Tourism Discipline

Swinburne University of Technology, Lilydale

TOU 110
INTRODUCTION TO TOURISM
Study Period 4, 2009

INDIVIDUAL ASSIGNMENT
TOPIC # 1

Analysis of tourism’s contribution to Australia generally focuses on the

economic value of tourist spending. From our studies however we know that
tourism has both positive and negative impacts across a wide range of
environments. Explore the literature, outlining these impacts and suggest
whether, on balance, tourism’s contribution is positive.

Prepared by:
Anthony Patrick Brent

7144482

Tutor: [Jo Bagg]

Word count: 2,470 words

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The Tourism Industry in Australia impacts across a wide range of environments.
These environments can be classified as either economic, social, cultural or
physical. Furthermore these impacts can have a positive or negative effect on
Australia, from increasing employment to environmental damage. The following
pages looks at the contribution of tourism to Australia and whether or not it is
positive.

Firstly though it must be stated that the extent of these positive and negative
impacts of tourism will vary depending on certain variables. As explained by
French et el in Principles of Tourism (2000) these variables include such things as
the number of visitors to a destination point, the length of stay along with the host
attitude towards the visitors. What also must be considered is the economic, social
and cultural characteristics of the tourists.

On of the major impacts Tourism has on Australia is in the area of economics. This
impact can be seen in a positive way as tourism increases and stimulates
employment, introduces fresh money into the economy, increases government
revenue and has an overall positive effect on the Gross Nation Product (GDP).

In regards to employment tourism is one of the largest and fastest growing sectors
in Australia, as stated by the Australian Bureau of Statistics.

“The tourism industry employed 540,700 persons in 2002-03. The

number of tourism employed persons grew 6.3% between 1997-98 and
2002-03, slower than the growth rate in total employed persons (10.1%)
over that period. Consequently, the tourism share of total employed
persons fell from 5.9% in 1997-98 to 5.7% in 2002-0”

If you then further add an estimated 397,000 people who are indirectly employed it
then adds up to 10.4% of the workforce. This stimulation of the workforce that

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tourism creates also has a flow on effect in regards to downstream employment.
As stated by French et el in Principles of Tourism (2000 p 300)

“It is estimated that in addition to the direct and indirect jobs created by
tourism, a further larger percentage of jobs depend on the economic
activity generated by tourism. The wider community, therefore, benefits
greatly from tourism activity.”

Likewise tourism also has the benefit of introducing new money into the economy
and increasing foreign exchange earnings. When a overseas tourist comes to
Australia or an investor wishes to invest in tourism networks they will spend or
invest money that was created in there country. This money will then have a flow on
effect throughout the economy in such ways as paying for wages, rent, interest,
buying raw materials etc.

In terms of government revenue, tourism in Australia can have a great impact in this
area. Tourists are often subjected to sales tax and must pay this in the same way
local residents would. In addition to this tourists can also be subjected to departure
taxes, airport taxes, customs and visa charges. As stated by French et el Principles
of Tourism (2000 p 304) “tourism contributes more than 10 per cent of the
total tax payments”.

Government revenue from tourists can also be gathered in other ways such as,
through income tax, as tourism stimulates employment more revenue is collected
through income tax and less is spent on unemployment benefits. Governments also
benefit through direct involvement in tourism either through direct ownership or a
partnership with a private company. An example of this can be seen with the
revenue generated by the National Parks. As reported by Tomy Jensen and Brian
Williams of Queensland’s Courier Mail on November 12, 2008 “the state’s
national parks are creating more than $4.43 billion in tourism revenue
yearly” they further add that “expenditure by tourists visiting national parks
comprised 28 per cent of tourist spending”. This revenue is can then be

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invested in a number of ways to improve both the tourist experience and or to
improve and maintain the local environment .

One other positive effect tourism has on the economy in Australia is its contribution
to the Gross National Product. A countries Gross Domestic Product is the market
value of all final goods and services made within the borders of that country within a
year. In Australia as stated by the Australian Bureau of Statistics “tourism
accounted for $32.0 billion of total GDP in 2000-03.”

With all of the above positive effects mentioned, in contrast it must be said that
there are possible negative impacts tourism can have on Australian economics.
These can be in form of leakage, inflation and or economic dependence.

Leakage can be defined by the proportion of money spent by tourists that leave the
country. This can be in the form of tourist spending money on goods and services
that have been imported, hotels and other tourism related businesses and
organisations that import goods because the local product is not available or not up
to the required standards, and lastly when profits are sent out of Australia by foreign
owners and other services.

Inflation as defined by the ANZ bank is,“a sustained increase in the general
level of prices so that a given amount of money buys less and less.”
Tourism can have an effect on this through a number of ways. It can have an effect
on land prices by driving up the value of land in high areas of tourism demand.
Tourism can also effect food, transport, and clothing costs because of the high
levels of expenditure by foreign tourists. This expenditure thus puts pressure on the
inflation which drives up the costs. This can be seen as a negative impact for the
local community as they are subjected to the same high prices as tourists.

Lastly, economic dependance can be seen as a negative impact of tourism.

Economic dependance is where a tourist destination has invested so much in
tourism that the destination then relies solely on the tourism industry for its success.

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This becomes dangerous as tourism is often a seasonal activity which can mean
seasonal unemployment and a waste of resources in low seasons. Examples of
this in Australia can be seen in the lower Blue Mountains. During winter seasons
areas such as Thredbo thrive during these months as tourist will visit these areas in
enjoy skiing and snowboarding. However during summer months these areas are
virtually only supported by a small local community. The danger is that with
increases in Global warming which can lead to shorter or even zero winter seasons
these areas may in the future be in danger of economic fail.

Correspondingly the above economic impacts can also by a role in the social
impact of tourism in Australia. An important positive social impact tourism has on
Australia is the ability to increase the standard of living for local residents. As a
tourist destination grows in popularity so does the need for such things as
amenities, attractions, recreational facilities along with improvements in existing
infrastructure. An example of this can be seen in Cairns in North Queensland with
the development of Cairns International Airport. The airport was created to deal with
the needs of international tourists wanting to visit Cairns. In turn not only does the
tourist benefit from this so does the local community.

In opposition to the positive social impacts tourism has on Australian life there are a
number of negative impacts that must be mentioned. These negative impacts can
include but are not limited to such issues as undesirable activities, competition,
consumption behaviour

Along with the increases in population and development that tourism brings, it also
has with it increases in undesirable activities. These can be in the form of gambling,
begging, prostitution and general crime. An example of this is evident in the town of
Port Stephens as reported by Anna Wolf of the Port Stephens Examiner on
September 23rd

“The downside to the tourist industry in Port Stephens is a spike in crime,

the latest statistics show. Figures released by the Bureau of Crime

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Statistics and Research (BOSCAR) shows that the incidents of motor
vehicle theft, steal from motor vehicle and malicious damage increased
dramatically over the summer months. Break and enters and assaults
were also higher in December 2008 and January 2009.”

When looking at tourisms impact on Australian culture it must be examined on two

fronts. One being the impact on the contemporary and colonial cultural and
secondly on the indigenous culture. Culture is one of the chief consumables of
tourism, and the experience of unique cultures can be educational for the visitor
and highly profitable for the community. As stated by Hasan Zafer Dogan “tourism
has been a major source of intercultural contact”.

In Australia tourism has the ability to increase community pride though such events
as the Gay and Lesbian Mardi Gras, Opera in the Outback and art festivals such as
tropfest. These events as stated by French et el in Principles of Tourism (2000)
provide a “sense of national pride in our ability to host such diverse world
class events”. Furthermore it is tourism that also aids in many historic buildings
being conserved or restored. An example of this can be seen in Sydney’s Rocks
area.

A major attraction for overseas tourists is the Aboriginal culture. As stated by

French et el in Principles of Tourism (2000) “An Australian Council survey
conducted in 1996 revealed that over 33 per cent of international visitors
attended a performance of Indigenous dance, threatre or music.” This
can provide a positive impact on the Aboriginal culture in that tourism enables an
outlet or a way of communicating there culture to the rest of the world. However as
tourism is a necessarily invasive process which thrusts traditional communities into
the modern world, threatening their distinct lifestyles and cultural products. There
can be some concern that tourism development may lead to Aboriginals losing their
cultural identity by catering for the perceived needs of tourists.

One of the major issues with tourism these days has to do with its impact on the
physical environment. With issues such as increasing population, pollution and
global warming becoming more important it is necessary that the tourism industry
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find a natural balance with its environment. In response to this sustainable tourism
seeks out grow tourism with both the community and the environment in mind as
stated by French et el Principles of Tourism (2000 p 328)

“if tourism opportunities are to be realised , long term strategies are

necessary to ensure an ecologically sustainable industry that gives a
return to the visitor, the community and the commercial operator.”

An example of this in Australia can be seen by the actions of the council in the town
of Gawler. The Gawler Tourism Strategic Plan from 2005-2009 states that it
identified heritage and events as the key tourism strengths and therefore sets out a
plan to grow tourism as an industry in the town by utilising existing infrastructure
and selling the personality of the town. Its key objectives are to incorporate the
needs of the community within the tourism plan. Many of these needs are directly
relevant to tourism for example roads, footpaths, bridges, walking trails, parks and
gardens and public amenities.

Likewise when examining the impacts of tourism on the environment one needs not
to look any further than that of Fraser Island. As reported by FIDO “The Watchdog
of Fraser Island” who’s aim is to ensure the wisest use of Fraser Island’s natural
resources.

“The public campaigns to protect Fraser Island’s outstanding natural

values relied heavily on developing tourists’ appreciation for the whole
island. Tourism significantly helped stop sand mining and logging. It also
raised public awareness of environmental values in other Australian
regions. Fraser Island tourism has contributed to greater Australian
environmental understanding.”

Therefore in this case it can be concluded that tourism has a positive effect in
creating public awareness not only in Fraser Island but in other places around

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Australia. On the other hand as tourism in Fraser Island increases certain negative
impacts will become more evident. FIDO states that,

“In 1971 the number of visitors to Fraser Island doubled from 5,000 in
the previous year to 10,000 as a result of the publicity surrounding the
sand mining controversy. It has steadily increased ever since. By 1999 it
had reached over 300,000 visitors.”

With this increase in numbers issues such as pollution, waste, physical damage
and noise become more of a problem. Noise may not seem like a big deal, but loud
noises can scare animals out of the area and possibly even disrupt the local
ecosystem. As stated by FIDO.

“The aesthetic impact of noise is well known and understood yet it is

largely ignored. The impact of the noise from traffic on the road above
Wanggoolba Creek on the walking track beside this icon of Fraser Island
significantly degrades this experience.”

Another example of tourisms impact on the Australian environment is in the Great

Barrier Reef. Each year The Great Barrier Reef as stated by The Great Barrier Reef
Marine Park Authority is visited by over “1.9 million visitors each year”. With
this in mind the Great Barrier Reef Marine Park Authority seeks to provide for a
range of sustainable tourism and recreation opportunities and to minimize any
potential impacts. These impacts as stated by the Great Barrier Reef Marine
Authority include “anchor damage to coral from vessels; localized damage
to coral from intensive diving, snorkeling and reef walking; recreational
fishing and collecting; reduced water quality; damage to littoral
vegetation on islands.”

In terms of pollution this is probably the biggest negative factor concerning tourism.
People have to travel to their destination. It doesn't matter if it's by plane to another
country or by car to the local national parks, traveling puts emissions into the air.

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Clearly it can be seen that tourism has impacts in economics, social, cultural and
physical environments. Tourism has a significant effect on the Australian economy
but also substantial contribution to local and regional development. Tourism has
impacts on the environment as it creates increasing pressures on natural
resources, such as water and energy, threatens natural habitats and ecosystem
functions and produces waste and other externalities which further aggravate local
environmental systems. But as we can see not all impacts from tourism are
negative as tourism contributes also in a positive way by raising awareness on
environmental issues and increasing support for environmental management and
the protection and enhancement of natural and cultural heritage. In addition not all
of negative impacts attributed to tourism are due to tourism alone, they are also due
to major structural changes such as rural-urban shifts and urbanization sprawl, the
expansion of cities and the changing needs for space for the location of economic
activities, infrastructure development and residences. A lot of impacts attributed to
tourism reflect broader changes in consumption and production patterns. In all
Tourism in Australia is very important for social and economic development

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References

French, Christine; Craig-Smith, Stephen; Collier, Alan (2000) Principles of Tourism

Second Edition Longman Publishers

Z Dinesen, J Oliver Tourism Impacts Great Barrier Reef Marine Authority. Townsville

ABS (1/27/2010) 5249.0 Australian National Accounts: Tourism Satellite Account,

2002-03

Published (5/24/2004)
http://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyReleaseDate/7305706568A0CD2
DCA256FE0007D0CD9?OpenDocument

Fraser Island Defenders Organization (2/2/2010) Values of Fraser Tourism

Published (17/11/2000) http://www.fido.org.au/values-of-fraser-tourism.html

Tomy Jensen, Brian Williams (1/4/2010) National parks earn $4.43b for Queensland
- 28pc of tourism revenue, The Courier Mail Published (12/11/2008)

Anna Wolf (5/2/2010) Tourism up, so is the crime rate Port Stephens Examiner
Published (9/23/2009)
http://www.portstephensexaminer.com.au/news/local/news/general/tourism-up-so-is-the-
crime-rate/1631252.aspx

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Hasen Zafer Dogan Forms of Adjustment Sociocultural Impacts of Tourism. Annals
of Tourism Research, Vol 16 pp 216-236. Aydin Turkey

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