PRAYER BEFORE EXAMINATION:

Lord, thank you that you are with me right now, your love surpasses all fear I give you the anxiety I
feel I surrender all my worries to you Clear my mind Calm my heart Still my Spirit Relax my being
That I may always glorify you in everything I write, speak and do.

REVIEWER MPTH Handout 4 and 5

1. Economic Impacts of Tourism

Positive Impacts:
• Foreign Exchange Earnings: Tourism generates foreign exchange, boosting local currency
reserves. Example: Tourists exchanging foreign currency at local banks or businesses.
• Government Revenues: The tourism sector provides significant income through airport taxes,
property taxes, sales taxes, and park entrance fees.
• Job Creation: Both direct (hotels, airlines) and indirect jobs (farmers, craftsmen) are created as
tourism grows.
• Contribution to Local Economies: Tourism helps distribute wealth in local economies, often
supporting informal jobs like street vendors or local guides.
Negative Impacts:
• Inflation: Higher demand for local goods (e.g., housing, food) causes price increases, which can
affect residents.
• Leakages: A major portion of tourist spending can leave the local economy if goods and services are
imported. For example, if a hotel sources food internationally, the money "leaks" out.
• Overdependence on Tourism: Countries that depend too much on tourism are at risk if tourism
demand falls (e.g., during pandemics or economic crises).
Control Strategies:
• Maximize Local Goods & Services: Encouraging the use of locally sourced products helps reduce
economic leakages.
• Training Local Business Owners: Providing skills training to local entrepreneurs ensures better
business operations, leading to sustainable economic benefits.
• Promote Domestic Tourism: Offering discounts to locals can stimulate internal tourism, helping
balance reliance on foreign visitors(04_Handout).

2. Sociocultural Impacts of Tourism

Positive Impacts:
• Job Creation: Provides employment opportunities in rural areas, promoting social stability.
• Conservation of Cultural Heritage: Tourism helps finance the preservation of historical landmarks
and cultural practices (e.g., Intramuros in the Philippines).
 • Cultural Exchange: Tourists and hosts learn from each other’s traditions, fostering mutual
understanding.
• Renewal of Cultural Pride: When tourists appreciate local customs, it encourages pride among
residents.
Negative Impacts:
• Overcrowding: Over-tourism leads to congested public spaces, reducing residents’ access to
services (e.g., crowded beaches or transportation).
• Cultural Commodification: Traditional arts, dances, or crafts may be commercialized, losing their
authenticity.
• Demonstration Effect: Local residents, especially youth, may adopt foreign behaviors and values
seen in tourists, which may clash with traditional norms.
• Acculturation: Over time, stronger foreign cultures may dominate weaker local cultures, leading to
the loss of unique cultural identity (e.g., Americanization in many developing countries).
Control Strategies:
• Cultural Sensitivity Programs: Educating tourists about local customs to minimize cultural clashes.
• Maintain Authenticity: Ensure traditional performances, arts, and crafts stay true to their origins
despite tourism pressures.
• Tourist Flow Management: Develop tourism in phases or across different seasons to prevent
overcrowding(04_Handout)(05_Handout_).

3. Environmental Impacts of Tourism

Positive Impacts:
• Conservation Efforts: Tourism encourages the establishment of protected areas, such as national
parks or marine reserves (e.g., reef conservation efforts in Palawan).
• Infrastructure Improvement: Tourism often leads to the development of better infrastructure (roads,
airports, waste management) that benefits both tourists and locals.
• Increased Environmental Awareness: Exposure to pristine environments fosters an understanding
of the importance of conservation among both tourists and locals.
Negative Impacts:
• Water Pollution: Poor sewage systems at tourist sites may lead to water contamination (e.g.,
Boracay’s closure in 2018 due to pollution).
• Air Pollution: The use of transportation (cars, buses, planes) in tourism can increase air pollution,
especially in popular tourist areas.
• Waste Management Issues: Increased tourist numbers result in more waste, which, if not managed
properly, can lead to littering and environmental degradation.
• Ecological Disruption: Over-tourism in fragile ecosystems (e.g., coral reefs) can cause irreversible
damage due to excessive human activity.
Control Strategies:
 • Sustainable Infrastructure: Develop waste and water management systems that minimize
environmental harm.
• Environmental Zoning: Designate specific areas for tourism to avoid over-exploitation of natural
resources.
• Eco-friendly Tourism: Encourage practices like responsible wildlife viewing, limiting waste, and
reducing carbon footprints (e.g., banning motorboats in sensitive water areas)(04_Handout)
(05_Handout_1).
4. The Tourism Multiplier Effect
Definition:
• The multiplier effect describes how money spent by tourists circulates through the economy,
benefiting both tourism businesses and other sectors (e.g., agriculture, manufacturing).
Types of Effects:
• Direct Effects: Revenue directly generated by tourism businesses (e.g., hotels, restaurants).
• Indirect Effects: Industries that supply goods and services to tourism businesses benefit (e.g.,
farmers supplying food to hotels).
• Induced Effects: Employees in tourism-related sectors spend their wages in the local economy,
further increasing economic activity.
Economic Leakage:
• Types of Leakages:
o Taxes: Government taxes reduce disposable income, weakening the multiplier effect.
o Savings: Money saved by individuals or businesses does not circulate in the economy.
o Imports: Buying foreign goods or services reduces the multiplier effect as money leaves the
country.
Tourism's Global Challenge:
• Many countries shift from traditional income sources (e.g., farming) to tourism, but leakages may
result in only a small fraction of the revenue staying in the country (05_Handout).
5. Examples of Tourism Impacts
• Philippines (Boracay Closure): An example of environmental impact control. Boracay was closed
for six months in 2018 to clean up water pollution caused by unregulated tourism activities. This
illustrates both negative impacts (pollution) and positive impacts (conservation efforts).
• Japan (Cultural Sensitivity): Tipping is considered an insult in Japan, and tourists unaware of this
might cause cultural clashes. Educational programs for tourists can prevent such misunderstandings.

GOODLUCK!!!