Tourism impacts

The Impacts ofTourism
By Glenn Kreag
For a tourism-based economy to sustain itself in local communities, the
residents must be willing partners in the process. Their attitudes
toward tourism and perceptions of its impact on community life must
be continually assessed. (Allen et al. 1988)
The long-term sustainability of tourism rests on the ability of community leaders and
tourism professionals to maximize its benefits and minimize its costs.
This fact sheet tabulates 87 tourism impacts within seven categories
and divides the sources of tourism impacts into tourist-based
causes and destination-based causes. Thhis information, which
was distilled from recent tourism research, provides a
framework for discussions, directions, and development
regarding tourism. Formally addressing the impacts of
tourism facilitates planning that helps a community
create a sustainable tourism industry.
For decades tourism industry growth has been a
major contributor to increased economic activity
throughout the U.S. and the world. It has created
jobs in both large and small communities and is a
major industry in many places. It is the dominant
economic activity in some communities. Yet, the
impacts of tourism to a community are noot widely
understood – even where tourism is growing
dramatically and should be of the greatest interest
or concern.
Most people think of tourism in terms of economic
impacts, jobs, and taxes. However, the range of
impacts from tourism is broad and often influences
areas beyond those commonly as

ssociated with tourism.
Leaders as well as residents who understand the potential
impacts of tourism can integrate this industry into their
community in the most positive way.
Understanding Tourism Conf licts
Different groups are often concerned about different tourism impacts. To generalize,
where one group embraces the e c o n o m i c impacts of tourism, another group experiences
social and cultural i m p a c t s , while another is affected by tourism’s e n v i r o n m e n t a l
impacts. In theory, the interests of each group could be completely separate, as in
Figure 1a. For example, Group A could include the business community and people
who are in need of the jobs offered by tourism. Group B might innclude residents who
feel displaced by an influx of visitors. Group C could be local outdoor enthusiasts
concerned about changes in natural resources. In such a case, each group would have
The impacts of tourism can be sorted into seven general categories:
1. Economic
2. Environmental
3. Social and cultural
4. Crowding and congestion
5. Services
6. Taxes
7. Community attitude
Each category includes positive and negative impacts. Not all impacts are applicable to
every community because conditions or resources differ. Community and tourism
leaders must balance an array of impacts that may either improve or negatively affect
communities and their re
esidents. Leaders must be sensitive and visionary, and must
avoid the temptation of glossing over certain difficulties tourism development creates.
Tourism leaders must also balance the opportunities and concerns of all community
sectors by working against conditions where positive impacts benefit one part of the
community (geographic or social) and negative impacts hurt another.
Conversely, community sensitivity to tourism means avoiding undue burdens on the
industry that could thwart its success. Local leaders should not expect tourism to solve
all community problems. Tourism is just one element of a community. While creative
strategic development of tourism amenities and services can enhance the community
or correct local deficiencies, tourism, like all business development, must assure that
its products (attractions and services) attract customers. Overbearing rules and
restrictions, and overburdening taxes can make tourism businesses less attractive or
completely different outlooks
on tourism. Ideally, all groups
could be positively affected and
would support the community’s
tourism efforts. However, when
group interests are divergent,
differing perspectives can
make consensus on tourism
development difficult.
In most cases, groups with
interests in one area of tourism
will also have interests or
concerns about other tourism
impacts as diagramed in Figure
1b. In these situations, there
are common areas of interest
and a greater likelihood that
each group will show more
appreciation for the concerns of
the other groups. Finding
commonality provides a starting
point for resolving tourism
Specific plans an
nd actions can
increase tourism’s benefits or
decrease the gravity of a negative impact. It is important for communities to understand
the wide scope of impacts and endeavor to agree on what positive impacts to
emphasize. It is wise to acknowledge and identify possible negative impacts so actions
can be taken to minimize or prevent them. A clear statement of the community’s vision
of tourism should be an integral part of a community’s comprehensive plan. Active
planning directs tourism toward the goals of the community, clarifying tourism’s role
and uniting multiple interests.
The Role of Planning
Figure 1. Interest in Tourism Impacts
Group C
Social & Cultural
Social &
Group A
Group C
Group B Group A
Group B
Tourism Impacts
A goal of developing the tourism industry in a community is maximizing
selected positive impacts while minimizing potential negative impacts.
First, it is essential to identify the possible impacts. To u r i s m
researchers have identified a large number of impacts. Grouping
the impacts into categories shows the types of impacts that could
result from developing tourism in a community. The following
tables list a range of important tourism impacts in a concise
format. Readers needing additional information about specific
impacts should contact appropriate professionals or consult
tourism texts and research papers.
A community will not experience every impact. Some are
dependent on particular natural resource features (mountains,
coral re
eefs) or development and spatial patterns (special
“tourist zones”). Others relate to the social condition of the
c o m m u n i t y, particularly the ability to culturally or socially connect
with tourists. Still others relate to types and intensity of tourism
developments, i.e., approval or hostility toward tourist activities.
The following tables are extensive but not all-inclusive.
Planning is not enough. Active implementation and management of plans and prompt
attention to emerging tourism issues will maximize positive and minimize negative
impacts. Monitoring and addressing community attitudes should be an ongoing part
of the management effort. Good monitoring efforts can identify trouble areas and give
leaders an opportunity to defuse community reactions and make timely changes before
a crisis occurs. Unfortunately, few communities are so proactive.
Understanding that tourism development may result in many and complex impacts
suggests that local elected officials, the tourism industry, and community residents
need to work cooperatively and carefully to plan for its growth and development.
Planning can help create an industry that enhances a community with minimal costs
and disruptions in other aspects of community life. Having broad community
involvement and embracing different perspectives during planning helps identify and
resolve concerns that would otherwise create problems later.
Tourism increases employment opportunities. Additional jobs, ranging from low-wage
entry-level to high-paying professional positions in management and technical fields,
generate income and raise standards of living. Particularly in rural areas, the
diversification created by tourism helps communities that are possibly dependent on
only one industry. As tourism grows, additional opportunities are created for investment,
development, and infrastructure spending. Tourism often induces improvements
Elaboration of Tourism Impacts
w Increases price of goods and services
w Increases price of land and housing
w Increases cost of living
w Increases potential for imported labor
w Cost for additional infrastructure
(water, sewer, power, fuel, medical, etc.)
w Increases road maintenance and
transportation systems costs
w Seasonal tourism creates high-risk,
under- or unemployment issues
w Competition for land with other (highervalue)
economic uses
w Profits may be exported by non-local
w Jobs may pay low wages
w Contributes to income and standard of
w Improves local economy
w Increases employment opportunities
w Improves investment, development, and
infrastructure spending
w Increases tax revenues
w Improves public utilities infrastructure
w Improves transport infrastructure
w Increases opportunities for shopping
w Economic impact (direct, indirect,
induced spending) is widespread in the
w Creates new business opportunities
in public utilities such as water, sewer, sidewalks, lighting, parking, public restrooms,
litter control, and landscaping. Such improvements benefit tourists and residents
alike. Likewise, tourism encourages improvements in transport infrastructure
resulting in upgraded roads, airports, public transportation, and non-traditional
transportation (e.g., trails). Tourism encourages new elements to join the retail mix,
increasing opportunities for shopping and adding healthy competitiveness. It often
increases a community’s tax revenues. Lodging and sales taxes most notably
increase but additional tax revenues include air travel and other transportation
taxes, business taxes, and fuel taxes. New jobs generate more income tax
When considering the economic impacts of tourism, it is essential to
understand that tourism businesses often include a significant
number of low-paying jobs, often at minimum wage or less. T h e s e
jobs are often seasonal, causing under-employment or unemployment
during off-seasons. Labor may be imported, rather than
hired locally, especially if particular skills or expertise is required,
or if local labor is unavailable. Some tourism-related businesses
are volatile and high-risk ventures that are unsustainable.
Greater demand for goods, services, land, and housing may
increase prices that in turn will increase the cost of living.
Tourism businesses may claim land that could have higher- v a l u e
or other uses. Additionally, non-local owners and corporations
may export profits out of the community. The community may
have to generate funds (possibly through increased taxes) to
maintain roads and transportation systems that have become
more heavily used. Similarly, if additional infrastructure (water,
s e w e r, power, fuel, medical, etc.) is required, additional taxes may
also be needed to pay for them.
Areas with high-value natural resources, like oceans, lakes, waterfalls,
mountains, unique flora and fauna, and great scenic beauty attract
tourists and new residents (in-migrants) who seek emotional and spiritual
connections with nature. Because these people value nature, selected natural
environments are preserved, protected, and kept from further ecological decline.
Lands that could be developed can generate income by accommodating the recreational
activities of visitors. Tourist income often makes it possible to preserve and restore
historic buildings and monuments. Improvements in the area’s appearance through
cleanup or repairs and the addition of public art such as
murals, water fountains, and monuments (part of making a
community ready for tourism) benefit visitors and residents
alike. Tourism is generally considered a “clean” industry,
one that is based on hotels, restaurants, shops and
attractions, instead of factories.
Tourism can also degrade an environment. Visitors generate
waste and pollution (air, water, solid waste, noise, and
visual). Natural resource attractions can be jeopardized
through improper uses or overuse. Providing tourist
services can alter the landscape’s appearance. For instance,
visual pollution may occur from billboard proliferation. As
tourism develops, demand for land increases, especially for
prime locations like beachfronts, special views, and
mountains. Without forethought, natural landscape and
open space can be lost. The destruction or loss of flora and
fauna can happen when desirable plants and animals are
collected for sale or the land is trampled. Tourists or the
businesses that cater to them often remove plants, animals,
rocks, fossils, coral, and cultural or historical artifacts from
an area. Uncontrolled visitation or overuse by visitors can
degrade landscapes, historic sites, and monuments. Where
water is scarce, tourists can overwhelm the available supply.
Travelers can also inadvertently introduce nonindigenous
species, as can increases in the trade of animals and plants.
A constant stream of visitors and domestic pets may disrupt
wildlife by disturbing their breeding cycles and altering
natural behaviors.
Social and Cultural
The social and cultural ramifications of tourism warrant
careful consideration, as impacts can either become assets
or detriments to communities. Influxes of tourists bring
diverse values to the community and influence behaviors
and family life. Individuals and the collective community might try to please tourists
or adopt tourist behaviors. Interactions between residents and tourists can impact
creative expression by providing new opportunities (positive) or by stifling individuality
w Pollution (air, water, noise, solid waste,
and visual)
w Loss of natural landscape and
agricultural lands to tourism
w Loss of open space
w Destruction of flora and fauna
(including collection of plants, animals,
rocks, coral, or artifacts by or for
w Degradation of landscape, historic sites,
and monuments
w Water shortages
w Introduction of exotic species
w Disruption of wildlife breeding cycles
and behaviors
w Protection of selected natural
environments or prevention of further
ecological decline
w Preservation of historic buildings and
w Improvement of the area’s appearance
(visual and aesthetic)
w A “clean” industry (no smokestacks)
with new restrictions (negative). Increased tourism can push a community to adopt a
different moral conduct such as improved understanding between sexes (positive) or
increased illicit drug use (negative). Safety and health facilities and staffing tend to
increase at the same time safety problems such as crime and accidents increase. Tr a d i t i o n a l
ceremonies may be renewed and revived by tourist interest or lost in alternative activities.
Community organizations can be invigorated by facing the opportunities of tourism or
overwhelmed by its associated problems. Calamities such as natural disasters, energy
shortages, terrorism, political upheaval, disease outbreak, a chemical spill, or even
widespread negative publicity could shut down tourism abruptly but sometimes can
attract curious visitors.
Tourism can improve the quality of life in an area by increasing the number of attractions,
recreational opportunities, and services. Tourism offers residents opportunities to
meet interesting people, make friendships, learn about the world, and expose themselves
to new perspectives. Experiencing different cultural practices enriches experiences,
broadens horizons, and increases insight and appreciation for different approaches to
living. Often, dwindling interest in host cultures is revived by reawakening cultural
heritage as part of tourism development, which increases demand for historical and
cultural exhibits. This interest by tourists in local culture and history p r o v i d e s
w Excessive drinking, alcoholism, gambling
w Increased underage drinking
w Crime, drugs, prostitution
w Increased smuggling
w Language and cultural effects
w Unwanted lifestyle changes
w Displacement of residents for tourism
w Negative changes in values and customs
w Family disruption
w Exclusion of locals from natural
w New cliques modify social structure
w Natural, political, and public relations
w Improves quality of life
w Facilitates meeting visitors (educational
w Positive changes in values and customs
w Promotes cultural exchange
w Improves understanding of different
w Preserves cultural identity of host
w Increases demand for historical and
cultural exhibits
w Greater tolerance of social differences
w Satisfaction of psychological needs
opportunities to support preservation of historical artifacts and architecture. By learning
more about others, their differences become less threatening and more interesting. At
the same time, tourism often promotes higher levels of psychological satisfaction from
opportunities created by tourism development and through interactions with travelers.
Tourism can come to a community with a dark social and cultural side, too. Illegal
activities tend to increase in the relaxed atmosphere of tourist areas. Increased underage
drinking can become a problem especially in beach communities, areas with festivals
involving alcohol, and ski villages. It is easier to be anonymous where strangers are
taken for granted; bustling tourist traffic can increase the presence of smugglers and
buyers of smuggled products. Lifestyle changes such as alterations in local travel
patterns to avoid tourist congestion and the avoidance of downtown shopping can
damage a community socially and culturally. Hotels, restaurants, and shops can push
tourism development into residential areas, forcing changes in the physical structure
of a community. Development of tourist facilities in prime locations may cause locals
to be or feel excluded from those resources. As local ethnic culture alters to fit the needs
of tourism, language and cultural practices may change. In places where longer- t e r m
visitors tend to congregate, social cliques, such as condo tourists or RVers, may be at
odds with local interests and work to influence local issues. The “demonstration effect”
of tourists (residents adopting tourist behaviors) and the addition of tourist facilities
may alter customs, such as dating habits, especially those of a more structured or
traditional culture. The potential of meeting and marrying non-local mates may create
family stress.
Crowding and Congestion
People congregate in attractive places. Tourism often
develops around specific locations and concentrates
there, providing growth yet avoiding sprawl. Historic
buildings and grounds, which might otherwise slowly
deteriorate, have great appeal for tourism development
and can often be renovated to suit the industry.
As people congregate, congestion and crowding produces
stress, annoyance, anger, and other negative attitudes.
Hordes of visitors may impede local businesses, prevent
residents from accomplishing normal activities, and
compete for space. Tourism construction, especially
hotels, may be inappropriate in scale and style with
respect to other structures and the landscape. In some
areas, recreational second homes and condominium
developments create major crowding and congestion
Tourism creates opportunities to develop new amenities
and recreation facilities that would not otherwise be
viable in a community. Tourist expectations can
upgrade service by local shops, restaurants, and other
commerce operators. Tourist traffic in a community
creates an opportunity for upgraded fire, police, and
medical protection that also benefits residents.
Traditional services may be forced out or relocated due
to competition with tourist interests. Supply shortages
may occur, temporarily, seasonally, or chronically. Wa t e r,
p o w e r, fuel, and other shortages may be experienced with
increased pressure on the infrastructure.
Increased retail activity from restaurants and tourist
shopping will add state and local sales tax revenue.
Lodging tax revenue to the city (or state) should
increase since travelers account for virtually all lodging t a x
w Minimizes sprawl
w Concentrates tourist facilities
w Old buildings reused for tourism
w Neglect of non-tourist recreation
w Effects of competition
w Shortage of goods and services
w Increases pressure on infrastructure
w Increases availability of recreation
facilities and opportunities
w Better standard of services by shops,
restaurants, and other commerce
w Improves quality of fire protection
w Improves quality of police protection
w Congestion including interference with
other businesses
w Overcrowding – exceeding area capacity
w Conflict
w Overpowering building size and style
receipts. Increased tax burdens to expand infrastructure
and public services will be passed on to property owners
through increased property taxes.
Community Attitude
Visitor interest and satisfaction in the community is a
source of local pride. Seeing visitor interest makes local
residents more appreciative of local resources that are
often taken for granted. As tourism develops, local
residents will enjoy more facilities and a greater range
of choices. Tourism activities and events tend to make
living in a place more interesting and exciting.
H o w e v e r, heightened tension and community divisiveness
can occur over tourism development, pitting tourism
supporters against non-supporters. Also, tension
between residents and tourists can occur. People will
often feel stressed over the new, increasingly hectic
community and personal pace of life. They may claim
the result is no better than before or perhaps even
worse. Where culture is part of the tourist attractions,
over-amplification of cultural traits and creation of “new”
cultural traits to satisfy tourist tastes may create a phony
culture. Residents may experience a sense of exclusion
and alienation over planning and development concerns.
They may feel a loss of control over the community’s
future as “outsiders” take over establishments and new
development. Over-dependence on non-local developers
and an influx of outside businesses creates a sense that
the community is being manipulated and exploited by
outsiders for the sole benefit of those developers or
business people. Hotels built in monolithic cubes or
restaurants with standardized franchise designs might
clash with local standards and disrupt the aesthetic
appearance of the community, damage unique community
c h a r a c t e r, and spread “sameness.”
w Additional state and local sales tax
w Lodging tax revenue to city (or state)
w Increases property taxes
w Heightens community divisiveness
w Increasingly hectic community and
personal life
w Creates a phony folk culture
w Residents experience sense of exclusion
and alienation over planning and
development concerns
w Feeling of loss of control over
community future (caused by outsider
w New building styles fail to “fit”
w Heightens pride in community
w Greater appreciation of local resources
w More facilities and range of choices
w More interesting and exciting place to
Knowing the nature of tourism impacts won’t automatically lead to solutions. It is
equally important to identify the sources of these impacts (see table below) and how
they influence interactions between tourists and residents, the host community, and
the environment. Researchers generally divide these impact sources into two groups:
tourist factors and destination factors. Tourist factors are those which tourists bring
to the destination and include such elements as demographic characteristics, social
differences, and numbers of visitors. Destination factors are those that are part of the
destination itself, such as travel linkage and circulation, local acceptance of tourism,
and local vitality and leadership.
Sources of Impacts
Factors influencing interactions between
tourists, residents, host community, and environment
w Local economic condition
w Diversification of the economy
w Degree of involvement in tourism
w Attitudes of tourism leaders
w Spatial characteristics of tourism
w Viability of the host culture
w History of stability in the community
w Pace of tourism development
w Fragility of the environment used by
w Public transportation options
w Number and type of visitors
w Length of stay
w Mass arrivals and departures
w Links to community residents
w Ethnic/racial characteristics
w Economic characteristics
w Activities selected
w Ability to speak local language/accents
w “Demonstration effect” of tourists
Tourist Factors
Number and type of visitors
Numbers: small numbers of tourists are often relatively
unobtrusive and may be a curiosity or an interesting
diversion for community residents. As visitor numbers
increase and they become commonplace, locals may ignore
them. When the number of visitors reaches a point that
residents feel a sense of displacement, obstruction, loss of
community, or safety threat, resentment and resistance
may result.
Demographics: family status, age, education, profession,
etc., influence the actions and activities of tourists and
their local visibility.
Transportation: private vehicle or rental car, bus, train, air,
or passenger ship dictates tourists’ movements, influences
whether choices are pre-selected, and affects the ease of
reaching attractions and services.
Length of stay
Day trips have less economic impact.
Short (2-5 day) stays in a community maximize per-day
economic impact for regional driving destinations, i.e.,
tourist spending is maximized, but the pace can be hectic.
Tourists who stay longer have wider range of needs and
may spread the direct economic impact more broadly in
the community. Seasonal visitors (1-6 months) may take
more interest in non-tourism community matters.
Annual events can create a large economic impact in a
short period.
Mass arrivals and departures
How and when people arrive (passenger ship, opening of festival) and depart
influences traffic congestion and the availability of attractions and services
to tourists.
Smaller lodgings and restaurants can’t accommodate large groups.
Transportation options and availability may limit the choice of attractions
and services.
Links to community residents
Reduced economic impact when staying with friends or relatives.
Better understanding of community values.
High potential for repeat visitation.
Ethnic/racial characteristics
When the tourist population differs greatly in ethnic or racial origin or
economic status from the local population, more consideration of resident
concerns is needed to reduce the potential for resentment, social conflict, and
crime. Careful planning and ongoing education can reduce points of conflict.
Economic characteristics
Influences spending choices.
Higher incomes may give tourists greater access to environment and have
higher negative impact on the environment.
Activities selected
Educational, cultural, and historical tourism often has lower social and
environmental impact.
Recreational activities may have a greater impact on the environment.
Entertainment activities may conflict with the social values of local residents.
Ability to speak local language/accents
Perceived as making more meaningful connections with local people and
“Demonstration effect” of tourists
Local residents copying behaviors of tourists can add new dimensions to
local culture but sometimes the behavior is not appropriate to local values.
Locals copying negative behavior of vacationers (excessive drinking,
inappropriate dress, casual sex, etc.) create social problems.
Destination Factors
Local economic state
Troubled economies may benefit from tourism. However, government
officials should plan so that new tourism developments are sustainable.
Towns with strong economies can look for tourism that complements other
community goals such as preservation of historic buildings, creation of
recreational amenities, and expansion of food/lodging options.
Diversification of the economy
Economic diversity helps reduce the influence of negative impacts to the
host community. If tourism has a poor year, other economic activities may
offset the impact and vice versa.
Degree of local involvement in tourism and attitudes of tourism leaders
Local involvement helps align tourism with the attitudes of the
rest of the community. Local ownership and management of
tourism businesses keep profits from leaving the community.
In most cases, if tourism businesses are cooperative in
responding to residents’ concerns, the industry will have
strong local support.
Spatial characteristics of tourism development
Separation of active tourist areas from residential
areas reduces conflict.
Shared commercial areas. A mix of resident-oriented
and tourist-oriented businesses adds to the vibrancy
of the retail area. Domination of tourist-oriented
businesses pushes locals elsewhere and may create
Shared cultural or recreational amenities (parks, m u s e u m s ,
plazas, beaches, gardens) can be more successful with
t o u r i s m .
Tourist strips can clog streets and may restrict resident
access to public resources, especially beaches and shorelines.
Gated or exclusionary tourist developments can create a class
structure and local resentment.
Viability of the host culture
A strong and active local culture combats tourism’s tendency to change a
Active programs to educate tourists in local cultural practices (especially
public taboos) help reduce conflicts.
Pride in culture influences tourists to honor local customs and adhere to
cultural restrictions.
History of stability in the community
Strong local economies give leaders more options in influencing tourism development
to fit the community.
Strong community leaders and active planning can place tourism more appropriately
within the community’s geography and can support suitable tourism
projects while resisting inappropriate ones.
Pace of tourism development
Slower development provides time for residents and leaders to reassess tourism
growth and make changes that better serve the community. Rapid development can
strain a community’s infrastructure and lead to serious resident dissatisfaction.
Negative environmental impacts are also more likely.
Fragility of the environment used by tourists
Many of the most sought-after environments for tourism are also the most fragile.
Extra effort to plan appropriate access and use of fragile environments helps insure
their long-term viability and continued attractiveness for tourism.
Public transportation options
Availability of local public transportation (bus, trolley, cab, shuttle, train) and
alternative transportation corridors (bicycle, pedestrian) can reduce auto congestion.
Poor access can make facilities inaccessible for motor coach or public transit.
Directing tourism growth toward local needs, interests, and limits can greatly enhance
t o u r i s m ’s value to the community and help create a sustainable industry. Many small
communities have the skills and resources for successful tourism development. Creating
a local tourism industry is not a daunting task, but making tourism really “fit” the
c o m m u n i t y requires work. Creating a successful and sustainable tourism industry is
like creating any successful and sustainable economic activity
—it takes v i s i o n, p l a n n i n g, and w o r k.
Tourism is a goose that not only lays a golden egg, but also fouls its own nest. (Hawkins, 1982)
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Glenn Kreag is an extension educator and professor with the Minnesota Sea Grant
Program. The author welcomes comments and suggestions regarding this publication.
Email: or phone: (218) 726-8714.
Sincere appreciation goes to Phil Alexander, Michigan Cooperative Extension Service;
Diane Kuehn, New York Sea Grant; and Michael Liffmann, Louisiana Sea Grant, for
their thoughtful reviews of this publication.
Publication Number: T 13
Date: April, 2001
Production Coordinator: Marie Zhuikov
Editor: Sharon Moen
Information Specialist: Debbie Bowen
Graphic Designer: Cory Josephs
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funded by the National Oceanic and Atmospheric Administration and the University of Minnesota.
The University of Minnesota is an equal opportunity educator and employer.

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