environment vs tourism

7/31/2019 Environment vs Tourism

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UNIVERSITY OF CRAIOVA

FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION

MASTERS OF INTERNATIONAL ECONOMICS AND BUSINESS

ADMINISTRATION

ENVIRONMENTAL CHALLENGES

AND ISSUES IN INTERNATIONAL

TOURISM

SUPERVISOR: PH.D. ASSOCIATED PROFESSOR LUMINITA VOCHITA

STUDENT: ALEXANDRA VELICA

CRAIOVA, 2010

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CONTENTS

FOREWORD 4

CHAPTER 1 6ENVIRONMENTAL CHALLENGES AND ISSUES IN INTERNATIONAL TOURISM 61.1. TOURISM AND ECONOMICS 81.2 Financial Leakages 81.3 Impacts on Livelihoods in Destination Communities 8

CHAPTER 2TOURISM AND ENVIRONMENT 102. KEY ENVIRONMENTAL ISSUES IN TOURISM 112.1. Sustainable development 11

2.2. Sustainable tourism 122.3. Maximum sustainable yield 122.4. Resources conservation 132.5. Recycling 132.6. Market failures 13

CHAPTER 3 14SUSTAINABLE TOURISM: THE WAY FORWARD 143.1. National and regional strategies for sustainable tourism development 143.2. Regulatory mechanisms and economic instruments 143.3. Voluntary industry initiatives 15

3.4. International activities in support of sustainable tourism 16

CHAPTER 4 174. MANAGING THE ENVIRONMENTAL IMPACTS OF TOURISM 174.1. Negative impacts 174.2. Behaviour of tourism user-groups of natural resources 184.3 The positive effects 194.4. Codes of conduct and environmental education 21

CHAPTER 5 - CASE OF STUDY 235. DEVELOPMENT AND IMPACT OF TOURISM INDUSTRY IN INDIA 23

5.1 Development of Tourism in India 235.2 Early Development 235.3 Present Situation and Features of Tourism in India 235.4 Tourist Attractions in India 245.5 Initiatives to Boost Tourism 246. FUTURE PROSPECTS 246.1 Constraints 256.2 Impact of Tourism in India 256.3 Positive Impacts 256.4 Developing Infrastructure 256.5 Negative Impacts 257. Environmental Impact of Tourism in India 26

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7.1 Positive Impacts 267.2 Protection and Preservation of Environment 267.3 Negative Impacts 277.4 Destruction and Alteration of Ecosystems 28

CONCLUSIONS 28

On Tourism and Environment 28On the Impact of the Environment over Tourism 29Positive Impact of the Environment over Tourism 29

Negative Impact of the Environment over Tourism 30Actions of Protection and Preservation of the Environment and the Tourist Potential 31Ecotourism an Important Element of Sustainable Development 31REFERENCES 33

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FOREWORD

The tourism industry and the environment are strongly connected and interdependent, asthe preservation of the environment is an intrinsic condition to develop tourism. It is a strongconnection that goes both ways: on one hand, the environment, including all its components, isthe very basis for tourism, and on the other hand, tourism has a great influence on theenvironment itself, modifying all elements of the environment not always in a positive way.The tourism industry also impacts the environment in the areas of solid waste generation,whereas building tourism facilities in ecologically sensitive areas (land use planning) is also aconcern as is the usage of potable water.

Nowadays, tourism is one of the main economic activities and budget contributors incountries such as France, Egypt, Greece, United States, Spain, Italy,and Thailand, and manyisland nations, such as The Bahamas, Fiji, Maldives, Philippines and the Seychelles, due to the

large intake of money for businesses with their goods and services and the opportunity foremployment in the service industries associated with tourism.1

The environment is defined as the quality of life, including human life standards and theproper natural habitat for animals and plants. The quality of life is determined by long termavailability of resources, in adequate quality and sufficient quantity of all the natural elements,such as water, air, soil, land and space in general, as well as raw materials.

Tourism is an important source of maintaining and improving environment quality,being an active factor of sustainable development for its own sake and in order to ensure thequality of basic resources and development of all other industries.

The environment is an element which influences tourist demand. Considering that thedemand for tourist services is partly determined by the quality of the offer, the environment can

and has both positive and negative effects over tourism.The natural conditions of the environment, all components considered relief, climate,

hidrography, flora and fauna, natural monuments, reservations have an important impact onattracting tourist flow and also have a decisive effect over tourist activities in general, as well asdetermining its particular forms.2 Besides the natural environment tourism, there is also theanthropic one, which consists of archaeological resources, elements of ethnography and folklore,institutions of art or cultural and and events (festivals, sport competitions etc.), technological andscientific locations (observatories, science museums) and human settlements and architecture.

The elements of natural and anthropic potential combined attract tourists by theiraesthetic value, the entertainment and recreational potential, the quality of natural factors to curedifferent illnesses, the possibility of practising sports and for educational purposes as well.

Tourism is one of the most important industries in the world and is still growing. Moreand more people are interested in exploring new destination sites and new cultures, the farther,the better. Thus, the areas that have more natural resources attract more tourists and they alsooffer the possibility to meet and learn about many cultures with their traditions and customs.

Preserving means keeping the environment as it is and consciously making use of boththe natural environment and the anthropic one. Preservation and tourism always go hand in hand.

Many historical and archaeological monuments have been saved over time because ofthe interest tourists got in them. Hundreds of historical houses in the United Kingdom wouldonly have become ruins or demolished unless they had been valuable to tourists. Not only great

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http://en.wikipedia.org/wiki/Tourism#Most_visited_countries_by_international_tourist_arrivals2 Rodica Minciu, Op. cit., p.161

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castles or mansions were saved that way, but also coal miners' dwellings at the BeamishMuseum, in Newcastle, which is an open air museum containing numerous of different types ofhousing all saved from perishing because of the tourism interest in them.

The whole world was able to benefit from tourism in different ways. A few countries inEast Africa, such as Kenya and Tanzania, created national parks and game reservations designedto preserve wild life, the best known being Masai Mara and the Serengeti. People invested in

them because they knew that wild life was the most important natural resource they had and itwas able to attract tourists to East Africa. Natural reservations and parks succeeded in the

preservation of many species, which, otherwise, could have been brought to extinction byuncontrolled hunting. Kenya has 13 national parks and 24 reservations, representing 7.5% of thecountry's total surface.

Tourism not only offers a good reason for the preservation of the natural and anthropicenvironment, but also ensures the financing needed for preservation; e.g. many of the parishes inEngland use the money they get from visitors for reparation and restoration.

Rehabilitation means allowing a building or an area to be brought to existence again in adifferent way from what it used to be. While preservation supposes keeping the environment instate of being similar to its previous one, rehabilitation implies a major change in the use of the

environment. Many buildings and areas were saved for tourist purposes by being rehabilitated orused as accommodation.

There are numerous examples of singe buildings or whole areas given an opportunity bytourism. Old plants and factories started a new life as museums; industrial areas were convertedto festival locations; many ruined castles and mansions became lodging spaces for tourists. Allthose examples prove the way the environment can take profit from tourist activities, savingwhat could have been forever lost.

We always have to consider the fact that natural resources and anthropic ones must bepreserved because they are only available once; if they are consumed, the potential tourist valueceases to exist. That is why tourism should be oriented towards social benefit and determineregional development by degrading the environment as little as possible. In order to control this

phenomenon, all people involved must understand the need for sustainable development andacknowledge that the success of a certain business investment depends on resources and their

preservation.Most of human degradation of the environment is connected to tourism and that can

only be changed by making people aware that they have to change their behaviour in aspects ofthe environment.

The United Nations Conference on Environment and Development (UNCED) in 1992established the basis ofsustainable development, which presumes the use of natural resources bythe present-day generation in a way that it does not affect future generations.

The year 2002 brought major changes to tourism as it was declared The International

Year of Mountains, and two important events took place: International Conference onEcotourism (New York, in January) and World Ecotourism Summit(Quebec, in May).Ecotourism began in North America, in the mid-80's, as a consequence of friendly

towards nature tourism in some of the world's most fragile and furthermost places. 3The prefixeco, attached to tourism, means home, from Greek word oikos. The concept of ecotourism isdefined in different ways by different people, depending on their interests. Many tourists arenowadays attracted by adventure in and isolated and remote areas.

Ecotourism means getting a profit, preserving nature and establishing sustainabledevelopment in the areas where it is used as such.

3 Management turistic internaional, p. 13

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CHAPTER 1

ENVIRONMENTAL CHALLENGES AND ISSUES IN

INTERNATIONAL TOURISM

Issues concerning the environment have emerged as hot subjects in economicdiscussions since the early 1970's. The term environmentalhas usually been used in the analysisof exhaustible and productive resources. It has been lately applied to amenity use of naturalresources and in investigating the economic role of the environment and the associated causesand effects of its degradation and over-use, pollution etc.

Most human activities affect the environment, and the very use of the environment itselfhas economic repercussions. The basic lesson that is to be learnt from the environmentaleconomics is that the environment can not be perceived as separate from other resources. Hence,it is important that economic decisions take into account the welfare of the future generation.Accordingly, greater awareness of interdependence of the environment, economic activity and

quality of life raises political, social and scientific issues in addition to those that are directlyeconomic.

Tourism relies almost totally on the environment. Natural resources (beaches, seas,mountains, lakes, rivers etc.) and man made resources (historic cities, heritage buildings andsites, monuments and others) constitute the primary source of tourism. Any degradation of the

primary sources is likely to lead to a decline of tourism. Therefore, their analysis withineconomics is particularly relevant to tourism. At the same time, beaches, mountains, rivers,forests and biodiversity make the environment a basic resource upon which the tourism industrydepends in order to thrive and grow, and threats to the environment therefore threaten theviability of the tourism industry. Lastly, tourism can contribute to environmental protection.

Tourism's relationship with the environment is complex. Given the scale and global

extent, it is inevitable that tourism has important environmental impacts. These impacts arerelated to resource consumption, as well as to pollution and waste generated by tourismactivities, including impacts from transport.

Tourism can be considered one of the most remarkable socio-economic phenomenabeginning with the twentieth century. From an activity enjoyed by only a small group ofrelatively well-off people during the first half of the last century, it gradually became a mass

phenomenon during the post - World War II period, particularly from the 1970's onwards. It nowreaches larger and larger numbers of people throughout the world, and is a source of employmentfor a significant segment of the labour force, being responsible for over 230 million jobs.Tourism is the worlds biggest industry indeed, and it is growing rapidly.

By 2020, the World Tourism Organisation estimates that 1.5 billion of tourists will bespending $2 trillion a year - or over $5 billion every day. Also, tourism is a big, sometimesdominant, contributor to the GDPs of many nations, such as small island developing countries.Although domestic tourism currently accounts for approximately 80 % of all tourist activity,many countries tend to give priority to international tourism because, while the former basicallyinvolves a regional redistribution of national income, the latter has now become the worldslargest source of foreign exchange receipts.

According to the figures compiled by the World Tourism Organization, foreignexchange earnings from international tourism is larger than the export value of petroleum

products, motor vehicles, telecommunications equipment or any other single category of productor service.

International tourism is also one of the fastest growing and most ramified sectors of the

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global economy, covering a broad range of enterprises, sectors and stakeholders. During the1990s, when the globalization of tourism reached unprecedented proportions, internationaltourism receipts had a much higher average annual growth rate (7.3%) than that of gross world

product.The number of international tourists in the year 2007, reached 903 million (an increase

of 6.6 %) and international travel receipts totalled $855 billion, a rise of 14 %. The leading travel

exporters continued to be the European Union and the United States, accounting for 57 % of totalexports. However, the most rapid export and import growth was in Russia and Australia. Thetravel industry is a major component of export diversification for many developing countries. In2007, travel receipts for developing countries reached $285 billion, around 33% of their totalexports of commercial services. The least - developed countries (LDCs), in particular, are anincreasingly attractive destination for international tourists. Tourism in the LDCs has grown byan annual average of more than 13 %.

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1.1. TOURISM AND ECONOMICS

The growth of tourism in developing countries has brought a fair amount of economicgains while the economic development has become a major driving force for tourism itself. Theinitial period of growth happened in the late 1960s and 1970s, when tourism was perceived as akey activity for generating foreign exchange and employment by both development institutions,

such as the World Bank, as well as by governments (Goodwin 2000).In spite of the negative economic impacts of tourism (such as inflation; dominance by

outsiders in land and property markets; inward-migration eroding economic opportunities fordomestic industry including the poor) the demand for travel and tourism continues to grow. TheWorld Tourism and Travel Council has estimated there was an approximate 40% cumulativegrowth in tourism demand between 1990 and 2000.

The demand for tourist products and services was largely driven by economic gains atall levels, including in the communities in remote, and hitherto relatively isolated, destinations(Ashley, 1998). There is significant potential for enhancing the possible gains through addressinga number of issues that can help improve opportunities for entrepreneurs and the communities inthe destinations, for the poorer sections within these communities, as well as at the macro levelfor the national economy. Some of these options are discussed below.

1.2 Financial Leakages

The international tourism market is dominated by powerful transnational corporations(TNCs) continue to dominate Estimates suggest that about 80% of international mass tourism iscontrolled by TNCs. These companies have an almost unhindered access to markets and use thisto drive down the cost of supplies. The result is high levels of financial leakage, and limitedlevels of revenue retention in the destination or host countries. Financial leakages tend to occurdue to various factors, including importation of foreign building material, skilled labour andluxury products, and packaged travel arranged with TNCs. This is as opposed to locally sourcing

the necessary resources. It has been estimated that, on average, at least 55% of tourismexpenditure flows back out of the destination country, rising to 75% in certain cases e.g. theGambia and Commonwealth Caribbean (Ashley et al 2000).

Financial leakages was identified, during the seventh UN Commission on SustainableDevelopment (UN CSD) meeting (1999), as a key area for stakeholders to take action and worktogether in order to try and assess the situation, as well as seek solutions to better support localcommunities in host / developing countries. The CSD called upon the UN and the World TourismOrganization, in consultation with major groups, as well as other relevant internationalorganizations, to jointly facilitate the establishment of an ad-hoc informal open-ended workinggroup on tourism to:

Assess financial leakages and determine how to maximize benefits for indigenous

and local communities, Prepare a joint initiative to improve information availability and capacity-building

for participation, and address other matters relevant to the implementation of the internationalwork programme on sustainable tourism development (UN CSD 1999).

1.3 Impacts on Livelihoods in Destination Communities

The livelihood impacts of tourism, in most tourist destinations of developing countries,take various forms. Jobs and wages are only a part of livelihood gains and often not the mostsignificant ones. Tourism can generate four different types of local cash income, involving fourdistinct categories of people:

Wages from formal employment.

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Earnings from selling goods, services, or casual labour (e.g. food, crafts, buildingmaterials, guide services).

Dividends and profits arising from locally-owned enterprises.

Collective income: this may include profits from a community-run enterprise,dividends from a private sector partnership and land rental paid by an investor.

Waged employment can be sufficient to lift a household from an insecure to a secure

footing, but it may only be available to a minority of people, and not the poor. Casual earningsmay be very small, but more widely spread, and may be enough, for instance, to cover schoolfees for one or more children. Local participation in the industry can be categorized into threedifferent categories: the formal sector (such as hotels), the informal sector (such as vending) andsecondary enterprises that are linked to tourism (such as food retail and telecommunications).

Fairly poor quantitative data available regarding the economic gains continues to begenerated from travel and tourism, particularly data that quantifies the impacts to formal,informal and indirect activities as touched upon above. There is a need for a standardisedframework and guidelines for the collection and analysis of comparative data sets, to betteridentify the possible economic impacts for different segments of the market, as well as todevelop policies which better reflect the needs of the informal as well as formal tourismventures. Another gap in research about tourism relates to understanding how domestic tourism

benefits formal and informal segments in a country and the degree to which the extreme poorgain at all from the industry (Ashley 2000).

Budget and independent tourists, particularly backpackers are also more likely thanluxury tourists to use the cheaper guest houses, home-stays, transport and eating services

provided by local people. They tend to stay longer at a destination than groups of tourists andinteract more with the local economy, but also spend less per day, often bargaining over prices.

Nature-based tourism (including ecotourism) does not necessarily provide moreopportunities for the poor than mass tourism. Nature tourism does offer some potentialadvantages however. It takes place in less developed areas, often involves smaller operators with

more local commitment. It involves a higher proportion of independent travellers, and ifmarketed as ecotourism can stimulate consumer pressure for ensuring domestic socio-economicbenefits. But it remains a niche in the market, can be heavily dependent on imports, and canspread disruption to less developed areas.

Mass tourism is highly competitive, and usually dominated by large suppliers who havelittle commitment to a destination. They are less likely to use local suppliers. However thesegment does generate jobs and negative impacts are not always spread beyond immediatelocalities. Further knowledge is needed about how local economic opportunities can be expandedunder such circumstances, as well as to identify how the negative impacts can be minimised inthe mass tourism segment.

Cruises and all-inclusiveness are rapidly growing segments of the market, but by their

nature are unlikely to generate few economic linkages. Some governments are trying to activelyreduce this, for example the Gambian Government has recently decided to ban all-inclusivenessin response to local demands.

The informal sector is where opportunities for small-scale enterprise or labour by thepoor are maximised. For example, at Bai Chay, Ha Long Bay in Vietnam, almost a dozen localfamilies run private hotels, but local involvement in tourism spreads far beyond this, to anestimated 7080% of the population. Apart from those with jobs in the hotels and restaurants,local women share the running of noodle stalls, many women and children are walking vendors,and anyone with a boat or motorbike hires them out to tourists. However, the informal sector isoften neglected by planners.

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CHAPTER 2

TOURISM AND ENVIRONMENT

One of the most important resource for tourism is the natural environment.Environments where past human interaction has been minimal are often fragile. With increasingurbanisation, destinations in both industrialized and developing countries with significant naturalfeatures, scenery, cultural heritage or biodiversity are becoming increasingly popular sites fortourist destinations. Efforts to preserve and enhance the natural environment should therefore bea high priority for the industry and for governments. But the reality is not quite as clear cut.

Small islands, coastal areas, wetlands, mountains and deserts, all now popular as touristdestinations, are five of the six fragile ecosystems as identified by Agenda 21 that requirespecific action by governments and international donors. The biophysical characteristics of thesehabitats often render them particularly susceptible to damage from human activities. With adegraded physical environment, the destination is in danger of losing its original attraction,increasing the levels of cheaper mass tourism and forcing more nature-based tourism to move

on to new destinations, which are likely to be even more inaccessible and fragile.Mainstream ecotourism, as promoted after the Rio Earth Summit, hasnt always enjoyeda good reputation. Tour operators have used the concept merely as a green-wash marketingtool. In reality it often meant introducing unsustainable levels of tourism into fragile areas,having scant regard for either the environment or for the residents of the destination areas. As theInternational Council for Local Environmental Initiatives (ICLEI) pointed out: Tourism innatural areas, euphemistically called eco-tourism, can be a major source of degradation of

local ecological, economic and social systems. The intrusion of large numbers of foreigners with

high-consumption and high-waste habits into natural areas, or into towns with inadequate waste

management infrastructure, can produce changes to those natural areas at a rate that is far

greater than imposed by local residents. These tourism-related changes are particularly

deleterious when local residents rely on those natural areas for their sustenance. Resultingeconomic losses can encourage socially deleterious economic activities such as prostitution,

crime, and migrant and child labour (ICLEI 1999).Some of the different kinds of impacts that tourism development and operational

activities can have include:

Threats to ecosystems and biodiversity e.g. loss of wildlife and rare species, habitatloss and degradation,

Disruption of coasts e.g. shoreline erosion and pollution, impact to coral reefs andfish spawning grounds,

Deforestation loss of forests for fuel wood and timber by the tourist industry alsoimpact on soil and water quality, biodiversity integrity, reducing the collection of forest products

by local communities,

Water overuse as a result of tourism / recreational activities e.g. golf courses,swimming pools, and tourist consumption in hotels,

Urban problems - Congestion and overcrowding, increased vehicle traffic andresultant environmental impacts, including air and noise pollution, and health impacts,

Exacerbate climate change from fossil fuel energy consumption for travel, hoteland recreational requirements,

Unsustainable and inequitable resource use - Energy and water over consumption,excessive production of wastes, litter and garbage are all common impacts.

Further study could be carried out regarding the negative relationship between tourism

and environment (Roe et al 1997), however the many examples across the globe indicate this

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scenario is quite typical and widely recognised, emphasizing the need to identify more mutuallybeneficial approaches in tourism development.

3. KEY ENVIRONMENTAL ISSUES IN TOURISM

Tourism consumes resources just as any other economic activities. Today, tourism is oneof the major economic activities in the world. It contributes roughly 6 per cent of the worldincome. Naturally, it has a marked impact on the demand for exhaustible and renewableresources. It generates significant wastes and thus disposal problems (Stabler and Goodall,1996). The operation of tourism firms reflects the market driven characteristics of othereconomic sectors. Extended tourism expansion or concentration in certain destinations hasneglected the long-term dependence of the industry on environment and led over exploitation ofnatural resource base and the generation of non-priced effects (Cater and Goodall, 1992).

The environmental effects, widely defined, include cultural and social elements, and areprobably the biggest problem of tourism. Areas where overcrowding and overdevelopment occurare often relatively small and possess fragile environments. At peak season visitors can

outnumber the resident population. Hosts, tourism firms are seldom aware of the unintentionaldamage being caused to monuments, paintings, ecosystem (Goodall, 1992). Other effects aremore deliberate, e.g. off-road use of vehicles. Excess numbers also increases the demand forsecondary resources, water, energy which might be scarce at certain destinations (Romeril,1998). Loss of flora and fauna occurs due to tourism expansion. The influx of tourists with adifferent life-style, large financial resources, and non-indigenous services can not only disturbexisting economic life but also can destroy the cultures (Pearce, 1989).

These problems have been recognized by many involved in tourism and have becomeissues of concern (Goodall, 1992; Jenner and Smith, 1992). The attainment of sustainabletourism has been seen as the urgent need. It would imply balanced commercialization, resourceconservation, waste disposal management, pollution control, etc. Attention has to be diverted on

eco-tourism.Environmental impact of tourism is most visible in tourist destinations. But effects are

also visible at points of origin and transit. For example, the output of aircrafts, ferries, buses, carsequipment and promotional material consumes productive and energy resources and generateswaste in origin areas while travel creates pollution in the atmosphere and adversely effects theenvironment of areas traversed. These problems have come to be increasingly addressed in the1990s, but serious efforts to mitigate them have lacked.

Economic analysis of resource use and their costs has been expressed in terms ofopportunity cost, i.e. the benefits lost by not using them for an alternative use. The guiding

principle has been the benefits must outweigh the costs. Given the nature of environmentalissues, economists have used cost-benefit analysis (CBA) as a suitable framework for theassessment of monetary and non-monetary costs and benefits, as well as large capital outlays,over a long period over which costs and benefits accrue. Another method used method is the

planning balance sheet analysis (PBSA). The method was devised in the 1950s to overcome thefact that many cost benefits are not easily measured in money terms. Using the ranks accordingto criteria thought to be the best multi-criteria analysis (MCA) has also been developed(Nijkamp, 1988). Mathematical approach in decision making between alternatives is the analytichierarchy process developed and used by Saaty (1987).

2.1 Sustainable development

The essence of sustainable development has become better known when Brundtland

Commission Report was published in 1987 and Rio Declaration in 1992 defined a set of

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principles that define actions and agreements in which biodiversity, climate change, forestmanagement and conservation were accorded prominence along with a priority to be given to the

poorest sections of population. Sustainable development requires that managing worldeconomies be in such a way that the present needs should be met without impairing the capacityto meet the future needs. The implication of such a strategy is that the growth rates will have to

be moderated. Moreover, it has been stressed that quality of life, that can not be measured in

monetary terms, should be taken into account.Reductions in adverse externalities such as chemical pollution, noise levels, air and

water quality etc. should be taken as measures. Further, the cost of production should beinclusive of social and environmental costs. The main issue associated with sustainabledevelopment is how to reconcile economic development and growth with open access publicgood and nature of the natural environment which consequently suffers from detrimentalexternalities.

2.2 Sustainable tourism

In tourism sector experts as well as governments are trying to enforce the concept of

viable tourism as sustainability in the commercial sense that business is profitable and willsurvive. Sustainability should be the cornerstone of the development of tourism since the naturalenvironment constitutes most of its primary resource base. Moreover, with growing awareness of

both tourists and residents, firms and governments are under increased pressure to take concreteaction to attain sustainability.

Concrete measures taken by firms confine to the conservation of energy and materialsand minimization of wastes as a means of cutting their costs and thus increase revenues and

profits. Firms have also taken the concern of tourists and residents alike that tourism should beenvironmentally responsible. In order to achieve such effect firms need to comply withenvironmental regulations and standards. However, there is no coherent strategy on sustainability

because the past incentives have generated tourism expansion only. Because of a largely

fragmented structure of tourism the issue remains complex and only the public sector has thepotential to resolve.

2.3 Maximum sustainable yield

One of the key issues is how to achieve maximum yield but maintain sustainability fromthe economic use of open access (e.g. natural parks, lakes and rivers, mountains) and common

property resources (e.g. atmosphere and seas).The concepts concerns with resources which arecapable of renewal either naturally or by management. Both are susceptible to over exploitation.The problems are more acute with the former due to the dangers of the extinction of wildlife ordegradation of ecosystems. There are examples of overuse of oceans and seas (fishing, whalehunting, oil recovery, etc.).

The concept of maximum sustainable yield considers the relationship between the priceof the product and cost of exploiting it, the yield in terms of the physical quantity, stock or

population. The yield is determined by the exploitation effort and total stock of resource. Theproblem becomes of interest to economists as an issue while considering the revenue generatedin relation to the cost of the effort. Normal profit maximizing considerations apply. Since theaccess is open it is likely that exploitation is beyond the point of maximum yield. Should thetotal stock fall below a given threshold (a biological or ecological issue) than the population willcrash, leading in the case of animal or plant species, to extinction. Known bio-economic modelscan be reinterpreted within the context of tourism and cost-revenue analysis can be successfullyapplied.

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2.4 Resources conservation

Since 1970s opportunity costs have played in decision making. With respect torenewable resources, a dominant issue in tourism is the implications of the open accesscharacteristic of much of the natural environment for the survival of flora and fauna, thesustainability of some sources of food and materials and conservation of amenity resources. Therate of depletion and possible exhaustion of key productive resources remain a central economic

problem. In context to the inducement of conservation of resources, issues have been raisedconcerning otherwise consequences for growth, technological developments and role of marketcosts and prices.

2.5 Recycling

The recovery rate (proportion of a material from a primary source that can be madeavailable for re-use) is an important factor in recycling. The extent to which recycling can take

place depends upon variety of factors such as the nature of material, the stage at which recoverytakes place, who uses it, available technology, residual waste etc. The supply of recycledmaterials depends upon their demand. Economists argue that recycling becomes feasible if the

costs of recovery are lower than extracting from the primary sources. However, market pricesand costs do not reflect the true costs and benefits, i.e. externalities.

Economics today, by identifying and evaluating the full social costs and benefits andexternalities of resource use, including the incidence of recovery, is able to indicate the optimallevel of both primary exploitation and recycling.

As far as the renewable resources particularly open access resources are concerned theexamples of environmental degradation arising due to tourism expansion are becomingincreasingly evident. There are many resources, e.g. national parks and game reserves, naturalreserves and forests, and wetlands are vital to tourism. Furthermore, varied landscapes that formthe backdrop of tourism are also being influenced by human activity. Often the firms andgovernments alike cash the short-term benefits and are likely to brush aside the environmental

concerns.It is our contention that the so-called bio-economic principle of maximum sustainable

yield, which is based on usual economic optimizing conditions and recognizes the bio-economicprocesses, could be helpful. Sound management of resource in tourism is the key to success.

2.6 Market failures

The inability of markets, where demand and supply are formed by price, to providesome environmental goods, arises essentially from the public good nature of resources,externalities, and distribution considerations. However, market failure is not confined to thesethree features alone. Monopoly could also be a factor.

The idea of market failure is well rooted in the conventional wisdom of economics. It isperceived as the rationale for land-use planning and other forms of government intervention. Infact, the business sector perceives that market actually fail and it does not fully comprehend thatthey do not function accordance with an economic ideal. Nonetheless, the concept of marketfailure has been useful in generating a body of research on the estimation of demand and

practical policy instruments to mitigate the adverse effects of markets or to increase theirefficiency.

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CHAPTER 3

SUSTAINABLE TOURISM: THE WAY FORWARD

The concept of sustainable tourism, as developed in the United Nations sustainabledevelopment process, refers to tourist activities leading to management of all resources in sucha way that economic, social and aesthetic needs can be fulfilled while maintaining culturalintegrity, essential ecological processes, biological diversity and life support systems. Countriesand regions where the economy is driven by the tourism industry are becoming increasinglyconcerned with the environmental, as well as the socio-cultural problems associated withunsustainable tourism. As a result, there is now increasing agreement on the need to promotesustainable tourism development to minimize its environmental impacts and to ensure moresustainable management of natural resources.

3.1 National and regional strategies for sustainable tourism development

Government policies to promote the domestic tourism industry and to attract foreign

direct investment should also ensure that tourism is properly planned and managed so as tominimize adverse environmental impacts and its use of natural resources. Generally speaking,the main priority for national and regional governments is to incorporate tourism planning anddevelopment effectively into overall sustainable development strategies. For example, regionaldevelopment strategies for areas containing water resources that are potentially attractive totourism, should carefully consider the availability of those resources in an integrated manner thatconsiders all potential water users.

Given that in many countries, local and regional governments already have importantresponsibilities for tourism development, central Governments should also support capacity

building programmes at lower levels in order to enable local and regional authorities to betterrespond to the challenges of sustainable tourism development in the areas under their

jurisdiction. National and local governments also need to develop clear strategies to monitorprogress towards sustainable tourism.

Governments at all levels can greatly benefit from working in partnership with all majorstakeholders, including local communities, to ensure their active participation in tourism

planning, development and management, as well as in the sharing of benefits. Participation oflocal communities in decision-making and sharing of benefits also helps to generate betterawareness of the environmental costs of tourism and thus provides strong incentives to conservenatural resources and protect local environmental assets.

Together with the tourism industry and other stakeholders, governments should alsopromote or support various efforts to raise public awareness about the impact of tourists ondestinations, to promote respect for local communities and their cultures and to protect theenvironment. Such public awareness campaigns often succeed in promoting positive behaviouralchanges not only in tourists, but also in tourism workers and host communities as a whole.

3.2. Regulatory mechanisms and economic instruments

The major challenge for governments is to formulate and effectively apply anappropriate mix of regulatory and economic instruments for both sustainable natural resourcesmanagement and environmental protection. Sustainable tourism can also be promoted by acareful mix of government policies comprising both direct regulation and market-basedinstruments, although financial incentives that encourage environmentally damaging activities,such as energy subsidies, should be reduced or removed.

The most direct tool for promoting sustainable tourism involves the use of regulatory

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mechanisms, such as, integrated land-use planning and coastal zone management. In many cases,it may be necessary to protect coastlines through rigid building restrictions, such as, existingfrom the coast. It is also essential that environmental regulations be applied transparentlythroughout the tourism sector, regardless of business size, type of tourism activity concerned orlocation.

Mass tourism, in particular, should be carefully monitored, regulated and sometimes

even prohibited in ecologically fragile areas. In protected areas, such as national parks andnatural world heritage sites, tourism activities should be strictly subject to the preservation of

biological diversity and ecosystems, not stressing their limited capacity to absorb humanpresence without becoming damaged or degraded.

Pollution taxes can also be applied on the amounts of liquid and solid waste generated,as a means to reduce discharges and to generate funds for proper treatment and disposal.Similarly, market-based instruments can also be used effectively for the sustainable use ofmarine natural resources. Prices that reflect the economic value of water and energy, forexample, will promote their efficient use and conservation, and provide additional revenue thatcan be used to improve the management of those resources.

Economic instruments, such as user fees and tourist taxes, can actually be used to better

internalise environmental costs and thus to promote broader environmental protection objectives.As it is well known, one of the main reasons why markets fail is that important environmentalcosts, such as pollution, are not reflected in the prices of goods and services. In a free-marketeconomy, individual economic agents will only attempt to maximize their own utility or profit;external costs will thus not be reflected in prices.

3.3. Voluntary industry initiatives

The predominantly private tourism industry has thus developed several self-regulationand voluntary initiatives to promote greater environmental sustainability. These include wasteand pollution reduction schemes, voluntary codes of conduct, industry awards and eco-labels for

sustainable tourism. In addition, environmental management schemes to encourage responsiblepractices have been promoted in various sub-sectors, including hotel and catering, recreation andentertainment, transportation, travel agencies and tour operators.

For example, the World Travel and Tourism Council (WTTC), the main internationalindustry association, has developed an environmental management programme (Green Globe),for both travel and tourism companies and tourism destinations, aimed to raise the level ofenvironmental awareness and to provide a low-cost practical means for improving theenvironmental performance of the industry. It is also responsible for ECoNETT, an internet-

based tool that provides an extensive information resource on all tourism and environmentalissues.

Another innovative global programme is the International Hotel Environment Initiative

(IHEI), led by a council of leading international hotel chains, aimed to promote environmentalmanagement in the hotel industry, which is one of the main consumers of resources and sourcesof waste. Such initiatives are particularly important not only because they can lead to significantreductions of water and energy consumption, as well as liquid and solid waste, but also becausethey promote positive behavioural changes in both tourists and employees. In addition, they canlead to improved economic efficiency and increased profitability.

While national and regional governments should fully support these voluntary initiativesand encourage the dissemination of the best practices in the private tourism industry, there is alsoa role for independent supervision, monitoring and comparative assessment by relevantgovernment agencies. In addition, trustworthy codes of conduct, transparent eco-label awardsand internationally agreed programmes of action for sustainable tourism are required at the

international level. The international community has a particularly crucial role to play in

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developing a set of internationally recognized accreditation and monitoring systems for assessingthe sustainability of tourism services around the world.

3.4. International activities in support of sustainable tourism

Progress has been achieved over the past ten years, but one of the key remainingchallenges for the international community is to devise ways and means to assist developing

countries to ensure that their tourism industries become more internationally competitive withoutdamaging their natural resources and environmental assets base. This will require, amongst otherthings, greater technical and financial assistance, including human resources development,institutional capacity building and the transfer of environmentally sound technologies to manydeveloping countries. The international community could also support the wider use of debt-fornature swaps, through which a portion of the foreign debt of developing countries is purchasedat a discount by various international partners in exchange for the debtor's country investment ofan agreed sum of local currency in environmental protection projects.

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CHAPTER 4

4. MANAGING THE ENVIRONMENTAL IMPACTS OF TOURISM

4.1. Negative impacts

Although it may possibly seem strange that tourism could have negative impacts onnature, such effects were being observed by the 1960s. Milne (1988) comments that by the early1960s there was already concern being expressed over the possible ecological imbalance thatcould result from tourism development in Tahiti in the Pacific. The observation of the effects ofincreasing numbers of tourists in the 1960s les Mishan (1967:141) to write: ' Once serene andlovely towns such as Andorra and Biarritz are smothered with new hotels and the dust and roarof motorised traffic. The isles of Greece have become a sprinkling of lidos in the Aegean Sea.Delphi is ringed with shiny new hotels. In Italy the real estate man is responsible for theatrocities exemplified by the skyscraper approach to Rome seen across the Campagna, while the

annual invasion of tourists has transformed once-famous resorts Rapallo, Capri, Alassio andscores of others, before the last war no less enchanting, into so many vulgar Coney Islands.

Within Mishan's concerns, the visual effects of tourism are evident. Tourism is, ofcourse, heavily dependent upon the pleasing visual qualities of the environment, but concernsover 'aesthetic pollution' are unlike scientifically measured changes in water quality. Thus thesense of sight is an important, if perhaps a somewhat subjective, means of determining tourism'snegative impact. The replication of similar hotel construction on many coastlines of the worldthat fails to reflect the local culture, the construction ofPlaya del Anywhere, is a commoncriticism of tourism's environmental impact. For Guadeloupe and Martinique islands situated inthe Lesser Antilles: 'The most worrying problem now prevalent in the islands relates to theanarchic urbanisation of the coasts.

According to Whitelegg (1999) aircraft produce significant amounts of nitrogen oxidesduring take-off and landings. The potential effects of this pollution on health are dramatic, withaircraft engines being held responsible for 10% of the cancer cases in southwest Chicagocaused by toxic air pollution (Whitelegg, 1999). Air pollution is also associated with thedevelopment of airports for tourism. Health issues associated with airports include respiratory

problems caused by emission of aircraft and car traffic, and stress associated with noise pollutionform air traffic. Emissions of nitrogen oxides and hydrocarbons at lower levels also contribute toregional smog problems by forming low-level ozone on summer days, which is harmful tohealth.

The most common form of transport for domestic and international tourism is the car.A common misconception is to equate transport in tourism solely with airlines. For example, avery common pattern of summer holiday travel in Europe is for tourists form the countries ofnorthern Europe such as Germany, Scandinavia, and the Benelux countries to drive down to theMediterranean coast for their vacation. When domestic tourism is also taken into account, thenthe effect of the motor-car becomes even more prominent, as the majority of domestic trips areundertaken by car. For those people living in the transport transit areas, the effects of tourism are

predominantly ones of inconvenience associated with pollution and safety concerns. Althoughthe social and health effects of transit traffic upon local communities is an under-researched area,Zimmermann (1995:36) commenting on transit traffic through the European Alps remarks: 'Thetraffic is one of the most evident problems within the Alpine area. In several regions local

populations' endurance levels have already been reached or exceeded.'

Within destination areas the air quality may deteriorate as a result of both extra

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traffic and construction. Just as Mishan (1967) commented on the problem of dust, Briguglio andBriguglio (1996) remark that the demolishing of existing buildings and the construction of newones for tourism have generated vast amounts of dust on the Mediterranean island of Malta.

Noise pollution is another aspect associated with the extra transport traffic generatedfor tourism. According to Mieczkowski (1995) most complains associated with tourism relatingto noise are from air traffic. Noise pollution is particularly a problem for those residents who live

around busy international and domestic airports, while noise from the construction of tourismfacilities can also be a problem for residents and tourists. Briguglio and Briguglio (1996) observethat the building of hotels and other construction activity in destinations generate intense noise.

Nightclubs open until the early morning, and increased car traffic from tourism movements, alladd up to the noise pollution experienced by both residents and tourists in tourism destinations.

Water pollution is the last common type of pollution. Typically, this is a consequenceof untreated sewage being pumped into the seas and oceans in tourism destinations. For instance,in the most visited tourist area of the world, the Mediterranean, only 30% of over 700 towns andcities on the coastline treat sewage before discharging it into the sea (Jenner And smith, 1992). Inthe Caribbean Basin, Where 100 million tourists annually join the 170 million inhabitants, only10% of the sewage is treated before being discharged into the sea. The most worrying aspect is

that, compared to the other areas in the world, these figures are actually good. Other regularinternational tourist destinations such as east Asia and Africa and the islands of the South Pacific,with a few exceptions, have either no sewage treatment or treatment plants that are totallyinadequate for the size of the population (Jenner and Smith, 1992). The problem of watercontamination from human sewage is not caused exclusively by tourism but is reflective of aninadequate infrastructure to meet the needs of both local people and tourists.

Besides the pollution from the disposal of untreated human waste, water pollution isalso caused by fertilisers and herbicides, which are widely used on the golf courses and hotelgardens. The water containing the chemicals seeps through the earth to the groundwater lying 5to 50 metres below the earths surface and through aquifers it eventually reaches rivers, lakes andseas (Mieczkowski, 1995). Other sources of water pollution are caused by motorised leisureactivities such as power boating, and even sun tan oil being washed off tourists when swimmingcan result in localised pollution. The major sources of water pollution come from oil spills,industrial waste pumped into the sea, and chemicals used in agriculture.

4.2. Behaviour of tourism user-groups of natural resources

A key cause of the negative impacts that may occur from tourism is human behaviourtowards the environment. Integral parts of the tourism system are:

tourists;

local people ;

governments;

the tourism industry.The behaviour of these groups will be highly influential in determining the extent to

which the consequences of tourism upon the non-human world are either negative or positive.For instance, a major natural attraction for tourists is wildlife but certain aspects of human

behaviour can adversely affect wildlife. While viewing of wildlife species in their naturalhabitats has become an attractive activity for an increasing number of tourists, this has meant theintrusion of humans into environments that had previously been the exclusive preserve ofwildlife. Ironically, the desire of tourists to enhance their perceptions of nature by observingwildlife at close quarters can bring disruption to the natural behaviour of the wildlife they wantto see.

According to Roe et al. (1977), the extent of the impact of tourism on wildlife can berelated to the type of tourist activity and the level of tourism development. Matbienson and Wall

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(1982) add that the resilience of wildlife to the presence of humans will influence the degree towhich tourism proves harmful to particular species. For example, the type of safari tourism

practised in the Serengeti Park on the Kenyan/Tanzanian border is representative of a highlydeveloped level of tourism, involving local operators taking tourists into the park in minibusesand animals being surrounded by 30 or 40 vehicles with tourists taking photographs. Theinvasion of the territorial space of the animals and the associated increase in noise raises the

stress level of animals, which is disruptive to their breeding and eating patterns. For example,cheetahs and lions are reported to decrease their hunting activity when surrounded by more thansix vehicles (Shackley, 1996). The drivers of the minibuses are encouraged to ignore lawslimiting the proximity of their vehicles to the animals by the extra tips they receive from touristsfor getting close to them.

Key factors that are likely to influence the attitudes of local people to the surroundingenvironment include the level of economic development and the extent of the provision bygovernment and private sector of environmental education.

4.3 The Positive Effects

A key feature of tourism is that it gives an economic value to nature. Although tourismcan cause negative environmental impacts, it is important to balance this statement by givingconsideration to the positive environmental effects to tourism. Consequently, the partnership oftourism and conservation may offer an economic alternative to a more instrumental use ofnature, such as, for example, agriculture, logging and mining. Even models of mass tourism,which may often be associated with over-development and the negative impacts of tourism,usually have as an integral part of their enjoyment reliance upon the sea, sun and sand.Alternative types of tourism, such as nature tourism and eco-tourism, emphasise even more thecentrality of nature to the tourist experience.

If it is evident that through the conservation of nature tourism results in economicbenefits, then the incentives for conservation are enhanced. If through developing forms of

tourism based upon the conservation of nature, governments can advance their economicpriorities such as increasing foreign-exchange earnings and aiding the balance of paymentssituation, they are more likely to be encouraged to legislate to grant natural areas as protectedstatus, such as a national park. Local communities who may because of economic necessity ormaterial desire have used nature in an instrumental way with little emphasis upon conservation,may begin to prioritise conservation.

Tourism can therefore act as important catalyst to resource conservation. Certainly theneed for careful environmental management and conservation will be prioritised where a stronglink exists between the success of the tourism industry, the local

Number of visitors.

Behaviour of tourists.

Environmental education of tourists and local people. Efficiency of environmental management.

Levels of economic development.Today the notion that there is a fixed ceiling, a threshold number of visitors which

tourism development should not exceed, is largely discredited (World Tourism Organisation,1992; Williams and Gill, 1994), Coccossis and Parparis (1996: 160) comment: 'However, untilour understanding of the interactions between the environment and development - human actions- is much more profound, the concept of carrying capacity cannot be used in planning and

practice as an absolute tool offering exact measurements but, as one which is under continuousrevision, development and research'.

Owing to the difficulty of quantification and fixed carrying-capacity limits, increasedemphasis is being placed on indicator monitoring systems to identify potential problems. An

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extension of the carrying-capacity technique can be seen in the 'limits of acceptable change'(LAC) or alternatively called the 'limits of acceptable use'. According to McCool (1996: 1): 'TheLimits of Acceptable Change (LAC) planning system was developed in response to a growingrecognition in the US that attempts to define and implement recreational carrying capacities fornational park and wilderness protected areas were both excessively reductionist and failing'.

As is indicated in the above definition, the LAC system, like carrying capacity, has its

roots in wildlife management and recreational planning. It is only comparatively recently that thetechnique has begun to be talked about within the context of tourism planning and its applicationto the field is at present very limited. The main deficiency of carrying capacity analysis, as

pointed out in the preceding section, is that many of the problems associated with tourism are notnecessarily a function of numbers but of people's behaviour. The advantage of the LAC system isthat it does not attempt to quantify the numbers of tourists that can be accommodated in the area.Instead the premise of the LAC system is the specification of the acceptable environmentalconsiderations of the area, incorporating social and economic dimensions, and also its potentialfor tourism (Wight, 1998). The system is therefore reliant upon identifying the desired social andenvironmental conditions in an area, which subsequently necessitates the involvement of thecommunity in determining the desired conditions.

The mechanics of the LAC system involve the adoption of a set of indicators which arereflective of an area's environmental conditions, and against which standards the rates of changecan be assessed. Typically, the indicators would relate to the state of the destination's naturalresources, economic criteria, and the experiences of local people and tourists. The indicatorswould therefore be a mix of the physical and the social. For example, the levels of water, air andnoise pollution could be monitored; the percentage of the workforce employed in the tourismsector measured; crime rates and driving accidents associated with tourism recorded; and levelsof tourist satisfaction evaluated. Such indicators would be symptomatic of the impact of tourismis having within the destination, and the effect it is having on the quality of life of residents. Theindicators should be regularly monitored and evaluated, and strategies identified by themanaging authorities to rectify any problems, to progress towards the desired environmental andsocial conditions that the LAC system is intended to help achieve. It is important to point outthat, owing to the nature of the indicators, measurement cannot be purely scientific, but is alsodependent upon a citizen input besides a professional one. As the name suggests, LAC acceptsthat some change is inevitable, and provides a framework to monitor that change.

A further planning and management technique for tourism involves the use of 'zoning',which is a land management strategy that can be applied on different spatial scales, for instancewithin a protected area, or at a region or even institutional level. According to Williams (1998:111):

Spatial zoning is an established land-management strategy that aims to integratetourism into environments by defining areas of land that have differing suitabilities or capacities

for tourism. Hence zoning of land may be used to exclude tourists from primary conservationareas; to focus environmentally abrasive activities into locations that have been speciallyprepared for such events; or to focus general visitors into a limited number of locations wheretheir needs may be met and their impacts controlled and managed.

Passing of environmental legislation and enforcement of punitive measures againsttourism firms which are polluters of the environment may encourage companies to seek toimprove their environmental quality. Second, if companies believe they can reduce their costs ofoperations and increase their profits through the utilization of environmental auditing, they arelikely to pursue it as a course of action. Last, some companies may be genuinely philanthropicand willing to adopt as many measures as they can reasonable afford to benefit the physical andsocial environments. They may also wish to appeal to a consumer market increasingly influenced

by green issues.

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According to Parvianinen et al. (1995) an environmental or eco-audit would coveraspects of environmental management, including:

the companys environmental and purchasing policies;

the adequacy of its communication of environmental practices to its staff and theirlevels of environmental training;

impacts of the business upon the surrounding physical environment, including

features such as air, water, soil, ground water, and aesthetics; energy usage;

waste management and waste-water schemes.They also point out that environmental audits form an integral part of a wider

environmental management system (EMS) for businesses.Environmental management systems integrate strategic objectives for the environmental

quality of a companys operation with the practical aspects of environmental auditing. The firststage of an EMS is for a company to state clearly that it has an environmental commitment,which, if taken seriously, will subsequently influence the operations of the company. The nextstage is to outline broad objectives of what it hopes to achieve, for example, one objective for ahotel may be to reduce they amount of untreated waste emitted into the sea. The company wouldthen carry out an eco-audit of its operations, determine realistic targets of what can be achievedwithin a certain timeframe, and develop mechanisms to achieve the targets. An essential part ofthis achievement is the ongoing monitoring of operations to determine whether the targets set forenvironmental improvements are being met. If they are not then strategies must be developed torectify the situation. Developing and EMS is a long-term commitment and is likely to takeseveral years to incorporate all the different stages from policy to review. The EMS system is notexclusive to any size of business but the resources available to any particular organisation willhave an influence on the quality of the scheme. Importantly, it will require an investment of timeand commitment from all employees of the organisation.

Within the EMS system, the eco-audit becomes a tool to evaluate the companies

performance and to make subsequent alterations to environmental policy and plans of action. Theuse of EMSs in the tourism industry is limited, yet it offers an approach for businesses that isboth environmentally beneficial and proactive. The benefits to the industry of using EMSsinclude:

the reduced risk of financial liability for environmental damage;

improving customer relations;

reducing operating costs;

improving access to lenders, insurers and investors;

an EMSs voluntary nature is an efficient way of improving environmental resourceswithout regulatory requirements and government interference (Todd and Williams, 1996)

One tourism company that took the initiative over the impacts of its operation upon the

environment at the beginning of the 1990s is the large German-based tour group Touristik UnionInternational (TUI).

4.4. Codes of conduct and environmental education

Given that the impacts of tourism are also related to user behaviour, codes of conductand environmental education will also be important in the environmental management oftourism. The development of voluntary codes of conduct to mitigate the negative impacts oftourism and improve environmental quality has been encouraged by government, the privatesector and non-governmental organisations (NGOs) in the last few years. The usefulness ofcodes of conduct in tourism vis--vis other approaches to improve tourisms interaction with the

environment is described by the United Nations Environmental Programme (UNEP) (1995: 3)

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thus:A wide range of instruments can be used to put the tourism industry on the path to

sustainability. Regulations, of course, are and will remain essential for defining the legalframework within which the private sector should operate and for establishing minimumstandards and processes. Economic instruments are also being increasingly used by governmentsto address environmental issues. However, voluntary proactive approaches are certainly the best

way of ensuring long-term commitments and improvements.The primary aim of codes of conduct is to influence attitudes and modify behaviour

(Mowforth and Munt, 1998). The objectives of codes of conduct for tourism are to (UNEP, 1995:8):

serve as a catalyst for dialogue between government agencies, industry sectors,community interests, environmental and cultural NGOs and other stakeholders in tourismdevelopment;

create an awareness within the industry and governments of the importance of soundenvironmental policies and management, and encourage them to promote a qualityenvironment and therefore a sustainable industry;

heighten awareness among international and domestic visitors of the importance ofappropriate behaviour with respect to both the natural and cultural environment theyexperience;

sensitise host populations to the importance of environmental protection and the host-guest relationship; and

encourage cooperation among industry sectors, government agencies, host communitiesand NGOs to achieve the goals listed above.

The lack of evaluation of codes is also commented upon by Mason and Mowforth(1996: 163) who comment: There has been a clear lack of monitoring and evaluation of codes ofconduct for the purpose of addressing their uptake and effectiveness. In similar fashion, Goodalland Stabler (1997) talk of the limited practical usefulness of the codes because of their

concentration upon principles, rather than informing tourist businesses on best environmentalpractice, and how this can be implemented in their own organisation. They also point out thespatial limitations of the majority of codes, which are destination-based, and consequently ignorethe consequences of tourism in generating and transit areas.

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CHAPTER 5

CASE OF STUDY - DEVELOPMENT AND IMPACT OF TOURISMINDUSTRY IN INDIA

Tourism has experienced continued growth and deepening diversification to become oneof the fastest growing economic sectors in the world. It has become one of the most importantglobal industries with the power to shape developing countries in both positive and negativeways. Tourism is the fourth largest industry in the global economy.

In developing countries like India tourism has become one of the major sectors of theeconomy, contributing to a large proportion of the national income and generating hugeemployment opportunities. It has become the fastest growing service industry in the countrywith great potentials for its further expansion and diversification. However, there are positive andnegative aspects involved in the development of tourism industry in the country.

5.1Development of Tourism in India

5.2 Early Development

The Government under the Chairmanship of Sir John Sargent, Educational Adviser, atthat time (1945), to the Government of India (Krishna, A.G., 1993) made the first conscious andorganized efforts to promote tourism in India. Thereafter, the development of tourism was takenup in a planned manner in 1956 coinciding with the Second Five Year Plan. The approach hasevolved from isolated planning of single unit facilities in the Second and Third Five Year Plans.The Sixth Plan marked the beginning of a new era when tourism began to be considered a majorinstrument for social integration and economic development.

It was only after the 80s that tourism activity gained momentum. The Government took

several significant steps. A National Policy on tourism was announced in 1982 and six yearslater, in 1988, the National Committee on Tourism formulated a comprehensive plan forachieving a sustainable growth in tourism. In 1992, a National Action Plan was prepared and in1996 the National Strategy for Promotion of Tourism was drafted. In 1997, the New TourismPolicy recognises the roles of Central and State governments, public sector undertakings and the

private sector in the development of tourism were. The need for involvement of Panchayati Rajinstitutions, local bodies, non-governmental organisations and the local youth in the creation oftourism facilities has also been recognised.

5.3 Present Situation and Features of Tourism in India

Tourism is today the largest service industry in India, with a contribution of 6.23% to

the national GDP and providing 8.78% of the total employment. India welcomes more than 5million annual foreign tourist arrivals and 562 million domestic tourism visits. The tourismindustry in India generated about US$100 billion in 2008 and that is expected to increase toUS$275.5 billion by 2018 at a 9.4% annual growth rate. The Ministry of Tourism is the nodalagency for the development and promotion of tourism in India and maintains the "IncredibleIndia" campaign.

According to World Travel and Tourism Council, India will be a tourism hotspot from2009-2018, having the highest 10-year growth potential. As per the Travel and TourismCompetitiveness Report 2009 by the World Economic Forum, India is ranked 11th in the AsiaPacific region and 62nd overall, moving up three places on the list of the world's attractivedestinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its

cultural resources, with many World Heritage Sites, both natural and cultural, rich fauna, and

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strong creative industries in the country. India also bagged 37th rank for its air transport network.The India travel and tourism industry ranked 5th in the long-term (10-year) growth and isexpected to be the second largest employer in the world by 2019. The 2010 CommonwealthGames in Delhi are expected to significantly boost tourism in India further.4

5.4 Tourist Attractions in India

Attractions include beautiful beaches, forests and wild life and landscapes forecotourism; snow, river and mountain peaks for adventure tourism; technological parks andscience museums for science tourism; centres of pilgrimage for spiritual tourism; heritage, trainsand hotels for heritage tourism. Yoga, ayurveda and natural health resorts and hill stations alsoattract tourists. India is a country known for its lavish treatment to all visitors, no matter wherethey come from. Its visitor-friendly traditions, varied life styles and cultural heritage andcolourful fairs and festivals held abiding attractions for the tourists.

It is estimated through survey that nearly forty per cent of the tourist expenditure onshopping is spent on such items. The Indian handicrafts particularly, jewellery, carpets, leathergoods, ivory and brass work are the main shopping items of foreign tourists.

In spite of the economic slowdown, medical tourism in India is the fastest growing

segment of tourism industry, according to the market research report Booming Medical Tourismin India. The report adds that India offers a great potential in the medical tourism industry.Factors such as low cost, scale and range of treatments provided in the country add to itsattractiveness as a medical tourism destination.

5.5 Initiatives to Boost Tourism

The Indian Government has recently taken to boost tourism include grant of exporthouse status to the tourism sector and incentives for promoting private investment in the form ofincome Tax exemptions, interest subsidy and reduced import duty. The hotel and tourism-relatedindustry has been declared a high priority industry for foreign investment which entailsautomatic approval of direct investment up to 51 per cent of foreign equity and allowing 100 percent non-resident Indian investment and simplifying rules regarding the grant of approval totravel agents, tour operators and tourist transport operators.

The first-ever Indian Tourism Day was celebrated on January 25, 1998. The Year 1999was celebrated as Explore India Millennium Year by presenting a spectacular tableau on thecultural heritage of India at the Republic Day Parade and organising India Tourism Expo in NewDelhi and Khajuraho. Moreover, the campaign Visit India Year 2009 was launched at theInternational Tourism Exchange in Berlin, aimed to project India as an attractive destination forholidaymakers. The government joined hands with leading airlines, hoteliers, holiday resorts andtour operators, and offered them a wide range of incentives and bonuses during the period

between April and December, 2009.

6. FUTURE PROSPECTS

According to the latest Tourism Satellite Accounting (TSA) research, released by theWorld Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics inMarch 2009:

The demand for travel and tourism in India is expected to grow by 8.2 per cent between2010 and 2019 and will place India at the third position in the world. India's travel and tourismsector is expected to be the second largest employer in the world, employing 40,037,000 by2019. Capital investment in India's travel and tourism sector is expected to grow at 8.8 per cent

between 2010 and 2019. The report forecasts India to get capital investment worth US$ 94.5

4www.ibef.org/industry/tourismhospitality.aspx

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billion in the travel and tourism sector in 2019.India is projected to become the fifth fastest growing business travel destination from

2010-2019 with an estimated real growth rate of 7.6 per cent.

6.1 Constraints

The major constraint in the development of tourism in India is the non-availability of

adequate infrastructure including adequate air seat capacity, accessibility to tourist destinations,accommodation and trained manpower in sufficient number.

Poor visitor experience, particularly, due to inadequate infrastructural facilities, poorhygienic conditions and incidents of touting and harassment of tourists in some places are factorsthat contribute to poor visitor experience.

6.2 Impact of Tourism in India

Tourism helps preserve several places which are of historical importance by declaringthem as heritage sites. For instance, the Taj Mahal, the Qutab Minar, Ajanta and Ellora temples,etc., would have been decayed and destroyed had it not been for the efforts taken by TourismDepartment to preserve them. Likewise, tourism also helps in conserving the natural habitats of

many endangered species.

6.3 Positive Impacts

In India, as well as in other countries, tourism has emerged as an instrument of incomeand employment generation, poverty alleviation and sustainable human development. Itcontributes 6.23% to the national GDP and 8.78% of the total employment in India. Almost 20million people are now working in the Indias tourism industry.

Tourism is an important source of foreign exchange earnings in India. This hasfavourable impact on the balance of payment of the country. The tourism industry in Indiagenerated about US$100 billion in 2008 and that is expected to increase to US$275.5 billion by2018 at a 9.4% annual growth rate.

6.4 Developing Infrastructure

The development of infrastructure has in turn induced the development of other directlyproductive activities. Tourism tends to encourage the development of multiple-use infrastructurethat benefits the host community, including various means of transports, health care facilities,and sports centres, in addition to the hotels and high-end restaurants that cater to foreign visitors.

Promoting Peace and Stability: Honey and Gilpin (2009) suggests that the tourismindustry can also help promote peace and stability in developing country like India by providing

jobs, generating income, diversifying the economy, protecting the environment, and promotingcross-cultural awareness. Still, key challenges like adoption of regulatory frameworks,

mechanisms to reduce crime and corruption, etc., must be addressed if peace-enhancing benefitsfrom this industry are to be realized.

6.5 Negative Impacts

Undesirable social and cultural change has occurred. Tourism sometimes led to thedestruction of the social fabric of a community. The more tourists coming into a place, the morethe perceived risk of that place losing its identity. A good example is Goa. From the late 60's tothe early 80's when the Hippy culture was at its height, Goa was a haven for such hippies. Herethey came in thousands and changed the whole culture of the state leading to a rise in the use ofdrugs, prostitution and human trafficking.

Tourism can increase tension, hostility, and suspicion between the tourists and the local

communities when there is no respect and understanding for each others culture and way of life.

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This may further lead to violence and other crimes committed against the tourists. The recentcrime committed against Russian tourist in Goa is a case in point.

Tourism brought little or no benefit whatsoever to the local community. In most all-inclusive package tours more than 80% of travellers fees go to the airlines, hotels and otherinternational companies, not to local businessmen and workers. Moreover, large hotel chainrestaurants often import food to satisfy foreign visitors and rarely employ local staff for senior

management positions, preventing local farmers and workers from reaping the benefit of theirpresence. This has often created a sense of antipathy towards the tourists and the government.

Increased transport and construction activities led to large scale deforestation anddestabilisation of natural landforms, while increased tourist flow led to increase in solid wastedumping as well as depletion of water and fuel resources. One of the most important adverseeffects of tourism on the environment is increased pressure on the carrying capacity of theecosystem in each tourist locality. Flow of tourists to ecologically sensitive areas resulted indestruction of rare and endangered species due to trampling, killing, disturbance of breedinghabitats. Noise pollution from vehicles and public address systems, water pollution, vehicularemissions, untreated sewage, etc. also have direct effects on biodiversity, ambient environmentand general profile of tourist spots.

7. Environmental Impact of Tourism in India

7.1 Positive Impacts

Tourism can contribute directly to the conservation of sensitive areas and habitat.Revenue from park-entrance fees and similar sources can be allocated specifically to pay for the

protection and management of environmentally sensitive areas. Special fees for park operationsor conservation activities can be collected from tourists or tour operators.

Funds can be used for overall conservation programs and activities, such as park rangersalaries and park maintenance. The Indian government through the tourism department alsocollect money in more far-reaching and indirect ways that are not linked to specific parks orconservation areas. User fees, income taxes, taxes on sales or rental of recreation equipment, andlicense fees for activities such as rafting and fishing can provide governments with the fundsneeded to manage natural resources.

The development of tourism has moved the Indian government towards this directionleading to improved environmental management. Sound environmental management of tourismfacilities and especially hotels can increase the benefits to natural environment. By planningearly for tourism development, damaging and expensive mistakes can be prevented, avoiding thegradual deterioration of environmental assets significant to tourism.

Tourism has the potential to increase public appreciation of the environment and to

spread awareness of environmental problems when it brings people into closer contact withnature and the environment. This confrontation heightens awareness of the value of natureamong the community and lead to environmentally conscious behaviour and activities to

preserve the environment.

7.2 Protection and Preservation of Environment

Tourism can significantly contribute to environmental protection, conservation andrestoration of biological diversity and sustainable use of natural resources. Because of theirattractiveness, pristine sites and natural areas are identified as valuable and the need to keep theattraction alive can lead to creation of national parks and wildlife parks.

In India, new laws and regulations have been enacted to preserve the forest and to

protect native species. The coral reefs around the coastal areas and the marine life that depend on

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them for survival are also protected.

7.3 Negative Impacts

Tourism development can put pressure on natural resources when it increasesconsumption in areas where resources are already scarce.

The tourism industry generally overuses water resources for hotels, swimming pools,

golf courses and personal use of water by tourists. Water, especially fresh water, is one of themost critical natural resources and tourists tend to use more of it than local people. This canresult in water shortages and degradation of water supplies, as well as generating a greatervolume of waste water. In dryer regions like Rajasthan, the issue of water scarcity is of particularconcern.

Due to the seasonal character of the industry, many destinations have ten times moreinhabitants in the high season as in the low season. A high demand is placed upon theseresources to meet the high expectations tourists often have (proper heating, hot water, etc.).Tourism can create great pressure on local resources like energy, food, and other raw materialsthat may already be in short supply. Greater extraction and transport of these resourcesexacerbates the physical impacts associated with their exploitation.

Direct impact on natural resources, both renewable and non-renewable, in the provisionof tourist facilities is caused by the use of land for accommodation and other infrastructure

provision, and the use of building materials. Important land resources include minerals, fossilfuels, fertile soil, forests, wetland and wildlife. Increased construction of tourism andrecreational facilities has increased the pressure on these resources and on scenic landscapes.

Forests often suffer negative impacts of tourism in the form of deforestation caused byfuel wood collection and land clearing e.g. the trekking in the Himalayan region, Sikkim andAssam.

Pollution is one of the worst impacts that tourism can have over the environment.Tourism can cause the same forms of pollution as any other industry: air emissions, noise, solidwaste and littering, releases of sewage, oil and chemicals, even architectural/visual pollution.

Transportation by air, road, and rail is continuously increasing in response to the risingnumber of tourist activities in India. Transport emissions and emissions from energy productionand use are linked to acid rain, global warming and photochemical pollution. Air pollution fromtourist transportation has impacts on the global level, especially from carbon dioxide (CO2)emissions related to transportation energy use. And it can contribute to severe local air pollution.Some of these impacts are quite specific to tourist activities where the sites are in remote areaslike Ajanta and Ellora temples. For example, tour buses often leave their motors running forhours while the tourists go out for an excursion because they want to return to a comfortably air-conditioned bus.

Noise pollution from aeroplanes, cars, and buses, as well as recreational vehicles is an

ever-growing problem of modern life. In addition to causing annoyance, stress, and even hearingloss for humans, it causes distress to wildlife, especially in sensitive areas.In areas with high concentrations of tourist activities and appealing natural attractions,

waste disposal is a serious problem and improper disposal can be a major despoiler of the naturalenvironment - rivers, scenic areas, and roadsides.

In mountain areas of the Himalayas and Darjeeling, trekking tourists generate a greatdeal of waste. Tourists on expedition leave behind their garbage, oxygen cylinders and evencamping equipment. Such practices degrade the environment particularly in remote areas

because they have few garbage collection or disposal facilities.Construction of hotels, recreation and other facilities often leads to increased sewage

pollution. Wastewater has polluted seas and lakes surrounding tourist attractions, damaging the

flora and fauna. Sewage runoff causes serious damage to coral reefs because it stimu

environment vs tourism

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