Tourism Impacts

By Maksim Godovykh

Tourism is one of the globe's greatest contributors to economic growth, providing significant revenues, innumerable employment opportunities, and massive investment input to destination communities around the world. As tourism becomes an economic mainstay for many communities, local, regional, and national governments increasingly encourage and promote the arrival of ever greater numbers of visitors. This increased visitation has significant impacts on the social, cultural, environmental, and psychological viability of destination communities, often adversely affecting the quality of life and well-being of residents.

Current approaches to measuring the impacts of tourism often fail to account for its negative impacts and instead rely on metrics associated with tourist volumes, revenues, and taxes. However, it is imperative to understand, measure, and improve the totality of economic, social, environmental, and psychological impacts of tourism. This book aims to introduce the knowledge, methods, measurement practices, and management tools necessary to explore and maximize the impacts of tourism development on residents' quality of life, health, and well-being in different types of tourist destinations.

The book consists of four main chapters. The first chapter introduces the foundations of tourism, discussing the tourism phenomenon in general, providing definitions of tourism, exploring the evolution of tourism development, supply and demand, tourism competitiveness, the complexity of modern tourism systems, and global issues. The second chapter examines the economic, political, social, environmental, health, and psychological impacts of tourism, as well as the phenomenon of overtourism. The third chapter is devoted to existing and emerging methodologies for evaluating tourism impacts, including different research approaches and examples, the collection of secondary and primary data, data analysis and visualization, and developing recommendations for tourism bodies and the management of tourism destinations. The fourth chapter discusses different opportunities to influence the impacts of tourism, concluding with the issues of sustainability, destination resilience, developing destination strategies, and applying behavioral insights in destination management and tourism policies.

This book intends to contribute to tourism knowledge and practice through conceptualization, operationalization, and a call to explore the economic, social, environmental, and psychological impacts of tourism development on local communities. The described research methods and evaluation techniques aim to transform tourism statistics and tourism research in favor of local citizens and provide new opportunities for measuring the effects of tourism development on residents of tourist destinations. The book chapters can be used as guidance for students, tourism practitioners, destination managers, and governmental authorities. By examining the economic, social, environmental, and psychological impacts of tourism and applying the methods, models, and recommendations presented in this book, managers and policymakers may more effectively improve the quality of life, health, and well-being of residents in local, regional, and national tourist destinations worldwide.

• Language: English
• Publisher: Center for Tourism Impacts Research
• Release date: May 30, 2023
• ISBN: 9798223451419

Maksim Godovykh

Dr. Maksim Godovykh is leading research projects aimed at exploring the impacts of tourism development on the quality of life, health, and well-being of local communities. He also focuses on developing new methods and technologies to measure tourists’ and residents’ experience, combining psychophysiological techniques, self-reported surveys, online testing tools, social media analytics, and other metrics to evaluate pre-visit, on-site, and post-visit experience. His works have been published in leading academic journals and disseminated through books, encyclopedias, industry magazines, and news media. He has developed several government programs and organized over a hundred conferences, forums, trade shows, and workshops.

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Part I: Foundations of Tourism

1.1. Foundations of Tourism

1.2. Tourism Phenomenon

1.3. Definitions of tourism

1.4. The Evolution of Tourism

1.5. Tourism Supply

1.6. Tourism Demand

1.7. Tourism Stakeholders

1.8. Tourism Competitiveness

1.9. The Future of Tourism

1.10. Summary

1.1. Foundations of Tourism

Tourism is a massive and ever-evolving contributor to the global economy, although definitions as to what constitutes tourism are more elusive than might first appear. Although tourism is described as one of the world’s largest industries by the United Nations World Tourism Organization (UNWTO), it is lacking specific industry characteristics and is not included in existing industry classification systems. Furthermore, distinctions between travel for pleasure and recreational purposes are not always readily distinguishable from travel for other purposes, such as for work or family reasons, and there is no clear-cut or exclusive classification system by which to categorize tourism. Therefore, it is important to differentiate between visitors and travelers, domestic and international travel, and to distinguish between traveling to a destination versus staying at a destination.

A concrete definition of tourism remains elusive, in part, due to its perpetually changing nature, as new means of transportation and modern technologies influence the means whereby people experience places, and novel forms of tourism are constantly emerging (Darbellay & Stock, 2012; Netto, 2009). While complex and multi-faceted today, tourism originated as an activity once reserved exclusively for the aristocracy, and it progressively expanded to the general population as transportation became cheaper and more widely accessible (Page, 2014). Today, a host of factors influence the progression of tourism, including the introduction of new technologies, the instant nature of communication, climate change and issues relating to sustainability. Tourism has passed from simply being a popular and economically rewarding trend to being a subject of research, attracting the attention of the academic community as issues presented by its exponential growth transcend the industry’s traditional parameters.

While an overarching definition of tourism addressing all its possible facets does not exist, there are specific concepts and areas of tourism-related activities, as well as important players in their execution, which can be more readily identified (Page, 2014). Among these, tourism supply can be defined as the services, goods, and experiences provided by destinations, businesses, and organizations for tourism consumption, whereas tourism demand encompasses all aspects of tourist behavior, including motivation to travel, attitudes, decision-making processes, and outcomes. Among those who play a role in tourism are, first and foremost, tourists themselves, as well as providers, intermediaries, governmental authorities, DMOs, local people, etc., which can compete with one another or enter into partnerships, clusters, and other types of alliances for the purpose of achieving desired outcomes. Competitiveness in maximizing benefits from tourism can be influenced by a wide variety of factors, including economic conditions which may favor or disfavor competitive strategies, global events, geopolitical conditions, natural resources, climate, laws, destination policies, etc. The health and well-being of local communities are factors that influence competitiveness in tourism to a lesser degree, but are possibly the most salient factors in determining the future course and viability of the industry.

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References

Darbellay, F., & Stock, M. (2012). Tourism as complex interdisciplinary research object. Annals of tourism research, 39(1), 441-458.

Netto, A. P. (2009). What is tourism? Definitions, theoretical phases and principles. Philosophical issues in tourism, 37, 43-62.

Page, S. J. (2014). Tourism Management. Routledge.

UNWTO (2023). Glossary of Tourism Terms. https://www.unwto.org/glossary-tourism-terms

1.2. Tourism Phenomenon

Until the pandemic, tourism was ranked as one of the fastest-growing contributors to economic growth worldwide. While this growth has been significantly dampened in recent years, a rebound in tourist activity may well see numbers match or eventually exceed those recorded in 2019, the last year of perceived normalcy. At that time, there were 1.4 billion tourist arrivals counted worldwide, generating a total of US$1.7 trillion in receipts (UNWTO, 2022). According to the World Tourism Organization, the number of international tourist arrivals had increased by a factor of five since the 1980s. The global indicators of tourism performance are provided in Figures 1 and 2.

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Figure 1. Tourism arrivals.

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Figure 2. Tourism receipts.

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The growth of tourism can be explained by several factors, with economic motivators ranking as the most influential (Page, 2014). Tourism contributes up to 30% to GDP (Figure 3) and is promoted as a possible solution to poverty in many developing nations. Additionally, many governments perceive tourism as a service-centered industry that can help expand and modernize economies by providing new job opportunities to citizens. Intangible drivers of growth include the perception that travel permits individuals to escape the complexity and strains of daily life in their home environments, thereby enhancing their quality of life. Growth can also be attributed to the proliferation of low-cost airlines and other modes of transport, as well as the expansion of the internet which makes booking travel simple and accessible to a new generation of customers.

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Figure 3. Contribution of tourism.

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As a result of its rapid growth, tourism is named one of the world’s largest industries by UNWTO. The very classification of tourism as an industry, however, is also a subject of debate. Proponents of the industry approach assert that tourism is a production system within an economy and thus meets this definition. This assertion, however, has been challenged by others who claim that tourism is distinct from traditional industries, as it lacks characteristics inherent in industries oriented toward physical production such as manufacturing and construction. Although physical production is, in many ways, peripherally associated with tourism development, the many intangible outputs and benefits of tourism mean that it is often excluded from traditional classification systems. As such, the only means of assessing the impacts of tourism is by applying models which are tailored specifically to the unique nature of the industry, such as the Input-Output model and the Social Accounting Matrix (Hara et al., 2008).

Some opponents of the industry approach suggest that tourism should be approached as a collection of industries rather than as a single industry (Leiper, 2008). Therefore, the economic contribution of tourism is best measured in terms of separate tourism satellite accounts (Smeral, 2006). Proponents of the whole industry model, however, argue that the single-industry approach would help consolidate measurements, propel a unitary classification system worldwide, and benefit the future development of tourism. According to proponents, the concept of tourism as an independent and singular industry would arguably enhance its image and political attractiveness (Mill & Morrison, 2002). Until there is agreement on the appropriate classification of tourism, it is more useful, at least for our purposes, to approach it as a system of various interrelated elements of the tourism system.

Elements within this system are constantly being incorporated, changed, or eliminated as tourism itself evolves. New elements include the widespread use of information and communication technologies, the use of social media and mobile applications, and the development of virtual reality experiences. The introduction of these elements has largely led to the elimination of travel agencies and human intermediaries, which were once considered integral to facilitating travel. The tourism system can be also highly affected by external events including war, terrorism, politics, economic crises, national disasters, global pandemics, etc. The recent COVID-19 pandemic, costing tourism $2 trillion in 2021 alone (UNWTO, 2022), is a dramatic example of an external impact, and adaptation is essential to meet other external impacts which may occur as the world’s geopolitical situation becomes increasingly fluid and unstable. 

Overall, tourism is a key contributor to global economic growth, with significant potential for rebounding after recent challenges. The growth of tourism is driven by economic factors, including job creation and poverty alleviation. The classification of tourism as an industry is a subject of debate, but it's unique characteristics and intangible outputs set it apart from traditional industries. The tourism system constantly evolves, incorporating new elements like technology and virtual experiences, while external events such as pandemics and geopolitical instability can have profound impacts. Adaptability and flexibility are essential for navigating these influences and ensuring the sustainable development of tourism.

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References

Hara, T. (2008). Quantitative tourism industry analysis: introduction to input-output, social accounting matrix modeling, and tourism satellite accounts. London, UK: Routledge.

Leiper, N. (2008). Why ‘the tourism industry’ is misleading as a generic expression: The case for the plural variation, ‘tourism industries’. Tourism Management, 29(2), 237-251.

Mill, R. C., & Morrison, A. M. (2002). The tourism system. Dubuque, IA: Kendall/Hunt.

Page, S. J. (2014). Tourism management. London, UK: Routledge.

Smeral, E. (2006). Tourism satellite accounts: a critical assessment. Journal of Travel Research, 45(1), 92-98.

Smith, S. L. (2004). The measurement of global tourism: Old debates, new consensus, and continuing challenges. A companion to tourism, 25-35.

UNWTO (2022). Global and regional tourism performance. https://www.unwto.org/tourism-data/global-and-regional-tourism-performance

1.3. Definitions of Tourism

The United Nations World Tourism Organization defines tourism as an activity carried out by a person who is taking a trip to a main destination outside his/her usual environment, for less than a year, for any main purpose (business, leisure or other personal purposes) other than to be employed by a resident entity in the country or place visited. (United Nations, 2010) Visitors are often classified as tourists whether their trip includes an overnight stay or takes place within a single day.

Definition. Tourism is the activity of visitors who are taking a trip to a main destination outside their usual environment, for less than a year, for any main purpose other than to be employed by a resident entity in the country or place visited.

It is important to differentiate visitors from travelers, the latter of whom move between different places for any purpose and whose trips may be of any duration (Figure 4). In other words, visitors may be travelers, but not all travelers are visitors. With respect to travel itself, there are additional classifications to consider. Domestic travel encompasses trips made by residents within the same country, whereas international travel encompasses trips outside of the country of residence. Non-residents' travel to a country is referred to as inbound travel, whereas residents' travel outside of a country is referred to as outbound travel. Tourism statistics also often include the terms usual environment (or the geographical area wherein people reside), tourism trips (trips taken by any kind of visitors), and tourism visits (stays in a place visited during a trip for tourism purposes).

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Figure 4. Classification of travelers.

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In making these distinctions, it is worth reiterating that there is no universal agreement on what constitutes visitors and tourists, and whether locals, part-time residents or transients should be included in either of these classifications. For instance, is it proper to consider those living for extended periods in second homes as visitors or tourists? What about cruise ship passengers who arrive at a port and visit for a few hours but do not remain, or cross-channel travelers who cross an international border but return within a day and do not stay overnight? And how far must an individual travel from his or her primary place of residence before being considered a tourist? While consensus on these matters remains elusive, it is can be said that tourism is fundamentally related to people’s mobility and movement to and between various destinations and their propensity to stay in certain locales. Research in tourism, therefore, often treats the journey to a destination and staying at a destination as two distinct components of the study, while local tourism, usually involving minimal travel and not including stays outside of one’s primary residence, is likewise treated separately.

Overall, tourism is defined as the activity of visitors who travel to a main destination outside their usual environment for less than a year, excluding employment purposes. Visitors can be classified as tourists if their trip includes an overnight stay or takes place within a single day. It is important to distinguish visitors from travelers, as travelers may move between different places for any purpose and their trips can be of any duration. Additional classifications include domestic and international travel, inbound and outbound travel, and terms like usual environment, tourism trips, and tourism visits. While there is no universal agreement on these definitions, tourism is fundamentally linked to people's mobility, movement between destinations, and their propensity to stay in certain locales. Research often separates the journey to a destination from the stay, and local tourism is treated separately as well.

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References

United Nations (2010). International recommendations for tourism statistics. New York, NY: United Nations Publication.

1.4. The Evolution of Tourism

Tourism developed from activities reserved for aristocrats, who disposed of the time and financial resources to travel (Page, 2014), to the mass tourism we see today. Around the turn of the 20th century, it became customary for wealthier individuals to travel abroad, facilitated by the advent of ocean liners, while a burgeoning middle class availed themselves of coastal resorts and other destinations then being made accessible by railroad.

The First World War, the subsequent depression, and the Second World War significantly slowed the development of international tourism and, to a lesser degree,