Life Cycle Analysis of Tourism Environmental , Economic and Social Impacts

1.  Suresh Godara

3. Outline:
 Life cycle analysis of Tourism
 Tourism sector
 Life cycle model of tourism
 Impacts of tourism
 Economic
 Environmental
 Socio- cultural
 Sustainable tourism
 Positive Impacts
 Conclusion

4. Tourism
 LARGEST AND FASTEST GROWING ECONOMIC
SECTOR WORLDWIDE

5.  More affluence
 Greater awareness
 We are travelling faster
Reasons :
More leisure time

7. TOURISM AREA LIFE CYCLE MODEL
(TALC)
consolidation
Stagnation
Involvement
Exploration Development
Decline or
revitalize
CONCEPT OF LIFE CYCLE TO ASSESS PERFORMANCE

8.  Exploration
 The new tourist product/s is introduced
 A small number of visitors start coming
 Involvement
 Identifiable tourist season begins to emerge
 Visitor numbers start building
 Impacts start to become apparent
 Development
 Public policy and investment is required if destination
is to sustain continuing development
Phases of TALC
Model

9. Phases of TALC Model
 Consolidation
 Visitor numbers continue to increase
 Tourist services are provided by large national or international
companies
 Local operators still play a role
 Weakness
 It is a resort model
 Progress through the life cycle is not inevitable
 Places are not natural organisms – need not die

10.  Stagnation
Critical point – decisions have to be made
Visitor numbers peak
Visitors attracted by familiarity and extensive facilities
Promotion is needed
Adaptation of products and markets
 Decline
Visitor numbers fall
Move down market
More promotion to meet capacity
Decline or rejuvenation?
Phases of TALC
Model

11. Tourism Area life cycle model

13. Ref: www.tourism.gov.in

14. Impacts of Tourism
 Economic Impacts
 Environmental Impacts
 Socio- cultural impacts

15. ECONOMIC IMPACT of
TOURISM
POSITIVE IMPACT
Employment opportunities
Growth in income
Increase in foreign exchange
Infrastructure development
NEGATIVE IMPACT
Seasonal unemployment
Underuse of facilities
Shortage of services

16. Positive Economic Impact
 Employment: Work performed for a wage or salary, in
cash or in kind
 Employment Opportunity – Chefs in a restaurant
http://www.examiner.com/article/iron-chef-michael-symon-opening-2-new-restaurants-cleveland

17.  Employment Opportunity – Flight attendants
Positive Economic Impact
http://floralia.centerblog.net/1072-les-plus-beaux-uniformes-hotesses-de-air

18. Positive Economic Impact
Employment opportunities
• The growth of tourism has led to an increase in number of
tourism-related jobs
• The tourism industry offers many employment opportunities, e.g.
hotels, souvenir shops, tour agencies
• Some jobs are:
– Directly linked to the tourism industry, e.g. travel agents,
tour guides, hotel staff, waiters and waitresses
– Indirectly linked to the tourism industry, e.g. taxi drivers,
shop owners
• In 2011, the tourism industry employed over 235 million people
worldwide (6–8 % of all the jobs in the world)
http://ilo.org/global/lang--en/index.htm

19. Positive Economic Impact
Region Percentage of all tourism
receipts in 2011 (%)
Europe 45
Asia Pacific 28
The Americas 19
Others 8
Figure 1.69 Distribution of global tourism receipts. Adapted from: World Tourism Organization
(2012)
Growth in income
• Tourism receipts: Money received from tourist spending
• Tourism receipts generate large revenue for many countries
• In 2011, worldwide tourism receipts exceeded US$1 trillion

20. Ref: www.tourism.gov.in

21. Positive Economic Impact
Growth in income
• A large portion of revenue from tourism is sometimes
lost as leakage, especially in LDCs
• Leakage occurs when revenue earned from tourism
is paid to other countries for the import of goods
and services needed to meet the needs of tourists
• Example: Phuket, Thailand
– Travellers may use the services of foreign-owned
businesses and buy imported items
– Some of the profits made by local businesses are
sent to another country to pay for imports
– Money that does not stay in the local economy
may bring few benefits to local businesses and
workers

22. Positive Economic Impact
Figure 1.71 South Sea Island Beach,
Fiji. Tourism is Fiji’s largest foreign
exchange earner.
Increase in foreign exchange
• Foreign exchange: Money earned from other
countries in exchange for goods and services
• Important to an economy because it allows the
receiving country to purchase goods and services
from elsewhere in the world
• Example: Tourism is Fiji’s
largest foreign exchange
earner, making up
20%-25% of its economy

23.  Increase in foreign exchange
Positive Economic Impact
•The tourism industry contributes directly and
indirectly to government revenues
•Examples of how tourism contributes directly to
government revenues include taxes on tourists (e.g.
airport tax) and income taxes on employees of
tourism-related businesses
•Examples of how tourism contributes indirectly to
government revenues include taxes on goods and
services that are supplied to tourists (e.g. petrol for
rented cars)
•Since taxes are collected in local currency, this
increases the foreign exchange of the host country

24. Positive Economic Impact
 Increase in foreign exchange

25.  Development of infrastructure – Beijing National
Stadium, Beijing, China
Positive Economic Impact
http://nl.wikipedia.org/wiki/Bestand:Beijing_National_Stadium,_Beijing_2008_Olympics.jpg

26. Positive Economic Impact
Infrastructure development
• Infrastructure development: Construction of
transport and communication networks, electrical
frameworks and systems for water and waste
disposal
• Tourism cannot develop and would not be able to
operate on a large scale without sufficient
infrastructure and appropriate facilities such as:
– Airports
– Roads
– Electricity
– Hotels
• Infrastructure built to enhance tourism brings
benefits to the locals

27. Positive Economic Impact
Infrastructure development
• Creates employment for local workers as many
workers are needed during the construction process
• Local industries are boosted because local
materials may be used to construct the
infrastructure
• Encourages economic growth due to increased
spending in the local economy

28. Seasonal unemployment
Negative Economic Impact
http://oneshetwoshe.com/2013/07/ski-resort-in-the-
summer.html
http://www.livetravelmountains.com/skiing/korea-winter-
guide/
Ski resorts in the Alps during winter Ski resorts in the Alps during summer

29. Seasonal unemployment
Negative Economic Impact
Seasonal unemployment
• Certain tourist activities depend on climatic
conditions
• Countries may experience regular fluctuations in
tourist numbers
• People in tourism-related jobs have to find other
sources of income when employment is temporarily
unavailable

30. Negative Economic Impact
Underuse of facilities
• Underused facilities can be costly to maintain
• Money from tourists normally pays for the cost of
maintaining such facilities
• Facilities may become neglected when there are
few tourists

31. Negative Economic Impact
http://www.topbeijingtravel.com/beijing-attractions/
• Example: Venue for Summer Olympic Games in
Beijing
– Venues allegedly deteriorating years after the Olympics
– Some were renovated to become more profitable,
e.g. Beijing National Aquatics Center was renovated into a
water park
– Only one-third of major sports venues in China have
managed to break even
Underuse of facilities

32. Negative Economic Impact
Figure 1.78 Potential effects of tourism development on resource allocation.
Shortage of services
• Tourist infrastructure may require the use of large amounts of
land, water and power
• This could lead to a shortage of services, e.g. water supplies or
power in non-tourist areas

33. Source : (i)UNWTO Tourism Market Trends 2007 Edition, for the years upto 2005.
(ii) UNWTO Barometer June 2010 for 2006 and January 2011 for 2007
(iii) UNWTO Tourism Highlights 2011 Edition for 2008 and 2012 Edition for 2009.
(iv) UNWTO Barometer April 2014 for 2010, 2011, 2012 & 2013

34. Impacts on Environment
 Positive as well as Negative impacts
 Negative impacts from tourism occur when the
level of visitor use is greater than the environment's
ability to cope with this use within the acceptable
limits of change.
‘Kumbh Mela ‘ 2013’
• More than 120 million (12 crore) people visited this event.
‘Kumbh Mela’1954’
• 4-5 million pilgrims had taken part that year.

35. Direct Environmental Impacts
1. Pollution and wastage of resources
1. Water Impacts
2. Air Quality
3. Noise Pollution
2. Solid waste and littering
3. Natural habitat/ ecosystem alteration
4. Climate change

36. Resource wastage and pollution
 Bellagio hotel (Las Vegas) recycles its water – but it still uses 12 million
liters of water per year in a water scarce region.
 The average person in the UK uses approximately 150 liters of water
per day – 3 times that of a local village in Asia.
 Pollution of Dal Lake (J&K) : Eutrophication
Dal Lake or Dull Lake ?
Coastalcare.org

37. Solid waste and littering
Source : Dailymail
A Nepalese man collecting rubbish left by climbers, at an altitude
of 8,000 m during a clean-up expedition at Mount Everest.

38. Affects :
 Habitat range is between the tree line and snow
line on the mountains
 The solid waste include various types of metals ,
plastics ,they will make snow to melt before time
 Snow leopard compelled to move to higher
altitudes
 Vegetation becomes scarcer, the herbivores they
prey on are in limited supply. Snow leopard
Source : Nat geo

39. Natural habitat/
ecosystem alteration
 Damage by tourists including camping on
sensitive turtle-nesting beaches and forest
fires from unsupervised campfires.
 When too many tourist visit a place they can destroy the
habitats and wildlife
 Careless tourists trample on plants
 Tourists make too much noise which can frighten animals, they
brings a significant change in natural behavior of animals
(feeding by tourists)
e.g. Stingrays of Cayman Island (source : Dailymail)

40. Climate change
 Contribute to 5% of global CO2 emissions
 Air conditioning (CFC, HFC)
 Transportation
Ref :
EEA/ UNWTO

41. Socio-Culture Impacts of Tourism.
 Difficult to measure.
 Depend on value judgements.
 Often indirect or hard to identify.
Types of Impact:

42. Positive Socio-cultural Impacts.
 Tourism as a force for peace
 Strengthening communities
 Facilities developed for tourism can benefit residents
 Revaluation of culture and traditions
 Tourism encourages civic involvement and pride

43. Positive Socio-cultural Impacts.
 Preservation of culture and local customs.
Preservation of culture: Protection of the way people live, including their economic
activities, traditional beliefs and religious practices.
 Could apply to heritage and customs.
Pictures depicting Heritage and customs.
Source: Google images.

44. Positive Socio-cultural Impacts.
 Preserved and restored sites are more attractive to tourists.
 Restored sites benefit the local population by:
- Enhancing people’s sense of history.
- Build a sense of belonging to the community.
 Tourism revenue can fund the preservation and restoration of cultural heritage.
Preserved and restored areas.
Source: Google Images.

45. Negative Socio-cultural Impacts.
 Change or loss of indigenous identity and values
 Commodification
 Standardization
 Loss of authenticity and staged authenticity
 Adaptation to tourist demands

46. Negative Socio-cultural Impacts.
 Commodification
Tourism can turn local cultures into commodities, resulting in what has been
called "reconstructed ethnicity.”
 Standardization
Destinations risk standardization in the process of satisfying tourists' desires for
familiar facilities.
Picture depicts, disappearing authenticity.
Source: Google Images.

47. Negative Socio-cultural Impacts.
-Adaptation to tourist demands
Tourists want souvenirs, arts, crafts, and cultural
manifestations, and in many tourist destinations,
craftsmen have responded to the growing demand
- Loss of authenticity and staged authenticity.
Adapting cultural expressions and manifestations
to the tastes of tourists.

48. The magic word
‘Sustainable Tourism’

49. What it is ?
 UNWTO define it as tourism leading to management of all
resources in such a way that minimize the negative and
maximize the positive effects of all forms and activities of
tourism on:
a. Environment
b. Local Communities
c. Heritage (cultural, natural, built, oral, intangible)
d. Inclusive economic growth
 "Sustainable tourism is the concept of visiting a place as a tourist
and trying to make only a positive impact on the environment,
society and economy.“

50. Needs of
tourists
Condition
of the site
Concerns
of locals
Managing impacts of
tourism

51. Conservation &
Sustainable Tourism
• Conservation involves careful management
of resources such that they would not be
depleted
• Important for fragile environments
• Eg: coral reefs and mangroves

52. http://econews.com.au/news-to-sustain-our-world/un-says-shelve-ports-to-save-great-barrier-reef/
The Great Barrier Reef receives 14 million tourists
every year. It is threatened by tourism activities
such as fuel leaks from pleasure boats,
particularity in marinas and harbours. It is also
threatened by the removal of corals for souvenirs.

53. CONSERVATION &
SUSTAINABLE TOURISM
• Sustainable Tourism
 Tourism organised such that:
 the environment is not damaged
 the locals do not experience negative
impacts
 the needs of tourists are met

54. Conservation &
Sustainable Tourism
• UNESCO – UN Educational, Scientific &
Cultural Organisation
 Provide funding to threatened sites
 World Heritage Sites: 12 (1978) to 1,000
(2012)
• Well-protected sites ensure steady arrival
and repeated returns of tourists

55. Challenges of tourism in India
 Many of tourist sites environments are unhealthy.
 Facilities and services are poor in many sites.
 Inadequate transportation to reach and continue the
journey.
 Poor Infrastructure facility
 Limited availability of tourism information at limited places.
 Global Economic melt down
 terror attack
 Uncertainties in fuel prices
 heavy road taxes
 Lack of adequate security

57. Positive Impacts
 Motivated the preservation of such sensitive ecosystems
 Developing pride, appreciation, understanding, respect, and tolerance for
each other’s culture
 Local communities are benefited through contribution by tourism
 Helps to preserve the local traditions and handicrafts which maybe were on
the link of the extinction
 Reducing negative perceptions and stereotypes

58.  Preservation and rehabilitation of existing historic sites,
buildings, and monuments
Source :
Rajasthan Heritage Development
& Management Authority