The Impacts of Tourism

Glenn Kreag, Tourism Specialist

University of Minnesota Extension
Service
Interest in Tourism Impacts
 A. Divergent Interests

Social &
Economic Environmental
Cultural
Impacts Impacts
Impacts

Group A Group B
Group C
 B. Overlapping Interests

Group A Economic
Social
& Cultural
Group
Impacts
B Impacts

Environmental
Impacts

Group C
Factors Influencing Interaction
Between Tourists, Residents,
Host Community, and
Environment
 Tourist Factors
• Number and type • Economic
of visitors characteristics
• Length of stay • Activities selected
• Mass arrivals and • Ability to speak
departures local
• Links to community language/accents
residents • “Demonstration
• Ethnic/racial effect” of tourists
characteristics
 Destination Factors
• Local economic • Viability of the host
condition culture
• Diversification of the • History of stability in
economy the community
• Degree of involvement • Pace of tourism
in tourism development
• Attitudes of tourism • Fragility of the
leaders environment used by
• Spatial characteristics tourists
of tourism • Public transportation
development options
Economic Impacts
 Positive Impacts

• Contributes to income and standard

of living
• Improves local economy
• Increases employment opportunities
• Improves investment, development,
and infrastructure spending
• Increases tax revenues
 Positive Impacts (cont.)

• Improves public utilities

infrastructure
• Improves transport infrastructure
• Increases opportunities for shopping
• Economic impact (direct, indirect,
induced spending) is widespread in
the community
• Creates new business opportunities
 Negative Impacts

• Increases prices of goods and

services
• Increases price of land and housing
• Increases cost of living
• Increases potential for imported
labor
• Cost for additional infrastructure
(water, sewer, power, fuel, medical,
etc.)
 Negative Impacts (cont.)

• Increases road maintenance and

transportation systems costs
• Seasonal tourism creates high-risk,
under- or unemployment issues
• Competition for land with other (higher
value) economic uses
• Profits mat be exported by non-local
owners
• Jobs may pay low wages
Environmental Impacts
 Positive Impacts

• Protection of natural environments or

prevention of further ecological decline
• Preservation of historic
buildings/monuments
• Improvement of area’s appearance
(visual and aesthetic)
• A “clean” industry (no smokestacks)
 Negative Impacts
• Pollution • Degradation of
• Loss of natural landscape, historic
landscape and sites, and monuments
agricultural lands to • Water shortages
tourism development • Introduction of exotic
• Loss of open space species
• Destruction of flora • Disruption of wildlife
and fauna (plants, breeding cycles and
animals, rocks, by or behaviors
for tourists
Social and Cultural
 Positive Impacts

• Improves quality of life

• Facilities meeting visitors
(educational experience)
• Positive changes in value and
customs
• Promotes cultural exchange
• Improves understanding of different
communities
 Positive Impacts (cont.)

• Preserves cultural identity of host

population
• Increases demand for historical and
cultural exhibits
• Greater tolerance of social
differences
• Satisfaction of psychological needs
 Negative Impacts

• Excessive drinking, alcoholism,

gambling
• Increased underage drinking
• Crime, drugs, prostitution
• Increased smuggling
• Language and cultural effects
• Unwanted lifestyle changes
 Negative Impacts (cont.)
• Displacement of residents for tourism
development
• Negative changes in values an
customs
• Family disruption
• Exclusion of locals from natural
resources
• New cliques modify social structure
• Natural, political, and public relations
calamities
 Growth and Congestion
Positive Impacts Negative Impacts
• Minimizes sprawl • Congestion
• Concentrates including
tourist facilities interference with
other businesses
• Old buildings
reused for tourism • Overcrowding
• Conflict
• Overpowering
building size and
style
Services
 Positive Impacts
• 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
Negative Impacts
• Neglect of not-
tourist recreation
facilities
• Effects of
competition
• Shortage of goods
and services
• Increases pressure
on infrastructure
 Taxes
Postive Impacts Negative Impacts
• Additional state • Increases property
and local sales tax taxes
revenue
• Lodging tax
revenue to city (or
state)
 Community Attitude

Positive Impacts
• Heightens pride in community
• Greater appreciation of local
resources
• More facilities and range of choices
available
• More interesting and exciting place
to live
 Negative Impacts
• 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 of control over community
future
• New building styles fail to “fit” community