The Positive and Negative Effects of Tourism

Tourism, Resort, Fiscal multiplier

The Negative and Positive Effects of Tourism
Submitted by
Arianne Smith
DeVry University
Tourism Management, Warren John Fall 2011

The current research paper covers the main effects of global tourism, both positive and negative. International tourism is a significant sector of business. For some countries it is one of the main sources of national income. The most important positive economic effects of tourism are as follows: increase in budget revenues, production expansion, stimulation of investments, and improvement in the population’s welfare. Tourism influences social and cultural lives of people in a positive way by stimulating the development and revival of local cultures and encouraging intercultural exchange. Tourism has both positive and negative effects on the environment. Among the negative effects of tourism, the most important ones are inflation, financial leakage, infrastructure costs, and economic dependence. Political issues can also arise because of tourism. The countries should be aware of the negative effects of tourism in order to avoid them. Keywords: international tourism, environment, economic effect, leakage, tourist infrastructure.

Table of Contents
The Negative and Positive Effects of Tourism2
Positive Effects2
Economic effects.2
Environmental effects.6
Cultural effects.6
Social effects.8
Negative Effects of Tourism10
Political effects.10
Financial leakage.12
Increase in infrastructure and incidental costs.14
Economic dependence.15
Negative impact on the environment.16

The Negative and Positive Effects of Tourism
Nowadays tourism is widespread throughout the world. Millions of people travel to different countries all year round seeking rest, new experience, and impressions. Lately tourism has become quite a profitable business, which also brings benefits to a country’s economy and thus the well-being of the...
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