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Topic 4: Global Tourism is tourism the way to go? KQ3: Developing tourism at what cost?

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Topic 4: Global Tourism – is tourism

the way to go?

KQ3: Developing tourism at what

cost?

Developing tourism at what cost?

Figure 1.66 Kayan Lahwi women in Myanmar. Adapted from: JD Jiang

Developing tourism at what cost?

Introduction

• Traditional culture can be greatly affected by tourist

activities

• Kayan Lahwi women as tourist attractions:

–Tourists photograph the ‘long-necked women’

–Tourists buy clothing and souvenirs made by the

women

–Local businesses charge fees to enter the villages

–Some of the women were relocated to Inle Lake

–The tradition of wearing brass neck coils continues

because it gives the Kayan Lahwi a source of revenue

Developing tourism at what cost?

Economic

• Tourism can bring about positive and negative economic

impacts.

Positive

• Employment opportunities

• Growth in income

• Increase in foreign exchange

• Infrastructure development

Negative

• Seasonal unemployment

• Underuse of facilities

• Shortage of services

Positive Economic Impact Employment: Work performed for a wage or salary, in cash

or in kind

Employment Opportunity – Chefs in a restaurant

http://www.examiner.com/article/iron-chef-michael-symon-opening-2-new-restaurants-cleveland

Positive Economic Impact Employment Opportunity - hill tribe woman in a colorful

traditional costume selling handicraft

http://www.dreamstime.com/royalty-free-stock-images-thai-tribe-woman-image5718049

Employment Opportunity – Flight attendants

Positive Economic Impact

http://floralia.centerblog.net/1072-les-plus-beaux-uniformes-hotesses-de-air

Positive Economic Impact

Employment opportunities

• The growth of tourism has led to an increase in number of tourism-

related jobs

• The tourism industry offers many employment opportunities, e.g.

hotels, souvenir shops, tour agencies

• Some jobs are:

– Directly linked to the tourism industry, e.g. travel agents, tour

guides, hotel staff, waiters and waitresses

– Indirectly linked to the tourism industry, e.g. taxi drivers, shop

owners

• In 2011, the tourism industry employed over 235 million people

worldwide (6–8 % of all the jobs in the world)

Positive Economic Impact

Growth in income

• Tourism growth can lead to growth in income for

individuals and a country

• Example: Fishermen on Pamilacan Island, Philippines

– Local tour companies hire fishermen to help them view and swim

with whale sharks

– Fishermen are paid between US$80–US$100 per boat for their

service

– Fishermen can expect additional income on top of their fishing

livelihood

– Tour companies will experience an increase in revenue

– Overall increase in revenue for the country through taxes

collected from the fishermen and tour companies

Positive Economic Impact

Growth in income

Figure 1.68 A Filipino fisherman and a group of tourists watch as a whale shark passes underneath their boat. Adapted from: Steve De Neef Photography

Positive Economic Impact

Region Percentage of all tourism

receipts in 2011 (%)

Europe 45

Asia Pacific 28

The Americas 19

Others 8

Figure 1.69 Distribution of global tourism receipts. Adapted from: World Tourism Organization (2012)

Growth in income

• Tourism receipts: Money received from tourist spending

• Tourism receipts generate large revenue for many countries

• In 2011, worldwide tourism receipts exceeded US$1 trillion

Positive Economic Impact

Growth in income

• A large portion of revenue from tourism is sometimes lost

as leakage, especially in LDCs

• Leakage occurs when revenue earned from tourism is

paid to other countries for the import of goods and

services needed to meet the needs of tourists

• Example: Phuket, Thailand

–Travellers may use the services of foreign-owned

businesses and buy imported items

–Some of the profits made by local businesses are

sent to another country to pay for imports

–Money that does not stay in the local economy may

bring few benefits to local businesses and workers

Positive Economic Impact

Figure 1.70 Distribution of international tourist spending in Phuket, Thailand. Adapted from: Handmer, J., Choong, W. (2006) ‘Disaster resilience through local economic activity in Phuket’. The Australian Journal of Emergency Management, 21(4), 8-15.

Growth in income

Positive Economic Impact

Figure 1.71 South Sea Island Beach, Fiji. Tourism is Fiji’s largest foreign exchange earner.

Increase in foreign exchange

• Foreign exchange: Money earned from other countries

in exchange for goods and services

• Important to an economy because it allows the receiving

country to purchase goods and services from elsewhere

in the world

• Example: Tourism is Fiji’s

largest foreign exchange

earner, making up

20%-25% of its economy

Increase in foreign exchange

Positive Economic Impact

•Countries that host large numbers of tourists receive considerable

tourism business investments from other countries

•Example: Singapore

– Has many international hotel chains, e.g. InterContinental,

Marriott and Shangri-La

– These chains invest in building and furnishing hotels and

resorts, and training staff at tourist destinations

– Hotels exchange their own currency to purchase

Singapore dollars in order to make their investments

– Increases demand for Singapore dollars and contributes to

Singapore’s capital inflow

Increase in foreign exchange

Positive Economic Impact

•The tourism industry contributes directly and indirectly

to government revenues

•Examples of how tourism contributes directly to

government revenues include taxes on tourists (e.g.

airport tax) and income taxes on employees of tourism-

related businesses

•Examples of how tourism contributes indirectly to

government revenues include taxes on goods and

services that are supplied to tourists (e.g. petrol for

rented cars)

•Since taxes are collected in local currency, this

increases the foreign exchange of the host country

Positive Economic Impact Increase in foreign exchange

Region 1990 1995 2000 2005

Africa 6 402 85 00 10 503 21 525

Americas 69 274 98 439 130 797 144 556

East Asia 44 445 77 296 85 410 130 949

Europe 142 885 212 159 232 486 348 263

Middle East 5 124 10 905 17 567 27 557

South Asia 2 029 3 404 4 797 9 816

Total 270 159 410 703 481 560 682 667

Total tourism receipts (US$, million) in different regions of the world

Positive Economic Impact

Development of infrastructure – train infrastructure in Singapore

Positive Economic Impact

http://www.set-edu.com/web/index.php/du-hoc/129-tin-tuc-du-hoc/682-singapore-s-la-chn-hang-u-danh-cho-hc-sinh-vit-nam

Development of infrastructure – Beijing National Stadium,

Beijing, China

Positive Economic Impact

http://nl.wikipedia.org/wiki/Bestand:Beijing_National_Stadium,_Beijing_2008_Olympics.jpg

Development of infrastructure – sewage treatment plant

Positive Economic Impact

http://www.saskatoon.ca/DEPARTMENTS/Utility%20Services/Water%20and%20Wastewater%20Treatment/

Wastewater%20Treatment%20Plant/Pages/default.aspx

Development of infrastructure – electricity pylons to transmit power

Positive Economic Impact

http://kids.britannica.com/comptons/art-106845/High-voltage-transmission-lines-span-the-

countryside-carrying-electricity-from

Positive Economic Impact

Infrastructure development

• Infrastructure development: Construction of transport

and communication networks, electrical frameworks and

systems for water and waste disposal

• Tourism cannot develop and would not be able to operate

on a large scale without sufficient infrastructure and

appropriate facilities such as:

–Airports

–Roads

–Electricity

–Hotels

• Infrastructure built to enhance tourism brings benefits to

the locals

Positive Economic Impact

Infrastructure development

• Example: Roads

– Link airports, cities and tourist sites which allow tourists access

to local attractions

– Allow local people better access to markets, health care,

education and jobs

• Example: Sports venues and other infrastructure

– Built for major sporting events, e.g. Olympic Games, World Cup

– Improve sporting infrastructure of host countries

– Useful even after the key event, e.g. Summer Olympic Games in

Athens and Beijing

Positive Economic Impact

Infrastructure development

• Creates employment for local workers as many workers

are needed during the construction process

• Local industries are boosted because local materials may

be used to construct the infrastructure

• Encourages economic growth due to increased spending

in the local economy

Seasonal unemployment

Negative Economic Impact

http://oneshetwoshe.com/2013/07/ski-resort-in-the-summer.htmlhttp://www.livetravelmountains.com/skiing/korea-winter-guide/

Ski resorts in the Alps during winter Ski resorts in the Alps during summer

Seasonal unemployment

Negative Economic Impact

Seasonal unemployment

• Certain tourist activities depend on climatic conditions

• Countries may experience regular fluctuations in tourist

numbers

• People in tourism-related jobs have to find other sources

of income when employment is temporarily unavailable

Seasonal unemployment

Negative Economic Impact

• Example: European countries surrounding the

Mediterranean

– Majority of all hotel stays take place in the summer season of

July to September, e.g. Croatia, Cyprus, France, Greece, Italy,

Spain

– Increase in summer visits is mainly due to the warm weather as

tourists can do a range of activities

e.g. relaxing by the beach, hiking

– Employment in hotels and restaurants across the European

Union reaches its peak for the year during this season

Negative Economic Impact

Figure 1.76a) Changes in employment in the hotel and restaurant sector in the European Union compared to annual averages (represented by 100), 2009. b) Changes in employment among tourist accommodations in the European Union compared to annual averages (represented by 100), 2009. Adapted from: European Union Eurostat (2010).

Seasonal unemployment

Negative Economic Impact

Seasonal unemployment

•Example: Sapporo, Japan

– Receives a large number of visitors from December

to February, many of whom engage in winter sports,

e.g. skiing, snowboarding

– Mountain ski resort operators employ more people

during winter to cater to the high tourist demand

– In other seasons, workers return to other jobs,

(e.g. farming) or move away temporarily until the

next tourist season

Leakage of tourism receipts to other

countries

Negative Economic Impact

Negative Economic Impact

Underuse of facilities

• Underused facilities can be costly to maintain

• Money from tourists normally pays for the cost of

maintaining such facilities

• Facilities may become neglected when there are few

tourists

Negative Economic Impact

http://www.topbeijingtravel.com/beijing-attractions/

• Example: Venue for Summer Olympic Games in Beijing

– Venues allegedly deteriorating years after the Olympics

– Some were renovated to become more profitable,

e.g. Beijing National Aquatics Center was renovated into a water

park

– Only one-third of major sports venues in China have managed to

break even

Underuse of facilities

Negative Economic Impact

Figure 1.78 Potential effects of tourism development on resource allocation.

Shortage of services

• Tourist infrastructure may require the use of large amounts of land,

water and power

• This could lead to a shortage of services, e.g. water supplies or

power in non-tourist areas

Positive Socio-cultural impacts Preservation of culture and local customs.

Figure 1.79 The difference between heritage and custom.

Preservation of culture and local customs

• Preservation of culture: Protection of the way people live, including

their economic activities, traditional beliefs and religious practices

• Could apply to heritage and customs

Positive Socio-cultural impacts Preservation of culture and local customs.

Figure 1.80a) The historical Christ Church in Malacca, Malaysia, has been carefully restored and now stands as a relic of Malacca’s colonial history, while serving as a tourist attraction. b) Sites such as the Angkor Wat complex in Siem Reap, Cambodia, have entry fees that help fund conservation efforts.

Preservation of culture and local customs

• Preserved and restored sites are more attractive to tourists

• Restored sites benefit the local population by:

– Enhancing people’s sense of history

– Build a sense of belonging to the community

• Tourism revenue can fund the preservation and restoration of cultural

heritage, e.g. entry fee to Angkor Wat

Dilution of local customs and heritage

Negative Socio-cultural impacts

Figure 1.81 Local street vendors selling souvenirs at the Swayambhunath Temple in Kathmandu, Nepal

Dilution of culture and local customs

• Identity, culture and values of a place can be lost when tourism

becomes the major activity of an area

• Tourism-oriented commercial activities (e.g. food outlets, travel

agencies, souvenir shops) can overwhelm an area

• Buildings may be modified or

built to accommodate tourism

• Locals may relocate

elsewhere, which changes

the original atmosphere,

appearance and functions of

the area they left

Negative Socio-cultural impacts

Dilution of culture and local customs

• Local cultural festivals and religious rituals are sometimes modified to

meet the demands and expectations of tourists

–Dancers deliberately pose for tourist photographs

–Rituals are shortened to fit into itinerary of tourists

–Rituals are repeated several times a day

• Authenticity and significance of cultural events are reduced because

of commercialisation

• Example: Kayan Lahwi women

– Tourists pay entrance fees at Kayan Lahwi village

– Some tourists treat the women as exhibits

Padung longnecks doing a

traditional dance for tourists

Negative Socio-cultural impacts Increased crime

Figure 1.82b) Tourist traps deter tourists from visiting mainly due to scams and overpriced goods.

• Tourists carry valuable items, e.g. watches,

cameras

• Tourists are prone to being mugged, cheated or

scammed in tourist areas or tourist traps

• Tourist traps: Places where information, goods or

services are sold at greatly inflated prices

–Can also refer to places where tourist scams

are common

–Can deter tourists from visiting

• Many countries have police to help serve tourists

and sort out conflicts with locals over purchases

Negative Socio-cultural impacts Increased crime

Increased crime

• Example: Scam on Japanese tourists in the UK

– In 2010, Japanese tourists were scammed by a woman

pretending to be a tourist

– The woman would ask for directions or ask to have her

photo taken

– Her accomplices would appear and pose as police officers

requesting for the group’s identification and credit cards

– The woman would hand over her identity and credit card

and convince the tourists to do the same

– Once the credit cards are handed over, they would be

used to withdraw money from the ATM or buy expensive

items

Positive Environmental impacts

http://www.kota-kinabalu.net/2010/09/sepilok-orang-utan-sanctuary.html

Conservation of natural environments

• Funding from tourism helps protect and conserve

environments such as coral reefs, rainforests and

mountainous areas, e.g. revenue from entrance fees to

national parks and diving sites, levies on accommodations

•Example: Sepilok Orang-utan

Rehabilitation Centre

– Partly relies on visitor entry fees

to pay staff

– The staff help rehabilitate

orang-utans that have been

orphaned or injured

Positive Environmental impacts

Conservation of natural environments

• Example: Kenya

– Survival of animals relies on funding from international tourists

who want to see these animals in the wild

– Estimated tourist revenues for:

o A lion: US$7,000 a year

o A herd of elephants: US$600,000 a year

– Money raised from wildlife tourism becomes a way to continue to

preserve the animals and their habitats

Negative Environmental impacts

Increased congestion

• May be due to:

–Large numbers of tourists near popular attractions

–Tourist shops and accommodations that cluster near

tourist areas

–Vehicular and pedestrian traffic

• Apart from adding to local traffic, huge inflow of cars and

buses can contribute to air pollution.

Negative Environmental impacts

Figure 1.83 A large crowd of tourists at Trevi Fountain in Rome, Italy.

Increased congestion

• Example: In Rome, many older walkways and

narrow streets are filled with tourists

Negative Environmental impacts

http://melissaeweiss.com/2009/06/

Figure 1.84 Graffiti on the Great Wall of China, Beijing, China.

Vandalism

• Vandalism: Crime of

deliberately damaging property

belonging to other people

• Cultural, historical or natural

sites may be vandalised by

individuals or developers

• Example: Thousands of stones

and bricks of the Great Wall of

China are covered with graffiti

Negative Environmental impacts

Pollution and littering

• A major problem that degrades some tourist areas

• Authorities sometimes fail to implement measures that

would properly manage waste left behind by tourists

• Example: Cruise ships

– Tourists dump plastic bottles, food packaging and old batteries

overboard from cruise ships

– Solid and liquid waste are sometimes dumped into the sea by

ships

– Harbours, marinas and the ocean become polluted

Scenic Nepal?

Pollution and

littering

Destruction of

habitat

Negative

Environmental

impacts

Negative Environmental impacts

Destruction of habitats

• Popular tourist sites can be overwhelmed with visitors

during busy times of the year, e.g. beaches and villages

• When too many tourists visit a destination, they may

destroy habitats and wildlife

– Careless tourists trample on plants, while others

collect eggs and feathers of birds as souvenirs

– These tourists make too much noise which can

disturb and frighten off animals

Negative Environmental impacts

Destruction of habitats

• Example: Red Sea

– Major diving and snorkelling destination for around 1.2 million

visitors annually

– Habitats of coral reefs and exotic fish have been damaged

o Swimmers collect shells or corals as souvenirs

o Hotels and restaurants in the area sometimes dump waste

and sewage into the sea

Negative Environmental impacts

14

Increased carbon footprint

• Carbon footprint: Amount of

greenhouse gas emissions that

would be produced by activities

that involve the use of fossil

fuels

• Activities may include

travelling by planes and tour

buses, and electricity

consumption by hotels

Negative Environmental impacts

http://www.tripadvisor.com/LocationPhotoDirectLink-g294265-d1086295-

i62043622-Crowne_Plaza_Changi_Airport_Hotel-Singapore.html

Increased carbon footprint

•Carbon footprint is measured in equivalent amounts

in carbon dioxide

•Example: One-way economy class flight from

Singapore to Kuala Lumpur generates 30

kilogrammes of carbon dioxide per passenger

•Management refers to making decisions that benefit

both the natural environments and the lives of the local

population

–Ensures that a particular site and its features

remain in prime condition

–Ensures that the economy, culture and

environment of a region are sustained for future

generations

•Tourist activities should occur without excessive use of

resources and without damage to the environment

How are the impacts of tourism managed?

How are the impacts of tourism managed?

• Sustainable tourism: Form of tourism organised in a

way that allows it to continue without causing damage

to the environment or without leaving negative impacts

on the surrounding society and culture

• Sustainable tourism addresses the needs of:

–Visitors

–Industries

–Host communities

How are the impacts of tourism managed?

Conservation of fragile environments and sustainable

tourism

• Conservation: Careful management and use of

resources such that these resources would not be

depleted

• Fragile environments: Environments that are easily

affected by change, e.g. mangroves and coral reefs

• Environments can be easily disturbed through:

– Dumping of wastes from tourist facilities

– Removal of vegetation to build roads and buildings

– Disposal of waste into rivers, lakes or coastal environments

How are the impacts of tourism managed?

Conservation of fragile environments and sustainable

tourism

• Can occur with help of laws and regulations, and support

from the local people

• A well-protected environment attracts more tourists to visit

and previous tourists to return

• The arrival of tourists will benefit the locals economically

and motivate them to care for the sites properly

How are the impacts of tourism managed?

Conservation of fragile environments and sustainable

tourism

• Example: Tourism near Australia’s Great Barrier Reef

– World’s longest complex of coral reefs and small islands

– Stretching 2,300 km along the northeast coast of Australia

– Diverse ecosystem and beauty gave the reef its place on

UNESCO’s World Heritage List in 1981

How are the impacts of tourism managed?

Figure 1.87 [Clockwise from top left]a)Whitsunday Islands in the Great Barrier Reef, Australia. b)Map of the Great Barrier Reef, Australia. c)Upolu Cay, Great Barrier Reef, Australia

Conservation of fragile environments and sustainable tourism

How are the impacts of tourism managed? Conservation and sustainable tourism

The Great Barrier Reef receives 14 million tourists every

year. It is threatened by tourism activities such as fuel

leaks from pleasure boats, particularity in marinas and

harbours. It is also threatened by the removal of corals

for souvenirs.

http://econews.com.au/news-to-sustain-our-world/un-says-shelve-ports-to-save-great-barrier-reef/

How are the impacts of tourism managed?

Conservation of fragile environments and sustainable tourism

• Sustainable tourism also involves minimising leakages from tourist revenues

• Different strategies are adopted to reduce leakages:

– Training locals to perform skilled tourism jobs, e.g. management, marketing

– Developing homestay accommodations where visitors can pay local people directly for their accommodation

– Promoting local food and drink in restaurants to provide a market for local food producers and distributors

How are the impacts of tourism managed?

Conservation of fragile environments and sustainable

tourism

• Role of United Nations Educational, Scientific and

Cultural Organization (UNESCO)

–Involved in conservation

–Responsible for declaring sites as ‘World Heritage’

–Provides funding to conserve threatened sites

–World Heritage sites in 1978: 12

–World Heritage sites in 2012: Almost 1,000

How are the impacts of tourism managed?

Figure 1.88 UNESCO World Heritage Sites in selected countries in Southeast Asia. Adapted from: UNESCO World Heritage Centre (2012).

How are the impacts of tourism

managed? Conservation and sustainable tourism

UNESCO provides funding to threatened sites to conserve

them – e.g. Angkor Wat, Borobudur Temple

How are the impacts of tourism managed?

Tensions in managing the impacts of tourism

• Tourism can produce tensions due to the difference

between the needs or expectations of different groups:

– Tourists and locals

– Tourists and the environment

• Tensions need to be balanced when managing the impact

of tourism

How are the impacts of tourism managed?

Tensions between tourists and locals

• The needs of tourists may conflict with needs of locals,

e.g. Tourists wearing skimpy clothing may go against

conservative values of locals

How are the impacts of tourism managed?

•Example: Bali, Indonesia

– Visited by many tourists for natural landscape and food

– World Heritage site

– Cultural landscape renowned for its Hindu temples, art, dance

and other heritage and customs

– In 2012, 2.9 million international tourists visited Bali

Figure 1.89 The cultural landscape of Bali, Indonesia. a) The Mother Temple of Besakih. b) Rice terraces near the village of Belimbing.

How are the impacts of tourism managed?

Figure 1.90 Traffic congestion in Kuta, Bali, Indonesia.

Tensions between tourists and locals

• Example: Bali, Indonesia

– Tourist sites (e.g. Kuta) are congested due to tourists

o Tourist congestion makes it difficult for locals to conduct their

daily business

How are the impacts of tourism managed?

Tensions between tourists and locals

• Example: Bali, Indonesia

– Tourist facilities potentially deprive some locals of their water

supply

o The tourism industry consumes much water and may result in

water shortages

o Some dug wells have now gone dry, making vulnerable the island’s

poorest

– Locals expect tourists to respect local customs and values,

which tourists sometimes fail to do

o Example: Many locals still object to public displays of

affection, which some tourists may perceive as all right to do

in public

How are the impacts of tourism managed?

Tensions between tourists and the environment

• Arise when the needs of tourists conflict with the need to

conserve the environment

• Example: Natural attractions depend on tourist income for

their conservation but tourist inflow may damage the

attraction itself, e.g. Machu Picchu, Peru

How are the impacts of tourism managed?

Tensions between tourists and the environment

• Example: Machu Picchu, Peru

– City built by Inca Civilisation on Andes Mountains

– Located 2,430 metres above sea level

– Has stone walls, ramps, pillars and stairways that are now

remnants of a once-thriving city

– Provides insight into ancient Inca life

– Rich history and breath-taking landscape draw 3,300 visitors

every day

How are the impacts of tourism managed?

Tensions between tourists and the environment

• Example: Machu Picchu, Peru

– The site’s popularity has caused some tensions

between the needs of tourists and that of the

environment

– Physically able tourists opt to use the ‘Inca Trail’

o Stunning mountain scenery, cloud forests, rivers,

Inca ruins

o Populated with rare indigenous plant and wildlife

o Eroded by more than 75,000 tourists that hike on it

each year

o Hikers leave behind rubbish, e.g. water bottles,

plastic wrappers

How are the impacts of tourism managed?

Figure 1.93 A large group of tourists at Machu Picchu, Peru.

Tensions between tourists and the environment

• Example: Machu Picchu, Peru

– Tourists may prefer to reach the site using helicopters for

convenience

o Helicopters were banned for fear that its noise disturbs the area’s

indigenous animal and plant species

– Sheer weight and combined footsteps of tourists damage land

and artefacts on the site

Measures for managing the tensions

• Government authorities play an important role

in balancing and resolving tensions

• Organisations set up by governments may

impose measures to balance needs of tourists,

locals and the environment

Measures for managing the tensions

• Examples:

– Limit number of visitors to minimise congestion and

degradation

– Withhold permission to proceed with tourism-related

projects that could harm the environment

– Employ staff to maintain and repair sites and prevent

tourists from tampering with it

– Hold discussions with locals on their needs and

concerns

– Restrict tourists from areas where only locals could

enter

Measures for managing the tensions

• Balancing the needs of various groups can be

very difficult

• Example:

• Needs of residents vs needs of business

owners

• Need for jobs vs need for conservation

• Various groups and stakeholders have a

responsibility to ensure balance between

conflicting interests

Responsibilities of various groups in

conserving and protecting tourist

areas

Local communities

Visitors

Tour operators

Non-governmental organizations

Planning authorities

Responsibilities of various groups

Local communities

• Example: Candirejo Village

– Villagers set up a cooperative in 2003, with support

from the government, to manage and implement

community tourism-related programmes

– Villagers participate in decision-making through

discussions and consultations with cooperative about

programmes such as:

o Developing homestay accommodations

o Developing organic farms

o Organising local transport

– Villagers trained to produce handicrafts, provide

catering and work as tour guides

Responsibilities of various groups

Figure 1.94 The andong, a type of local transport used at Candirejo Village (village not shown), Central Java, Indonesia.

Local communities

• Example: Candirejo Village

–In 2002: 10 homestays, 5 andongs, no restaurants

–In 2004: 22 homestays, 22 andongs, 6 restaurants

–Also reported in 2004: 63 new jobs, 5 new businesses, 12.5%

increase in average income per villager

Local communities

Strengths– Involve locals in decision making

with regards to tourism management strategies

to be carried out and increase in tourism

related employment and business for the local

Limitations – difficulty in obtaining external

funding in setting up business or investing in

vehicles to facilitate tourism in their area. There

may not have enough skilled labour such as

managers or consultants.

Responsibilities of various groups

Figure 1.95 Visitors should be dressed appropriately to visit temples, such as this one at Wat Benchamabophit, a temple in Bangkok, Thailand.

Visitors

• Have responsibility to respect both the environment and

the local population of a place

• Should visit without causing damage or offence

• Encouraged to select destinations based on conservation

efforts and carbon footprint. Some factors to consider:

– Amount of water used

– Amount of waste recycled

• Can have rewarding visits

with responsible tourism

Visitors

Strengths – visitors’ spending can provide funds to

help conserve environments, preserve culture or

maintain a tourist attractions. Their spending can

also provide locals with income from employment

and business. They can also raise awareness about

the destination at home by sharing their experience.

Limitations – visitors may damage a tourist

attraction e.g. by vandalism and littering. Thy might

also cause local culture and customs to be diluted.

Responsibilities of various groups

Tour operators

• Tour operators may belong to associations concerned

with conserving and protecting environments visited by

tourists

• Fewer tourists are likely to visit a place if the unspoilt

landscapes, rich biodiversity and unique cultures

deteriorate

• Example: Phuket Alternative Tours (PAT)

– Tour operators have to adhere to the guidelines under the

Environmental and Cultural Code of Practice:

o Operate in an environmentally sustainable way

o Seek to enhance the natural environment and the way that the

industry uses it

o Create awareness about environmental conservation for visitors to

Phuket

Tour Operators

Strength – valuable feedback from tour guides used

by local communities and planning authorities to plan

tourism management strategies as well as help to

regulate tourist behavior.

Limitation – the need to generate profits can

sometimes led to tour operators into conflict with

other stakeholders and may also override concerns

to preserve the environment when the concerns

would reduce their profits.

Responsibilities of various groups

Non-governmental organisations

• Non-governmental organisations (NGOs): Non-profit

organisations operating independently of governments

• Concerned with tourism’s impact on natural and human

environments

• Instrumental in achieving sustainable tourism and for

protecting the environments frequented by tourists

Responsibilities of various groups

Non-governmental organisations

• Example: The International Ecotourism Society (TIES)

– Developed guidelines on tourism

– Conducted training courses

– Provided technical assistance

– Published research papers related to tourism and the

environment

– Works with numerous organisations, including travel

associations and conservation groups in 124 countries

Non-governmental

organizations

Strengths – facilitate communication between various

stakeholders such as between local communities and tour

operators or between tour operators and planning

authorities. NGOs also encourage local communities to

actively participate in the managing the impact of tourism.

They also support the various stakeholders in the form of

additional manpower, expertise or marketing campaigns.

Limitation – as NGO are non-profit organisations which rely

on donation, they may have difficulty in obtaining external

funding.

Responsibilities of various groups

Planning authorities

• The most important group in ensuring that the tourist

areas are protected

• Can greatly influence the future quality of environments

by:

– Determining how many visitors a site can cope with

– Allocating space for infrastructure, e.g. roads and hotels

• Consider local sensitivities in the area while maintaining

its physical and socio-cultural condition

• Enforce rules, regulations, values and principles for

sustainable tourism in consultation with the industry and

community

Responsibilities of various groups

Planning authorities

• Example: Singapore Tourism Board (STB)

– Attracts large numbers of tourists to Singapore even as

development plans take into account the need to conserve

national heritage

– Implemented programmes to conserve the ethnic districts of

Singapore, e.g. Chinatown, Kampong Glam and Little India

– Helps visitors and locals have a greater appreciation of

Singapore’s rich heritage

Planning authorities

Strengths – able to successfully develop, approve,

fund and maintain infrastructure that help manage

the impact of tourism in an area. Able to draft laws

and policies that improve the quality of a tourist site

Limitations – difficult to plan for unseen factors such

as extreme weather, natural disasters or lack of

interest from the public.

Figure 1.96 [Clockwise from top left] The ethnic districts of Singapore. a) Arab Street. b) Chinatown. c)Little India

Developing tourism at what cost?

Responsibilities of various groups

• Important for the different groups to work

together to develop strategies to protect

tourist areas

• Example: Sungei Buloh Wetland Reserve

• Planning authority built an education

centre

• NGOs organise displays

• Tour operators bring visitors to the centre

• Each group has its own strengths and

limitations in protecting tourist areas

Case study of

Singapore

http://www.riverview.com.sg/singapore-guide/where-to-shop

Chinatown, Singapore

Resort World Sentosa, Singapore

Marina Bay, Singapore

Integrated resort

Case study of Singapore• Case study will discuss four questions:

–What is the nature of the tourist activity?

–What is the impact of the development of tourism on

the area where they are located as well as the whole

country?

–How is the impact managed?

–Is tourism a way for the area or country to develop?

• Case study will focus on two areas in Singapore:

–Chinatown (place with rich culture)

–Integrated Resorts (place with good facilities)

Case study of Singapore

• Chinatown

– Rich in Chinese cultural

and historical elements

– Shows a blend of

Chinese culture, local

ethnicities and western

influences

– Convenient location and

within walking distance

from the Central

Business District

Figure 1.98 The shophouses and markets of Chinatown showcase the area’s cultural heritage.

What is the nature of the tourist activity?

Case study of Singapore

What is the nature of the tourist activity?

• Chinatown

– Chinatown Heritage Centre: Museum that showcases the lives

of the people and activities in early Chinatown

– Chinatown Street Market: Open for shopping from morning to

night

– Tourists can observe religious rites at Chinese and Hindu

temples

– Tourists have option of feasting at the food street on Smith

Street or other food centres and restaurants in the vicinity

– Commercial activities include boutique hotels, backpacker

accommodations, souvenir shops, restaurants, traditional trades

Case study of Singapore

What is the nature of the tourist activity?

• Integrated Resorts (IRs)

– Large-scale developments with a mix of MICE facilities, themed

attractions, entertainment and performance venues, hotel, retail,

and gaming

– Consist of Marina Bay Sands (MBS) and Resorts World Sentosa

(RWS) which operate hotels, convention centres, spas, dining

outlets, shops and casinos

– RWS also operates a maritime museum, a water park and

Universal Studios Singapore

–Help position Singapore as major centre for entertainment and

conventions by catering to both business and leisure tourists

Case study of Singapore

– Leisure tourists can engage in a wide range of activities, e.g. visiting theme parks, attending entertainment shows

– Business tourists can stay, work and play at the IRs as the MICE facilities are found alongside other services, e.g. spas, numerous accommodations

Figure 1.99 An aerial photograph of Sentosa Island.

What is the nature of the tourist activity?

• Integrated Resorts (IRs)

Case study of Singapore

• Impact of Chinatown development

– Its development as a tourist attraction has had

numerous social and civic impacts:

– The place was a residential area for the Chinese during

the colonial era

o 1980s: Population size grew to a point where

overcrowding and hygiene issues became a concern

o 1983: Street hawkers were removed and residents

were relocated to newly built high-rise flats in the

area

o Chinatown suffered a decline in pedestrian traffic due

to removal of street hawkers

Case study of Singapore

– 1998: Chinatown Experience Guide Plan was implemented to bring pedestrians back by attracting businesses to set up shops in the neighbourhood

– 2001: Chinatown Food Street opened with support from various government agencies and private stakeholders

Case study of SingaporeImpact of Chinatown development

– Several brands of food items with a history of more

than 30 years continue to operate in Chinatown

– The commercial activities have also played a role in

eroding the original heritage of Chinatown, e.g. focus

on the selling of tourist souvenirs and accommodations

Case study of SingaporeWhat is the impact of the development of tourism?

New Businesses that moved in has

helped revitalize Chinatown

http://phoebettmh.blogspot.sg/2011/04/singapore-shopping.html

Conservation buildings preserved as historical icons -

Signature shophouses with five-foot wide covered

passageways

http://www.allposters.com/-sp/Typical-Five-Foot-Way-in-Chinatown-

Singapore-South-East-Asia-Posters_i2944377_.htm

Case study of Singapore

• Impact of Chinatown development

– Many original residents have since moved out

– Today: Most of its residential population are the

elderly who can be seen playing chess or chatting in

the district’s public parks

– Chinatown has undergone extensive urban renewal

where many national conservation buildings have

been preserved as historical icons

Case study of Singapore

•Impact of Integrated Resorts development

–Created many employment opportunities in hotels,

restaurants, theme parks and casino

–Contributed to increase in Singapore’s income

through taxation revenues from the casinos

–Income of the IRs contributed to Singapore’s record-

high tourism receipts of US$18.5 billion in 2012

–Contributed between 1.5% – 2% to Singapore’s

economy

Case study of Singapore

•Impact of Integrated Resorts development

–Created many employment opportunities in

hotels, restaurants, theme parks and casino

–Contributed to increase in Singapore’s income

through taxation revenues from the casinos

–Income of the IRs contributed to Singapore’s

record-high tourism receipts of US$18.5 billion in

2012

–Contributed between 1.5% – 2% to Singapore’s

economy

Case study of Singapore

• Impact of Integrated Resorts development

– Tourism arrivals increased to 14.4 million in

2012 (9% increase)

– More positive image for the country

– Singapore placed in a more prominent position

on the world map as a vibrant city for tourists

Case study of Singapore

• Impact of Integrated Resorts development

– Concerns about negative social and

environmental impacts.

– Complaints of rising gambling habits

o 200,000 local visitors to casinos in 2011

o Despite number of visitors, probable

pathological and problem gambling rates

among residents remained largely unchanged

o Increase in the number of people receiving

counselling from NGOs

Case study of Singapore

• Impact of Integrated Resorts development

– Complaints about environmental issues

o Potential disturbance to Sentosa’s land and

maritime ecosystems and habitats

o Soil erosion, habitat destruction and waste

disposal

– Complaints related to animal welfare

o Holding dolphins captive at the Marine Life

Park for viewing and study

o One of the 25 bottlenose dolphins died in

transit

Case study of SingaporeWhat is the impact of the development of tourism?

IRs contributed to country’s

tourism receipt of US$18.5 billion in

2012 which is 1.5 to 2% of

country’s overall economy

http://smarthomeintegratedsystems.wordpress.com/2011/06/21/the-dream-

residence-in-singapore/integrated-resort-singapore-marina-bay/

During the construction of the RWS,

the coral reefs at the northern part of

the islands were in danger of being

destroyed.

http://www.flickr.com/photos/wildsingapore/469652240/

Case study of Singapore

Figure 1.10 Temple Street, Chinatown

How is the impact managed?

• Chinatown

– Authorities infused authentic and

historical elements into the area to

retain Chinatown’s cultural heritage

– 33 heritage markers were installed

throughout Chinatown as part of the

Chinatown Experience Guide Plan

– Chinatown Heritage Centre was

created

– Designated as a conservation site

Case study of SingaporeHow is the impact managed? Retaining Chinatown cultural Heritage

http://reginsrealm.blogspot.sg/2012/08/singap

ore-redux-chinatown.html

33 Heritage Markers were

installed by the STB throughout

Chinatown with the help of the

National Heritage Board.

http://www.singapore-vacation-

attractions.com/chinatown-tour.html

Case study of Singapore

How is the impact managed?

• Integrated Resorts

– Strictly managed through various social safeguards

o Casino entry levies

o Casino exclusion orders

o Casino visit limits

o Restrictions on access to credit for Singaporeans and

permanent residents

o Advertising and promotions related to the casinos are strictly

regulated and restricted

Case study of Singapore

How is the impact managed?

• Integrated Resorts

– Government pledged to keep a close watch on the

industry and introduce stricter rules, if necessary

– Both IRs have been fined by the government for

disregarding social safeguards such as:

o Partially reimbursing the entrance fee to some local

patrons

o Allowing some Singaporeans and PRs to enter for

free

o Allowing some individuals below 21 years of age to

enter

Case study of Singapore

How is the impact managed?

• Integrated Resorts

– The National Council on Problem Gambling was set

up to address problem gambling

o Implements casino exclusion and visit limits

o Provides advice and feedback to the government

on social concerns related to problem gambling

o Implements effective programmes for public

education

o Holds stakeholder consultations

o Research, prevention and treatment services for

problem gamblers and their families

Case study of Singapore

How is the impact managed?

Managing negative social impacts of casino on locals –

Locals have to pay an entrance fee of S$100

Case study of Singapore

Is tourism a way for the area or country to develop?

• Tourism has numerous benefits to a country:

–It provides employment and business opportunities

–It provides a good incentive to improve infrastructure

–It increases foreign exchange in a country

–It generates tax revenue for the government

–It promotes local culture and customs

• Most countries rely on tourism to boost their economy

• Countries also have to be aware of the negative impacts

of increased tourism, e.g. unemployment, pollution

Case study of Singapore

Is tourism a way for the area or country to develop?

In Singapore:

– International tourism receipts increased 3% to US$18 billion from

2011 to 2012

– Tourism contributed to more than 4% of Singapore’s economy in

2011

– Tourism receipts came from shopping, accommodation,

sightseeing, food, health care

– Increase in tourism receipts corresponded to increase of tourist

arrivals

– Growth in tourism arrivals helped increase Singapore’s hotel

revenue

Case study of Singapore

Figure 1.102 International tourism receipts in Singapore by tourism sector in 2012. Adapted from: Singapore Tourism Board (2013).

Is tourism a way for the area or country to develop?

Case study of Singapore

Is tourism a way for the area or country to develop?

• Tourism is a key industry for the Singapore’s economy

• Limited land and resources mean that capacity for tourism growth is

restricted, hence the emphasis on ‘quality tourism’

• Quality tourism: Tourism growth that focuses on greater tourism

receipts rather than greater tourism arrivals

–Raise productivity for tourism growth by enhancing innovation

among different sectors and industries

–Investing in software that will help existing infrastructure provide

more value

–Reinvention and rejuvenation of tourist attractions

Case study of Singapore

Is tourism a way for the area or country to develop?

• In summary:

– Tourism has provided many jobs in the past, and is expected to

continue to support many jobs in the future

– Tourism is vital to Singapore both economically and socially in

the medium term

– Singapore cannot pursue tourism at all costs to continue to

support its development

– We need to be cautiously optimistic about tourism’s growth

– We need to be aware that increased tourism can bring about

negative impacts

– Relying on tourism entails managing the impact and the tensions

that tourism can bring

Recap

1. Assess the impact of tourism on a country.

2. Explain how tourism can be made sustainable.

3. Compare the roles of various groups in taking care of the

tourist areas.