UNEP Sustainable Tourism Framework UNEP Sustainable Tourism Framework Economic Impacts Potential negative impacts Leakage (import leakage, export leakage) Enclave tourism Infrastructure costs and impacts Increase in prices Economic dependence on tourism Seasonal employment Potential positive impacts: Foreign exchange earnings Contribution to government revenues Employment generation Stimulation of infrastructure investment Contribution to local economies
UNEP Sustainable Tourism Framework UNEP Sustainable Tourism Framework Economic Impacts Leakage (import leakage, export leakage) Goods and services Many countries must purchase goods and services to satisfy their visitors. This includes the cost of raw materials used to make tourism-related goods, such as souvenirs. For starting tourism industries, this is a significant problem, as some countries must import as much as 50% of tourism-related products. Infrastructure Some less economically developed countries do not have the domestic ability to build tourism-related infrastructure (hotels, airports, etc.). The cost of such infrastructure is then leaked out of the country.
UNEP Sustainable Tourism Framework UNEP Sustainable Tourism Framework Economic Impacts Leakage (import leakage, export leakage) Foreign factors of production Smaller countries often require foreign investment to start their tourism industry. Thus, profits from tourism may be lost to foreign investors. In addition, travel agents outside of the destination country remove money from that market as well. Promotional expenditures Many countries spend considerable sums of money for advertisements and publicity. Maintaining a presence abroad may increase the volume of tourists to a country but also represent a considerable loss of money to foreign markets.
UNEP Sustainable Tourism Framework UNEP Sustainable Tourism Framework Economic Impacts Leakage (import leakage, export leakage) Transfer pricing Many foreign companies manipulate their pricing to reduce taxes and other duties. In smaller or less developed countries, where many tourism- related companies may be foreign owned, this can represent a substantial loss of income. Tax exemptions Countries with a small tourism industry may have to give tax exemptions or other offers to increase foreign investment. While this may enlarge the tourism industry there, it must be taken into account as an instrument of income loss..
UNEP Sustainable Tourism Framework UNEP Sustainable Tourism Framework Economic Impacts Leakage (import leakage, export leakage) Varies from country to country Varies from industry to industry. High-income tourism may increase leakage (more imported goods and services than usual). Ecological or adventure tourism show smaller leakage, however (places value largely on what the host country has to offer) Tourism 'leakage' in Thailand estimated at 70% (foreign-owned tour operators, airlines, hotels, imported drinks and food, etc.). (Agenda 21) Less-developed countries range from 80% (Caribbean) to 40% in India (Rasuchelbach Cooperating for Sustainable Tourism) Not restricted to less-developed countries (e.g., Australia: leakage from Japanese tourists via Japanese travel companies, hotels, etc.
UNEP Sustainable Tourism Framework UNEP Sustainable Tourism Framework Environmental impacts Potential negative impacts: Depletion of natural resources and natural attributes (renewable and nonrenewable): water, energy, food, minerals, fossil fuels, fertile soil Biodiversity impacts: forests, wetlands, wildlife Pollution: air emissions and greenhouse gases; ozone depletion; noise; solid waste and littering, releases of sewage, oil and chemicals; architectural/visual pollution. Physical impacts: degradation of unique or fragile ecosystems; land clearing, construction, and infrastructure development; deforestation and intensified or unsustainable use of land; shoreline, marina, and beach development; degradation of marine areas (around coastal waters, reefs, beach and shoreline, offshore waters, uplands and lagoons); long-term changes in local ecologies; trampling impacts on vegetation and soil. Potential positive impacts: tourist-funded protection, management or restoration initiatives international environmental awareness campaigns
UNEP Sustainable Tourism Framework UNEP Sustainable Tourism Framework Social impacts Potential negative impacts Change or loss of indigenous identity and values Commodification; standardization; loss of authenticity and staged authenticity; adaptation to tourist demands; cultural erosion due to commodification of cultural goods; Clashes in cultures: ethnic groups, religious groups, values and lifestyles, languages; economic inequality; insensitive tourist behavior; job level friction; social stress; cultural deterioration; conflicts with traditional land-uses and depriving local people of access; Ethical issues: Crime generation; child labour; prostitution and sex tourism. Potential positive impacts Strengthening of communities Development of facilities for tourism that can also benefit residents Re-valuation of culture and traditions Encouragement of civic involvement and pride Tourism as a force for peace and international understanding