Adverse economic impacts of tourism


When tourism development occurs, economic benefits are usually unequally distributed amongst members of local communities. There is evidence suggesting that those who benefit are often limited in number and that those who benefit most are often those who were at an economic advantage to begin with, particularly landowners who can afford the investment. Specialist tourism can also involve a relatively small segment of a local community, possibly removing contact of the larger community with the resources in question. In the case of foreign direct investment, much of the profit may be transferred back to the home country. Therefore, tourism can actually increase inequalities in communities, and thus relative poverty. In addition, tourism increases local demand for goods and services, including food, resulting in higher prices and potentially decreased availability for local people. Such trends are often more prevalent where there is a lack of consultation with the peoples and communities involved in tourism.

Problem Type:
E: Emanations of other problems
Date of last update
04.10.2020 – 22:48 CEST