Type of Tourism and Its Impact on Economics, Socio- culture and Environment Pertemuan 7-8 Matakuliah: G1174/Tourism Management and Planning Tahun: 2007

Bina Nusantara Topics Types of Tourism Tourism Impact on Economics, Socio-culture and Environmental

Bina Nusantara Objectives 1. To demonstrate the types of tourism activities 2. To describe the impact of tourism activities on economics, socio- culture and environment

Bina Nusantara Tourism Activities As define, tourism is a set of activities taken by tourists on their holidays Activities are taken in many tourist destination around the world and often serve as the catalyst for tourist visit. There are various types of activities: – Nature based activities, use feature of natural environment – Cultural based activities, utilize on man’s activities – Special interest tourism

Bina Nusantara Form of Tourism Activities Resort-based Tourism Integrated resort Town resort Retreat resort Urban Tourism Special interest Tourism and Adventure Tourism Marine Tourism Cruise Ship Tourism River and Canal Tourism Residential Tourism Alternatives Form of Tourism Village Tourism Agro-tourism Eco-tourism (nature and urban) Other Forms Camping & Caravan Tourism Youth Tourism Social Tourism Religious Tourism Nostalgic Tourism (WTO:1991)

Bina Nusantara Source: Mathieson and Wall (1982:15) Tourism Impact

Bina Nusantara Tourism Impact on Economic The direct impact of tourism on GDP Tourism expenditure expressed as a percentage of GDP The level of tourism employment in the economy The proportion of international travel-related expenditure as a percentage of total travel-related expenditure Domestic personal expenditure as a percentage of total travel expenditure Domestic business and government expenditure as a percentage of total expenditure

Bina Nusantara Tertiary Sector The economic impact of tourist spending in an urban area Hotel, retail and service business Wholesale businesses Household Primary sector Secondary sector Tourism expenditure Income leakage for outside purchase and taxes Income leakage for outside machinery, dividends and taxes Income leakage for supplies, dividends and taxes Income leakage for raw materials, licenses, dividends and taxes

Bina Nusantara Cost and Benefit of Tourism on Economics Benefits Contribution on foreign exchange earnings and balance of payment Generating revenue Create job opportunities Improve economics’ structure Induce entrepreneurships activities Costs Risk of overdependence on tourism sector Increasing on inflation and land value Enhance on frequency of import goods and services Seasonal production and low rate return on investment Induce other external costs E.g.. Displacement and opportunity cost, etc.

Bina Nusantara Multiplier Effect of Tourism INDIRECT DIRECT EFFECTS Tourist $ Hotel RestaurantAttraction Tour operator, etc. Tourism Supplies Local industry purchases Household income Government revenue Import (leakage) Local household purchases Savings All businesses Import (leakage) Local industry purchases Household income Government revenue Import (leakage) Local household purchases Savings Import (leakage) All businesses

Bina Nusantara Tourism and Environment The environment, whether it is natural or artificial, is the most fundamental ingredient of the tourism product. As soon as tourism activity takes place, the environment is inevitably changed or modified either to facilitate tourism or through the tourism production process. There are various relation between tourism and environment: – Symbiosis: exist, supporting and benefit. Conflict: cost and negative impacts The environment impact associated with tourism development, just like economic impacts, can be considered in terms of their direct, indirect and induced effects.

Bina Nusantara Positive and negative side of tourism on environment Positive Preservation/ restoration of ancient monuments, site and historic buildings The creation of national parks and reefs and beaches The maintenance of forest Provision of new infrastructure Negative Physical deterioration Degradation and pollution – water, air and noise Disruption of animal habits Destruction of vegetation, habit and ecosystem Depletion and Littering Traffic congestion Salination of fresh ground water resources

Bina Nusantara The nature of socio-cultural impacts of Tourism The socio-cultural impact of tourism is ‘people impact’ There are changes in quality of life as tourism requires – Tourists – Visitors - Guests – Hosts – Local communities - Residents – Tourist-host interrelationship As a result of the contact between the host population and visitors, there are direct and indirect socio-culture impacts. – Demonstration effect Tourists influence the behavior of host population by their examples. – Tourist bubble Tourists are being in their own environment and not in touch with local community. – Tourist enclave Some become marginal men or brokers in the interface between residents and visitors.

Bina Nusantara The social and cultural impact of tourism Tourism impact upon And effect upon Family relation Collective lifestyle Individual behavior Value system Creative expression Traditional ceremonies and community organizations Moral conduct Safety level

Bina Nusantara Index of Tourist Irritation Source: Doxey in Cooper (2004) Euphoria Apathy Antagonism The initial thrill and enthusiasm that comes along with tourism development results in the fact that the tourist is made welcome The tourist is taken for granted and is now a source of profit taking Contact done on commercial and formal footing The industry approaches saturation point The hosts are no longer in relation with tourists without the provision of facilities The tourist is now seen as the harbinger of all ills and being there to be exploited Local community are ignorance Annoyance

Bina Nusantara Positive and Negative Effect of Tourism on Socio-culture Positive Awareness of other society and ethnicity The development of local culture – demand on traditional entertainment, art and music Destination image Improvement on social status and lifestyle Education, conservation and preservation Cultural exchange and cross cultural New experiences and ideas Negative Degradation of socio-cultural degree Conflict on changes Commercialization and modification Tradional and fine art become ‘junk’ art Lost of cultural identity and originality Modesty of socio-culutral Hostility debasement Change on consumption pattern Introduction to gambling, prostitution, crime, drugs, etc

Bina Nusantara Conclusion It is obvious that tourism as a human activity derive impacts on economic, environmental and socio-culture of host community. The economic impacts of tourism on a host economy is, most of all, positive but also carries with some negative aspect that usually hidden. Environmental impacts are not unique to tourism and tourism receives a disproportional share of critics for its negative environmental impact, even though tourism also encourage the environmental sustainability The contact between visitors and local residents can be beneficial or detrimental to the host population depending upon the difference in cultures and the nature of the contact.