Southern Cone Journeys: 06/2011

6/30/11

Economic Impacts of Tourism

Stores in the town of San Pedro de Atacama, in northern Chile.
© Marcela Torres

by Marcela Torres

Tourism is usually considered a good way to generate economic growth for destinations and many places in the world indeed depend on it as a source of income.

Most literature focuses on tourism’s benefits through both the direct expenditures of visitors and the associated employment opportunities it creates. It is commonly argued that a higher level of visitation to a place brings with it the appearance of related services, such as hotels, restaurants, car rental agencies, tour companies, service stations, and souvenir shops.

Tourists usually expect that some of the money they spend will directly benefit the local population, but this is not always the case. One of the greatest dangers in tourism is that of financial leakages, which occur when financial resources 'leak away' from the destination country to another country. This happens, for example, when the tourism company is based abroad and when tourism-related goods and services are being imported to the destination country.

Another risk along the same line is the fact that sometimes employment goes to persons residing outside of the area which directly experiences the impacts of tourism. The usual explanation for this is the lack of an existing local capacity.

Responsible tourism is meant to contribute to economic and social development. Purchasing local handicrafts and products to support the local economy using the principles of fair trade is a good way to achieve this. It’s also important to work with the local communities to build their capacity in order to increase their participation of the economic benefits of tourism.

Environmental Impacts of Tourism

Wallaby feeding at a private reserve in Granite Gorge, Australia.
© Marcela Torres

by Marcela Torres

All tourism can have positive or negative economic, environmental and social impacts on the destination involved. The Cape Town Declaration (2002) includes as one of its principles for responsible tourism that it should minimize negative impacts. But what are some of these impacts? Let’s start by analyzing the environmental benefits and costs.

Some environmental benefits of tourism include building awareness of the need to protect natural environments and restore damaged habitats. Tourists can also be watchdogs, letting responsible authorities know each time they observe harmful practices in the places they visit.

However, there can also be environmental costs such as the increase of buildings for visitors, generation of wastes, and some impacts of tourist activities. For instance, wildlife observation can interfere with animal populations if certain standards are not applied and feeding wild animals can make them depend on humans.

Hiking can also damage the soil if visitors do not stick to established trails. Also, occasionally visitors can introduce exotic species, such as domestic animals or grasses that can become invasive and compete with native plants and animals.

How can these environmental costs be avoided? By adequate planning in the tourism destinations and through environmental interpretation and education to visitors following, at least, the Code of Ethics for the Responsible Tourist and Traveler prepared by the United Nations World Tourism Organization (UNWTO). In our next blog, we will analyze the economic impacts of tourism.

6/22/11

Can Tourism Be Sustainable?

by Marcela Torres

We believe it can! That’s why Southern Cone Journeys is joining the 2011 campaign of the World Responsible Tourism Day (WRTD), which is celebrated every year during World Travel Market – held in London and one of the most important gatherings of the tourism industry- with support by the United Nations World Tourism Organization (UNWTO).

The WRTD was launched in 2006 to promote practical action by the industry and other stakeholders in light of the need for a more responsible attitude in tourism, especially towards host communities. Responsible Tourism is an important consumer and corporate component of triple bottom line of sustainability, which involves economic, social and environmental factors.

Throughout this blog, we will explore current trends, studies and best practices for the tourism industry to walk the path to sustainability. How do we reach this goal? By promoting the principles of responsible tourism as defined in the Cape Town Declaration (2002):

To minimize negative economic, environmental, and social impacts;
To generate greater economic benefits for local people and enhance the well-being of host communities, improve working conditions and access to the industry;
To involve local people in decisions that affect their lives and life chances;
To make positive contributions to the conservation of natural and cultural heritage, to the maintenance of the world's diversity;
To provide more enjoyable experiences for tourists through more meaningful connections with local people, and a greater understanding of local cultural, social and environmental issues;
To provide access for physically challenged people; and
To be culturally sensitive, engender respect between tourists and hosts, and build local pride and confidence.

Come join us in this challenging but rewarding journey!