Miranda Furlan

Brandy Bradley
Enc2135
February 16, 2016

Tourism: Economic Influences

In modern times, the hospitality industry is one that tends to go
unnoticed or unappreciated. People fail to realize how important it is to so
many of the daily activities they take part in. No matter what occupation,
location, or lifestyle choices a person is a making, a majority of the world
participates in some form of interaction with the hospitality industry.
Anything from a hotel or resort, a restaurant or caf, airlines and cruise
ships, and even hospitals and nursing homes are all a part of this field.
Hospitality is a major industry on this planet, playing a huge part in the
support of several countries economies. In fact, in 2014, the hospitality
industry brought in over 176 billion dollars in revenue in just the United
States alone (Statista.com) That being said, counties that rely strictly on
income from their hospitality business in order to support their economies
struggle if they do not meet the necessary projections. Working very close at
hand with the economic influence hospitality has is the component of the
environment. Aspects of this industry support both good and bad elements
pertaining to the environment and these factors can also directly effect
outcomes in the economy.

Not only does this industry supply a service to essentially the entire
population of the world, but it also provides jobs to thousands of people.
These are the people who are working when everyone else is at play.
Working within this career field in a very involved one, requiring employees
to work long hours, often taking part in vigorous labor. These people,
regardless of the role they play, are all crucial to the industry. They may be a
waiter/waitress, a chef, a stewardess, a nurse, etc. Each making up a part of
this massive community that shares common goals. This is the industry that
never sleeps, still operating on the weekends and holidays, year round, at all
times of the day. There is no essentially off season either. This is due to the
fact that when it is warm and summer-like on one side of the globe, it is cold
and winter-like on the opposing side. This industry consists of multiple
factors, these being food, entertainment, recreation, relaxation,
transportation, and health services, there are several factors to take into
consideration when running a business within this variety. The main goal of
course is to deliver a service to a consumer. Service is a sole feature that this
industry thrives off of; the service between the supplier and the client.
Exceptional service is what keeps customers coming back, or spreading a
good word, keeping the business up and running.
This trade would be nothing without its patrons. The tourist portion of
the hospitality industry is crucial. In fact, without it there would not be a
business at all. Tourism is defined as the temporary movement of people to
destinations outside their normal places of work and residence, the activities

undertaken during their stay in those destinations, and the facilities created
to cater to their needs." (prm.nau.edu) There are many characteristics that
any destination needs to posses in order to meet the needs of any guest. The
matter of being luxurious or relaxing or active depends on the location and
the type of experience it is offering. Each of these places do, however,
feature social, economic, and environmental situations.
Tourism is a broad term that describes the overall idea of the activity.
Within the realm of tourism though, there are multiple sub sections. Much
like any other subject, this one also can be broken off and divided into
numerous variations. The most relevant variations include, but are not
limited to, agrotourism, medical tourism, volunteer tourism, and within these
categories, both domestic and international tourism. Other subdivisions of
tourism also exist, these being adventure tourism, cultural tourism, religious
tourism, and smaller more specific sorts. These more particular varieties can
be organized into the broader categories previously mentioned. Many of
them are go hand in hand with one another as well, often crossing with
similar qualities that make up that type of tourism.
Agrotourism consists of the type of tourism that deals with the point of
interest being that of a farm, ranch, or perhaps a winery. It is the
combination of tourism and agriculture. It focuses on the goal of getting
patrons out doors and immersed into a simpler lifestyle. Although it is a bit of
a slant relation, this form of tourism also contains beach or coastline
destinations. Rather than being in a fancy resort or in a spa, travelers are

able to pick their own produce in an orchard, learn how to heard cattle, or
perhaps explore surrounding landscapes. These places are typically found far
away from large cities or large populations. Its visitors are those seeking
travel in a more undomesticated region, there to appreciate that landscape
rather than luxurious amenities. This form of tourism is considered the most
popular outside of the most common indulgence driven trips most people
take. The desire to get away from traffic jams and office cubicles is
motivating the appeal to escape a stress free place.
Medical tourism is known as tourism in the form of seeking medical
attention, rather than for leisure or vacation. It is a newer phenomenon,
making quite the impact with its quick and rising popularity. Medical tourism
can include anything from a general medical appointment to plastic surgery
or perhaps even a special disease/cancer treatment that may be unique to a
specific geographical area. This form of tourism provides the greatest form of
income, bringing in revenue to not only one but to two industries: both
hospitality and medical. Patrons are not only spending money on the usual
air fare, transportation, lodging, and food but additionally medical attention
and drugs or treatments. Often times as well, these patrons are traveling
from a foreign country of greater wealth so the currency used is worth a lot
more than the one native to the therapeutic site.
Volunteer tourism is a bit of a unique variation of the industry. It
consists of people who are traveling for the purpose of volunteering in an
area in order to assist in an issue as opposed to simply just vacationing. This

type of travel is associated with religious mission trips, post disaster relief,
disease epidemics, and similar matters. Many celebrities take part in this
activity, bringing this form of tourism more attractiveness. This promotes a
positive reputation and builds the participation of volunteers. This too is an
emergent form a tourism. Between 1971 and today, EarthWatch (a
volunteer tourism organization) alone has involved over 90,000 volunteers in
1400 projects across 120 countries. 1.6 million people annually have
participated in volunteer tourism projects worldwide (McGehee 847). This
practice has expanded from small, non-profit organizations to big, wellknown government supported ones.
Tourism offers many benefits in the economies of the countries rich in
tourist attractions. Considering tourism is featured in all types of
geographical settings, it aids in supporting a multitude of economies around
the globe. The ways in which these locations can be impacted can be
represented by a set of situations, one leading to the next. In areas where
the same activities are repeated, money migrates from the pockets of
visitor non-residents to the foreigners. From there, money spent, or income,
represents a source of improvement to the local economy. Multiplier effects
stimulate other expenses in turn creating new jobs thus resulting in the
increase of economic activity within these communities (Marin 161). The
positive economic growth makes a major impact in supporting citizens who
fall under the poverty line. In most countries, this population is greater than
those whom are above it. With an increase in jobs, there is also the strong

likelihood of an increase in salaries. This goes along with the macroeconomic

concept of a greater demand in a good or service equaling a greater need of
the quantity for that good or service. This escalation in demand also
increases the opportunity for small, local businesses. People who find work in
producing a handmade good benefit immensely. These are the people known
as artisans, craftsmen, or artists. Since their merchandise is unique from
what is normally found in the cultures of most travelers, there is much more
of a draw to produce them so that they can catch of eye of a souvenirhunting traveler and take home a profit. In poorer countries, the absorption
of American and European currency, which makes up the mass of the tourist
population, boosts local economies increasing the necessary amount of
wealth needed in order to reach an equivalent currency exchange. In this
context, and especially in developing countries, tourism if often seen as
having a purpose of solely a form of financial gain for the poor (Marin 162).
This concept is seen most in agrotourism. With the draw being more
centered on natural attractions and local resources (vineyards, beaches,
ranches) for tourists. In order to maintain these appeals, more workers are
needed to efficiently accomplish sustaining the appearances and the
proficiency of these places year round.
Other forms of economic encouragement come from medical tourism.
The economic benefits from medical tourism are clear. Patients pay
considerable costs in local hospitals, while the whole infrastructure of the
tourist industry (travel agents, airlines, hotels, restaurants, taxis etc.) also

benefit considerably, especially since few medical tourists travel alone.

Indeed, since for a significant proportion of patients there may be a lengthy
period of recuperation, the rewards to the tourist industry, and especially the
hotel and restaurant sectors, may be greater than with standard tourism.
Medical tourists who are visiting relatives may stay even longer (Connell
116,117). It is a well known fact the incredible expenses included in traveling
to a foreign country, but with the added component of medical attention, this
form of tourism is nothing but a piggy bank to the countries offering these
medical services. Additionally, after taxes (from both the tourists native
county and the one they are traveling to) are added, this is essentially a
jackpot for the economy. As mentioned in the above quote, it is indeed rare
for someone to travel alone, at least when the reasoning for the trip is for
medicinal purposes. Typically, the type of treatment being given takes longer
than the usual two or three days many people take trips for. Medical
treatment is expensive enough as it us, but with the knowledge that people
are going out of their way in order to receive care or the knowledge that the
country may be the only location that offers a certain treatment or
procedure, medical companies often influx the prices of their services to
surge their profit even more.
Although it is intended to be a form a charity work in a way, volunteer
tourism supports economic growth as well. With its expanding recognition
and participation status, this category of tourism is consistently bringing
money to their volunteer destinations. It strongly supports international

development. In fact, Volunteer tourists spend between 832 million and 1.3
billion dollars per year in travel expenses (McGehee 848). It provides the
upmost reward, not only supporting economic aspects but also providing
participants with the satisfaction of helping a struggling community. This is
an example of a pathos appeal, making people a lot more willing to spend
money knowing it is going to provide relief to those in need.
Just as much as tourism benefits the economy, it also contributes some
downsides. The greatest factor in these negative impacts is the component
of the environment. The status of an economy is candidly related to the
status of its environment. With the influx of tourism in an area comes an
increase in demand for resources, both natural and manmade. More people
inhabiting a particular location (if even for a limited time) means a greater
need for energy, water, and even land. Tourists use energy for
transportation, accommodation, and activities, and this energy is supplied
mostly by fossil fuels which need to be imported (Assante 102). These can
be costly because these resources may not be readily available in some
places. Importing these resources is both a hassle and an expense that may
not have much of a benefit. If a country is spending just as much on
resources as it is making from tourism, it defeats the purpose all together.
Furthermore, the prices of resources often fluctuate from day to day making
it even more difficult to maintain a consistency in spending. Another major
issue is the building of big, expansive hotels and paving of new roads,
putting countries into debt. Especially recent times where the idea of going

green and being environmentally friendly is trending, the costs of materials

is higher than ever. In regards to agrotourism, struggles are the most
relevant on beach destinations. This excess of building new hotels and roads,
which is often done carelessly as far as maintaining environmental features,
can do quite a bit of damage. Paving land compounds the problem by
limiting recharge to the aquifers and sedimentation damaging coral reefs or
coastlines. Urbanization also changes the character of the natural
environment and fragments native species habitats (Assante 102). These
effects are only going to come back and create problems. If the effects of the
environment continue to be neglected, the costs of repairing these damages,
if possible, are not only going to be an annoyance but something that can
potentially be incredibly expensive. There is also the possibility of
permanently damaging these places, thus putting an end to their physical
desire. This will result in a major decline in tourism, and therefore a major
decline in income. Also in agrotourism, many of the activities and agrotourist
attractions being local small business, hotels or cottage-like lodging, and
restaurants. Many of these establishments buy their inputs or products and
complementary services (agriculture, food, crafts, construction, guides,
entertainment, and transport) from entrepreneurs and vendors. (Assante
102). These too may be imported goods, which tend to be inflated and not
always available.
Volunteer tourism contributes to some of these issue as well. This
issues consist of cases of the exploitation of host communities, volunteers,

and the environment; dependency and continued neo-colonialism of at-risk

populations; mismanagement of human, physical, social, and financial
resources; poor project work conducted by volunteers; a reduction in
employment for local people; and lack of communication among the various
stakeholders. The potential for damage to host communities is a real and
growing threat (McGehee 848).
All in all, as much as tourism is expected to only impact a location
locally, the direct economic impact to the overall state or country is much
greater. This is a system that delivers both positive and negative
consequences. Many of these consequences are over looked and are ones
that need to be weighted when making such vast decisions. Many times,
people are blinded by all the effects a decision can make if the possible goal
is an immense profit. There are many times as well, however, that these
decisions contribute a satisfactory result. Money does indeed run the world
we live in.