Is tourism good or bad for developing countries?

Tourism offers opportunities for economic diversification and market-creation. When effectively managed, its deep local value chains can expand demand for existing and new products and services that directly and positively impact the poor and rural/isolated communities.



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For a host nation, especially one in the developing world, tourism can become an economic trap similar to other resource curses. If not handled properly, it can crowd out sectors that have more potential for future development. In turn, tourism can leave countries worse off in the long run.

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Tourism offers great opportunities for emerging economies and developing countries. It creates jobs, strengthens the local economy, contributes to local infrastructure development and can help to conserve the natural environment and cultural assets and traditions, and to reduce poverty and inequality.

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Environmental impacts can be categorized as direct effects including degradation of habitat, vegetation, air quality, bodies of water, the water table, wildlife, and changes in natural phenomena, and indirect effects, such as increased harvesting of natural resources to supply food, indirect air and water pollution ( ...

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Tourism can be used as a tool to reduce poverty in developing countries by giving locals the opportunity to be employed or indirectly participate in the tourism sector.

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Positive Impacts of Tourism on the Environment
  • Awareness raising and experience.
  • Skills and education.
  • Conservation activities and biodiversity.
  • Endangered species protection.
  • Illegal trade prevention.
  • Finance & jobs.
  • Sustainable practices & legislation.


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The positive effects are that it increases income, helps to spread culture, and creates employment opportunities. On the other hand, there are the negative effects such as environmental damage due to overpopulation, increased crime rates, and loss of resources.

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Tourism Impacts. Tourism can generate positive or negative impacts under three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations.

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One of the biggest benefits of tourism is the ability to make money through foreign exchange earnings. Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy.

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The tourism sector can primarily reduce income inequality through the creation of new job opportunities. However, the redistributive effect of tourism may favor the rich, thus leading to further economic inequality.

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Tourists Don't Want to See Homeless People We now see how tourism drives up prices in an area without increasing jobs or wages for local people, forcing them into homelessness. Another cruel irony is that these tourist attractions can be some of the most inhospitable places for homeless people.

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Taking measures to ensure that tourism is managed sustainably can help to mitigate this negative economic impact of tourism. Techniques such as employing only local people, limiting the number of all-inclusive hotels and encouraging the purchasing of local products and services can all help.

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As well as traveling less often, low-income individuals also travel shorter distances than people in higher income groups.

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