive, create new job opportunities.

5. Tourism products not only material benefits for the poor but also cultural pride.

6. Stimulation of infrastructure investment contribution to local economies

7. Foreign exchange earnings,

8. Generation of employment and business opportunities.

9. Contributions to government revenues.

10. Tourism can significantly contribute to environmental protection, conservation and restoration of biological diversity

11. Tourism as a force for peace and understanding among different cultures.

12. Strengthening communities, Revaluation of culture and traditions

13. Tourism encourages civic involvement and pride (WTO, 2007 and UNEP, 2007)

2.2. Negative Impacts of Tourism

But unfortunately, tourism industry always does not have possitive impacts as mentioned above. It also has many negative impacts, particularly for least developed and developing tourist destination countries.

Goverments in many tourist destinations and local communities have little or no information on what to expect from tourism and the incoming tourists and how to influence and control tourism and guide tourist behaviour. They are controlled by international/global institutions, the industry and the consumers. Governments of the affluent countries are only beginning to look at the issues of outgoing tourism. Governments are not yet sufficiently aware of their responsibility and methods to influence tourist behaviour by political and legal guidelines/criteria and appropriate planning and policies. (UN CSD NGO Steering Committee., 2007)

2.2.1. Negative Economic Impacts of Tourism

There are many hidden costs to tourism, which can have unfavorable economic effects on the host community. Often rich countries are better able to profit from tourism than poor ones. Whereas the LDCs and developing countries have the most urgent need for income, employment and general rise of the standard of living by means of tourism, they are least able to realize these benefits. Among the reasons for this are large-scale transfer of tourism revenues out of the host country and exclusion of local businesses and products. (UNEP, 2007)

Leakages in Tourism Industry in Developing Countries

The direct income for an area is the amount of tourist expenditure that remains locally after taxes, profits, and wages are paid outside the area and after imports are purchased; these subtracted amounts are called leakage. In most all-inclusive package tours, about 80% of travelers’ expenditures go to the airlines, hotels and other international companies (who often have their headquarters in the travelers’ home countries), and not to local businesses or workers. In addition, significant amounts of income actually retained at destination level can leave again through leakage. (UNEP, 2007)

The high proportion of economic leakages, outside the local economy. In many developing countries and practically all LDCs, a generally considerable percentage of the foreign exchance income generated by international tourist arrivals leaks out the economy. (WTO, 2007)

This leakage can be in the form of repatriation of benefits of foreign tourism companies, fees to hotel management companies, remuneration of foreign staff and last but not least, imports of goods and services to respond to the tourists” needs. (WTO, 2007)

Multinational corporations and large foreign businesses have a substantial share in the import leakage. Often, especially in poor developing destinations, they are the only ones that possess the necessary capital to invest in the construction of tourism infrastructure and facilities. As a consequence of this, an export leakage arises when overseas investors who finance the resorts and hotels take their profits back to their country of origin. (UNEP, 2007)

The average import-related leakage for most developing countries today is between 40% and 50% of gross tourism earnings for small economies and between 10% and 20% for most advanced and diversified economies, according to UNCTAD.

Of each US$ 100 spent on a vacation tour by a tourist from a developed country, only around US$ 5 actually stays in a developing-country destination’s economy. (UNEP, 2007)

Other negative economic impacts can be as follows;

Infrastructure cost, Increase in prices, Economic dependence of the local community on tourism, Seasonal character of jobs, other industry impacts affecting tourism

2.2.2. Negative Envionmental Impacts of Tourism

Tourism in natural areas, euphemistically called “eco-tourism”, can be a major source of degradation of local ecological, economic and social systems. (ICLEI, 1999)

Uncontrolled conventional tourism poses potential threats to many natural areas around the world. It can put enormous pressure on an area and lead to impacts such as soil erosion, increased pollution, discharges into the sea, natural habitat loss, increased pressure on endangered species and heightened vulnerability to forest fires. It often puts a strain on water resources, and it can force local populations to compete for the use of critical resources. Many of these impacts are linked with the construction of general infrastructure such as roads and airports, and of tourism facilities, including resorts, hotels, restaurants, shops, golf courses, marinas and exceedingly built-up areas because of migration to tourism regions.

The negative impacts of tourism development can gradually destroy the environmental resources on which it depends. (UNEP, 2007)

2.2.3. Negative Socio-Cultural Impacts of Tourism

Host communities are often the weaker party in interactions with their guests. The influences are not always apparent and are difficult to measure depending on value judgments and are often indirect or hard to identify.

Tourism brings about changes in value systems and behaviour and can thereby threatens indigenous identity. Furthermore, changes often occur in community structure, family relationships, collective traditional life styles, ceremonies and morality. (Travel2care, 2007)

One of the biggest negative impact of tourism has been the commercialization of culture that has led the traditional rituals and festivals to lose their symbolic value and turned these into mere tourist attractions. (IUCMP, 2007)

In general negative socio-cultural impacts of tourism can be mentioned as follow;

Commodification, standardization, loss of authenticity and staged authenticity, adaptation to tourist demands, culture clashes,

Cultural clashes may further arise through: Economic inequality, Irritation due to tourist behavior, Job level friction, Partly due to the above impacts, tourism can create more serious situations where ethical and even criminal issues are involved. Such as; crime generation, child labour, prostitution and sex tourism. (UNEP, 2007)

3. SOLUTION: SUSTAINABLE TOURISM DEVELOPMENT

The true proof of “sustainable tourism” will be the sustainable development of local communities that serve as tourist destinations. It is time for the sustainable tourism debate to focus on this challenge. Local authorities worldwide welcome the leadership of the U. N. Commission on Sustainable Development, and the interest of the tourism industry, to reduce tourism’s negative impacts and to increase the positive contribution of tourism business and consumption activity to local sustainable development. (ICLEI, 1999)

Destinations and businesses must make a series of hard decisions about where best to allocate their limited resources to achieve the best of optimal results. No two destinations are the same and, therefore the choices made and the paths taken to sustainability will wary from destination to destination. Determining the best path to take involves understanding the unique situation facing each destination, its competitive situation, opportunities, strengths and weaknesses. These in turn will influence the establishments of goals, whose achievement will be affected by the ability of that destination to find or develop the necessary skills required. (McRercher, 2003)

Solutions to adverse tourism impacts are to be found in the shared interest of local communities, tourism business, and tourism consumers to maintain the natural wealth and social heritage of the tourist destination. In the first instance, therefore, an institutional mechanism must be established, relative to each destination, to articulate and develop this sense of shared interest. To secure the legitimacy of these mechanisms, the participation of all interested local groups or interests must be guaranteed. Dialogue must take place in an open and transparent way. (ICLEI, 1999) Sustainable tourism is built around of four pillars of tourism, economic, ecological, cultural and community sustainabilities. All four of these elements must be addressed if we are to achieve sustainable tourism. (McRercher, 2003)

Success in tourism planning comes when it assumes a holistic approach, encompassing a wide range of economic, social, political and environmental aspects.(UN Atlas of the Oceans, 2007)

CONCLUSION

Tourism is a fast growing industry and a valuable sector, contributing significantly to the economies of developing countries. Tourism affects the economy and lives of communities. The are real and perceived fears that are sometimes attributed to tourism and largely related to poorly managed and mass tourism ventures. As with any economic activity, tourism can have negative impacts on communities.

In order to eliminate leakages and negative impacts of tourism, it is essential to develop long

term plans and policies relating to the development of types of alternate tourism in a

sustainable way., adhere to these plans and policies but remain flexible to change in response to tourism demands.

BIBLIOGRAPHY:

- Benavides, David Diaz (2001). The Viability and Sustainability of International Tourism ın Developing Countries, Symposium on Tourism Services 22-23 February 2001, World Trade Organization, Geneva

- ICLEI (International Council on Local Environmental Initiatives) (1999). Tourism and Sustainable Development Sustainable Tourism: A Local Authority Perspective, U. N. Department of Economic and Social Affairs, Commission on Sustainable Department, Seventh Session, 19 – 30 April 1999, New York

- IUCMP (2007). Tourism: Socio Cultural Impacts, United Nations Conference on Trade and Development, http://edu.iucnp.org/themeMountains/scimpacts.htm (accessed May 26, 2007)

- McKercher, Bob (2003) Sustainable Tourism Development – Guiding Principles for Planning and Management, National Seminar on Sustainable Tourism Development, Bishkek, Kyrgyzstan, 5-9 November 2003.

- Travel2care (2007). Socio-Cultural Impact of Tourism http://www.travel2care.com/printed.asp?active_page_id=81(accessed May 26, 2007)

- UN Atlas of the Oceans (2007).  Types of Recreation and Tourism, United Nations http://www.oceansatlas.org/index.jsp (accessed May 16, 2007)

- UN CSD NGO Steering Committee (2007). Tourism Segment  — Dialogue Starter Papers Influencing Consumer Behaviour to Promote Sustainable Tourism Development

Prepared by the UN CSD NGO Steering Committee. Co-ordinated by Christina Kamp, Tourism Watch, on behalf of the Ecumenical Coalition on Third World Tourism.

- UNCTAD (2004) Tourism Trade and Development, http://www.unctadxi.org.templates/Print

- UNEP (2007) ECONOMIC IMPACTS OF TOURISM, Production and Consumer Branch: Tourism. http://www.uneptie.org/pc/tourism/sust-tourism/economic.htm (accessed May 2007)

- WTO (2007). Tourism and Least Developed Countries, “A Sustainable Opportunity to Reduce Poverty.” http://www.world-tourism.org/cgi-bin/infoshop.storefront/EN/product/1170-1 (accessed May 2007)

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