Socio-Economic Impacts of Tourism - Literature review Example

Socio-Economic Impacts of Tourism Name: University: Date: Table of Contents Socio-Economic Impacts of Tourism 1 Abstract 3 Introduction 4 Literature Review 4 Discussion 7 Conclusion 8 References 9 Socio-Economic Impacts of Tourism Abstract Basically, tourism sector contributes heavily to the economic growth of a country, and also generates social benefits to the country in terms of SMEs (small-medium enterprises) development, job creation, and infrastructure improvement. Culturally, as evidenced in the report, tourism is a crucial element for enriching the community, and also contributes positively to the natural environment conservation and maintaining or creating protected areas such as national parks. This paper seeks to discuss socio-economic impacts of tourism. Introduction In numerous countries, tourism is a valuable and a fast-growing sector, and importantly, contributes considerably to the economy of the country (Phoummasak, Kongmanila, & Changchun, 2014). Furthermore, tourism plays a vital part in communities’ development. Tourism benefits as indicated in reference study include both tangible (such as local and state tax revenue, the creation of job, and so forth) and less tangible (such as quality-of-life and social structure). Besides that, tourism at a times result in less desired socio-economic effects, and such costs and benefits offer a sufficient prospect for creative debate on public policy. That is to say, tourism impacts both the economy as well as communities’ way of life. Tourism may influence the effort of the community to develop the industry. In particular case, tourism can result in a wider cultural understanding through awareness creation, valuing the cultural diversity and lifestyle. Besides that, tourism is a job-creating tool, and as a result, it has been a key socio-economic development driver in many countries including Australia. Therefore, tourism is a substitute strategy for diversification as well as sustainability of economy for vital governmental policy (Sam, Akpo, Asuquo, & Etefia, 2014). As evidenced above, tourism impacts both economy and society in a large way, so the report focuses on socio-economic impact of tourism. Literature Review As indicated by Cooper (2012), tourism negative consequences to the environment have certainly been a topic of much-heated debate, but also its economic contribution and efforts towards conservation has widely been acknowledged. Cooper (2012) asserts that tourism negatively impact the environment, especially with regard to carbon emissions, since it accounts for five per cent of global emissions. Still, Cooper (2012) asserts that tourism has positively impacted the economic sector thanks to its ability to create and maintain a high level of employment. As mentioned by Phoummasak, Kongmanila, and Changchun (2014), the tourism heightens creation of income, tax revenue as well as better living standard for the communities. Without a doubt, the tourism sector is extraordinarily creating a valuable income and creates the ability of the employer to disseminate its economic benefits to all communities. For instance, Luang Prabang economic development as indicated by reference akin to other tourists’ destination is streamlined to the development of the infrastructure (Phoummasak, Kongmanila, & Changchun, 2014). Besides that, tourism considerably generates new and heightens demands on electricity, water, sanitation, as well as telecommunications, and so the management and construction expenditure of every facility structure benefits the local workers. For instance, majority of Luang Prabang residents; living standard has progressively been improved and other infrastructures relied by tourism such as resort, transportation facility, roads, hotels, restaurants, among other facilities have improved tremendously (Phoummasak, Kongmanila, & Changchun, 2014). Generally, Ransom (2001) posits that tourism double up as a connection between conservation, development, as well as the communities, and therefore, it makes the process of development more accountable to those it serves. In this regard, Ransom (2001) claims that the government have introduced policies so as make local communities more responsible for the environment.  Still, the connection in the relationship between conserved areas, conservation, as well as their future relies on the local communities. According to Ransom (2001), the main threat to areas that are conserved is the local community living around, but still the local communities can crucial agents for environment conservation. As stated by Mansour and Mahin (2013), socio-economic impact of tourism is to a large extent positive: The local communities can integrate with individuals from different backgrounds having distinct lifestyles, which by means of ‘demonstration effect’ can result in the growth of improved practices and lifestyles as observed from the tourists. In addition, reference posits that the local life can improve through better local infrastructure as well as facilities (developed for sustaining tourism), and as a result, it may result in improved health care, education, income as well as employment opportunities (Mansour & Mahin, 2013). Moreover, tourism results in more social and cultural events accessible for local populace like exhibitions, entertainment, and so forth. Importantly, tourism leads to local cultural heritage conservation of a region and renaissance of its architectural traditions, crafts, as well as ancestral heritage. As pointed out by Sam, Akpo, Asuquo, and Etefia (2014), tourism has continuously been viewed as a way of economic transformation, but it is yet to be considered as a way of cultural and social modernization. Socio-economic modernization according to reference stresses perfections in numerous indicators, which includes improving living standards as well as the life quality and populations well-being. Tourism as mentioned by Sam, Akpo, Asuquo, and Etefia (2014) has lately become the leading labour employer in the world as well as the safest industry in terms of atmospheric pollution. That is the reason why reference describes tourism as a globalised industry that promotes cultural diversity. While this is taking place, new relationships are formed, cultural differences are interpreted leading to a more broad-mindedness, and world-wide diversities are well understood as well as appreciated. In spite of its positive socio-economic impacts, tourism according to Mohammadi, khalifah, and Hosseini (2010) and Mbaiwa (2003) present negative impacts to the environment like the ecological obliteration while driving in restricted areas, poor management of waste, and noise pollution. But on the positive side, Ahammed (2010) posits that tourism has improved the life quality through increase in personal incomes, assists in improving the standards of living for people who are directly connected to the industry, and promotes the cultural entertainment diversity. Besides that, tourism impact goods assortment for sale in scores of local shops that could be missing incase tourism was non-existent, leads to the improvement of park areas and quality of the environment. Results from Saayman, Saayman, and Ferreira (2009) study indicate that rural areas normally experience high leakages, and as a result, the local economy fails to benefit fully from tourism. Discussion As evidenced in the literature review, tourism development offers a key asset to tourism destinations through the possible increased economic activities, which consequently benefits the local communities. As indicated by Goulding, Horan, and Tozzi (2014), tourism has a wide range of socio-economic impacts on the community and the country, like improvement of communication infrastructure in addition to education facilities in addition to the maintenance and development of transportation. So, it is true that a well-planned and managed tourism, benefit both urban and rural areas socially, economically and environmentally. It has been demonstrated that even though tourists in destinations regions are transitory, their presence significantly impact the local communities. Such impacts have been analysed in the literature review from social, economic, as well as environmental dimensions, which are either positive impacts or negative. Numerous studies such as Mensah (2012) and Marzuki (2012) have stressed the tourism economic benefits to local communities; for example, tourism leads to host communities economic development, offer employment opportunities, and improve tax revenues. Moreover, tourism generates investment opportunities, in so doing, leading to increased profit-making activities in the host community. Only a few studies such as Mensah (2012) have analysed the impact of expanding tourism towards rural areas, and its subsequent benefit to the rural people. Plainly, tourism in rural areas akin to other areas results in increased commerce, which consequently, provides the development opportunity for numerous local businesses. Scores of studies have pointed out that tourism leads to improved living standards, but only a few have provided empirical evidence to substantiate this argument. In his study, Mensah (2012) noted that most Kumily residents in India related tourism to improved living standards within the community. Scores of studies as highlighted in the literature review have indicated that tourism assist in maintaining as well as expanding public facilities, and in a number of communities, the government is offering public transport services with the intention of improving accessibility to tourist attractions sites. In consequence, local residents profit from such improvement as well as provision in transport services. Marzuki (2012) is right in their assertion that public organizations as well as businesses are more and more interested in tourism socio-economic impact at local, state, as well as national levels bearing in mind that tourism industry can lead to payment balance at national level and offers a key income source for the local communities. Conclusion In conclusion, it has been evidenced that tourism is a crucial basis for economic development in tourism destinations, results in job creation, promotes cultural diversity, among other. Basically, tourism has various effects on the cultural and social facets of life in a certain area or region, and this relies on the region’s economic and cultural strengths. The association between the host community and tourists is one of the factors that impact the community given that tourists may be less sensitive to local standards, traditions and customs. References Ahammed, S. S. (2010). Impact of Tourism in Cox’s Bazar, Bangladesh. North South University, Bangladesh, Thesis. Cooper, C. (2012). Essentials of Tourism. Upper Saddle River, New Jersey: Pearson Education Limited. Goulding, R., Horan, E., & Tozzi, L. (2014). The importance of sustainable tourism in reversing the trend in the economic downturn and population decline of rural communities. PASOS, 12(3), 549-563. Mansour, E. Z., & Mahin, E. Z. (2013). The impacts of tourism industry on host community. European Journal of Tourism Hospitality and Research, 2(1), 12-21. Marzuki, A. (2012). Local residents’ perceptions towards economic impacts of tourism development in Phuket. TOURISM, 60(2), 199 - 212. Mbaiwa, J. E. (2003). The socio-economic and environmental impacts of tourism development on the Okavango Delta, north-western Botswana. Journal of Arid Environments, 54, 447–467. Mensah, C. (2012). Residents’ Perception of Socio-economic Impacts of Tourism in Tafi Atome, Ghana. Asian Social Science, 8(15), 274-287. Mohammadi, M., khalifah, Z., & Hosseini, H. (2010). Local People Perceptions toward Social, Economic and Environmental Impacts of Tourism in Kermanshah (Iran). Asian Social Science, 6(11), 220-225. Phoummasak, K., Kongmanila, X., & Changchun, Z. (2014). The Socio-Economic Impact of Tourism and Entrepreneurs in Luang Prabang Province, Lao PDR. International Journal of Business and Management, 9(12), 275-284. Ransom, W. R. (2001, February 21). Local community perceptions of the socio-economic and cultural consequences of conservation and tourism. Retrieved from University of Leeds: http://www.see.leeds.ac.uk/misc/elgon/percept.html Saayman, M., Saayman, A., & Ferreira, M. (2009). The Socio-Economic Impact Of The Karoo National Park. KOEDOE, 51(1), 1-10. Sam, I. E., Akpo, D. M., Asuquo, E. E., & Etefia, T. (2014). Socio-Economic Impact Of Tourism Development In The Forest Community Of Ikpe Oro, Urue Offong Oruko Local Government Area Of Akwa Ibom State. European Journal of Hospitality and Tourism Research, 2(1), 15-23. Read More