The Positive and Negative Effects of Tourism

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The Negative and Positive Effects of Tourism
Submitted by
Arianne Smith
DeVry University
Tourism Management, Warren John Fall 2011

Abstract
The current research paper covers the main effects of global tourism, both positive and negative. International tourism is a significant sector of business. For some countries it is one of the main sources of national income. The most important positive economic effects of tourism are as follows: increase in budget revenues, production expansion, stimulation of investments, and improvement in the population’s welfare. Tourism influences social and cultural lives of people in a positive way by stimulating the development and revival of local cultures and encouraging intercultural exchange. Tourism has both positive and negative effects on the environment. Among the negative effects of tourism, the most important ones are inflation, financial leakage, infrastructure costs, and economic dependence. Political issues can also arise because of tourism. The countries should be aware of the negative effects of tourism in order to avoid them. Keywords: international tourism, environment, economic effect, leakage, tourist infrastructure.

Table of Contents
Introduction2
The Negative and Positive Effects of Tourism2
Positive Effects2
Economic effects.2
Environmental effects.6
Cultural effects.6
Social effects.8
Negative Effects of Tourism10
Political effects.10
Inflation.11
Financial leakage.12
Increase in infrastructure and incidental costs.14
Economic dependence.15
Negative impact on the environment.16
Conclusion17

The Negative and Positive Effects of Tourism
Introduction
Nowadays tourism is widespread throughout the world. Millions of people travel to different countries all year round seeking rest, new experience, and impressions. Lately tourism has become quite a profitable business, which also brings benefits to a country’s economy and thus the well-being of the population. That is why governments of countries with various natural, architectural, entertainment, and recreational attractions support the development of this industry. For some small countries, tourism is a major source of filling the budget. However, international tourism is not all positive. There are some aspects, which create problems for the countries that specialize on tourism. Inflation, leakage, and economic dependence are only few of them, not speaking about the environmental issues caused by this activity. For the countries with intensive tourism, it is very important to consider all the negative effects that tourism can have and develop policies that will minimize these effects. On the other hand, countries that have some attractions should consider the benefits of tourism and support the development of this industry. In my research paper, I am going to identify and analyze all the positive and negative impacts of tourism. The Negative and Positive Effects of Tourism

Positive Effects
Since positive effects of international tourism are more evident, I am going to research into them first. Among them, I would like to point out economic effects, environmental effects, social effects, and cultural effects. Economic effects.

We are going to start with the discussion of economic effects, since they are the most important ones. First of all, tourism is a source of filling the country’s budget. Private owners of hotels, recreation centers, tour operators, amusement parks, souvenir shops, and airline companies earn large profits from providing services to tourists. Therefore, they pay large sums of taxes to the budget. In the countries, where this industry is well developed, almost all of the touristic destinations are privately owned, of course except for the sites of historical and natural value. The industry does not require a lot of government subsidies, which makes them profitable for the government. The money paid to the budget can be spent on different...
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