BML MUNJAL RESEARCH PAPER:

THE PRIMARY CAUSES AND EFFECTS OF INTERNATIONAL TOURISM

IS IT A BOON OR A BANE?

RESEARCHERS:

SAI SANDESH BURADA

VISHAKHA RAI

PIYUSH GUPTA

PROFESSOR:

TO: MR. PRAWESH SINGH

 Acknowledgement

This research was supported by Mr. Prawesh Singh. We thank our

colleagues from BML Munjal University who provided insight and expertise

that greatly assisted the research, although they may not agree with all of

the interpretations/conclusions of this paper.

 Contents

Table of Contents
Introduction .................................................................................................................................................. 1
Purpose of the Study ...................................................................................................................... 2
Problem Statement .................................................................................................................... 3
Literature Review ......................................................................................................................................... 4
Data Analysis ................................................................................................................................. 5
The Causes and Effects..........................................................................................................6 & 7
Advantages & Disadvantages ……………………………………………………………………………………………………………… 8

Future of Tourism ………………………………………………………………………………………………………………………………… 9

How to Improve Tourism ……………………………………………………………………………………………………………………. 10

Conclusion …………………………………………………………………………………………………………………………………………. 11

Bibliography ………………………………………………………………………………………………………………………………………. 12
 INTRODUCTION

As defined by the World Tourism Organization (WTO), tourism comprises the activities
of persons travelling to and staying in places outside their usual environment for not
more than one consecutive year for leisure, business, and other purposes. Globally,
tourism has developed from 25 million worldwide voyagers in 1950 to 693 million in
2001 and by the year 2020 is expected to be two times as of now^. Thus, tourism has
significant effect on numerous critical spheres of Society: the economy, the cultural and
social viewpoints and nature. Notwithstanding, Unsustainable ill-advised tourism
development can affect contrarily on all these aspects. In the long-haul, this can have
deliberate outcomes for everyone. From few years a specific consideration has been
provided for the relationship between environment and tourism.

While historically, travel was a luxury only offered to those wealthy enough to afford it,
the lowering of travel barriers and falling real travel costs have led to the flourishing of
the travel and tourism industry. These factors, combined with the growth of disposal
income, the growth of the middle class in many growth markets, and changing attitudes
of people towards travel, have enabled the surge of international travel.
 Purpose of the Study

The first purpose is to inform other people especially the high school students and even the

elders of the society that tourism is an activity which is more likely than not, one of the biggest

problems in today’s society.

The Second purpose is to enlighten the minds of the teenagers. With a new generation

entering into a world where we are at the peak of extinction of resources and nature-friendly

climate conditions, how serious can this issue be if not dealt with properly.

The third purpose is to give some reminders about the positives that we get from

tourism and how it plays a major role in today’s society in helping us transport goods,services or

people at a quicker rate.

 Statement of the Problem

The different problems of international sustainable tourism are the following:

The first question is “What are the reasons why humans are so dependent on tourism?”

The second problem is “Why is tourism not an activity which all economic classes take

upon?”

The third tricky question is this, “How does tourism become a negative when all the

outcomes of tourism lead to several important benefits in today’s society?”

The final question, “ Why does tourism matter”?

Scope and Limitation of the Study

The researchers have made their decision and also an idea to base their research paper on

their experience or the experiences of others especially for those people who are still in this kind

of relationship and still continues, and also to those people who have undergone this event in

their early adolescent stage of life.

 Literature Review

UNWTO refine sustainable tourism definition.

“Tourism that takes full account of its current and future economic, social and
environmental impacts, addressing the needs of visitors, the industry, the
environment and host communities”

According to Gupta, V. (1999)

Religious journeys have occurred for so many centuries without bringing the adverse
ecological, social and cultural effects connected with tourism. Typical characteristics of
religious journeys are: not an inordinate burden on the surroundings ; useful to nearby
communities; happen at sure times of year just; individuals convey their own particular
gear and buy food, etc; pilgrims are peaceful, well behaved and law abiding; killing
creatures or taking from nature is unthinkable. A few lessons could be gained from
these for present day tourism.

According to Gibson, A. et al.(2003)

Applying the system of Eco tourism to a city environment is a comparatively new idea
however an idea that benefits improvement in different urban communities. The idea of
Eco tourism (urban green tourism), as initiated by Toronto’s Green Tourism Association,
it is a working illustration that exhibits how a city can advertise itself, distinctive
organizations and attractions to give an one of a kind tourism experience and produce
interest for sustainability. This investigation seeks to framework how urban green
tourism will be a impressive approach to tending to the concern of tourism in urban
communities: development, waste, and so forth, and exhibits how sustainable tourism
alternatives can exploit the existing characteristics of a urban areas.
 Data Analysis

avg spending level of pollution business travel leisure crime rate

avg spending 1
level of pollution 0.123772855 1
business travel 0.18341389 -0.00506788 1
leisure 0.184349427 0.106538728 0.028959131 1
crime rate 0.128019417 0.071899363 -0.010200563 -0.075475801 1

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.308874293
R Square 0.095403329
Adjusted R
Square 0.007149995
Standard Error 3334.546066
Observations 46

ANOVA
df SS MS F Significance F
Regression 4 48080153.1 12020038.28 1.081016711 0.378440474
Residual 41 455887096.1 11119197.47
Total 45 503967249.2

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 3433.261569 1670.467717 2.055269631 0.046260475 59.68357446
level of pollution 105.5139861 165.1182747 0.639020643 0.526363653 -227.9491347
business travel 355.6782621 293.4843431 1.211915628 0.232482853 -237.025393
leisure 385.6240425 322.6826687 1.195056567 0.238932053 -266.0468275
crime rate 170.2545147 186.4131853 0.913317985 0.366415056 -206.2145505

Methodology

The above information has been collected by conducting several surveys. We are correlating

the amount spent and the variables like pollution, leisure, buyer’s income etc. Also checking the

dependency of avg amount spend on the variables through regression, basic mathematical tools

such as mean, median and mode.

 The Causes

What are the causes of having a large distinction between poor and rich

international tourism on Earth?

The researchers found some answers for this question, and they are:

 Social Issues

 The social causes of the rapid growth of tourism on the other hand can be linked
with new attitudes towards travel and leisure. Traditionally considered a luxury,
travel now is a normal activity and an indispensable part of lifestyles and
consumption patterns of a large majority of people enjoying a higher standard of
living.

 The present-day tourist, having a different kind of a background than a traveler of

the past, is much more informed. His ideas about travel are quite different and he
comes from a wider social background. His tastes and desires are much more
varied.

 Technological Causes

 The technological causes of the rapid growth of tourism can be associated with
the advancements made in modernizing transport and communication systems.

 The impact of the modern transport technology, especially in the aviation field
has brought about a completely new meaning to travel and tourism. Travel to
even remote destinations has now become a reality.

 The technological developments have now made it possible for an increasing

number of people to travel to faraway place which only a few decades ago.
 The Effects

What are the effects sustainable tourism?

This concept has been divided into three parts: Environmental Sustainability, Socio-cultural

Sustainability, Economic Sustainability

 Environmental Sustainability

 The environment is obviously important to tourism. Both the natural

environment (such as beaches, forests, waterways) and the built environment
(such as historic buildings and ruins) must be preserved for an area to be
environmentally sustainable. Environmental sustainability means making sure
resources in an area (whatever they may be) can be preserved for use by future
generations. It’s much more than just being “green.”

 Socio-cultural Sustainability

 When an area starts being visited by tourists, there are bound to be some social
and cultural impacts of those tourists on the host community. Locals may see
increased congestion and overcrowding in towns and cities, perhaps an increase
in crime, the introduction of new languages and values, and perhaps even an
influx of migrant workers to be employed in the tourist industry. Socio-cultural
sustainability, then, means minimizing these negative impacts and focusing on
more positive ones, such as promoting cultural exchange and preserving local
traditions. This can usually be achieved by getting the locals involved in the
tourism industry. Having the community involved will not only offer visitors a
more genuine experience, but the locals will be more likely to see tourism in a
positive light because they will be proud of it.

 Economic Sustainability

 The last pillar of sustainability revolves around perhaps the most important part
– the money. Many people don’t take into account economics when thinking
about sustainability, but it’s really the key to making a tourism venture
sustainable. Economic sustainability means building linkages and reducing
leakages – essentially, keeping the money local. A hotel or company owned
and operated by a foreigner is not likely to contribute much to the local
economy – the money will likely leak overseas instead. This is not sustainable.
 Advantages and Disadvantages

The researchers have found some advantages and disadvantages of maintain a high level

of tourism within a country. As high level of tourism leads to higher levels of GDP, it is

beneficial for any country to maintain a consistent rate of tourism in order to be considered as a

successful country within this sector.

Advantages of having a high class of tourism within a country:

 Economic. It brings in money. This is probably the main advantage of tourism and
the reason why it has been promoted so much, especially in developing countries.
The income generated can make up a significant proportion of both private, local,
and national incomes.
 Opportunistic. It provides jobs. Hotels, bars, transport, activities, shops, and
restaurants all need staffing. Tourism can provide much-needed employment for
people.
 Infrastructural. It provides a means and an incentive for investment in
infrastructure such as roads, rail networks, and local medical and education
facilities.
 Environmental. It can provide economic incentives for a place to preserve,
maintain, and regenerate the environment in both urban and rural settings.
 Cross-Cultural. It promotes international connections which can bring more
business and cultural collaborations in the long term. It also promotes cross-cultural
awareness for both locals and tourist and builds bridges of understanding between
cultures.
 On a large scale it offers a good alternative to some more destructive industries
for generating income both on nationally and privately.

 Job Creation. The tourism industry encompasses many different areas, so it

also creates jobs in many different areas. With tourism comes hotels,
restaurants, car rental agencies, tour companies, service stations, souvenir
shops, sports equipment rentals, and much more. All of this creates many
different levels of employment for people in a given community.
  Educational Growth. In many places the introduction and development of
tourism allows local people an opportunity for economic and educational growth
that would not otherwise be available. In addition, it allows both the tourist and
the local community a chance to experience other cultures, which broadens
understanding.

 Gross Domestic Product. If properly used, tourism generated income in terms

of goods and services and can be tremendously beneficial to the host country
and it's local communities. Tourism generated income can be used on a national
and local level to better education, improve infrastructure, to fund conservation
efforts, and to promote more responsible tourism.

 Promotional. It "puts a place on the map": Tourism gives the locality a chance to
show itself off and raise its profile in the world.

Disadvantages of having a high class of tourism within a country.

 Environmental. Tourism can often cause environmental damage with risks like
erosion, pollution, the loss of natural habitats, and forest fires. Even if tourists
behave responsibly, the sheer number of them can cause damage. Ancient
buildings, monuments, and temples often struggle to cope with increased traffic and
suffer inevitable wear-and-tear. Reefs and other natural tourist attractions can
suffer permanent damage.

 Cultural. The commercialization of culture can undermine the soul of a tourist

destination. Local traditions that have a rich cultural heritage are reduced to
wearing costumes and putting on acts for the tourists in return for money.
 Culture Clashes. Tourists often lack respect for local traditions and culture, refuse
to follow local dress standards, get drunk in public, or behave rudely or
inappropriately towards locals.

 Service Economy. Although jobs are created by tourism, most are relatively low-
level such as bar work, hotel service, restaurant serving, and so forth. These low-
wage, low-skill workers have little prospect for advancement or promotion.
 Seasonal Fluctuations. Tourism jobs are quite commonly seasonal and insecure,
with no extra benefits such as pensions, sick pay, or healthcare. Some areas can
be inundated with visitors during busy times, and then virtually deserted for many
months.

 Imbalanced Funding. Money can end up being directed to tourist areas when it
could be used more effectively elsewhere in a country. The locals who don’t live in
specific tourist areas miss out and suffer relative decline.

 Foreign Poaching. Oftentimes, most of the tourism industry in a developing

country is owned by big foreign companies. They make the major profits, leaving
local businesses with relatively little benefit.

 Tourism Dependence. Sometimes, tourism becomes so focal that other forms of

income-generation are neglected and an economic dependence on tourism forms.
This is fine in good times, but it can leave the country vulnerable to economic ruin
in the long run and can contribute to political upheaval or natural disasters.

 Terrorism. The development of terrorism leaves tourists feeling vulnerable,

especially after the 9/11 attack. A decade after the tragic Sept. 11 attack, tourism
hasn't picked up and the root cause of the terrorism act has been lost. If anything, it
only paved the way to many travel barriers, which many travelers nowadays have
to overcome.
 FUTURE OF INTERNATIONAL TOURISM

The big winners will be Africa (157% increase), the Middle East (125%
increase) and Asia-Pacific (87%). While Europe and the Americas are
expected to continue growing, their rate is incomparable to the other regions.

Not only will emerging destinations become larger source markets, but they
will also become more attractive destinations.

 Overall Sector

Expect spectacular growth of aviation and rail travel in emerging economies such as
China and India. The irresistible human desire to travel, explore, and gain new
experiences will underpin consistent global growth in travel and tourism, despite new
carbon and aviation taxes. Globalization will also continue to force executives to
sacrifice home life for travel, despite growth of teleworking and virtual teams.

Business travel will grow every year over the next 20-30 years, powered by growth in
emerging markets, while travel within the EU and the US will remain relatively static.
Russia internal and international air travel will also grow rapidly. Asia will represent
more than 40% of the global economy in Purchasing Power Parity by 2015.
 How to improve international tourism?

 Tourist Perspective.

 Simplicity searchers prioritize ease as they plan and experience their

travels. They are happy to have a trusted third party make decisions to
avoid hassle.

 Cultural purists are travelers who want to disconnect from their day-to-
day lives, and immerse themselves completely in the local culture.

 Social capital seekers are digitally connected individuals who will make
decisions to maximize social reward. They realize the value of travel to
those around them. They want to be seen and will share their experiences
on social media.

 Reward hunters will use travel to “treat” themselves to what they don’t
have in their day-to-day lives. They might focus on a mix of luxury, self-
improvement and health.
  Obligation meters make their travel decision based on a duty. They may
have to go to a wedding, on a family trip, a religious holiday or a business
trip, for instance.

 Ethical travelers will allow their beliefs and conscience guide their travel
decisions. This could be linked to environmental, political or even social
issues.

 Overall Sector Perspective

From the increasing purchasing power in emerging and developing countries,

demographic shifts and growing importance of the mobile and online sphere,
the industry must adapt to stay on top of its game. Indeed, research shows
that a family trip is the second-highest priority for the booming middle classes,
after buying a car. And today, China is the largest market in terms of
international tourism expenditure. In China for instance, mobile travel sales
accounted for 40% of the business of the most important online travel
agencies, namely Ctrip and eLong.
Improvement in going environmentally friendly seems likely. This could be the
turning point in making tourism “sustainable”. Electric power cars, solar
powered flights, turbine powered cruises and electric powered trains all may
be the future. This is a must especially with reports proving that pollution and
scarcity of resources will dominate by 2030.
 Conclusion:
So why should we care about sustainability?
Well, the fact is, sustainable tourism actually benefits everyone involved, and not just
one half of the equation. Unsustainable tourism might be fine from the point of view
of the tourist, but it’s unlikely to benefit or gain support from the host community.

And, at the end of the day, tourism should not be a one-way street. Everyone involved
should be benefiting from it in one way or another.

So, the next time you’re torn between two attractions or destinations or hotels or tour
companies, consider these points: Which one is locally-owned? Which one is more
eco-friendly? Which one employs local people? Which one contributes the most to the
local economy? Which one is more sensitive to its impacts on the host community?

Basically, which one is more sustainable?

Considering these points just might change the way you travel.
Therefore, negatives are always many but tourism is substantial to any country
and with the future looking bright, we conclude by saying that tourism is more of
a boon than a bane.
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All data was taken with respect to:

World Bank- Excel Data

Survey Conducted to gather reviews from various people with various age groups.

Statistica- All Graphs.