The Negative Impact of Tourism Due to Increased Globalization - Essay Example

? The Negative Impact of Tourism Due to Increased Globalization The world is sometimes referred to as a global village because of the increasing globalization. Globalization can be defined as the interconnectivity of the human community, the increasing affiliation of the different countries of the world and their interdependence on each other. The interaction between various nations of the world involving their culture, politics, business and economic trends etc. can be termed as globalization (Suarez-Orozco and Qin-Hilliard). All countries of the world want to keep in touch with the other nations as being a part of an interconnected web has its benefits. It is essential and even necessary to communicate and reach out to the rest of the world as an isolated country can never flourish and keep pace with the rapidly moving world. Japan is an evident example of this case as it had kept itself apart from the rest of the world for many years, not even allowing trade and business with other nations. Japan's isolation policy was fully implemented by Tokugawa Iemitsu, the grandson of Ievasu and Shogun from 1623 to 1641. For over a hundred years, it retained its secluded position, cut off from the rest of the world, but then, after the Tokugawa government fell, it realized the importance of interconnectivity and globalization (Richie and Reischauer 1994). Now Japan is the home of technology; it is a pioneer in various novelties, most of them related to the information technology and better ways of communication and connectivity. Through globalization the economies of all countries are being rapidly integrated. One method of achieving globalization is through tourism. It especially helps in the cultural interaction of one nation to another as well as a source of revenue generation. Tourism is the commercial organization of traveling for recreation and the sum of relationships resulting from the interaction between the tourists, local government, business suppliers, host communities etc. Tourism plays a vital role in the strengthening of a country's economy as it generates an immense amount of revenue for the government of the county. Local businesses also thrive due to tourism and the tourism industry offers various jobs, which ultimately results in high rates of employment. These are a few positive aspects of tourism but where it is earning net national benefits, it is also responsible for its negative impact on the country's image and economy. Tourism is the world's number one export earner, but with its advantages come the negative aspects and disadvantages. Underdeveloped and developed countries want to promote tourism because it is a good industry for revenue generation, but more than often these are not as beneficial or promising as they sound. The major reason for this is the large transfer of money from the host country and the exclusion of local businesses and products. The tourism industry results in inbound country expenses, as the tourists that come to visit the local community or the host country bring foreign exchange revenues with them mostly in the form of liquid cash, taxes, expanses etc. from their home country. These inbound expenses are usually in the form of destination specific expenses as the tourist require lodging and food facilities on their vacation trips. The foreign revenue which is supposed to help the host country economically results in having unfavorable effects on the host community because of certain hidden costs. These hidden costs are more applicable in developing and underdeveloped countries as most of the foreign revenues which come in the host country through tourists leave through leakages. Even though the revenues are retained by destination specific expenses, estimates show that nearly 80% of them are leaked back to the home country of the tourists, the inbound country expenses are basically the destination specific expenses which the tourists spend on their vacation residence and culinary expenses along with the different local destinations they visit. These expenses along with the local taxes they have to pay, result in retaining the revenue for the host country, but ultimately this revenue is subjected to leakages and it has an unfavorable effect on the economy of the host country rather than proving beneficial for it. The amount of revenue which is left locally after taxes, profits, and wages are paid off and is called the direct income of an area. The rest of the amount which is subtracted is known as leakage. In most tourists’ packages, about 80% of the traveler's expenditure is gone to the airlines, hotels, international agencies, and tour agencies, and not to local companies and businesses. Many developing countries which are facing debt burdens are turning towards tourism as it is one of the most rapidly expanding industries. They think of it as the easiest and quickest way to boost foreign investment and financial reserves, but tourism in developing countries is reviewed by critics as an extension of colonial conditions as it is taking benefit from the international economic relationships that favor the capitalists’ countries in the North. Dependence on foreign interests, unequal trading relations, and divisions of labor have negative impacts on the tourism of developing countries as they do not generate as much revenue by this industry as the tourism industries of the affluent North countries do. Due to rapid globalization, the tourist industry is flourishing day by day. Certain points have been set forward due to the globalization and interconnectivity of different natures. These include: Acceptance of travel and tourism as a strategic economic development and employment priority at the government level Deregulation of telecommunication in international markets, liberalization of air transport and movement towards open and competence markets. Elimination of barriers like lack of infrastructure, better airports etc. But by following the above mentioned points and globalizing the tourist industry, the independence of thousands of small enterprises, which include hotel and tour agencies, is at risk as most local enterprises will not be able to compete against foreign agencies. This will result in the loss of these enterprises, unemployment, and ultimately a negative impact on the economic conditions of the host country (Eymann and Ronning). In most developing countries, due to the high foreign exchange leakages, more than two-thirds of the revenue from international tourism doesn't reach the local economy. Now, as the new free trade and investment policies are being implemented, there might be an even greater economical imbalance due to these policies. It may even worsen because the profits repatriated by foreign enterprises are more prone to growth than the inflow of capital. This shows that the claims that globalization and liberalization of tourism will bring wealth, foreign revenue, prosperity and improved environmental standards to developing countries, needs to be questioned (Peric). Even though local revenue is generated and finances are boosted up by the inbound country expenses and the destination-specific expense of the tourists, this revenue is not transferred to the local business owner and small and medium sized enterprises (SME’s) because of the phenomenon of leakage. Leakage can be of two types: Import Leakage: This usually occurs when the tourists demand food articles, drinks and other equipment which are not present or available in the host country. In order to fulfill the requirements of these tourists, those goods have to be imported from the home country of the tourists or from other countries as the products of the hotel are not up to the tourists’ standards and the host country doesn't have the supplying industry for that product. Much of the tourism expenditures leave the country in the form of payment for these imports. The average import leakage for developing countries is 30-40% while for developed countries the rate is 10%-20% of the gross tourism earnings. Export Leakage: In poor developing companies, the hotels and resorts are owned or funded by overseas investors. They have a substantial share in export leakage as they invest in the construction of tourism infrastructure and facilities. Thus, they take their profits back to their original countries and export leakage occurs. Globalization has increased the interactions and interdependence in countries, people, and economies. It does not merely involve giant organizations, but also the small and medium sized enterprises which are functioning locally. This has led to the creation and operation of global markets of tourism where different destinations throughout the globe function interactively. The increase in technology has led to ease in travel, but making tourism an industry to earn capital has its disadvantages. The impact it has on the environment and the local people has proven staggering. The question of how to adapt in a time of rapid change and innovative ways is a daunting one. The similar situation is faced by the people of Hawaii as their land has been threatened by the tourism industry and by the thirst of enterpriser for generating revenue through tourism. Hawaii has become a major tourist destination because of its exotic locations and diverse ecosystem; it receives over six million visitors per year. The tourism industry has reshaped the landscape of Hawaii with no consideration for the sensitive destinations and native culture. The tourism industry has a devastating effect on the local flora and fauna. A big contribution to environmental degradation is the development of infrastructure related to the tourism industry. From 1985 to 2010 the number of hotel rooms has been estimated to double from 65 thousand to 132 thousand. Moreover, the energy requirements for the sustainability of this development will increase the environmental pressures. A report shows that 60% of animal and plant species in Hawaii are considered endangered. The state has imposed laws and devised management policies to address this tremendous issue but it lacks the capital to enforce and implement these regulations. Only corporate cooperation along with the state government will be able to protect and conserve the fragile environment. This is one of the greatest problems faced due to increasing tourism, which is, in turn, due to the ever growing globalization (Sorochuk). Similarly, another technique which local businessmen have devised is called ‘Enclave tourism’. This includes all inclusive vacation packages, involving the availability of all requirements and supplying manifold destination options to meet the needs of the tourists. This is beneficial for the owner of those resorts or enclave cruise ships, but it has an overall negative effect on the economy as when the tourists spend all their expenditure on one destination, the flow of money between local companies stops. Less number of workers is required at enclave destination, so fewer people are employed, reducing the revenue generation, resulting in a smaller impact on the economy. Tourism development and building infrastructure can cost the government of the host country and the local tax payers, an immense amount of money. Public resources spent on the infrastructure, development of tourist resorts, and hotel etc. may result in the negligence of other departments. These may reduce government investment in other critical areas, like the health and education of the local people. Furthermore, tourism development may result in the rising demand of real estate. This might result in higher building costs and land values. All this will make life for the local people harder as meeting their basic needs will become more difficult. Another impact of tourism due to increased globalization is negative capitalism. The local scenery is being destroyed due to the buildings and shops which have been opened in order to facilitate the tourists. More than often, these souvenir shops sell low quality goods, having a bad impact on the country's economy and repute. Dilution of culture and diversification of economy is also one of the negative impacts of tourism. Diversification becomes unhealthy for the economy when a country starts relying on one industry too much. Most underdeveloped or developing countries having tourist resorts, e.g. Gambia, Maldives, Jamaica etc., depend almost entirely on their tourism industry. Over reliance on the tourism industry carries serious risks. Economic recession, different changing patterns of tourism, natural disasters, and weather conditions can all have a negative impact on the tourism industry (Reid). Even though tourism is a flourishing industry, however, only sustainable tourism should be practiced and a country should not depend solely on this industry as its disadvantages are greater than the advantages. It should be kept in mind that the wellbeing of the local people is more important than the requirements of the tourists. The local people should not be neglected while the entire attention is focused on tourism development. Works Cited Eymann, A., and G. Ronning. “Regional Science and Urban Economics.” Micro-Econometric Models of Tourists 1997: 735-761. Print. Peric, V. Tourism and Globalization 2005. Print. Reid, D. G. Tourism, Globalization and Development: Responsible Tourism Planning (Illustrated ed.) Pluto Press, 2003: 104-232. Print. Richie, D., and E. Reischauer. Introducing Japan (2nd, illustrated, revised. ed.). Kodansha International, 1994: 23-44. Print. Sorochuk, J. Negative Impact of Tourism on Hawaii Natives and Environment. 11 June 2010. Web. http://www.lurj.org/article.php/vol1n2/hawaii.xml Suarez-Orozco, M., and D. Qin-Hilliard. Globalization: Culture and Education in the New Millennium (Illustrated ed.). University of California Press, 2004: 14-67. Print. Read More