Positive and Negative Impact of Tourism on the Economy

Tourism forms the backbone of many an economy; in fact, it is one of the largest industries in the world with an annual turnover exceeding 1.75 trillion USD, thereby putting it on par with Oil and other industries. Inbound tourism helps to boost the economy of the host country as it offers several employment opportunities for the locals. Moreover, with the tourist dollars rolling in, the government can use the same to beautify the spot further, provide the locals with additional tools and training so that they are able to provide enhanced services to the customers and even help market their tourist spots to others more effectively than before. But tourism has its own positive and negative impact on the economy and its time that we took a closer look at the same.

Positive and negative impact of tourism on the economy

The Positive Impact of Tourism on the Economy

  • Job creation: Tourism can help create several jobs for the locals; most of the tourist companies require specialized services for their clients and this can help kick start a new industry that helps to cater to the same. In fact, according to the United Nations, one in ten jobs is in the tourism industry which only underscores the fact that tourism as a whole is thriving and remarkably at that. Imagine travelling to a new place and naturally, you would require certain specialized services to help you to relax and enjoy the experience all the more. This is where the local support kicks in, as the local staff can provide you with a wide range of specialized services, designed to cater to most of your needs, be it a ride on a local catamaran or an early morning visit to the local fish market.
  • Revenue: As more tourists head to the host country and to its tourist spots, the region nets sizeable revenue as a result of the influx. Because of this influx, the revenues generated should help the local populace better themselves and even attain a better standard of living as a result of continual employment by the tourism industry. Moreover, the additional revenue can be used by the host country to provide the local population with better infrastructure in terms of roads, schools, colleges, transportation facilities and much more.
  • Economy: Sizeable revenue generated as a result of tourist influx can help inject much-needed cash into the local economy. This, in turn, can help the nation attract more investors and even help improve its profile globally as an investment destination. And some governments, in a bid to attract more tourists have started offering fantastic travel package deals, resulting in even greater influx than before and thereby, inject more cash into the local economy.

The Negative Impact of Tourism on Economy

  • Seasonal: The fact remains that most people tend to travel to other locations only during holidays and as a result, the tourism industry is looking more like a cyclic model, with a seasonal rush and nothing much for the rest of the season. This has a negative impact on the local economy and on the lives of all those who depend on this niche for daily employment. Sadly, this seasonal variation impacts the livelihood of those who depend on this particular industry for regular employment
  • Local industries, crafts: With the tourism industry booming, and with more people seeking employment in the same by providing specialized services and products for the various tourists, this has started impacting some of the local industries especially the handicrafts. As a result, some of the host nations have stepped in to offset this effect by marketing some of the local handicrafts more aggressively in the global market.
  • Environmental: While a steady influx of tourists means more revenue for the host country, it can often have a negative effect on the environment. Most tourists pay little or no attention to the “do not litter” rule and even Mountain Everest is not safe from litter to the point that it required a massive cleanup just a couple of years before.
  • Local customs and traditions: It is important for the visitors to respect the local customs and traditions of any host country that they visit. After all, you would expect all those visiting your nation to pay heed to all the local rules and your customs and traditions. But the sad truth is that very few tourists take the time to understand or even comprehend the various customs and traditions and this can cause irritants to crop up

These are some of the positive and negative impact of tourism on the economy,

Alan Behrens

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