Four Negative Economic Impact of Tourism

Negative Economic Impact of Tourism

The negative economic impact of tourism is depicted in the following image.

Image credits © Manoj Patil.

Negative economic impact of tourism are follows:

1. Seasonal Employment
2. Increase in Prices
3. Import Leakage
4. Enclave Tourism

Above points highlighting negative economic impact of tourism are discussed below.

1. Seasonal Employment

Job opportunities related to tourism industry are seasonal in nature as they are available only during the tourist season.

2. Increase in Prices

Tourist demands goods and services, which increase demand and price. It affects the local people as their income does not increase proportionately.

3. Import Leakage

There is import leakage when a tourist demands standard products, and the host/developing country cannot supply the quantity of these goods. They have to import such standard goods for a tourist in which much of their income is spent on imports.

4. Enclave Tourism

Tourism industry now-a-days, has started vacation packages, which include everything in it. So local business does not get chance to earn income. Tourists are provided with everything they need so there are no opportunities is left for local people to profit from tourism.