(Kreag, 2001), Negative impacts are the increase in process and goods and service, increase in price of land and housing, increase in cost of living, job may pay low wages and many more. Government revenues from the tourism sector can be categorised as direct and indirect contributions. (Harcombe, 1999). It is only when all three levels of impact (ie direct + indirect + induced) are assessed that the full nature of this particular effect of tourism can be identified. Tourism can contribute directly to the conservation of sensitive areas and habitats. This process stimulates the local economy through the multiplier effect, which can be direct, indirect, and induced. This study looks at economic impacts and finds that although there are some negative aspects, most economic consequences of tourism are beneficial. Enterprise is stimulated, and new jobs created, together contributing to increased government revenue. The World Travel and Tourism Council estimates that tourism generates an indirect contribution equal to 100 % of direct tourism expenditures. User fees, income taxes, taxes on sales or rental of recreation equipment and license fees for activities such as hunting and fishing can provide governments with the funds needed to manage natural resources. Each individual category also includes not just positive but also the negative impacts. The opportunity cost in such situations is the cost of using scarce resources for tourism, either as consumption or development, as opposed to using the money for alternative, perhaps more socially preferable, purposes. Leisure tourism is considered to be price and income elastic (Cooper et al, 1993), and therefore very responsive to economic conditions in both host and traveller-generating countries (eg USA & Japan). Our academic experts are ready and waiting to assist with any writing project you may have. Is the proliferation of mega malls in the Philippines beneficial to the country? Do you have a 2:1 degree or higher? Some governments collect money in more far-reaching and indirect ways that are not linked to specific parks or conservation areas. For most working people, it is difficult to envision a world without vocations and open doors for wandering out to new places after new adventures. * displacement effects, Another negative economic impact of tourism is the cost of infrastructure. Price decreases and increases in destination countries (eg Thailand & Malaysia) are likely to, respectively, encourage or discourage some tourists from the traveller-generating countries (who would otherwise have visited) from coming. Also relevant are possible inflationary effects, the problems of over-dependency on a major industry (ie tourism) and also, initially at least, on ex-patriat labour, as well as issues relating to foreign capital investment, seasonality, opportunity costs and displacement effects. Direct contributions are generated by taxes on incomes from tourism employment, tourism businesses and by direct charges on tourists such as eco tax or departure taxes. It is in the field of tourisms environmental and socio-cultural impacts where the real controversies lie. Your Answer is very helpful for Us Thank you a lot! These are: * the generation of foreign exchange, * the creation of new job and employment opportunities, * the stimulation of trade, income and entrepreneurship – especially in the service and small business sectors, These particularly concern leakages of expenditure out of the economy, pressures for increased imports, and new utility and infrastructural costs. Inskeep E; Tourism planning: an integrated and sustainable development approach, Van Nostrand Reinhold, New York, 1991. Throughout the latest research, newspaper or political science journal articles Brazil has been termed “an upcoming global power” or “international player”. These benefits include the effects of price and income elasticity, and also the economic consequences of tourism spending, including the generation of foreign exchange. These three major types of impacts are economic, social-cultural and environment. * Why do business men refuse to apply for bank loans during economic depressions? On the contrary, the economic impact of tourism doesn’t always have an immediate impact. For example, hotel and linen supply employees supported directly or indirectly by tourism, spend their income in transportation, food, housing, household product and service needs in that region. 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