Module 13 The Economic and Social Impacts of Tourism and Hospitality

Question 1

(POSITVE ECONOMIC EFFECTS)
generates income within a destination nation. Countries wanting to increase their income have used tourism and hospitality as a means for reasonably quick development.

Answer 1

INCOME

Question 2

(POSITVE ECONOMIC EFFECTS)
____________ both local and national, benefits also from tourism and hospitality. The industry offers more employment opportunities than other economic sectors which is
considered to be the greatest advantage of tourism and hospitality on a developing country.

Answer 2

EMPLOYMENT

Question 3

(POSITVE ECONOMIC EFFECTS)
Tourism and hospitality has a major influence on the country’s balance of payments. Balance of payments is an accounting of flow of goods, services, and funds in and out of the country during a given period.

Answer 3

BALANCE OF PAYMENTS

Question 4

(POSITVE ECONOMIC EFFECTS)
Once an area has become economically successful, businessmen and government agencies may be influences to invest in tourism and hospitality and other industries in that area.

Answer 4

INVESTMENT AND DEVELOPMENT

Question 5

4 Negative Economic Aspects of Tourism and Hospitality

Answer 5

1. INFLATION AND LAND VALUES
2. HIGH LEAKAGES
3. SEASONALITY
4. OVERDEPENDENCE ONTOURISM AND HOSPITALITY

Question 6

The inflationary effects of tourism and hospitality can arise in different ways. Rich tourists can afford to buy items at high prices. Retailers, realizing that their profits can be greatly increased by catering to
tourists, increase their prices on certain products and provide more expensive goods and services.

Answer 6

Inflation and Land Values

Question 7

Leakage occurs from a variety of sources. It occurs from the costs of goods and services that must be imported to satisfy the needs of tourists.

Answer 7

HIGH LEAKAGES

Question 8

(NEGATIVE ECONOMIC ASPECTS)
Many tourist regions experience low returns on investment because of seasonal fluctuations in demand. The seasonality of demand is reflected in hotel occupancy rates.

Answer 8

seasonality

Question 9

(NEGATIVE ECONOMIC ASPECTS)
Some destinations have made themselves vulnerable to changes in tourist demand by becoming overdependent on tourism and hospitality for their livelihood. Tourism is highly susceptible to
changes from within and outside the industry.

Answer 9

Overdependence on Tourism and Hospitality

Question 10

4 The Positive Social Effects of Tourism and Hospitality

Answer 10

1.Social Change and Multicultural Understanding
2.Adaptation to the Realities of Modern Life and Improvement of the Host Country’s Lifestyle
3.Use of Foreign Language
4.Improved Health Conditions and Disease Control

Question 11

(POSITIVE SOCIAL EFFECTS)
One of the most important benefits of tourism and hospitality is the bringing together of diverse people to help them understand one another. The United Nations World Tourism Organization (UNWTO)
considers tourism as an encounter between a person and a destination in its natural setting.

Answer 11

Social Change and Multicultural Understanding

Question 12

One positive social benefit is the quality of life improves in places where tourism and hospitality is being developed by bringing both the urban infrastructure (water, housing, sewerage) and population benefits (medical care, social assistance, schools).

Answer 12

Adaptation to the Realities of Modern Life and Improvement of the Host Country’s Lifestyle

Question 13

(POSITIVE SOCIAL EFFECTS)

Use of foreign language bring people in contact with those of other language groups. The need and the desire to communicate increase interest in both the host and visitors to learn another language.

Answer 13

Use of Foreign Language

Question 14

The desire for tourists for high quality public health facilities can contribute to the maintenance and improvement if those facilities in destination areas and provide additional sources of revenue which, in turn, can be invested in upgrading water and sewage disposal facilities.

Answer 14

Improved Health Conditions and Disease Control

Question 15

4 The Negative Social Effects of Tourism and Hospitality

Answer 15

1. Social Saturation
2. Changes in the Social Structure, Behavior and Roles
3. Community Problems
4. Negative Demonstrative Effects

Question 16

(Negative Social Effects)
The presence of large numbers of tourists in particular places at specific times result in saturation or congestion of facilities and services and competition for limited resources.

Answer 16

Social Saturation

Question 17

(Negative Social Effects)
Tourism and hospitality changes the traditional forms of employment which results in the lowering of the status of
agricultural workers, migration of the population and the breaking up of families.

Answer 17

Changes in the Social Structure, Behavior and Roles

Question 18

(Negative Social Effects)
Prostitution, often called the “oldest profession”, certainly existed before the growth of mass tourism. The increase in prostitution is attributed to the following: the process of tourism and hospitality have created locations and environments which attract
prostitutes and their clients.

Answer 18

Community Problems

Question 19

(Negative Social Effects)
___________ consist of tourist behaviors which can be considered socially and economically inappropriate. One of the major results of negative demonstrative effects is the polarization of the hosts from the tourists. Tourists often demand commodities and facilities beyond the economic capacity of local residents.

Answer 19

Negative Demonstrative Effects

Question 20

2 Impact Control Measures

Answer 20

1. Economic Impacts
2. Social Impacts

Question 21

There are a number of way to maximize the economic benefits of tourism and hospitality. Some of the suggestions
of UNWTO are:

1. Maintain a scale of tourism and hospitality development that is appropriate
   for the local as well as national environment. If possible, develop other economic
   sectors so that there is balanced economy and employment structure.
2. Apply the concepts of tourism development zones.
3. Plan, develop, and organize tourism and hospitality so that no area
   becomes too congested with tourists, and residents can easily use community
   facilities and services.

Answer 21

ECONOMIC IMPACTS

Question 22

There are a number of control measures that can be adapted to decrease the negative change in the area.
1. Reducing the contact between hosts and guests by limiting the carrying capacity of the destination and by
regulating the tourist flow.
2. Separating the hosts and tourists within tourist enclaves.
3. Designing community education and citizen involvement programs centered on
tourism and hospitality development, policy and regulatory issues.
4. Expanding human resource development and training programs in all components
of the tourism and hospitality system to include social skills (interpersonal
relations and networking referral tactics).

Answer 22

SOCIAL IMPACTS

Question 23

4 POSTIVIE ECONOMIC EFFECTS

Answer 23

1. INCOME
2. EMPLOYMENT
3. BALANCE OF PAYMENTS
4. INVESTMENT AND DEVELOPMENT