IMPACTS OF

TOURISM
THE IMPACTS OF TOURISM CAN BE CATEGORIZED INTO THREE TYPES :

1. ECONOMIC IMPACTS
2. SOCIO CULTURE IMPACTS
3. ENVIROMENTAL IMPACTS
ECONOMIC IMPACTS

1. Foreign exchange earnings

2. Redistribution effect
3. Contribution to government revenue
4. Employment generation
5. Regional development
6. Development of infrastructure
7. Multiplier effect of tourism
FOREIGN EXCHANGE EARNING

1. Foreign Exchange Earnings in Tourism is by way of receipts of non-

domestic currency by selling goods and services to the foreign tourists.
REDISTRIBUTION EFFECT

• Most of the international tourists come from high income developed

countries and spend a part of their discretionary income in low income
countries by purchasing holidays
CONTRIBUTION TO GOVERNMENT REVENUE

• Tourism generates revenue to the government from within the country

• Revenue can be in the form of tax
• Direct (income generated by tourism employment and business)
• Indirect tax ( Indirect taxes are taxes imposed on goods and services
supplied )
POSSIBLE SOURCES OF REVENUE FROM TOURISM INCLUDE:

• Room tax
• Tax on meals
• Entrance fees (to Monuments, wildlife sanctuaries, national parks etc.)
• Import tax
• Sales tax
• Property tax on visitor property
• Profit tax
• Income tax on tourism industry employment
• Corporation tax on tourism industry companies
• Airport use fees. boat fee
EMPLOYMENT GENERATION

• Tourism is a service industry and so it is labour intensive

• Direct employment
• Indirect employment
REGIONAL DEVELOPMENT

• An important domestic effect of tourism is the regional development.

The under developed regions of the country may be marginal areas,
which are relatively isolated and having problems of unemployment
and poverty or the land may not be very fertile. At the same time these
areas may be having rich attractions for tourists such as high scenic
beauty or cultural attractions or monuments. These tourism potentials
of the area will result in the economic and social development of that
region
DEVELOPMENT OF INFRASTRUCTURE

• Infrastructure refers to the fundamental facilities and systems serving a

country, city, or other area, including the services and facilities
necessary 
MULTIPIER EFFECT

• it encourages growth in the primary and secondary sectors of industry

• in its simplest form is how many times money spent by a tourist
circulates through a country's economy.
SOCIAL IMPACTS

1. National integration
2. International understanding
3. Development and preservation of local culture
ENVIROMENTAL IMPACTS

Tourism can either generate positive or negative environmental impacts

1. Conservation of important natural areas
2. Conservation of Archaeological and Historic Sites
3. Improvement of Environmental Quality
4. Enhancement of the Environment
5. Improvement of Infrastructure
6. Increasing Environmental Awareness
NEGATIVE ENVIRONMENTAL IMPACTS

• Water pollution
• Air pollution
• Noise pollution
• Visual pollution
• Waste disposal problem