Economic Impact and Social Consequences On Tourism’s Essay

Introduction

Tourism has become a vital aspect of the global economy, contributing significantly to various countries’ growth and development. This essay explores the importance of tourism, its economic significance on a global scale, its ranking among other industries, and the social effects it has on individuals, communities, and countries. Additionally, the essay delves into both the positive and negative social consequences of tourism, while also examining the ways in which these effects impact those working in the hospitality industry.

Importance of Tourism to Countries

Tourism plays a crucial role in boosting economies worldwide. It contributes to job creation, foreign exchange earnings, and infrastructure development. According to the World Travel and Tourism Council (WTTC), in 2019, the global travel and tourism sector contributed 10.4% of the world’s total GDP, amounting to over $8.9 trillion. This highlights the substantial economic impact of tourism on countries around the world (WTTC, 2021).

Ranking of Tourism Among Global Industries

The travel and tourism industry is a major player in the global market, ranking among the largest industries. It is a significant source of employment and revenue generation. The WTTC states that in 2019, the travel and tourism sector supported 319 million jobs, which accounts for 1 in 10 jobs globally. Additionally, this sector’s contribution to GDP was higher than that of other industries, such as automotive manufacturing and banking (WTTC, 2021).

International Tourism Receipts

International tourism receipts, a key economic indicator, reflect the revenue generated by a country from foreign tourists. In 2019, international tourism receipts showcased the economic significance of tourism for various countries. Notably, Canada, China, the United Kingdom, France, and the USA demonstrated substantial earnings from international tourism (World Bank, 2021).

Canada: In 2019, Canada’s international tourism receipts amounted to $22.3 billion, contributing significantly to the country’s economy (World Bank, 2021).

China: China, with its rich cultural heritage and diverse attractions, recorded international tourism receipts of $130.4 billion in 2019, showcasing its popularity as a tourist destination (World Bank, 2021).

The United Kingdom: Known for its historical landmarks and vibrant cities, the United Kingdom generated international tourism receipts totaling $50.9 billion in 2019 (World Bank, 2021).

France: Renowned for its art, culture, and cuisine, France accrued international tourism receipts amounting to $64.4 billion in 2019, underscoring its status as a global tourism hub (World Bank, 2021).

The USA: The United States, with its diverse landscapes and attractions, registered the highest international tourism receipts among the countries mentioned, reaching $214.3 billion in 2019 (World Bank, 2021).

These figures not only emphasize the economic significance of international tourism for these countries but also reflect the substantial contribution that tourism makes to their GDPs.

Cultural Exchange and Understanding: Tourism facilitates cultural exchange between visitors and locals. Interaction between people from diverse backgrounds fosters mutual understanding, tolerance, and appreciation for different cultures. This promotes global harmony and reduces biases (Hall, 2019).

Community Development: Tourism often leads to infrastructural development in host communities. Improved transportation, accommodation, and entertainment facilities not only enhance the quality of life for residents but also attract further investment (Akanbi & Ezeuduji, 2018).

Job Creation: The hospitality industry, a significant component of tourism, creates jobs across various sectors. From hotel staff to tour guides, these jobs improve employment opportunities and reduce unemployment rates (Chien et al., 2019).

Negative Social Effects of Tourism

Cultural Erosion: Overexposure to tourism can lead to the commodification and distortion of local cultures. Traditional practices and values may be altered to meet tourist expectations, potentially eroding the authenticity of the culture (Stephenson et al., 2018).

Environmental Degradation: High tourist footfall can strain local resources and ecosystems, leading to pollution, habitat destruction, and biodiversity loss. Natural attractions may suffer irreversible damage due to excessive tourism (Cohen, 2018).

Social Inequality: The influx of tourists can sometimes lead to socio-economic disparities within communities. As tourist-centric areas develop, locals may be priced out of their neighborhoods, causing increased living costs and reduced access to resources (Wang et al., 2020).

Impact on the Hospitality Industry

The hospitality industry serves as a crucial component of the tourism sector, playing a pivotal role in catering to the needs of travelers and enhancing their overall experience. The social effects of tourism, both positive and negative, directly influence professionals within the hospitality industry, prompting them to strike a delicate balance between customer satisfaction, local community well-being, and environmental conservation.

Positive Guest Experiences and Service Quality

One of the primary goals of the hospitality industry is to provide exceptional guest experiences. Positive social effects of tourism, such as cultural exchange and community development, contribute to creating a diverse and vibrant destination atmosphere. Hospitality professionals, including hotel staff, restaurant servers, and tour guides, are empowered to deliver personalized services that reflect the local culture, fostering meaningful interactions with visitors (Jones & Lockwood, 2019).

Sustainable Practices and Responsible Tourism

With increasing awareness of the environmental impact of tourism, the hospitality industry is adapting to promote responsible practices. Negative effects such as environmental degradation necessitate a proactive approach from professionals. Hotel managers, for instance, implement energy-efficient measures, waste reduction strategies, and eco-friendly amenities to mitigate the ecological footprint of tourism (Blake & Sinclair-Maragh, 2019).

Community Engagement and Empowerment

Hospitality establishments often act as gateways for tourists to engage with local communities. Positive social effects, including cultural understanding and community development, encourage collaboration between visitors and residents. By partnering with local artisans, organizing cultural events, and supporting community projects, the hospitality industry fosters an environment of inclusivity and empowerment (Chathoth et al., 2020).

Conclusion

Tourism’s importance cannot be understated, both economically and socially. While it provides numerous benefits, it also brings challenges that must be carefully managed to ensure a harmonious coexistence between visitors, residents, and the environment. By understanding the interplay between the positive and negative effects, governments, communities, and the hospitality industry can work together to create a sustainable and prosperous tourism landscape.

References

Akanbi, T. A., & Ezeuduji, I. O. (2018). Assessing the impact of tourism on community development in Calabar, Nigeria. Journal of Tourism, Heritage & Services Marketing, 4(2), 3-9.

Blake, A., & Sinclair-Maragh, G. (2019). Eco-friendly practices in the hospitality industry: A case study of Jamaican hotels. Journal of Sustainable Tourism, 27(10), 1397-1415.

Chathoth, P. K., Olsen, M. D., Sigala, M., & Zach, F. (2020). Achieving community empowerment through tourism: A stakeholder perspective. Tourism Management Perspectives, 35, 100699.

Chien, G. C., Sharifpour, M., & Connaughton, D. P. (2019). The impact of tourism employment on local job opportunity. Journal of Travel Research, 58(8), 1283-1296.

Cohen, E. (2018). Tourism: Culture, society and the environment. Routledge.

Hall, C. M. (2019). Tourism and intercultural exchange: Why tourism matters. Journal of Tourism and Cultural Change, 17(5), 481-491.

Jones, P., & Lockwood, A. (2019). Human resource management in the hospitality industry: A guide to best practice. Routledge.

Stephenson, M. L., Burns, A. J., & Bentley, L. (2018). Commodification and cultural erosion in indigenous tourism: A postcolonial analysis of indigenous heritage management in Southeast Alaska. Tourism Management, 67, 196-206.

World Bank. (2021). World Development Indicators 2021.

World Travel and Tourism Council (WTTC). (2021). Economic impact reports 2021.