Understanding the World of Tourism: Economic, Environmental, and Socio-Cultural Impact

This report discusses the development of contemporary tourism and its impact on economic, environmental, and socio-cultural aspects. It covers the factors affecting tourism, the economic impact of tourism, the environmental impact of tourism, and the socio-cultural impact of tourism.

Understanding the World of
Tourism

Contents
Introduction.........................................................................................................................................3
Main body............................................................................................................................................3
Development of contemporary tourism and significant factors...................................................3
Economic impact of tourism with positive and negative...............................................................4
Environmental impact of tourism with positive and negative......................................................5
Socio-cultural impact of tourism with positive and negative........................................................6
Conclusion............................................................................................................................................7
References............................................................................................................................................7

Introduction
The tourism is referred as an activity of travelling and touring which is very vast &
growth-oriented industry. The leisure industry industry establishes all corporate activities
which aids the tourists’ requirements while visiting to diverse locations through means of
tourism, touring or travelling. It is an inter-connected actions of travellers while travelling to
a place. The travel industry consists of all businesses which offers goods and facilities that is
meant and tourists uses at diverse stages of travel and tourism in the place of leisure and
business interests. In this way travel bookings, transportation, hotel stay, food, destination
visits etc, all are the part of tourism (Degarege, G.A., 2019). The wide range of benefit is
provided by tourism industry involving economic benefits for attracting large number of
visitors, offering jobs to people who works in transport and hospitality industry. The report
covers development of contemporary tourism with positive and negative impact on economic,
environmental and socio-cultural impact of tourism.
Main body
Development of contemporary tourism and significant factors
The contemporary tourism is most important phenomenon globally which is an
instrumental for economic development in both emerging & developed countries. The
tourism in an agent of cultural and significant contributor to environmental change. The
concept of tourism system was developed to understand the complex and dynamic nature of
contemporary tourism which involves consumption and production and generating
experience. The geographical tourism system benefited in identifying flow of tourists from
one place to another and importance of connectivity between generating region & destination
(Gravari-Barbas, M., 2018). The customers experiencing also differs with the changing
environments, sites and meeting with new people. The tourism focuses on comprehensive
programs focusing on quality improvement of life of local residents without compromising
future well-being of people. The developments in air transport infrastructure, low-cost
airlines had made tourism more affordable. There is development of sustainable tourism
which is concerned with economic, social and environmental issues and improves tourists
experiences by addressing needs of host countries. There are several factors affecting
Tourism are as follows-
 Technology- The internet has provided vast opportunities to several industry as
tourists is enjoying benefits of internet. The tourists can get idea regarding the place

they want to visit when they plan for a tour, quality of amenities and services,
attracting destinations. The experience is shared by tourists on several platforms of
social media which enhances tourism industry.
 Historical or cultural importance of destination- The destination affects tourism
industry to a great extent which tourists like to visit for watching monuments, castles,
ancient architecture, sculptures and many more which increases tourism business.
 Economy- The tourism is affected by economy in both the ways. When the economy
is well functioning then people tens to spend more on leisure which improves tourism
progress or affected adversely in case of country is undergoing on economy
turbulence or facing unemployment issues.
Economic impact of tourism with positive and negative
The tourism can be divided into expenditure from guests on travel experiences such as
beach holidays and theme parks, expenditure on leisure items. Huge economic potential is
brought by tourism which develops tourism industry. The employment, currency exchange
rate, imports and exports are few ways that brings currency into destination. The travel
economy represents 5% of world GDP. The growth of leisure industry increases by involving
improvement in technology, upsurges in disposable revenue and consumer desire for further
travelling.
Positive economic impact of tourism
 Foreign exchange earnings- It is a biggest benefit for tourism that has ability of
making currency over external exchange incomes as tourists disbursements increases
income in host country which can be reinvested again in economy. The money can be
managed by spending on further growth of tourism industry, spending on public
services like education or healthcare (Griffiths, M. and Wiltshier, P. eds., 2019).
 Employment generation- The growth of global travel has directed to momentous
employment formation. The employment is of two types direct and indirect. The
direct hiring includes jobs that are immediately connected with tourism industry
which involves hotel staff, restaurant staff etc. The indirect employment involves jobs
which is not technically based on tourism industry which also creates difficulty in
measuring economic value of tourism.
Negative economic impact of tourism

 Foreign ownership and management- It puts negative impact on tourism the
enterprises in developed countries becomes expensive which choose to go abroad.
The business money is saved which is not helpful for economy of host journey's end.
The foreign companies bringing staff with them limits the employment creation.
 Increases in prices- This affects negatively as the increasing demand of goods and
services from tourists cause rise in prices which impacts negatively on local residents
whose income is not increasing. The development of tourism also increases prices in
building costs and land values (Kolb, B., 2017).
Environmental impact of tourism with positive and negative
The increase in supportable travel and increasing number of initiatives for presence
environmentally friendly, tourists and stakeholders are recognised as important of ecological
management in leisure industry industry. The excellence environment in together terms
natural and man-made are important. It creates advantageous impact on atmosphere by
contributory in ecological protection and conservation.
Positive environmental impact on tourism industry
 Contribution to government revenues- The collection of funds help government in
managing natural resources. The capitals collected from several taxes can help in
betterment of environment by implementing diverse conservation programs and other
related activities such as preservation of park, payment of salary to parking manager
(Papatheodorou, A., 2021). The funds can be collected through income taxes, taxes on
sales or rental of recreation equipment, and license fees for activities such as rafting
and fishing.
 Improving Environment Management and Planning- In tourism to have improved
eco-friendly organization there is requirement for offering improved hotel services
which increases assistances to natural environment. The advance planning brings
tourism development, expensive errors are avoided prevents slow deterioration of
environmental assets that is significant to tourism which improved and quality
environmental management.
Negative environmental impact on tourism industry
 Depletion of natural resources- The leisure industry of growth puts burden on
natural resources which rises consumption in parts where resources are previously
scare. The natural resources involve water, local and land degradation. In the tourism

industry there is over use of water which leads to shortage and degradation of water
supplies. The tourism creates compression on resident resources such as food, energy,
& other raw materials which are already in shortage. The increase of tourism and its
allied activities at tourist destination, recreational facilities also put pressures which
affects negatively.
 Destruction and alteration of Ecosystem- The eco system is a geographic area
which involves all living organism such as people, plants, and animals etc. and natural
cycles that sustain them. The activities of tourism leisure had made degradation (Pato,
L. and Kastenholz, E., 2017).
Socio-cultural impact of tourism with positive and negative
The understanding of social impact on tourism is essential in ensuring sustainable
management of tourism industry. The socio-cultural impacts define to change in resident
everyday experiences with their values, way of life, intellectual and artistic products
(Pencarelli, T., 2020.). It describes the effect on host countries having direct and indirect
relation with tourists and interaction with tourism industry. The impact arises when change in
values, behaviour is brought by tourism.
Positive Socio-cultural impact on tourism industry
 Commercialisation of culture and art- The tourism has rise in many commercial
businesses which impacts positively on tourism. It helps in enhancing community
spirit which tends to have more disposable income as a result. The business also
promotes local culture and arts. The tourism can help in promoting local traditions
such as museums, shows and galleries which is a great way for showcasing local
customs and tradition of destinations.
 Preservation of Heritage- The tourists visit destination for seeing local heritage for
this many destinations makes every effort to preserve its heritage. This also involves
putting restrictions in place of tourist numbers which needs a careful planning for
sustainable tourism management.
Negative Socio-cultural impact on tourism industry
 Social change- It defines to change in the way that society acts or behaves which
affects tourism negatively. There are several changes which affects tourism negatively
such as change in dress way of speaking (Robledo, M.A. and Batle, J., 2017).

 Loss of authenticity- The tourists want souvenirs, arts, crafts and cultural
manifestation in many tourist destinations. The authenticity is something this is
original or unchanged.
Conclusion
It is being concluded that leisure industry industry plays great role in development
and growth of global economy in positive and negative way. The relation between nation-
states or business is improved which creates opportunities for recreation, entertainment and
value of currency is improved. It helps in creation of employment opportunities which helps
in reducing poverty and socio-economic improvements of world. The economic influence of
tourism has both in direct and indirect way. The direct economic impact is formed when
supplies are retailed such as accommodation, entertainment, food & beverage facilities etc.
The indirect impact of tourism can be founded in venture expenditure contribution from
private and governmental bodies. The environmental and socio-cultural have positive and
negative impact on tourism which also puts effect on tourism industry.
References
Degarege, G.A., 2019. Tourism, Livelihood Diversification and Food Security in
Ethiopia (Doctoral dissertation, University of Otago).
Gravari-Barbas, M., 2018. Tourism as a heritage producing machine. Tourism management
perspectives, 25, pp.173-176.
Griffiths, M. and Wiltshier, P. eds., 2019. Managing religious tourism. CABI.
Kolb, B., 2017. Tourism marketing for cities and towns: Using social media and branding to
attract tourists. Routledge.
Papatheodorou, A., 2021. A review of research into air transport and tourism:: Launching the
Annals of Tourism Research Curated Collection on Air Transport and
Tourism. Annals of Tourism Research, 87, p.103151.
Pato, L. and Kastenholz, E., 2017. Marketing of rural tourism–a study based on rural tourism
lodgings in Portugal. Journal of Place Management and Development.
Pencarelli, T., 2020. The digital revolution in the travel and tourism industry. Information
Technology & Tourism, 22(3), pp.455-476.
Robledo, M.A. and Batle, J., 2017. Transformational tourism as a hero's journey. Current
Issues in Tourism, 20(16), pp.1736-1748.