Social and Economic Sustainability of Tourism - Essay Example

?Sustainable Tourism Table of Contents Sustainable Tourism Table of Contents 2 4 Introduction 4 Literature Review 5 Social and Economic Sustainability of Tourism 5 Environmental Impact of Tourism 7 Sustainable Tourism 8 Tourism Industry in UAE 8 Summary 9 Research Methodology 10 Research Question 10 Data Gathering Technique 10 Sampling Technique 10 Limitations 10 Data Analysis and Result 11 Results 12 Conclusion & Recommendations 13 References 14 Annexure 15 Questionnaire 15 Abstract Tourism is considered to be one of the most happening industry segments across the globe. The advent of globalization has also led to the growth of the tourism industry with the developing nations now joining the elite nations in becoming a tourist hub. UAE and Dubai in particular has emerged as a global tourist hotspot. The present study would try to analyze the aspect of sustainable tourism in bringing about economic and social benefits to nations. In order to conduct an in-depth analysis a literature review consisting of the existing literature has been carried out. This has been followed by a primary research which would provide firsthand information about the means to ensure sustainable tourism in the nation. A questionnaire survey has been created for the purpose which would be followed by a section that would contain a set of plausible recommendations about the means to bring about sustainable tourism in a nation so as to bring about greater economic and social prosperity in the tourism industry. Introduction The twenty first century has been often cited by critics as the age of globalization which has been categorized by organizations trying to breach across geographical boundaries to reach out to new and potential market regions. This has bolstered and fuelled the economic growth of many nations whose citizens have reported considerable rise in disposable income. This has in turn enhanced the demand for leisure activities like tourism. Tourism has evolved in a major way with global tourism hotspots being termed as generators of revenue for the economy and the nation. According to World Tourism Organization sustainable tourism is defined as “tourism which leads to management of all resources in such a manner that social, economic and the aesthetic needs could be fulfilled while maintaining cultural integrity, essential ecological processes, and biological diversity and life support systems” (United Nations Foundations, 2002, p.1). The significance of tourism as an industry segment could be analyzed from the fact that global tourism industry contributes approximately 11 percent towards the global GDP of the world. This sector employs approximately 200 million individuals across the globe serving approximately 700 million customers across the world. Experts point out that this figure is expected to increase to exactly twice its present value. Much of the value of this global tourism comes from the developed nations which contribute approximately seventy percent of the total revenues generated from tourism. The developing nations have grown by approximately 9.5 percent since 1990 which is quite comparative as compared to the annual growth of the global tourism industry which is pegged at 4.6 percent. Tourism generates precious foreign exchange, employment as well as GDP for the nations. There are a large number of nations and islands whose economy is entirely dependent on the tourism industry (Roe & Khanya, 2001, p.1). The present study would try to analyze the aspect of sustainable tourism and would also discuss about the different factors affecting global tourism with regards to certain issues related to the environment. Literature Review Social and Economic Sustainability of Tourism The sustainability of tourism industry is largely dependent upon other sectors as many economic and social factors are said to be correlated with the tourism industry. Presence of infrastructure and political stability are factors that have a deep impact on the success and growth of the tourism industry in a nation. The backward and the forward sectors are directly linked with the success of the tourism industry. Certain industry segments like agro based and food related industries have a direct impact on the needs and wants of the global tourists visiting a tourism destination. Food and agro based industries cater to the food related requirements of the tourists which also has a significant impact on the success of the tourism industry. Certain other industry segments like infrastructure, hospitality, transport also have a deep impact on the success of the tourism industry. These industries act as a platform for satisfying the demands of the customers. A research study states that suppliers have a major role in the functioning of the tourism industry. A research study conducted by the World Trade Organization states that the economic sustainability of the tourism industry is largely affected by the ‘leakage effects’. Leakage effect is defined as a phenomenon in which the revenues and the foreign exchange earned from tourism is not retained by the host nation rather it spills over to the nation from where the tourists originate. The aspect of leakage comes from the fact that nations have to spend a significant amount towards developing infrastructure and promoting their destinations globally. The report also divides the aspect of leakage into three type’s namely internal, external and invisible leakage. The report also states that in order to control aspects of leakage steps must be taken to involve local suppliers as it would tend to hold the precious foreign exchange that has been earned through tourism. The report also warns against greater involvement of foreign players as it would seriously undermine the economic prosperity of the nation. The aspect of external based leakage is rather more complicated in nature as it is directly correlated with the aspect of the total value added to the by the tourism sector to the host nation. This problem is more compounded for developing nations as they have comparatively lesser access to the different channels of commercialization that are essential for the success of the tourism industry. The difference between the received and the paid prices lead to leakage which ranges in the range of 75 percent of the total revenues generated from tourism. In extreme cases this form of leakage results in infrastructural and environmental concerns for the projects related to tourism and also affects the foreign exchange cash flows for the serving nation (Diaz, 2001, p.7, 8). Environmental Impact of Tourism Tourism industry is largely linked with the environmental factors namely ecology and use of natural resources. A report published by the United Nations suggests that tourism causes severe environmental hazards in tourist hotspots. Depletion and misuse of natural resources has come up as a serious issue for organizations engaged in the tourism industry. The fact that tourists generally have high consumption and wastage levels compounds the problems associated with the environment. Tourism industry affects the environment by generating pressure on the natural resources, generation of wastes and finally generating risks for the total environmental ecosystems. The United Nations report on the global tourism industry also states that land, water and the marine resources are the most important natural resource that are affected by the tourism industry. Improper planning leads to a situation where the natural landscape of an area tends to get affected. In case of coastal areas improper practices could lead to erosion, land degradation, sand mining etc which may lead to an irreversible change in the natural ecosystem of the area. Over consumption by the tourists also lower the water table in a particular area which affects the marine ecosystems. Marine tourism like scuba diving, deep sea diving also affects marine wildlife in a negative manner. Apart from this the large levels of waste generation including large scale consumption by tourists in hotels and resorts also tend to affect the environment in a major way. Improper disposal of wastes lead to destruction of the natural environment and also poses considerable threats to the wildlife associated with the region. Large scale energy consumption by luxury hotels also lead to wasteful use of natural resources. The demand and potential of tourism also generates improper and haphazard growth which may lead to destruction of forest and wildlife for creating new resorts and hotels. This leads to major imbalances in the natural ecosystem of the area (Neto, 2002, p.5-8). All these aspects point out to the fact that sustainable tourism requires careful planning on the part of the policy makers so as to create conditions that do not destroy or affect the natural environment. Carful economic planning is also required so as to ensure minimal economic loss and to ensure greater sustainability. Sustainable Tourism The large scale impact on the environmental concerns has forced governments and policy makers across the world to engage in policy making that tends to generate sustainable tourism. The great coral reef in Australia is an example of sustainable tourism. The Australian government has created an authority that manages the great coral reef which generates approximately 5.1 billion Australian dollars annually. The Great Barrier Reef Marine Park Authority or the GBRMPA not only services to promote the tourist destination but also oversees that the natural environment is not adversely affected by the impact of tourism in the area. The authority works towards enhancing private participation and has also launched campaigns like Bleach Watch, Cots Watch so as to ensure environmental and economic sustainability (United Nations Environment Programme, 2006, p.1-2). Tourism Industry in UAE UAE and Dubai in particular has taken up giant strides in tourism. The Sultan of Dubai has made tourism as the top priority of the government. Dubai has developed numerous tourist attractions like the Burj-Al-Arab which is touted as the world’s most luxurious hotel. Certain other tourist attractions include malls and shopping complexes that have the potential to make Dubai one of the tourist hotspots of the world. The World Travel and Tourism Council have predicted large scale growth for the tourism industry in UAE. Figure 1: Tourism Industry forecast in UAE (Source: World Travel and Tourism Council, 2007) The table shown above clearly forecasts the number of tourists to grow at an attractive rate in the nation. The large scale government spending in the tourism industry has also prompted the growth of the region particularly Dubai as an ideal and attractive tourist destination. Policy makers of the nation have also paid considerable importance towards environmental sustainability while promoting tourism in the region. The Al-Maha desert resort is a suitable and shining example in this regard (Flanagan, n.d., p.6). Summary The analysis of literature reveals considerable potential of the tourism industry both in the world and Dubai and UAE in particular. The analysis also reveals the need for better planning and control so as to ensure sustainable tourism which is the need of the hour. The subsequent section would deal with a primary research that would try to uncover the aspect of sustainability with regards to the tourism industry in Dubai. This would help in generating greater profitability and sustainability for the tourism industry in Dubai in the upcoming years. Research Methodology Research Question The primary research question would be to analyze the importance of ensuring sustainability in the tourism industry. The question would try to correlate the aspect of sustainability with the problems and profitability of the tourism industry in Dubai. Data Gathering Technique In order to analyze the research question primary data would be collected from the respondents so as to obtain first hand information about the aspect of sustainability in the tourism industry. In order to collect primary data a questionnaire survey would be conducted which would contain both open as well as closed ended questions. Focus group interview technique would be used to extract the information from the set of selected respondents which would be analyzed qualitatively. Sampling Technique The sample size would consist of a number of twenty respondents who would be selected from the population using a simple random technique. The population would constitute individuals who are directly involved with the tourism industry. This would include prominent travel agents, hoteliers and resort managers who have a significant understanding of the tourism industry. Limitations In spite of the best efforts to carry out the research certain limitations may also exist which may arise due to respondent errors in providing response to the questions. Moreover, the study has been carried out only in Dubai and hence the results may not be generalized for the entire world. Data Analysis and Result The questionnaire prepared for the study was distributed among the respondents and the data was collected using the focus group interview technique. The results of the survey indicated that an overwhelming majority of the respondents felt that tourism was a highly profitable business and offered attractive business opportunities for business organizations. Most of the respondents also had a view that globalization was responsible for the growth of the tourism industry. They also felt that the initiatives of the government in Dubai have helped in making Dubai as one the major tourist hotspots of the world. Most of the respondents also felt that maintaining environmental stability was essential in order to sustain tourism. They felt that maintaining environmental sustainability was essential in order to maintain the natural ecosystem of the area. This was important as most of the respondents felt that natural environment of any area plays a major role towards promoting tourism in an area. Natural environment if promoted in a better manner would help in generating greater revenues for organizations engaged in the business of tourism. According to the data collected from the survey a majority of the respondents were of the view that ensuring greater sustainability would reduce the prevailing malpractices prevailing in the tourism industry. Sustainable tourism tends to remove the illegal aspects which do not add any value to the nation or to the business organizations but help in increasing crimes such as drug trafficking which are prevalent forms of crimes associated with the tourism industry. The response generated from the survey also indicates that government policies played a major role in the sustainability of the tourism industry. According to the respondents, government policies helped in reducing income leakage. They also felt that in order to ensure sustainable tourism stability and tourist friendly policies including law and order must be maintained so as to make an attractive destination for tourists. This was because most of the tourists favored destinations that had a good law and order status. Governments also play a major role in the promotion and development of infrastructure in a particular area. Presence of quality infrastructure was another important factor that the respondents believed had a major role in the profitability and sustainability of the tourism industry. In addition government policies also helped in ensuring economic sustainability in the form of reduced income and revenue leakage. On the contrary, some of the respondents also cautioned against too much interference by the government in the tourism industry. They feared that large scale interference would create unnecessary competition and unhealthy practices which would ultimately affect the progress of the tourism industry. They insisted upon aspects like single window clearance and reduction in bureaucratic hurdles which would help in ensuring greater profitability and sustainability of the tourism industry. The aspect of foreign investors in the tourism industry in Dubai evoked a mixed response from the respondents as they felt that too much openness to the foreign players would ultimately create problems for the indigenous organizations and would also create revenue leakage, however some of the respondents also had a view that the entry of foreign players would bring in better quality and service standards that would uplift the standards of the tourism industry in Dubai. Results The results of the study indicate that ensuring sustainable tourism is the need of the hour as most of the respondents had a view that ensuring greater sustainability would help in ensuring greater profitability and reducing income and revenue leakage of the industry. Conclusion & Recommendations The analysis of the primary and secondary data reveals the importance of sustainable tourism in ensuring long term growth and profitability of the tourism industry. The study also shows the emergence of Dubai as a strategic tourist hotspot not only for the domestic but also for the foreign tourists. In order to make tourism industry more sustainable in Dubai and UAE, certain steps could be taken which would ensure greater profitability of the industry. Firstly the government must play an effective role towards ensuring greater stability and security so as to promote UAE as an attractive tourist destination. Steps must also be taken to ensure greater private participation so as to ensure more participation and to generate more income and employment. Secondly business organizations engaged in the tourism industry must also take active steps so as to ensure less wastage of natural resources and to make tourism an environment friendly industry. Finally citizens must also play an active part in ensuring the comfort of the tourists in their area as hospitality from local people plays a very important role in making an ideal tourist location attractive to tourists from across the world. Ensuring greater co-operation from the three major stakeholders (citizens, business organizations and government) would go about a long way in ensuring profitability and sustainability of the tourism industry in UAE. References Diaz, D. (2001). The Viability and Sustainability of International Tourism in Developing Countries. Retrieved January 10, 2011 from http://www.wto.org/english/tratop_e/serv_e/diaz.doc. Flanagan, M. (No Date). World Travel and Tourism council- A Case study: Balancing Dubai’s developments. Retrieved January 10, 2011 from http://www.wttc.org/bin/pdf/original_pdf_file/wttcemiratescasestudy.pdf. Neto, F. (2002). Sustainable Tourism, Environmental Protection and Natural Resource Management: Paradise on Earth. Retrieved January 10, 2011 from http://www.mtnforum.org/oldocs/1423.pdf. Roe, D. & Khanya, P.U. (2001). Pro-Poor Tourism: Harnessing the World’s Largest Industry for the World’s Poor. Retrieved January 10, 2011 from http://www.tanzaniagateway.org/docs/Pro-Poor_Tourism_harnessing_the_worlds_largest_industry_for_the_Worlds_poor.pdf. United Nations Environment Programme, (2006). Engagement with the private sector for sustainable tourism in the Great Barrier Reef Marine Park. Retrieved January 10, 2011 from http://www.unep.org/GC/GCSS-IX/Documents/Australia-Theme-1A.pdf. United Nations Foundations (2002). SUSTAINABLE TOURISM – TURNING THE TIDE. Retrieved January 10, 2011 from http://www.stakeholderforum.org/fileadmin/files/SF_Briefing_Papers/bp_tourism.pdf. World Travel and Tourism Council. (2007). Tourism News. Retrieved January 10, 2011 from http://www.wttc.org/eng/Tourism_News/Press_Releases/Press_Releases_2005/2015_forecasts_for_UAE_Travel_and_Tourism_/. Annexure Questionnaire Name: Occupation: 1. Do you feel tourism is a profitable business? a. Yes b. No 2. Comment on your views regarding the aspect of environmental sustainability in the tourism industry. 3. Do you feel ensuring sustainability would prevent malpractices in the tourism industry. 4. Comment on the role of the government in ensuring growth and sustainability in the tourism industry. 5. Comment your views regarding the aspect of foreign investment and suppliers in the tourism industry. Read More