Sustainable Tourism
7
“Tourism Impact Assessment”
MS. JANINE S. HUMANG-IT
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Managerial Economics
“Tourism Impact Assessment”
• Define tourism impact assessment
• Explain the importance of tourism impact assessment;
• Cite impact assessment tools, and enumerate their
indicators; and
• Be able to apply framework in analyzing the potential
impacts of tourism to a given destination.
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Managerial Economics
“Tourism Impact Assessment”
Tourism development entails change. These changes
could be positive or negative, short term or
permanent.
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“Quarantunes”
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Importance of Tourism Impact
Assessment- Tourism impact
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Tourism Impact assessment is important for a
number of reasons.
First, it forces planners and developers to foresee
what could possibly go wrong and take
precautions to prevent such unfortunate
consequences from happening.
Another reason is that it compels the parties
involved in tourism development to participate in
a consultative process to iron out kinks prior to
the actual implementation of a project.
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Managerial Economics
• For example, failure to thoroughly consider all
pertinent issues could be very costly in terms of
time and resources.
• An oversight of pertinent laws regarding height
restrictions in heritage sites could result in delays
or even stoppage of a multi-million building when
the structure has already been constructed.
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Managerial Economics
• By assessing the potential impacts, planners and
developers would be able to identify actions that
could prevent or mitigate the impacts.
• They could choose to abort the project, relocate
the project, or take' mitigation measures to
minimize the adverse impacts.
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Basic Considerations in Tourism Impact Assessment
• At the conceptualization stage of a tourism project,
it is imperative to consider several factors. Failure
to do so may result in legal suits, financial loss, and
image problems.
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These factors include the following:
1. Constitution and existing laws
2. Land use plans and spatial planning
3. Zoning laws, zones of tourism value
4. Regulations on tourism investments, tourism
enterprise zones, and
5. tourism enterprises
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6. Building code (various permits, standards for
various types or structures)
7. Business registration requirements
8. Requirement for public consultation
9. Foreign equity laws
10. Protected area laws
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Managerial Economics
11. Minimum wage laws
12. Labor laws
13. Environmental laws
14. Tourism policy act
15. Critical habitat areas
16. Buffer zones
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Tourism Impact Assessment Tools
Triple Bottom Line Approach
• Triple bottom line (TBL) approach encompasses economic, social,
and environmental impacts of tourism (Lundberg 2011).
• TBL started out as a philosophy on how companies should
incorporate sustainability and their environmental advocacy in
planning, but has evolved into an accounting tool considering not
just the financial bottom line (i.e., financial result) but also
environmental and social impacts of the company.
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Managerial Economics
• Tourism Carrying Capacity Assessment Tourism
Carrying Capacity Assessment (TCCA) is used to
identify and implement limits to the number of
visitors to specific destinations or attractions.
• Its limitation lies in the difficulty in quantifyng
capacities due to factors such as technology and
the type of tourists that cone to a destination.
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Managerial Economics
Lundberg (2011) enumerated the various types or
carrying capacity
1. Physical CC - determines the level or physical
impacts that are acceptable at a destination, which
may all be tangible resources just the environmental
capacity, namely, how many people that can be at a
destination without affecting the quality.
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2. Perceptual CC looks at the situation from the
tourists point of view, related to how they perceive
the quality of the destination.
3. Social or Sociocultural CC focuses on the social
and cultural changes due to tourism increase.
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Managerial Economics
∙ Economic CC the destination's possibility to cater
for demand without crowding out other local
economic activities.
∙ Political or Administrative CC- concerned with how
the local political, and administrative bodies can
cope with tourism and to what extent it is needed
to put limits on tourism inflow.
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European Tourism Indicator System
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• The European Tourism Indicator System is an
assessment tool for monitoring, managing, and
enhancing tourism destination sustainability.
• The System is comprised of a set of Indicators, a
Toolkit, and a Dataset.
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Managerial Economics
• The System consists of 27 core and 40 optional
indicators, which can be adopted on a voluntary
basis and utilized or integrated in whole or in part
into existing destination monitoring systems.
• The System is based on the principles of
destination responsibility, ownership, and shared
decision-making (DG Enterprise and Industry 2013).
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Core Indicators
Destination Management Core Indicators
• The destination management core indicators are
(1) sustainable tourism public policy,
• (2) sustainable tourism management in tourism
enterprises,
• (3) Customer satisfaction, and
• (4) information and communication.
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Managerial Economics
Economic Value Core Indicators
• This set of indicators track the contribution of
tourism to the economic of the destination.
• The core indicators of economic value are (1)
tourism flow (volume and value) at destination, (2)
tourism enterprise(s) performance) quantity and
quality of employment, (4) safety and health, and
(5) tourism supply chain.
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1. The performance of tourism enterprises as
indicated by the average length of stay of tourists in
terms of nights and occupancy rates of
accommodation facilities is another core indicator of
economic sustainability.
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2. Employment generation is one of the most desired
effects of tourism for most governments. Besides the
sheer volume of jobs created, the jobs must also be of
good quality.
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3. Safety and health are measured by the percentage
of establishments that underwent fire safety check in
the previous year.
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4. Tourism supply chain analyzes the integration of
tourism businesses with local producers and suppliers
of tourism-related goods and services.
Local procurement helps decrease leakages and
increases the multiplier effect of tourism
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Managerial Economics
Social and Cultural Impact Core Indicators
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Managerial Economics
• The core indicators of social and cultural impact
are (1) community/ social impact as measured by
the visitor to resident ratio,
• (2) gender equality as measured by the ratio
between men and women in the tourism labor
force,
• (3) accessibility for persons with disability, and
• (4) protecting and enhancing cultural heritage,
local identity, and assets
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Environmental Impact Core Indicators
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The core indicators of environmental impact are;
• (1) reducing transport impact,
• (2) tourism impact on climate change,
• (3) solid waste management,
• (4 sewage treatment,
• (5) water management,
• (6) energy use, landscape and biodiversity protection,
• (7) light and noise management, and
• (9) Bathing water quality.
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Boston Consulting Group's Sustainable Economic
Development Assessment
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Managerial Economics
Best known for their growth-share matrix, Boston
• (BCG) has developed Sustainable Economic Development Consulting
Assessment Group , income into overall well-being of its population.
SEDA uses a composite index made up of ten different dimensions of
social and economic development:
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Managerial Economics
1. Income or wealth (GDP per capital)
2. Level of employment (employment and
unemployment levels)
3. Income equality (income disparities across the
population)
4. Economic stability (inflation and volatility of GDP
growth
5. Economic stability (inflation and volatility of GDP
growth
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Sustainable Livelihoods Approach
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• Sustainable livelihoods (SL) approach analyzes the impact of tourism
development on a community in terms of its contribution to building
Capabilities, assets (natural, economic, or financial, human, and
social capital, and activities required for a means of living (Lundberg
2011).
• It also analyzes tourisms impact on creating sustainable livelihood,
that is, the ability of a livelihood to cope with and recover from
stresses and shocks, maintain or enhance its capabilities and assets,
while preserving the natural resource base (based on the definition
of sustainable livelihood by the Institute for Development Studies or
IDS, University of Sussex, Brighton, UK).
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Philippine Environmental Impact Assessment System
• Environmental Impact Assessment (ETA) is defined by the
Department of Environment and the Natural Resources
Environmental Management Bureau as
• "a process that involves predicting and evaluating the likely impacts
of a project (including cumulative impacts) on the environment
during construction, commissioning, operation, and abandonment.
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• The following list of indicators that can be used for assessing the
impact of tourism development was constructed from a literature
review of documents by the United Nations Environmental
Programme
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Economic Indicators
1. Tourism revenues
2. Average tourist expenditure
3. Taxes from tourism
4. Number of registered tourism-related business
5. Inflation/ price index in tourist areas
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Managerial Economics
Environmental Indicators
1. Infrastructure to manage and minimize solid and liquid wastes
2. Water quality index
3. Air quality index
4. Percent of population exposed to pollution
5. Amount of water consumed and percentage of leakage
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Managerial Economics
Socio-cultural Indicators
1. Decent livelihood opportunities; number of locals selling products to
tourists or supplying stores
2. Number of tourism businesses operated and managed by local
people's organizations and cooperatives
3. Number of private tourism businesses employing local people
4. Poverty incidence in tourist areas
5. Extent of local linkages Extent of local employment
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Institutional Indicators
1. Presence of tourism master plans which incorporate sustainable
principles
2. Number of sites with sustainable tourism master plans
3. Presence of inter-agency coordination and cooperation
4. Presence of land use and zoning plans
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Managerial Economics
Assessing Jobs in Tourism
• In addition to merely counting the direct and
indirect number of tourism- related jobs, there
should also be an assessment of the quality of
such jobs. The quality of jobs may be assessed
using the decent work framework established by
the International Labor Organization.
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Managerial Economics
PERFORMANCE TASK MD2.1.1-1
“Tourism Impact Assessment”
Pen & Paper
none
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Managerial Economics
PERFORMANCE TASK MD2.1.1-1
1. Choose a place which is being developed as a tourist
destination. Assess the possible impacts of tourism
development on the surroundings communities using a
framework of your choice.
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Managerial Economics
PERFORMANCE TASK MD2.1.1-1
For Flexible Distance Learning:
• Screenshot of hand written answer on bondpaper and uploaded at Edmodo
Apps
For Modular Distance Learning:
• Handwritten bondpaper and submitted at AISAT Campus
• Five days after the discussion.
• November , 2020