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Chapter I
Tourism and Socio-Economic and Environmental Linkages: Conceptual Framework
Chapter 1
Tourism and Socio-Economic and Environmental
Linkages: Conceptual Framework
1.1 Introduction
Tourism as a significant activity that existed long before it was actually identified.
Man has been fascinated by the idea of travelling from very early historical period. He has
had an urge to undergo new experiences. discover and explore new places and seek change of
environment. Merchants have been travelling extensively in order to trade with other nations
and tribes since olden days. "Such travel was often hazardous as well as arduous relying on
inadequate roads and uncomfortable transport. but the potential rewards were substantial.'.J
Romans were probably the first to travel for pleasure. It was due to good
communication system and security in the Roman Empire. Travel was also undertaken for
religious purposes especially in middle age. Such travel was in the form of pilgrimage to
places of worship. The 18th century became the "great age of travel as this was the time when
the concept of annual holidays was introduced in Europe."2
However, it was along with the development of the industrial society of Western
Europe and North America in the second half of the 19th century. the modern tourism took
birth. As a result of industrialization, the working class got burdened with long working hours
and poor working and living conditions. "The factors like increasing need to find relief from
work day routine and the city dweller's yearning for physical adventure and comforts arid
pleasure and development of resorts and spas for health and relaxation produced a fertile
ground for the development of pleasure traffic or tourism on a big scale."3
The post First World War era signified "the beginning of travels for pleasure and of
the transformation of travel into tourism. The era of organized tourism or mass tourism
started".4
1 Holloway, J.C., The Business ofTourism. Macdonald and Evan Plymouth, London. 1983, p. 22.
2 Bhatia, A.K, Tourism Development, Sterling Publisher, New Delhi.l983. p. 7.
3 Ibid, p. 7. 4
Chib, Som Nath, Essays on Tourism, Cross Section Publication, New Delhi; 1989, p.l3.
The post second world war era witnessed the rapid rise in the number of tourists and
tourism industry due to many factors such as increased leisures, higher standard of living,
improved education, developments in the means of speedy transport and communication etc.
"What was more significant was that for the first time tourism was viewed as an engine for
economic development. " 5
Over the year the travel industry has redrawn the contours of our globe; crossing vast
countries and continents, opening up the way to traders and industrial development, and
strengthening contacts with and control over vast overseas possessions and business empires.
Nowhere in the world remains isolated. The realms of space have been conquered and some
remote corners of the globe are now accepted holiday centres. Distance is no longer so
closely cost-related and the further we travel the greater the bargains. All this has transformed
not only world economics but also human lifestyles."6
1.2 Defining Tourism
Tourism is a terminology that refers to the phenomenon and relationship arising from
travel and stay of non-residents insofar as they do not lead to permanent residency and are not
connected with earning. It is also primarily a term of economic referring to an industry. It is
an economic activity and like other economic activity, it creates a demalld or provides a
market for a number of quite separate and varied industries.
Various definitions of tourism have been put forth. Most of them differ from each
other in some respects. A common factor in all these definitions is that the term tourism is
explained as a movement. Even the root of the expression tourism that is 'tour' means a
journey or a calculative trip. 7
The word ''tourism" is related to "tour" which is derived from a Latin word "Tornos"
which means a tool for describing a circle or turners wheel. This is a word of compass or
rather a pin at the end of a stretched string used to describe a circle. It is from this word
"Tornos" that the notion of a "round tour" or a "package tour" has come into being, which is
very much the essence of tourism. It was as late as 1643 AD that the term was first used in
the sense of going round or traveling from places to places, around on excursions, a journey,
5 Ibid, p. 13. ~Hodgson, Adele, The travel and Tourismlndustry-Strategiesfor the Future, Pergamon Press, UK, 1987, p.2.
The International Dictionwy ofTourism, International Academy ofTourism, Monte Carlo, 1953.
including visiting a number of piaces in circuit or sequences. circuitous journey, embracing
the principal places of a country or region.~
Tour derives its meaning from the Hebrew term "Torah" which means learning.
studying. search. A tour represents an attempt by the traveller to discover something about a
place he visits.S> A proper definition of tourism was given by Hunziker and Krapt of Berne
University. ''It was one of the first attempts to define tourism" 10 and defined tourism as "the
sum of the phenomena and relationship arising from the travels and stay of non-residents in
so far as they do not lead to permanent residence and are not connected to any earning
· · , I I activity .
"This definition was later adopted by the International Association of Scientific
Experts on tourism". 1210n the other hand, Mathieson and Wall, defined tourism as "the
temporary movement of people to destination 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". 13
These definitions essentially indicate the elements like (a) involvement of travel by
non-residents and spatial interactions arising out of temporary movement of people, (b) stay
of temporary nature in the area visited and (c) stay not connected with activity involving
earmng.
Tourism, therefore, is a composite phenomenon that embraces the incidence of a
mobile population of travelers who are strangers to the places they visit. It is essentially a
pleasure activity in which money earned in one's normal domicile is spent in the place
visited. The spirit of these conceptions of tourism is, however, only implicit in the World
Tourism Organization (WTO) definition published in 1991. This took a rather general view
of tourism as it stated that "the activities of a person traveling to a place outside his or her
usual environment for less than a specified period of time and whose main purpose of travel
is other than the exercise of an activity remunerated from within the place visited". 14
:Seth, P.N., Successful Tourism- Planning and Managemen/, Cross Section Publication, New Delhi 1978, p. 7. Ibid. p.8.
10 Holloway, J.C. n.l ,p.2. 11 Seth, P.N, n.8, p.ll. 12 Ibid. p.l3. 13
Mathieson, A and Wall, G, Tourism: Economic, Physical and Social/mpacls, Longman, London, 1982. p.l. 14
Williams, Stephen, Tourism Geography, Routledge Contemporary Human Geography Series, London, 1998. p.3. .
3
1.3 Development of lntern~tional Tourism
"Tourism industry is primarily a service industry and a large proportion of those
engaged in it finds employment in tertiary occupation. It mainly caters to the needs of the
tourists and consists of business and organizations providing these facilities and services". 15
It is perhaps one of the most complex industries as it is made up of many and varying
enterprises, all of which are inter-dependent. Tourist industry like any other industry
contributes in the economic upliftment of a region. This industry is encouraged in certain
region largely due to the fact that it brings economic prosperity and acts as a catalyst to
economic growth and a source of employment generation (direct or indirect). Keeping in
mind the benefit of tourism, "the significance of tourism is recognized by most nations of the
world today. Tourism became the largest single item in the world's foreign trade and is
increasing in importance every year." 16 It is also likely to employ more people worldwide
than any other enterprises. 17 The fact, that tourism industry is the fastest growing and biggest
industry, second only to oil industry can be substantiated by indicators like the movement of
number of tourists, its income and employment implications.
In 1950 there were 25.3 million international tourists, which rose to 69.3 million in
1960 and further to 165.8 million in 1970. 18 There were 270 million international tourist
movements yielding approximately US$ 75 million in receipts in 1979. 19 By 1981 over 287.6
million tourists movement was recorded which sharply increased to 355 million in 1987. It
further increased to 461.1 millions in 1991 and to 702.6 millions in 2002?0 (Table 1.1)
This shows that world tourism is growing at a rapid rate. The global growth trends for
tourism in the decades following the World War -II have been quite impressive. It has been
growing with an average growth rate of 6% per annum which makes it one of the fastest
growing economic industry of the world. 21
All regions of the world hosted more tourists in 2000, although the fastest developing
area continued to be East Asia and the Pacific with a growth rate of 14.5 per cent and some
14 million more tourists than 1999. Europe, which accounts for 58 percent of international
15 Davidson, R, Tourism, Pitman Publishers, U.S., 1979. p.l7.
16 Peter, M, international Tourism; The Economic and Development of the International Tourist Trade,
Hutchinson, London, 1969. p. 4. 17
Stephen, P., "Tourism; World's Biggest Industry in the 2 I 51 Century" in Harsel J.V. (ed)Tourism· An f{plorationon, Department of Sociology and Anthropology. St. Lawrance University, New York. I 989, p. 285.
World Tourism Barometer, Vol. No.2, June, World Tourism Organization (WTO), 2005, p.2. 19 Chib, Som Nath, n.3, p. I 14. 20
Datt, N, Growth ofTourism (unpublished Paper), Indian Institute of Travels and Tourism Management (IITTM), Ministry ofTourism and Civil Aviation, New Delhi, 1988, p2. 21 Ibid, p.2.
4
tourism grew by an impressive 6.2 percent to 392 millions arrivals, nearly 12 millions more
trips than one year earlier. However, growth in the normally buoyant tourism sector ground
to a halt in 2001 and international arrivals slipped by 1.3% due to the terrorist attacks of
September 11 and the weakening economies of major tourism generating markets. 21
Although 2002 certainly has not been an easy year, international tourism held up fairly well.
According to data collected by WTO from the vast majority of destination countries, the
number of international tourist arrivals grew by 2.7 per cent in 2002 after a decrease of 0.5
per cent in 2001. For the first time the 700 million mark was surpassed and compared to the
previous record year 2000, almost 16 million more arrivals were counted. (Table 1.1)
Table 1.1 World Tourism Arrivals by Regions
(millions) Year World Africa Americas Asia-Paci fie Europe Middle
East 1950 25.3 0.5 7.5 0.2 16.8 0.2 1960 69.3 0.8 16.7 0.9 50.4 0.6 1970 165.8 2.4 42.3 6.2 113.0 1.9 1980 286.5 7.4 61.4 24.3 186.0 7.5 1990 455.9 15.0 93.0 57.7 280.6 9.7 2000 687.3 27.4 128.0 115.3 392.7 24.0 2001 684.1 28.3 120.2 121.1 390.8 23.6 2002 702.6 29.1 114.9 131.3 399.8 27.6
' ' -Source: World 7 ounsm Barometer, Vol. No.2, June, World founsm Organization (WTO), 200), p.2.
Of all international tourists in the world the majority travel within or to destinations in
Europe. Together they generated 400 million arrivals in 2002. Asia and the Pacific is since
2001 the second biggest region with 131 million international tourist arrivals in 2002 ( 19%
market share). The Americas, which is now number three holds a 16 per cent market share.
Furthermore, Africa received an estimated 29 million international tourist arrivals in 2002
(4%) and the Middle East 28 million (4%). Over time, the market shares of the emerging
regions of Asia and the Pacific, the Middle East and Africa has tended to increase at the
expense of the more mature regions, Europe and the Americas, as the former are generally
growing at a far more dynamic pace than the latter two. Thus, Europe and the Americas were
the main tourist-receiving regions between 1950 and 2000. Both regions represented a joint
market share of over 95 per cent in 1950, 87 per cent forty years later and 76 percent in 2000.
22 WWW. World Tourism. Org, 2003, p.l.
5
The regiona! ranking changed for the first time in 200 I as the Americas was overwhelmed by
the exceptional performance of Asia and the Paci fie, which ranked second in 200 I and
2002.23
1.3.1 Tourism Receipts
The quantum of business in this sector in absolute terms has been mind boggling. In
1950 the world tourism receipts was US$ 2.1 billions and rose to US$ 6. 9 billions in 1960
and to US$ 17.9 billions in 1970. In 1983 more than US$.1400 billion were spent on travel
related activities. It increased to US$.2000 billion in 1986 and further to US$.2160 billion in
1987. World travel receipts went up from US$ 97 billion in 1980 to US$ 150 billion in 1987.
It further increased to US$ 277.9 billions in 1991 and further increased to US$ 474.2 billions
in 2002.(Table 1.2)24
Table 1.2 World Tourism Receipts by Regions
(US$ billions) Year World Africa Americas Asia-Pacific Europe Middle
East 1950 2. I 0.1 1.1 0.04 0.9 0.03 1960 6.9 0.2 2.5 0.2 3.9 0. I 1970 17.9 0.5 4.8 1.2 I 1.0 0.4 1980 107.5 2.6 25.4 I 0.3 63.6 3.5 1990 264.1 5.3 69.2 41.3 I 43.8 4.5 2000 473.4 10.8 I 33.5 86.9 21.9.7 I 2.4 2001 459.5 I I .7 122.2 88.0 225.8 I 1.8 2002 474.2 I 1.8 I 14.3 94.7 240.5 13.0
Source: World Tounsm Barometer, Vol. No.2, June, World Tounsm Organization (WTO), 2005, p.2.
The World Tourism Organization (WTO) estimates that international travellers today
(2000s) number in excess of 528 million people annually with an yearly gross receipts from
their activities exceeding US $ 320 billion, and an estimated 74 million people derive direct
employment from the tourism business like travel and transportation, accommodation,
promotion, entertainment, visitor attractions and tourist retailing. 25
It was also observed from the World Tourism Organization data that, more than half
of all international tourism receipts are earned by Europe (51%), while the Americas holds a
23 Ibid, pp.l-2. '4 - Dart, N, n.20, p.2. 25 Williams, Stephen, n. 14, p.l.
24 per cent share and Asia and the Pacific 20 per cent. Africa and the Middle Ee1st are
responsible for less than 3 per cent each. The regional shares in the world total differ
somewhat from the shares for arrivals. As the Americas is characterized by a comparatively
high receipts per arrival, it still holds the second position, while with respect to arrivals the
Americas was overtaken by Asia and the Pacific in the second position in 2001.
"The World Travel and Tourism Council projected that in 1994 travel and tourism
would generate direct and indirect employment for more than 200 million people - one of
every nine workers in the World economy". 26 The World Tourism Organization estimated
that in 1994 tourism accounted for 12 percent of the world's gross product and was
responsible for an estimated 7 percent of global capital expenditure.27
According to World Tourism Organization (WTO) September 2003 report, the
Middle East, which is represented in the world's top emerging destinations in the period 1995
- 2002 with seven countries, is the region with the highest average annual growth rate
(10.6%). Higher than the world's average annual growth rate were registered also in Africa
(5.5%) and in Asia and the Pacific (6.2%), Whereas, Europe records a 3 per cent rate and the
Americas less than 1 per cent. Europe's emerging destinations continue to be mainly
constituted by recent independent countries finding in tourism an important instrument of
development.
Within the last few years, both the world tourism industry and the world airline
industry have suffered major crises. The outbreak of a war in Iraq was followed by the SARS
epidemic. This is in addition to a series of major setbacks starting with terrorism attacks on
New York on 9111 September 2001, then further terrorism events such as Bombings in Bali,
Kenya. Moscow and Riyadh. Also. there has been continuing weakness in major economies
such as the USA, Germany and Japan. which has directly affected tourism and travel. The
SARS epidemic created more severe problems for tourism than the Iraq war. In some parts of
East Asia, travel and tourism almost came to a complete halt, with some hotels closed
temporarily and some airlines canceling large parts of their timetables. 28
1.3.2 Top Destinations
However, after three years of stagnation, international tourism experienced
spectacular growth in 2004. According to preliminary findings presented by the World
26 Tooman, L. Alex, "Multipliers and Life Cycles: A Comparison of Methods for evaluating Tourism and its
Impacts." Journal of Economic Issues. Vol. XXXI, No.4, December 1997. p. 917. ?7 . . - lbtd. p.917. 28 Ibid, p.l.
7
Tourism Organization in January 2005. international tourist arrivals reached an all-time
record of 760 million m 2004. an mcrease of I 0 percent over 2003.
Tourism growth occurred in all world regions. but was strongest in the Asia-Pacific region
(+29%) and in the Middle East (+20%). Double-digit growth was also registered in the
Americas (+10%), while Africa (+7%) and Europe (+4%) performed below the world
average. but still substantially improved over 2003.29
Over 3 5 per cent of worldwide international tourist arrivals are concentrated in the top
five tourism destinations. while the ranking of the top 25 destinations covers almost two
thirds of world tourist arrivals. France firmly leads the ranking of the most visited countries
and territories with 77 million international tourist arrivals and a share of 11 per cent of
worldwide arrivals in 2002. Spain consolidated its second position, wrested from the United
States in 2001, as tourist arrivals to the destination grew to more than 3 per cent while
arrivals to the United States dropped for the second year in a row ( -7% ). Italy follows in the
ranking with arrival numbers reaching almost 40 million, whereas China, which occupies the
5111 position confirmed its importance as a growing world tourism destination and achieved
the fastest growth among the top 5 in 2002 (+II %). Among the top 25 world tourism
destinations in absolute terms, the highest ratio of arrivals per I 00 residents is recorded in
Austria (228) and Hong Kong (China (227), the only destinations exceeding 2 arrivals for
each resident. Due to its huge population, the lowest figure of arrivals per I 00 of population
among the first 25 is obviously registered in China (3).(Table 1.3).
1.3.3 Top Spending Locations
The rank of the world's 15 largest International tourism spending countries is given in
Table 1.4 below. It is observed from the table that, in terms of largest tourist spending
countries, United States top the list with US$.64.5 billion and US$.58.9 billion in 2000 and
2001 respectively. This is followed by Germany with tourist spending of US$.47.6 billion
and US$.46.2 billion in the same years. The ranking remained stable between 2000 and
2001. If one combines China and Hong Kong, then this combination becomes the fifth largest
market in the World, just behind Japan for 2000.
29 Travel Industry Association of America, Washington, 2004, p.l.
8
Table 1.3 World's Top 25 International Tourism Destinations
SL Country 2000 2001 2002 No i ' ' % i '
I France 77.2 75.2 77.0 11.0 2 Spain 47.9 50.1 51.7 7.4 3 United States 50.9 44.9 41.9 6.0 4 Italy 41.2 39.6 39.8 5.7 5 China 31.2 33.2 36.8 5.7 6 United Kingdom 25.2 22.8 24.2 5.2 7 Canada i 19.6 i 19.7 20.1 i 3.4 '
l 8 Mexico : 20.6 I 18.2 19.7 J 2.9 9 I Austria ! 18.0 17.9 18.6 2.8
: 10 ' Germany 19.0 i 3.7 18.0 2.6 II Hong Kong(China) 13.1 15.3 16.6 2.6 12 Hungary 15.6 14.1 15.9 2.4 13 Greece 13.1 15.0 14.2 ')-.
---' 14 Poland 17.4 15.0 14.0 2.0 15 Malaysia 10.2 12.8 13.3 1.9 16 Turkey 9.6 10.8 12.8 1.8 17 Portugal 12.1 12.2 11.7 1.7 18 Thailand 9.6 10.1 10.9 1.5 19 Switzerland 11.0 10.8 10.0 1.4 20 Netherlands 10.0 9.5 9.6 1.4 21 Russian Federation 7.0 7.4 7.9 1.1 22 Saudi Arabia 6.6 6.7 7.5 1.1 23 Sweden 2.7 7.2 7.5 1.1 24 Singapore 6.9 6.7 7.0 1.0 25 Croatia 5.8 6.5 6.9 1.0
Source: World Tourtsm Barometer, Vol. No.2, June, World Toumm OrganJzatJon (WTO), 2005, p.5.
Table 1.4
World's Top 15 International Tourism Spending Countries
Rank Country 2000 International 2001 %change Tourism Expenditure (US International 2000/200 I
$, billion) Tourism I United States 64.5 58.9 -8.7 2 Germany 47.6 46.2 -3.0 3 United Kingdom 36.3 36.5 0.6 4 Japan 31.9 26.5 -16.8 5 France 17.8 17.7 -0.2 6 Italy 15.7 14.2 -9.4 7 China 13.1 -- ---8 Hong Kong (China) 12.5 12.5 -0.1 9 Netherlands 12.2 12.0 -1.7 10 Canada 12.1 11.6 -4.3 II Belgium 9.4 9.8 3.6 12 Austria 8.5 8.9 4.4 13 South Korea 6.2 6.9 I 1.5 14 Sweden 8.0 6.8 -15.1 15 Switzerland 6.2 6.6 5.2
Source: Tourism Highlights, Edition 2004, World Tourism Organization (WTO), 2004, p.4.
9
1.3.4 Tourism in South Asia
There has been a remarkable growth in international tourist arrivals in South Asia is
presented in Table 1.5. The tourist arrivals in South Asia have increased about three times
during 1975 to 2000 and an annual growth rate has been 5 per cent approximately. However.
there has been a decline in tourist arrivals in South Asia in the 1980s due to worldwide
economic recession. A decreased in visitor were observed in the year 1979, 1982, 1984 and
1987. Moreover, the persistence of the economic recession in major tourist generating
countries has again been reflected in the decline in visitors in South Asian region by 1.39
percent in 1993. It was also observed that, in 2001 there was a sharp decline in the arrival of
tourists due to the 9/11 terrorist attacked. Despite, the remarkable increase in the number of
tourist in the region, the share of South Asia in world tourism however, could not increase
during the last three decades. Its share has not reached even 1.0 per cent of the total
international tourist movement. The share of South Asia was 0. 7 percent in 1975 and reached
0.80 percent in 1980 and declined to 0.70 in 1990 and reached its highest peak in the year
2000 with its share of 0.89 percent. The share further slightly declined to 0.85 and 0.84 in
2001 and 2002 respectively. (Table 1.5)
The position of South Asia in world tourism market cannot be considered to be
satisfactory. The reason why South Asia have not been able to raise its share in world tourism
market were mainly due to various political factors like the prolonged civil war in
Afghanistan, internal problems in Sri-Lanka and Myanmar. Iran-Iraq War, restrictive policy
of Bhutan regarding tourism. This is also due to poor infrastructural facilities including
hotels, transports and communications. On the other hand. low level of economic
development and comparatively low per capita income of region as a whole could be
considered as stagnant share of region for so many years. 30
It is observed that, in terms of international tourist arrival in the region, India received
the highest number of visitors i.e. 2.3 million in 2002, with a share of around 30 percent of
the total tourist arrival in the region in 2002. India has been leading in the share of tourist
arrival since the 1980s and 1990s with a share of between 30 per cent and 40 per cent. The
lowest recorded number of tourist arrival is Bhutan with the total arrival of only six thousand
visitors in 2002. This is followed by Bangladesh with a total tourist arrival of 0.207 million in
2002 followed by Nepal with the total arrival of only 0.275 million in the same year.(Table
1.6)
30 Shrestha, Pushpa, Tourism in Nepal: Problems and Prospects, (PhD Thesis), Banaras Hindu University,
India, 1999, p.74.
10
Year
I 1975 1976 1977 1978 1979 1980 1981 1982
I 1983 1934 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Table 1.5 Tourist Arrivals in South Asia
World Visitors (in '000)
222290 228873 249264 267076 283089 284282 286664 286624 289896 317088 327570 338587 364888 399739 429151 455812 463141 502938 512523 531388 566384 594140 616635 621400 643300 687300 684100 702600
i
'
South Asia Visitors (in '000)
1557 1712 2056 2233 2175 2280 2443 2422 2489 2466 2540 2731 2707 2881 3054 3179 3280 3515 3466 3695 4301 4332 4553
-
-
6,090 5.816 5,869
i
l
l I I
j_ I
Share of South Asia in World Visitors in
% 0.7
0.75 0.82 0.84 0.77 0.80 0.85 0.85 0.86 0.78 0.78 0.81 0.74 0.72 0.71 0.70 0.71 0.70 0.68 0.70 0.76 0.73 0.74
-
-0.89 0.85 0.84
Source: Pushpa Shrestha, Tourism in Nepal. Problems and Prospects, (PhD Thesis), Department of Economics, Banaras Hindu University, India, IS99,p.75. Tourism Highlights, Edition 2004, WTO, 2004. p.2. WWW. World Tourism.Org. 2003.
Table 1.6 Country-wise Tourists Arrivals in South Asia
('000) Country 1990 1995 2000 2001 2002
Bangladesh 115 156 199 207 207 Bhutan 2 5 8 6 6 India 1,707 2,124 2,649 2,537 2,370
Maldives 195 315 467 461 485 Nepal 255 363 464 361 275
Pakistan 424 378 557 560 498 Sri Lanka 298 403 400 337 393
South Asia 3,158 4,238 6,090 5,816 5,869 Source: WWW. World Tounsm Organization.Org, 2003.
II
However, propelled by peace initiatives between India and Pakistan, such as bus
services between the two countries. and general economic health, tourism in South Asia is
taking off with unprecedented growth. Current circumstances in South Asia are very
conducive to the development of tourism in the region. lt has greatly facilitated family visits
and travel for special purposes such as sport-related activities. ''Travel is the language of
peace. Peace is the basis oftourism and tourism also helps build peace". 31
Thus, it is evident from the above analysis .that the substantial growth of tourism
activities clearly marks tourism as one of the most remarkable economic and social
phenomena of the past century. The number of international arrivals shows an evolution from
a mere 25 million international arrivals in 1950 to over 760 million in 2004, corresponding to
an average annual growth rate of over 7 per cent. During this period, development was
particularly strong in Asia and the Pacific ( 13 per cent on average a year) and in the Middle
East (10%) while the Americas (5.4%) and Europe (6.3) grew at a slower pace and below the
world's average growth. New destinations are steadily increasing their market share while
more mature regions such as Europe and the Americas tend to have less dynamic growth.
1.4 Types of Tourism
The increase in the growth of international tourism is intimately related to the types
and nature of tourist and the motivations behind it. There are varieties of tourism which can
be broadly categorized as follows:
(i) Explorer: Very limited in number, looking for discovery and involvement with local people.
(ii) Elite: Special, individually designed visits to exotic places.
(iii) Off-beat: Touring from the desire to get away from the crO\vds.
(iv) Unusual: Visiting with peculiar objectives.
(v) Incipient Mass : A steady flow, travelling alone or in small groups, using some shared serv1ces.
(vi) Mass : Organised group travelling with packages.
(vii) Charter: Mass travel to relaxation destinations which incorporate as many standardized western facilities as possible. 32
31 Yilliers. De David. "World Tourism Organization Underscores Links between Peace and Tourism in South Asia", AsiaTraveiTips.Com, 18 April 2005, p.l. 32 Nandi, Parbati and Chakraborty, Premangshu. "Tourism and Environmental Degradation: Facts and Remedies", Geographical Review of India, Vol- 61. No. I, March 1999, p. 25.
12
As a by-product of these types/nature and motivations of tourists, tourism can be
classified into the following typologies, which can again be either domestic or international
tourism.
1. Mountain Tourism: Mountain Tourism is also known as adventure/sports tourism
which includes trekking, river rafting, skiing, scaling, mountain biking and
mountaineering etc.
11. Resort Tourism: This type of tourism includes pleasure, health care, sauna bath,
herbal treatment etc.
111. Cultural Tourism: It is undertaken for a specific purpose of study, interaction and
research of socio-cultural behaviour. It is regarded as a force for cultural preservation.
It can also be defined as the absorption by tourists of features resembling the
vanishing lifestyles of the past societies observed through such phenomena as house
styles, crafts, farming equipment, dress, utensils and other instruments and
equipments that reflect the lifestyle of any particular community during a particular
time. Cultural tourism also involves education for visitors and promotes sensitivity
towards cultural environment, provides direct benefits to host communities and helps
in preservation of culture.
IV. Pilgrimage Tourism: It is mainly undertaken for personal and religious purpose.
v. Leisure/Holiday Tourism: These types of tourism are undertaken mainly for leisure
in a changed environment.
VI. Business/Conference Tourism: It is undertaken mainly for economic purpose.
vii. Eco-Tourism: It involves traveling to relatively undisturbed or uncontaminated
natural areas with the specific object of admiring, studying, and enjoying the scenery
and its wild plants and animals, as well as any existing cultural features. 33
viii. Wild Life Tourism: It is a type of traveling to a specific area mainly for the purpose
of hunting animals, birds and insect for entertainment Research, recreation or feasting etc.
ix. Village Tourism: Village tourism denotes tourists visiting villages and staying in or
near the villages. The special feature of this kind of tourism is that the visitors become
part of the village for the period of their stay and learn and experience the culture,
33 Karan, P. Pradyumna and Hiroshi, Ishii, Nepal: A Himalayan Kingdom in Transition, UN, University Press and Bookwell, Delhi, 1996, p. 266.
13
custom. tradition and the way of life of the villagers which allows the visitors to immerse
themselves in the local socio-cultural environment of the village. 34
x. Alternative Tourism: Alternative tourism can be defined as "forms of tourism that
set out to be consistent with natural. social and community values and which allow
both hosts and guests to enjoy positive and worthwhile interaction and share
experiences". It involves traveling to relatively remote, undisturbed natural areas
with the objective of admiring, studying and enjoying the scenery and its wild plants
and animals and cultural attributes. 35
1.5 Socio-Cultural, Economic and Environmental Implications of Tourism
It has been noticed that as the types of tourist move from explorer to charter and as
the number of tourists and the growth of tourism industry increase day by day, the impact of
these various types of tourism on the economy. socio-cultural and environment of the host
country or areas became more conspicuous. Some of these impacts and influences at times do
bring conflict between the hosts and guests. Induced tourism, which is completely served and
controlled by outside entities gradually replace organic tourism (i.e. served and controlled by
locals) in the mass tourism phase. Due to leakages factor, the profits generated from tourism
is not recycled in the destination area. The area has to bear the cost of tourism promotion in
terms of cultural degradation and physical deterioration of the environment. Free-spending
and sometimes raucous tourists then only contribute to anger and resentment.36
The various types of tourism and its general impacts on the environment, economy
and socio-cultural life of the host area or country are given in Tables 1.7(a), 1.7(b) and 1.7(c).
It is observed from the tables that various types of tourism such as adventure, resort,
cultural, pilgrimage, leisure, business, wildlife and eco-tourism have different kinds of impact
on the economy, environment, society and cultural of the host community.
)4
Kunwar, Ramesh Raj, Tourism and Development: Science and lndustty Interface, Laxmi Kunwar, Kathmandu, 1997, p.l29. 35 Kamra, Krishan K., Tourism: Theory, Planning and Practice, Indus Publishing Company, New Delhi, 1997, p.l07. )6 Nandi, Partbati and Chakraborty, Premangshu, n. 32, p. 25.
I II Adventure/ Resort Tourism
Sports Tourism
Environmental En1•ironmellfal . Land usc . Forest degradation probkms brought due to increase about hy demand for sprawling growth fuelwood along of resorts. trails. . Deforestation-on/ . Trail degradation forest degradation along heavily used due to demand trails. for fuelwood and . Pollution in and timber around camp site. . Soil instability wanton disposal of and slope failures degradable and due to heavy non-degradable constructiOn waste. along slopes. . Contamination of . Discharge of creeks. rivers and untreated water sources. sewages and solid pollution of soils waste along and glaciers at slopes and rivers. high altitudes. . l"raftic
cnngcstion. noise and vehicular pollution along popular resorts.
Table 1.7 (a) Types of Tourism and Impact on Environment, Economy and Society
Ill IV v Cultural Pilgrimage Leisure/Holiday Tourism Tourism Tourism
Em·ironmental Environmental Environmental . Most cultural . Heavy . Traff1c congestion. tourists confined concentration of noise and vehicular to or. hased in pilgrims during pollution along maJOr settlement particular periods popular resort and or urban areas creating problems tourist spots. with historic. of waste disposaL . Tourists litter cultural pollution and generated on the monuments and congestiOn_ heavy tounst spots 1elics so little demand f(H fuel d1rect impact on woods during these l'll\'Jf011111CI11 periods c~ccpt f(n tourist . Many pilgrim sites I i ttcr generated in in biologicall~ these sites. sensitive fragile
Cll\'lfOllllll'lltS. . l!igh pressure on hasic infrastructure dunng pilgrimage season
15
VI Business Tourism
Environmental . Deforestation due to setting up of various types of industries. resorts and in frastructu rc. . Land use problems brought about by sprawling growth of resorts. . Deforestation-on/ forest de grad at ion due to demand tor fuel wood and timber. . Soil instability and slope failures due to heavy construction along slopes. . Discharge of untreated scwages and solid waste along slopes and rivers. . Traffic congestion . noise and vehicular pollution along popular resorts
-·-
-·
VII Eco Tourism
VIII Wild Life Tourism
Environmellfal Em·ironmenral .
.
.
.
Disturbing • Threatened mam ecological balan through various kinds of research
cc endangered species and animals through tourist hunting and disturbing their
experiment. exploitation and exploration of tl ora habitats. and fauna. Global warming due to ecological imhalancc Loss of endanger species and
• Conservation of forests and wild life
• Greater awarcncs>:-:
cd about forests and wild life
discovery of ma1 1~ conscrvatH11l new species and herb related medicines. Conservation of flora and fauna.
I II III Adventure/ Resort Tourism Cultural
Sports Tourism Tourism
Ecouomic Ecouomic Eco110n1ic . Some income to . Direct income to . Some income to rural housclwld rural households rural households from the sale of operating lodges or due to demand local handicralis using mules/yaks for local and other souvenirs for transporting agricultural and . Employment and provisions or those livestock inc()me due to the engaged portcring produce. revival of during the tourist . Some local traditional crafts season. employment caused by the . Some impact on during the tourist demand from production regime season. tourists due to tourist demand . lnllation and dependency . Growth of central settlements.
Table 1.7 (b) Types of Tourism and Impact on Economy
IV v VI Pilgrimage Leisure/Holiday Business Tourism Tourism Tourism
Ecouomic Ecouomic Ecouomic • Traditional . Some inc()me to
rilgrimage based . Direct income to rural households
on frugal living rural households due to demand for that exerted little orcrating lodges or local agricultural rrcssurc on local using mules/yaks and livestock CCOI101111CS .
lor transporting pr()duce. • Easy access to provisions or those . Some local
many pilgritnagc engaged portcring emrloyment resulting in during the tourist during the tourist unscrupulous mass season season. tourism and high
. S()mc imract on Economic . dependence on rroduction regime development imports. due to tourist through large scale
• Some income to demand industrialization local households
. lnllation and Technology . from sale of local dependency. transfer handtcralis . Growth of central Increase 111 imrorts .
settlements and exports . Increase nattonal Income . i\ ffcct cottage industries and creates inflation
16
VII -Eeo Touri sm
VIII Wild Life Tourism
Ecouomic Ecouomic . .
Growth ()f re search • Some inco111c to medicine ind ustries local households Better infrastructure through conscrvat ion greater touris
hencr t
attraction an d income.
• Employment during the hunting season
• Income to government revenue through hunting permits and fees
I II Adventure/ Resort Tourism
Sports Tourism
Sociai!C'ttflum/ Social/ Cullum/ . Dcmonstrat ion . Demonstration . effects efli:ct . Cultural a\\ arcncss . Social aberrations
I problems resulting from . unscrupulous tourists and resort operators .
Table 1.7 (c) Types of Tourism and Impact on Society
Ill IV v VI Cultural Pilgrimage Leisure/Holiday Business Tourism Tourism Tourism Tourism
Social! lulluml Social/ Cullum/ Sociai/Cullural Social/ Cullum!
Commcrcializati<> • Commcrcialtzation . Cultural awareness . Demonstration n of art culture of religious rituab . Increasing crime . effect and religious and Sllllbnli:-m prostitution. . Social aberrations I symbols. • Continuity and gan1bling and drug problems resulting Theil of cultural. maintenance nr abuse among the from unscrupulous religious artifacts religious tr<u.litHH1~. local youths. tourists and resort and black . Openness to new operators marketing ideas. 13reakdom1 of . Demonstration cultural effects inhibitions and erOSIOn of
---·
Eco
Sociai/C ullural
ness of icnl vat1on
.
. /\ware ceo log conser D1stur b the local
onal traditi llvclih ood
• Soc 1al awarenc.>s:,
• Dcmor1Stration effect
I
I cultural hasc . Awareness of social and cultural hentage . Openness to new idcns. _j_ __ j~ ___ _j
.. -. ' ...
Source Shnnna P1tamber. 1 ounsm ,md Livelihood 111 the Moun tams. Rcg1onal Ovcrv1n1 and Lxpcnencc of Nepal 111 Banskota Mahesh, Papola S 1 rdok and Richter .lurgen (ed). Growlh. Povert1· Allevia11011 and Suslainable Resource Management inlhe Mowuuin Areas ojS0111h Asw. German Foundation for International Development, Germany. 2000. p.35~
17
(i) The adventure/sports tourism can also impact on the socio-economic and
environment of the host country. Environmental impact can take the form of forest
degradation due to increased demand for fuel-wood along trails, trail degradation along
heavily used trails, pollution in and around camp site, wanton disposal of degradable and
non-degradable waste and contamination of creeks, rivers and water sources, pollution of
soils and glaciers at high altitudes.
Economic impact can take the form of direct income to rural households operating
lodges or using mules/yaks for transporting provisions or those engaged portering during the
tourist season. Some impact on production regime due to tourist demand, may lead to
inflation and dependency and also to growth of central settlements.Socio-cultural impact on
the host community can be in the form of demonstration effects and cultural awareness.
(ii) The resort tourism has the potential socio-economic and envir~nmental impact
upon the host country. Environmental impact can take the form of land use problems brought
about by sprawling growth of resorts, deforestation due to demand for fuel-wood and timber,
soil instability and slope failures due to heavy construction along slopes, discharge of
untreated sewages and solid waste along slopes and rivers. It can also lead to traffic
congestion, noise and vehicular pollution along popular resorts.
Its economic impact can be in the form of some income to rural households due to
demand for local agricultural and livestock produce, and may leads to some local
employment during the tourist season. Socio-cultural impact can take the form of
demonstration effect and social aberrations I problems resulting from unscrupulous tourists
and resort operators.
(iii) The cultural tourism has the potential socio-economic and environmental impacts
on the host country. It has minimal environmental impact as most cultural tourists are
confined to or, based in major settlement or urban areas with historic, cultural monuments
and relics. There could be little direct impact on environment except for tourist litter
generated in these sites.
Economic impact can take the form of income accrual to rural household from the
sale of local handicrafts and other souvenirs and employment and income due to the revival
of traditional crafts caused by the demand from tourists.
Socio-cultural impact can take the form of commercialization of art, culture and
religious symbols, theft of cultural, religious artifacts and black marketing, breakdown of
cultural inhibitions and erosion of cultural base, awareness of social and cultural heritage and
openness to new ideas.
18
(iv) Pilgrimage tourism has the potential socio-economic and environment<Jl impacts
on the host country. Environmentally its impact can take the form of heavy concentration of
pilgrims during particular periods creating problems of waste disposal, pollution and
congestion, heavy demand for fuel woods during these periods as many pilgrim sites are
located in a biologically sensitive and fragile environments and may lead to high pressure on
basic infrastructure during pilgrimage season.Economically traditional pilgrimage based on
frugal living that exerted little pressure on local economies. But resulted in easy access to
many pilgrimage resulting in unscrupulous mass tourism and high dependence on imports
and some income to local households from sale of local handicrafts.
Culturally, it can lead to commercialization of religious rituals and symbolism. It may
also lead to continuity and maintenance of religious traditions.
(v) Leisure/holiday tourism may have an impact on the host environment in the form
of traffic congestion, noise and vehicular pollution along popular resort and tourist spots and
leads to tourists litter generated on the tourist spots. Economically it generates direct income
to rural households operating lodges or using mules/yaks for transporting provisions or those
engaged portering during the tourist season. It also has some impact on production regime
due to tourist demand. It may also lead to inflation and dependency and growth of central
settlements. On the socio-cultural front, it may lead to cultural awareness, openness to new
ideas. At same time it may also lead to increases in crime. prostitution, gambling and drug
abuse among the local youths.
(vi) Business tourism may have an environmental impact on the host country in the
form of deforestation due to setting up of various of industries. resorts and infrastructures,
land use problems brought about by sprawling growth of resorts, deforestation I forest
degradation due to demand for fuel wood and timber, soil instability and slope failures due to
heavy construction along slopes, discharge of untreated sewages and solid waste along slopes
and rivers. It could also lead to traffic congestion, noise and vehicular pollution along popular
resorts.
Economically, it may bring some income to rural households due to demand for local
agricultural and livestock produce. Local employment during the tourist season may also take
place. Economic development through industrialization, technology transfer, increase in
imports and exports and increase in national income are the other likely effects.
IQ
Culturally. demonstration effect. and social aberratiOn/problems resultmg tron
unscrupulous tourist and resort operations are generally the main socio-cultural impact of
business tourism.
(vii) Eco-tourism has the greatest potential environment impact on the host country. It
could disturb the ecological balance through various kinds of research, experiment,
exploitation and exploration of flora and fauna. It could even lead global warming and result
in the loss of endangered species. At the same time it could lead to the discovery of many
new species and herb related medicines and better conservation of flora and fauna.
Economically, it leads to growth of research medicine industries and better infrastructure
through conservation hence may generate greater tourist attraction and income.
On the socio-cultural front. it leads to awareness of ecological conservation even while
disturbing the local traditional livelihood.
(viii) Wildlife tourism has the potential environmental impact. It could threaten many
endangered species and animals through tourist hunting and disturbing their habitats. And at
the same time it could lead to greater awareness on conservation of forests and wild life.
Economically, it brings some income and employment to local households during the hunting
season and also contributes income to government revenue through hunting permits and fees.
ll.S.l Economic Implications
Tourism is a mixed blessing everywhere. It influences the environment, economy,
society and culture of destination areas in different ways. Amongst the many impacts that
tourism may exert upon the host areas, the processes of physical and economic development
are perhaps the most conspicuous. 37 The economic effects of tourism may be evident in the
physical development of tourism infrastructure (accommodation. retailing, entertainment,
attractions, transportation services etc.); the associated creation of employment within the
tourism industry, and Jess visibly, a range of potential impacts upon GDP, balances of trade
and payment and the capacities of national or regional economies to attract inward
investment. Tourism has the capacity to create considerable wealth from resources that are
often naturally and freely available, but the risks associated with over-development and
dependence upon an activity that can be characteristically unstable are negative dimensions
37 Williams, Stephen n. 14, p. 69.
20
that should not be overlooked. There are benefits. but there are costs attached to the physical
and economic development of tourism. 38
Tourists spend the money in various activities such as accommodation, catering,
transportation, sight seeing, trekking, skiing, scuba diving, gambling, shopping, park and
monument entrant fees and health club etc. These are very much determined by the
characteristics of tourists such as nationality. income group, length of stay etc. The money
spent by the tourists multiplies as it passes through different sections of the economy. The net
multiplication of tourist expenditure is injected into the local economy. Consequently certain
areas of the touristic region benefit economically as it generate additional income and
employment. It also increases the demand of consumer goods, agricultural and livestock
products, handicrafts etc. The final consequence is that the micro level economy experiences
economic upliftment as a result of trickle down effect. The extent to which tourist
expenditures percolate into the local economy depends to a large extent on the level of
economic development of the destination areas. This level also determines the percentage of
leakages in the form of imports, profits and salaries.39 For instance. Khajuraho in India which
is now an internationally famous tourist spot was a remote and unknown small village about
twenty years ago. Now it attracts thousands of tourists both domestic and international
annually.40
Economic opportunities created by tourism have had an impact on land use too along
the main trails or areas. This impact has mainly been brought about by changes in cropping
pattern and crops, encroachment on forests and public land, and changes in settlement
patterns. Cultivation of fruit, potatoes, and other vegetable crops has increased. In some cases
there has been a decline in traditional agricultural practices and relative neglect of livestock
and pastures. 41 For instance a study of socio-economic set up of Ladakh in 1986 shows that,
there was a dramatic shift from food grain to non-food grain crops such as vegetables, fruit,
fodder etc in Leh. The area under vegetable plantation increased from 111 hectares to 149
~;;~ THESIS ~/.-,\:_;: .. : ~>~
338.4 791549604 <·~.':/ .... ' ' ~-.... ~ \
111 Rt11iiltl,llllllrnr~~~~~~ ('t' ·: / 38
Ibid, p. 69. TH13079 \,,< : . '·· , 39 Bhatia, AK, n.2, p. 191. ·'<.. . 40
Shrestha, Hari Prasad, Tourism in Nepal: Marketing Challenges, Nirala Publication, New Delhi, 2000, p.136. 41
Sharma, Pitamber, "Tourism and livelihood in the Mountains, Regional Overview and the Experience of Nepal, in Banskota. Mahesh, Trilok, S. Papola and Jurgen, Richter (ed.) Growth, Poverty Al/eviation and Sustainable Resource Management in the Mountain Areas of South Asia. Dentsch Stiflung for International, Germany, 2000, p. 361.
21
hectares between 1973/74 and 1985/86. This resulted in the general decline by 18% in the per
capita traditional crop (rice) production.'n
Moreover. the economic implication of tourism may manifest in its impact on the
structure of local economies and on the regimes of production and distributions as well as
trade. New employment and income opportunities, particularly in hospitality services and
trade sectors, can open up due to tourism. Specialization in the production of agricultural,
horticultural and livestocks products for the tourist market may be one distinct expression of
the impact on the production regime. There may also be an increase in imports from outside
to cater to tourist needs, resulting in increased leakage of income from tourism and in
dependency of hitherto self-sustaining economies. 43 For instance, in Tanzania, for every
tourist dollar, 40 cents go on imports, 40 cents to private hotels and other business, and only
20 cents to the government in the from of taxes.44
The seasonality of tourism may also lead to seasonal unemployment and under use of
facilities. The distribution of tourism benefits may also be remarkably skewed, as the benefits
naturally flow to those who have the skills and can make the required investments in the
provision of goods and services for tourists. Tourism can also widen income difference
between areas and households and in almost everywhere associated with inflation.45
Tourism at the same time, is sometimes perceived as a high risk option for developing
countries as the earnings which it provides may be unstable over time. For example.
relatively high elasticities of demand with respect to changes in inflation, exchange rates or
political instability are often associated with considerable changes in earnings. Instability of
tourism earnings can bring about various adverse effects in the host econ01~y. Decreased in
earnings not only cause fall in income and employment but may also induce decreases in
investment. Instability, per se, can cause rising uncertainty which acts as a further deterrent to
investment and constrains imports of capital goods. Even the fiscal yield is less predictable,
which may deter spending on infrastructure and human capital formation and lower the rate
of growth.46
42 Sood, Vibha, Tourism and its Impact on the Socio-economic Setup o/Ladakh, (MPhil Dissertation), Centre
for Study of Regional Development, School of Social Science, Jawaharlal Nehru University, New Delhi, 1990, pp.l84-185. 43 Sharma, Pitamber,n.41, p. 8 44
Lea, John, Tourism and Development in the Third World, Routledge. London, 2001, p.39. 45 Sharma, Pitamber,n.41, p.8 46
Sinclear, M. Thea, "Tourism and Economic Development: A Survey"', The .Journal of Development Studies, Vol. 34, No.5, June 1998, Frank Cass Publication, London, pp. 32-33.
22
Table 1.8 prese•1ts the economic impact of tourism matrix. It is observed from the
table that, there are roughly six characteristics of tourist such as nationality, sex, age group,
income group, length of stay and motivation of travel which determine the tourist expenditure
on local transport, restaurant and boarding, accommodation, souvenir, monastery/park tickets
and miscellaneous. The total tourist expenditure or gross income receipts from tourist
expenditure in turn have a multiplier effect and leakages on amenities and infrastructure, on
employment, on income, on agricultural livestock products, on handicrafts and on service
sector which in turn tremendously impacted upon the overall economic development of the
host country.
The impact of tourism on the host economy, its areas of effect and its negative and
positive effects are given in Table 1.9. It is observed from the table that, to'.lrism can have a
negative and positive impact on the host economy such as amenities and infrastructure,
employment, income multiplies, agriculture and livestock products, handicrafts, service
sector, regional development, cultural resources and international relation. The negative
impacts of tourism on the host economy can take the form of economic recession in the
generating countries, changes in the price of holidays consequent upon fluctuations in
international monetary exchange rates or price wars with the travel industry.
It can also result in low paid, menial, unskilled. part-time and seasonal or over
dependent upon female labour, changes in costs of transportation, reflecting particularly,
charges in oil prices and associated loss of aviation fuel, changes in the cropping patterns and
crops, encroachment in forest and public land, neglect of traditional agriculture, livestock and
pastures. It can also lead to short-or medium-term economic and political instability in
destination areas and negative imaging of potential problems at destinations, viz levels of
crime, incidence of illness even epidemic. In the service sector it usually leads to increase in
the levels of economic dependence upon foreign companies and investors and instability of
industries and diversion of investment from other development areas and also leads to
localized inflation of the price of land, labour costs and prices of goods in the shops and may
also leads to instability and weakness in labour market. (Table 1.9)
Tourism can also treat culture as commodity and may also leads to social dualism, up
gradation of social and moral values, reservation, fenestration, dissentient etc. Tourism may
also lead to warfare and civil unrest and misunderstanding in the international relation.
I
A UIJI\,.- A.U
Economic Impact of Tourism
Tourism I
Age group H Sex H Income 1- CHARACtERISTICS Nationality { -group
------------]- [--------------- -------Length of Motivation of stay --- travel
·-~--- ---··-···-----··---· -- ·-·-
I ,-Local Restaurant Accommoda TOURIST Souvenir
r- - - r-Transportation and Boarding tion EXPENDITURE r-L_
--------J c----------- ------Monastery Miscellanea_ us park tickets_ -- _______________ _
I TOTAL 10URIST
RECEIPTS
I Expenditure GROSS INCOME Leakages
r-Multiplier e----- GENERATED
I -
On Amenities Employment Income IMPACTS On Infrastructure effect effect agricultural
r- r- live stock -f-- I--
products
--------------} c·---------- ----- --- -On On service scclor handicrafts
-·------·---- ----····--·-·-· ·--- -·
I REGIONAL ECONOMIC
DEVELOPMENT Source: Sood, Y1bha, Tounsm and tis Impart on the Socto-Economtc set up of Ladakh, (M.Phd DissertatiOn), Centre tor Study of Regional Development, School of S Sciences, JNU, New Delhi, I 990.
24
The positive impact of tourism on the host country can take the form of promoting
and financing infrastructural improvements, creating substantial volume of employment both
direct and indirect, assist in the redistribution of wealth from richer to poorer regions through
diversification, promote developments through the encouragement of new economic linkages
and increase the gross domestic product GOP of an economy. It can also contribute to
enhancement of economic growth, inter-firm linkages and the generation of income through
multiplier effect. It would to a large extent enhance capacity to attract inward investment to
finance capital projects and also aid development through the generation of foreign exchange
earnings besides exerting beneficial effects upon balance of payment accounts. It may also
lead to diversification of economies and create new patterns of economic linkage and relation
for equal economic growth.(Table 1.9).
For example, tourism has reshaped the economy of some of the countries like Hong
Kong, Spain, Italy, Mauritius, Yugoslavia, France etc. Newly emerging countries in such
areas as the Caribbean depend very heavily on tourists' income, which often represents the
major part of the gross domestic product (GOP). Even developed nations like Canada which
derived over 11% of its GOP from international visitors in the year 1989 rely heavily on the
income from tourism.47
1.5.2 Socio-cultural Implications
Apart from the economic impacts, international tourism may have an important socio
cultural and socio-economic significance or impacts. It brings into contact peoples of
different races, nationalities, culture, religions and backgrounds and the cultural exchanges
and enrichment ofboth who travel and those who host them.48
However, the assessment of social impacts is very complex because one cannot
quantify social impacts, subtract costs from benefits, and arrive at a conclusion as in an
economic cost/benefit analysis. It is also sometimes difficult to differentiate between social
and economic costs and benefits, since they are so interlined. Furthermore, the tourism
industry will not have the same impacts on the economy and society of any two countries, no
matter how similar they might appear. The potential impacts of the tourism industry on the
socio-cultural and socio-economic pattern and system depend on a large number of criteria.
47 Shrestha, Hari Prasad, n.40, p.l 12. 48 Robinson, H., A Geography of Tourism, Macdonald and Evans Plymouth, 1976, p. 139.
25
This not only includes the number of tourists, but also the historical, social, cultural,
economic, and political background of the host country. 4l)
Table 1.9 Impacts of Tourism on Economy
Area of Effect Negative Impacts Positive Impacts I Amenities and Economic recession in generating countries. Promote and finance
infrastructure Changes in the price of holidays consequent infrastructural improvements. !
I upon fluctuations in international monetary i exchange rates or price wars with the travel I
I I I industry. 2 Employment Low paid, menial. unskilled, part-time and Create substantial volume of
seasonal or over dependent upon female employment both direct and labour. indirect.
3 Income Changes in costs of transportation. reflecting Assist in the redistribution of Multiplies panicularly. charges in oil prices and wealth from richer to poorer
associated losts of aviation fuel. regions through diversification. 4 Agriculture and Change in cropping patterns and crops, Promote developments through
Livestock encroachment in forest and pub! ic land, the encouragement of new products neglect of traditional agriculture, livestock economic linkages and increase
and pastures. the gross Domestic product GDP of an economy
5 Handicrafts Short-or medium-term economic and political Contribute to development to instability in destination areas. wider formation of Economic
Negative imaging storming from arrange of growth. inter-firm I inkages and potential problems at destinations. viz level:s the generation of income through of crime, incidence of illness, epidemic or Multiplier effect.
simple declines in fashionability. Capacity to attract inward investment to finance capital projects
6 Service Sector Increase levels of economic dependence upon Aid academic development foreign companies and investors and through the generation of foreign instability of industries. Divert investment exchange earnings. from other development areas.
7 Regional Localized inflation of the price of land, Exert beneficial effects upon Development Labour costs and prices of goods in the shops. balance of payment accounts.
Instability and weakness in labour market. 8 Cultural Culture as commodity and social dualism, Diversify economies and create
Resources upgradation of social and moral values, new patterns of economic linkage reservation, Fenestration, dissentient etc. and relation hence equal
economic growth. 9 International Warfare and civil unrest, misunderstanding.
relation Sources: WJihams. Stephen,. Tourism Geography, Routledge, London, 1998.
Bhatia, A.K., Tourism Development, Sterling Publisher, New Delhi, 1982.
Nevertheless, the first appearance of tourism in the world had a cultural motivation,
and tourism has always stood as a unique vehicle for the cultural propagation that is
necessary to a deeper understanding of people. Tourism, with its basic element of movement,
49 Crandall, Lauise "The Social impact of Tourism on Developing Regions and its Management" in J.R. Brent
Ritchie and Charles R. Goeldner (ed.), Travel, Tourism and Hospital Research. John Wiley and Sons, US, l987,pp. 373-374.
26
stands for the possibility of communication between different civilizations and it has served
in this sense since its first emergence. Tourism has always been an essential medium for
broadening the limits of human knowledge. From the very early times. a mainspring of the
urge to travel has been largely based on the cultural interest. Even today we can witness large
masses of people travelling to foreign countries to become acquainted with the usages and
customs. to visit the museums and to admire works of art and culture. As Medlik says "when
the tourist comes in contact with the place he visits and its populations a social exchange
takes place, his social background affects the social structure and mode of life of his
destination; he is in turn affected by it and sometimes carries back home with him new habits
and ways of life". 50
The social and cultural manifestation of tourism are multifarious and are evident in
different ways involving man, his society and his country. "The socio-cultural impacts of
tourism would be conspicuous in various facets of human activity such as religious, culturaL
educational in relation to leisure, health and sports, national and international understanding
etc. " 51 As tourism bring together people belonging to different countries, practicing different
lifestyles and speaking different languages. There is a great mingling of cultures and social
practices and ideas having the potentiality of bringing about changes in people's ideas,
behaviour patterns, lifestyle, social systems, institutions, values and norms, expectations etc.
had in fact exert a great deal of both negative and positive effects to the host country, area or
society or culture. 52
The social and cultural implications of tourism can be more far-rearhing and subtle.
Increased interaction with tourists can rub off many of their values and behaviour patterns
onto host communities. Traditional values may be eroded. Societies may become more
material oriented. Brought face to face with the rich and the more affluent tourists, the
community at large and younger members in particular may lose their sense of self-esteem.
The symbolism of social and cultural festivals and rituals may be lost. Commercialization of
art and theft of cultural and religious objects and artifacts, decline in local cultural practices
and institutions could take place. 53 For instance, changes in lifestyle and traditional clothes
have been observed in Ladakh. From traditional clothes to modern fashion especially among
50 Bhatia, A. K. n. 2, pp. I 96- I 97. 51 Gupta, Sunil and Bansal, S.P, Tourism Towards 2 !''Century, Deep and Deep publication, New Delhi, 1998,
p.57. 52 Ibid, p.58. 53 Sharma, Pitamber, (ed), Tourism and Development- Case Studyfrom the Himalayas, Himal Book, Nepal, 2000, p. 8.
27
the youth were observed. Moreover. changes in food like Tshampa (Traditional Food),
Thukpa. Momo and chang (fraditional wine) to Rice meal and cold drinks and foreign liquors
have also been observed. 54
A more serious socio-economic impact of tourism is the increasing social tourism
resulting from the distribution of benefits from tourism. Rising inflation, limited economic
opportunities for poor people, and lack of mechanisms to facilitate a better distribution of
tourism benefits. discrimination in employment are some of the reasons for increasing social
tension. 55 Demonstration effect is another outcome of tourism. This encourages the local
people to adopt a better lifestyle by adopting new ways as learnt from the tourists. The
negative impacts in this case are much more grave. Tourists are on a holiday and they have a
good time and they tend to be spent thrift and act as a symbol of affluence and leisure for the
local population. Locals are at work and are generally financially relatively worse off and as a
result they develop a feeling of discontent, frustration, resentment and degradation of moral
values and manifest in the disintegration of social and cultural fabric and in the loss of
vernacular forms of built environment. 56
1.5.2.1 Cultural Shock
'Cultural Shock' is yet another adverse impact of tourism on the i10st community.
When we expose-off people to a bus load of tourist who descend on traditional places of holy
significance or cultural value, they are confronted with severe economic disparities, suffering
and under-development, strange cultural manifestations and differing psychological attitudes.
This leads to wilderment, frustration and disorientation, especially if he/she has embarked
upon travel without mental preparation. Other morally objectionable activities like routing.
'drug addiction, prostitution, hustling, petty swindling also are often attributed to the tourism
impact on host societies. 57 For example, some exotic destinations like Tahiti or Thailand,
prostitution or sex industry are thriving mainly due to mass tourism. 58
Tourism may also contribute to an increase in criminal and anti-social activities. The
main factors for this situation are the population density due to increase in tourist traffic, the
location of tourist resort in relation to an international border and a large difference in per
capita income of tourist and hosts at destinations. Congregation at tourist destination result in
54 Sood, Vibha, n.42, p.l89. 55 Sharma, Pitamber, n. 53, p. 363. 56 Ibid, p.S. 57 Gupta, Sunil and Bansal, S.P. n, 51, p.58. 58 Lea, John, n.44, p.69.
28
mcrease expenditure or law enforcement during the tourist season needs to be enhanced
drastically. The heightened tension. burglary. vandalism, embezzlement, and black marketing
need to be checked in more than normal way. 5 '~
The larger the influx of visitors or tourists to a place the greater becomes the risk of
inconvenience and reduction in amenities and facilities to the permanent residents. They
sometimes also lead to out-migration. seasonal unemployment, abandonment of traditional
forms of employment, higher land prices and conflict over and use of local resources.
1.5.2.2 Positive Aspects
However, tourism also exerts many positive impacts and brings a number of
intangible benefits to the host communities. "tourism may contribute to the revival and
renewal of traditions in arts and crafts and in the observance of cultural and religious events.,
in the process, host communities may not only raise their income but also discover a sense of
their own 'worth' and be instilled with a sense of pride in their contribution to the rich
diversity of human heritage". 60 In Jamaica, for example, foreign visitors are presented with a
wealth of music from traditional dances and songs to reggae and western tunes. The survival
of the former, the songs and dances from the plantation era, seems to be sustained to a
considerable degree by the tourist entertainment industry. 61 It is also observed that of Hula
dancing in Hawaii and many North American crafts such as pottery, basket weaving, rug
weaving, silversmithing, and wood carving, in both the Pacific Northwest and the southwest.
Sometimes the exotic tradition of the touree can even invade the culture of the tourist, as
when high-quality crafts are produced by non-Indian craftsperson, a common occurrence in
North America. 62
Another example of positive influences of tourism on the physical culture of the host
community may be found in the financial success of traditional art and artifact production in
many places, but seems to have reached its greatest expressiOn among the aboriginal
populations in developed countries like Canada (the Eskimo or Inuit) and Australia
(Aboriginal people). In Australia, the ancient sand painting of desert tribes in the northern
territory has been successfully adapted through the use of acrylic paints and canvas to form
the basis of a lucrative export market where individual works can fetch tens of thousands of
59 Gupta, Sunil and Bansal, S.P, n.S I, p. 59. 60 Sharma, Pitamber, n. 53, p.S. 61
Malhotra, R.K, Socio-Environmental and Legal Issues in Tourism, Anmol Publication, New Delhi, 1998, p.6. 62 Ibid, p.9.
29
dollars. Further north, in Arnrem land, 'bark painting' have become a valuable commercial
product with the use of modern glue to seal formerly fragile dyes. 6:;
Tourism leads to openness to new ideas and opportunities, realization of the 'worth'
of their cultural and religious heritage, and pride in the upkeep and maintenance of one's own
unique heritage. It also exerts social benefit like socio-cultural, educational, political
significance as well as tourism is an important medium of social and cultural development in
the host country. It also aids and motivates the preservation of cultural heritage. Visitors
enjoy and learn many things about the culture and customs of the people of different
countries, and societies by reaching, seeing, observing and making personal contact. 64
'Tourism also helps to improve international understanding between different nations and
among the people of those nations also. In fact, travelling widens the knowledge of people
and by the face to face meeting the people of different races and culture it enables them to
promote greater understanding of common problems. 65
Tourism may also bring about an introduction of new values and practices (modern),
revitalization of traditional crafts, performing arts and culture and promotion of the cultural
reputation of the hosts in the world community. 'Tourism often has significant cultural
implications (the restoration of ancient monuments, aesthetic (the preservation of beauty of
landscape and the safe guarding of the nations heritages), social (the provision of recreational
facilities for the health and welfare of people) and political (the improvemer.t of international
understanding). 66
1.5.2.3 Summing up the Socio-cultural Impact
The potential socio-cultural impacts of tourism is presented in Table 1.1 0 while the
impact of tourism on the socio-cultural both negative and positive are presented and analyzed
in Table 1.11. It is observed from the two tables that, the tourist - host interaction exert
varied socio-cultural impact both negative and positive such as the transformation of
demographic structure (population size, sex ratio, literacy, resident displacement,
modification of family size), commercialization of culture. social dualism, demonstration
effect and impact on social amenities and local resources.
The negative aspects of impact of tourism on the society and culture of the host
community can take the form of commoditization of culture, degradation of social values,
63 Lea, John, n.44, p.7 I. 64 Shrestha, 1-!ari Prasad, n.40, p. I 34. 65 Ibid, p. I 35. 66 Negi, J.M.S., Tourism and Hoteliering, Geetanjali publishing house, New Delhi, 1982, p. 95.
30
disruption of community bond, risks of promotion of anti-social activities such as gambling
and prostitution. It can also leads to inferiority complex, resentment, frustration, degradation
of moral values, bad example for youths of the host community and to increased tension
between imported and traditional lifestyles. Moreover, tourism creates new pattern of local
consumption. For instance, the seer pressure caused by a ready market for handicrafts has
also lead to a fall in the quality of workmanship and the manufacture of cheap imitations
known as "airport art". It was observed that, traditional designs are degraded in this way and
old skills lost and accusations-abound of the existence of fake art on sale fr0m Africa to the
Pacific. Most obvious is the production of small and unusable replicas of large items like the
Australian didgeridoo (Aboriginal musical instrument), because the original are far too big to
be transported easily.67
Another example of commercialization of culture can be observed from the Bedouins
feasts of Tunisia. The Bedouins are desert tribes of Tunisia with their own ancient customs
which include, on special occasions, elaborate feasts around the campfire, accompanied by
their own singing and dancing under the night-sky of the desert. The feasts have been
religious and symbolic meaning for the Bedouins. and are an important part of their culture. 68
Yet another example of tourism impact on the social values can be observed from Leh
and Kargil in India. For instance social values of interdependence and bonding in these
villages have changed due to the int1ux of tourists. New class formation has emerged which
has further loosen the community bond. Labour intensive work such as sowing and
harvesting carried out by Phuspun (Social unit) or immediate family members and close
relative has witnessed a drastic change over the years thereby weakening the communal,
family and religious bonds. 69
On the other hand, the positive aspects of impact of tourism on the society and culture
of the host community can take the form of preservation of culture, promotion of the cultural
reputation on the hosts in world community, revitalization of traditional crafts, performing
arts and rituals. It can also promote in widening dimensions, spread of new ideas, awareness
of importance of education, increased knowledge and understanding of host societies and
cultures. It also stimulates to improve way of living and encourage introduction of new
values by impart more modern values and practices. Moreover, it makes available a better
infrastructure and services for the locals. (Table 1.11)
67 Lea, John, n.44, pp.71-72. 68 Kunwar, Ramesh Raj, n.34, p.l78. 69 Sood, Vibha, n.42, p.l94.
31
' L I
i
Impacts
Socio - Economic Individual Economic
independence Labour force displacement
Changes in employment
Changes in land value
Improved living standards
Changes in political-economic system
Socio-cultural Growth in undesirable
activities Social dualism
Demonstration effect
Culture as a commercial commodity
Growth of hostility
Table 1.10
Potential Social Impacts of Tourism
I
!
Positive Aspects
Wages
Migration to tourism region for em_ployment
Employment in tourism sector
Increased value of land
Improved services, facilities, infrastructure
Growth of new elite, growth of depressed regions.
----
Cross-cultural exchange; widened dimension
Stimulation to improve living standards.
Preservation of cultural heritage, growth of pride
--
i
i
Negative Aspects
Conflict in traditional societies
Forced migration of residents from region. i
Seasonal unemployment; I abandonment of traditional I
forms of employment. I
Higher land prices: conflict over land use changes in
ownership. Inflation generated by
tourism Splits in national unity
Growth in crime and prostitution
Conflict in values
Frustration increased spending; growth in import
bill. Culture losses meaning as it
is commercialized for tourists.
Growth of resentment and hostility; servile attitude
growth on the part of residents
Source: Crandall Louse "1 he Social Impact of 1 ounsm on Developing Regions and Its Measurement", Ritchie J.R. Brent and Goeldner R. Charles (ed.) Travel. Tourism. and Hospitality Research, John Wiley and Sons, Inc., New York, 1987. P. 375.
32
Table 1.11
Socio-Cultural Impacts of Tourism
L___ ____ T_o_u_r_is_t_s _____ j-L[ ___ I_n_t_c_ra,c_t_io_" __ _J][L _____ H_o_st _____ - J
Social and culteal Impacts
Transformation of Commercialization of Social Dualism Demonstration effect Demographic Structure culture Population size Negative Negative Negative Sex-ratio Culture becomes Degradation of social values Inferiority complex Literacy accommod ity Disruption of community Bond Resentment, frustration Resident Displacement Positive Risks of promotion of anti-social Degradation of moral values Modification of family Preservation of culture activities such as gambling and Bad example for youths. size Promotion of the cultural prostitution. Increased tensions between
reputation on the hosts 111 Positive imported and traditional World community Widening Dimensions lifestyles. Revitalization of traditional Spread of new ideas Positive crafts, performing arts and Importance given to education Stimulation to 1m prove way of Rituals Increased knowledge and living
understanding of host societies and Introduction of new and by cultures implication, more modern values
and practices
N
Social Amenities and local Resources.
--------1 egative
L ocal resources delivered to tourists. N ew pattern of local
onsumption c p ositive A 111
vailability of better frastructure and services r locals. fo
Source: Crandall, LoUJse "The Social impact ofToumm on Developmg reg10ns and 1ts Measurement" m R1tch1e J.R. Brent and Goeldner R. Charles (ed), Travd Tnurisn and Hospitality Research, John Wiley and Sons Inc, New York, 1987. Chapter- 31, p.375.
33
1.5.3 Environmental Implications
Similarly, the environmental implication of tourism may manifest in its impact on
three main inter-related processes. Deforestation and forest degradation may result from the
increased demand on fuel wood and use of timber. Land degradation may result from overuse
of trails and consequent erosion in trekking areas and also from heavy construction on
unstable slopes, leading to landslides and landslips. Degradation may also be induced by
pollution of land and water due to increased non-biodegradable litter, unmanaged campsites
and solid waste. Environmental quality may be degraded due to air and noise pollution from
increased traffic, high congestion, visual scars, and loss of bio-diversity, both in terms of
flora and fauna especially in mountain tourism. 70
The impacts of tourism may also take the form of excessive use of natural resources
owing to tourism-related activities which may leads to over crowding, excessive consumption
of a resources, intensive construction of buildings, hotels. resorts. parks. souvenir etc which
would result in its resource depletion, creating a scarcity. soaring pric~s, soil erosion,
denudation of forests or depletion of marine resources etc. 71 One example which can be cited
is that of South Africa's Kruger National Park. This area was first reserved as a game park in
the 1920s after being subjected to many years of burning and cattle grazing by the small
African population. By the 1970s, the effects of the park enclosure had led to the growth of
thick bush and a resulting change in the wildlife population from large savannah species to
smaller and less easily seen forest animals. 72 Yet another instance of ecological imbalance
due to congestion of tourists can be observed in the case of Amboseli National Park in
Kenya. This park has experienced severe problems of tourist congestion and it was observed
that almost 80 percent of tourists restricted their viewing to a small, 15 sq km, area located
along the edge of the park's woodlands and swamps thus severely disturbing the ecological
system of the park 73
Tourism, far from being a force for enhancement and protection of the environment,
actually has shown itself to be a major generation of environmental problems with
considerable capacity to destroy the resources upon which it depends. This resources or
natural environment represent a complete set of inter-relationships among the phenomenon
such as flora, fauna, landforms, geological structure, and the atmospheric etc. These
phenomenon not only constitute the nature of earth habitats and physical setting for human
70 Sharma, Pitamber, n. 53, pp. 7-8. 71 Seneviratne, Pani, "Economics of Tourist Pollution" Marga, vol. 10 (4), 1989, PP. 72-73. 72 Lea, John, n.44, p.57. 73 Ibid, p.59.
34
life styles, but are the intinitf: renewable and non-renewable source base for human activity.
In fact. tourist affects each and every component of the eco-system. 74
However, not all of the environmental impacts for tourism may be negative. Indeed,
tourism can induce greater awareness for environmental regeneration and care particularly
among those who stand to benefit from it. It also encourages in conserving and protecting
animals, areas as attractions and to meet tourist demands. Tourism revenue finance ground
repair and site restoration and improvement to infrastructure and facilities and also
encouraged cleaning programmes, development of new/improved sources of supply. On top
of these, tourism leads to improvement of marginal and unproductive lands and landscape
and also regeneration and modernization of built environment and reuse of disused building 75
The environmental impact of tourism and its areas of effect both negative and positive
are presented in Table 1.12. It is observed that, tourism impacted upon the environment of the
host country in areas such as biodiversity, erosion and physical damage, pollution, resource
base, visual and structural change etc.
The negative impacts of tourism on environment includes disruption of
breeding/feeding patterns, killing of animals for leisure (hunting) or to supply souvenir trade,
loss of habitats and change in species composition, destruction of vegetation, soil erosion,
damage to sites through trampling. It also leads to over loading of key infrastructure (e.g.
water supply networks), water pollution through sewage or fuel spilage and rubbish from
pleasure boats, air pollution (eg. vehicles, emissions, fuel-wood), noise pollution (eg. vehicles
or tourist attraction: bars, discos etc.), littering of garbage, depletion of ground and surface
water and diversion of water supply to meet tourist needs ( eg. golf courses or pools). (Table-
1.12.
It could further result in the depletion of local fuel sources, depletion of local
building-material sources, land transfers to tourism ( eg. from farming) and also resulted in
the detrimental visual impact on natural and non-natural landscapes !hrough tourism
development. For instance, a case study in of Shimla (India) revealed that, due to the large
influx of tourists both domestic and international, resulted in dilemmas of development of the
existing infrastructure. Roads in and around town see critical bottlenecks scope for expansion
remains limited because of slope and terrain conditions. Similarly, water supply, sewerage
and solid waste management problems have reached crises proportions. The urban sprawl
74 Gupta, Sunil and Bansal, S.P., n. 51, P, 61. 75 William, Stephen, n. 14, P. 105.
35
2
3
4
5
aroUPd hill tops and forested areas has taken a toll on the aesthetic beauty and serenity of the
place. 70
Table 1.12
Environmental impact of Tourism
Area of effect Biodiversity
Erosion and physical damage
Pollution
Resource base
Visual/structural change
patterns Killing of animals for leisure (hunting) or to supply souvenir trade. Loss of habitats and change in species composition. Destruction of vegetation Soil erosion Damage to sites through trampling Over loading of key infrastructure (e.g. water supply networks)
Water pollution through sewage or fuel spilage and rubbish from pleasure boats Air pollution ( eg. Vehicles, emissions, fuelwood) Noise pollution (eg. Vehicles or tourist attraction: bars, discos etc.) Littering Depletion of ground and surface water Diversion of water supply to meet tourist needs (eg. Golf Courses or Pools) Depletion of Local Fuel Sources Depletion of local building-material sources. Land transfers to tourism (eg. From Farming) Detrimental visual impact on natural and non-natural landscapes through tourism development. Introduction of new architectural styles changes m (urban) functions and physical Expansion of built-up areas.
Positive lm acts Encouragement to conserve animals as attractiOns. l
Establishment of protected or conserved areas to meet tourist demands
Tourism revenue to finance ground repair and site restoration. Improvement to infrastructure prompt by tourist demand.
Cleaning programmes to protect the attractiveness of location to tourists.
Development of new/improved sources of supply.
New uses for marginal or unproductive lands. Landscape improvement (e.g. to clear urban dereliction). Regeneration and/or modernization of built environment. Reuse of disused buildings.
Source: Willian1s, Stephen, Tourtsn1 Geography, Routledge, London, 1998.
76 Sharma, Pitamber, n.53, p.l8.
36
The positive impacts of tourism on the environment includes encouragement to conserve
animals as attractions, tourism revenue to finance ground repair and site restoration,
improvement to infrastructure prompt by tourist demand, cleaning programmes to protect the
attractiveness of location to tourists and development of new/improved sources of supply.
It also leads to the establishment of protected or conserved areas to meet tourist demands.
it also introduces of new architectural styles changes in (urban) functions and physical expansion
of built-up areas, new uses for marginal or unproductive lands, landscape improvement (e.g. to
clear urban dereliction), regeneration and/or modernization of built environment and reuse of
disused buildings.
The environment IS an important input into tourism industry. If the quality of the
environment which attracts tourist is not properly maintained, it will result ultimately, in a
decline of the tourist revenue due to unplanned and uncontrolled growth of tourism. This
phenomenon is popularly known by the epithet, "Tourism destroys tourism''. To avoid this, the
volume and the type of tourism activity must be balanced against the sensitivity and carrying
capacity of the environment. This is essential to ensure that benefits from tourism can be
maintained and sustained in the long run. 77
A brief analysis of the implications of tourism on aspects of the environment, Economy
and society reveals that economic and social benefits of tourism are limited to settlements that
are strategically located and population groups that already have some resources to take
advantages oftourism opportunities. 78
Nevertheless, tourism has far-reaching implications and benefits for the economic
development, environmental regeneration and protection and development and enhancement of
society and culture of the host community or country. Thus tourism is not only an important
economic activity for the national economic growth and development of a country, but also an
important way of cultural interaction with countries of the world and preservation, protection and
environmental well-being of the host country.
77 Nandi, Parbati and Chakraborty Premangshu, n. 32, P. 26. 78 Sharma, Pitambar, n.41, P.364.
37
1.6 Scope of the Study /
Tourism is one of the fastest growing industries in the world. 79 Nepal is known as an
important tourist destination in the world tourism map with its enormous potentials of natural
attractions, socio-cultural values and archaeological heritages. Nepal is a land of Mount Everest,
land of Buddha, land of cultural diversity and is referred to as Shangri La. 80
Nepal's struggling economy began its quest for growth in earnest after 1950. when the country
emerged from decades of isolation under the autocratic rule of the Rana family. This effort
coincided with the lifting of many of the restrictions imposed on foreigners entering Nepal. In
the decades that followed, the level of growth registered in Nepal's economy proved
discouraging, while the number of visitors to the country continually increased. The initial
prescriptions for economic success, which relied on measures to enhance agricultural
productivity and to expand overall the country's export based, proved ineffective. 81
Tourism has been playing a significant role in the country's economy. The actual foreign
exchange earnings generated by natural resources, leaving the country-minerals, timber,
agricultural products, and hydroelectric power - clearly have not met early expectations, but
those earnings derived from tourists entering the country have surpassed initial projections. The
high rate of tourism growth meant a I 0-fold increase in its contribution to Nepal's foreign
exchange receipts from the mid-1970s to the early 1990s. Tourism now contributes almost one
fifth of the country's gross foreign exchange earnings. Thus, making tourism industry, a major
source of foreign exchange earnings after foreign aid in Nepal, contributing to the overall
development of industry, trade, employment and other sectors of the national economy. 82
However, the issues of environmental and cultural degradation/pollution and its
manag.ement are intricately related to tourism in Nepal, especially as tourism in Nepal is a
nature-based mountain tourism. Development of tourism in Nepal poses specific environmental
and socio-cultural risks such as changes in land use, loss of vegetation cover, deforestation.
garbage accumulation, soil erosion and trail degradation on the one hand and commercialization
of culture, cultural pollution/degradation, out-migration and crimes on the other. 83
79 Nandi, Parbati and Chakraborty, Premangshu, n.32, p.22. so Shrestha, Hari Prasad, n. 40, p.6. 81 Karan. P.Pradyumna and Ishii, Hiroshi, n.33, p.256. 8
: Shrestha, Hari Prasad, n. 40, pp.ll3-114. 83 Karan. P.Pradyumna and Ishii, Hiroshi, n.33, pp.277-282.
38
Successful nature-based mountain tourism like Nepal depends ultimately on sustainable
land. e.nvironment and cultural management and without local community participation in the
planning, control, and decision-making mechanisms, tourism in Nepal is likely to cause the
exploitation of natural resources and culture, mainly for the benefit of outsiders. It is precisely
because of such tourism-induced environmental and socio-cultural problems that more cautious,
integrated and long -term tourism development strategies are needed to ensure that they
contribute positively to the sustainable development of mountains and its communities. Realizing
the importance of tourism, the Government of Nepal has taken several important initiatives and
measures to develop tourism by creating necessary institutions and laws/acts and providing
priority in the national plans and policies.
However, Himalayan Kingdom has seen a marked drop in tourists in the aftermath of
91 I I terrorist attacked on world trade tower and violence of Maoist insurgent forces. The tourism
industry in Nepal is also badly affected by the tragedy that struck the Royal family in June 200 I,
hijacking of the Indian Airlines plane at Kathmandu in December 1999 and as many other
bandhs/strikes that is taking place from time to time.
This study is a modest attempt to explore some of the major issues involved in the impact
of tourism on the economy, society and environment in Nepal. Tourism is one of the few areas
where Nepal has a potentially competitive advantage and can compete in the international market
with a relatively smaller effort. The study will analyzed the role of tourism as an engine of
economic growth in Nepal and will further examine the impact on the socio-cultural,
environment and economy of the country. The study also examines the impact/fallout of the
international terrorism and Maoist insurgent activities, the Indian plane hijack of 1999, and the
Royal family massacre in June 200 I and such other socio-political issues and problems that
arises from time to time on the tourism scene and development in Nepal. It puts in place some of
the major policy interventions made by the Government in the tourism sector.
1. 7 Chapterization
This study is divided into five chapters;
Chapter I discusses the conceptual framework of tourism and socio-economic and
environmental linkages. It defines tourism, and discusses the evolution of international tourism
39
and various types of tourism. It also discusses the general socio-cultural, economic anc
environmental impact of tourism with few examples.
Chapter 2 examines development of tourism in Nepal. It provides the basic features 01
Nepal including socio-cultural, geographical, climatic, economic. physical infrastructure
institutional infrastructure and political profiles. It also deals with the historical development ol
tourism and its planning and policies under various 'five years development plans' of Nepal. 11
further discusses the total tourist arrivals, tourism development strategies, types, potential anc
attractions in Nepal.
Chapter 3 addresses to various economic impacts of tourism in general and Nepal ir
particular. It looks into issues relating to tourism as a source of foreign exchange earning
income and employment generation. It also examines impact of tourism on development oftrade
local economic development, infrastructural and regional development, skilled manpowe1
generation, multiplier~effects and international understanding and cooperation. It also present~
various development plans of Nepal and also how tourism contributed to the GOP and nationa
economy of Nepal. It further looks into the problems related to the negative impact of tourisrr
such as inflation, unequal distribution of income and infrastructure and oppor!unity cost due tc
tourism development in Nepal.
Chapter 4 assesses various socio-cultural impacts of tourism in general and Nepal ir
particular. It discusses the general profiles of the society and culture of Nepal such as the people
language, custom, tradition, festival, religion, music, dance, drama, costumes, dresses, fooc
habit, art and architecture and human development index of Nepal. It also looks into tht
occupational and population patterns and various social amenities of Nepal and its subsequen
changes injected by tourism development. It discusses in detai Is the various impact of tourism or
the Nepalese society and culture such as on cultural and behavioural patte, ns, social crime
tension and discrimination, gender impact, cultural and traditional values. It also examines tht
role of various NGOs and agencies in preserving and maintaining the cultural heritage ofNepal.
Chapter 5 makes a comprehensive study on the negative and positive environmenta
impact of tourism and also gives the profile of national resources of Nepal such as ecologica
resources, flora and fauna, water bodies etc. It discusses the development of mountain tourisn·
and its various activities like river rafting, mountaineering and trekking in the region anc
assesses impacts on the mountain eco-system and environment such as on the settlement growth
40
soil erosiOn, water pollution, carrying capacity, climate change, grazmg, energy consumption,
land-use change and urban pollution in Nepal. It also discusses various efforts made by the
Government, NGOs and other agencies in the field of biodiversity conservation in Nepal.
The concluding chapter attempts to sum up the main findings from the proceding
chapters and make some recommendations/suggestions for sustainable tourism and economic
development of Nepal.
41
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