Impacts of Tourism Growth in Thailand and Its Sustainability

Tourism growth has a great impact on the economy of any state; where on one hand it helps the economy to grow, on the other hand it creates socio-economic, environmental and cultural challenges which produce negative impacts on the overall economic development and sustainability of the country.First of all we will provide the introduction to the topic and will make the critical literature review which will include the work which has been already published by the researchers and scholars. Then we will be discussing the positive impacts which have been seen in the economy of Thailand due to the growth of tourism; and as well as the negative impacts which are crucial to be handled well for the sustainability of its economic growth.And in the end we will conclude our topic with the concluding remarks and will provide some important recommendations for Thailand at governmental, corporate and individual level in order to manage the tourism growth and handling the socio-economic, environmental and cultural issues arising due to the challenges of tourism in order to achieve growth in the economy as well as sustainability in its economic growth through increased standard of living and overall economic development of the country.Table of Contents Executive Summary2 1Introduction4 2Literature Review4 3Findings7 3. 1Positive Impacts7 3. 1. 1Contribution to GDP7 3. 1. 2Contribution to Employment9 3. 1. 3Contribution to Visitor Exports:10 3. 1. 4Contribution to Capital Investment11 3. 2Negative Impacts12 4Conclusion13 5Recommendations13 6References:15 Introduction This report is intended for creating understanding about the Impacts of Tourism Growth in Thailand and its sustainability.Tourism plays an important role in the economic development of a country [ (Ashley et al. , 2007) ] and for the country like Thailand its role in the economy is even crucial as it is one of those countries where tourism is popular and it contribute great to its economy and plays an important role in the related businesses, its employment, governmental policies and national standards [ (Chumni, 2001) ].But it is very important to know that if on one side tourism helps in the growth of the economy on the other hand it also creates number of socio-economic challenges for the state and in order to make efficient decisions the government needs to understand the factors which influence the demand for tourism in the country [ (Vanegas & Croes, 2000) ], so there is a strong need for understanding the issues like the impacts of tourism growth in Thailand and its sustainability for policy making in public as well as private sector, in Thailand.Literature Review Tourism consists of the activities which are related to the travelling of a person or persons to a place other than the environment in which they usually live for more than 24 hours and the purpose for their visit could be for the sake of leisure [ (Cooper et al. , 2009) ] which may include holiday, recreation, or for business or meeting [ (UNO, 1996) ].Tourism has a great impact on the economy of the country as well as on its overall environment and culture [ (Wall & Mathieson, 2006) ] and it is one of the most important factors for any country’s economic development (WTO, 2000), which means increase in the standard of living in the country with increased and sustained GDP, per capita income, employment opportunities, business and investment [ (Todaro & Smith, 2008) ]. The following tables will help in understanding the key impact of tourism growth on the conomy of Thailand by the help statistical figures of key indicators of the economy for the last decade [ (WTTC, 2011) ]: Table [ 1 ]: Contribution of Tourism in the Economy of Thailand Source: [ (WTTC, 2011) ] Table [ 2 ]: Contribution of Tourism in the Economy of Thailand Source: [ (WTTC, 2011) ] In Thailand in the 1990s there had been an increase in tourists coming from different countries in Asia generally and from all over the world in particular and there was an increase in the spending of the tourists too [ (UNESCAP, 1991) ].And there has been a great impact on the economy of Southeast Asian countries due to tourism; the no. of hotels have grown from 29 in 1997 to 135 in 2003, in Luang Prabang which is closely related to Thailand but tourism has also had very bad impact on the environment of many such places of these countries including Thailand [ (UNESCO; PATA, 2004) ]. Moreover due to the traveling of tourists in some areas of Thailand the problems like drug abuse and prostitution have aroused, hence creating a severe negative impact on the environment. [ (Kesmanee & Charoensri, 1995) ].Findings In this part we will be focusing on the findings from the study which are divided into further two parts which include: the positive impacts of tourism in Thailand and the negative impacts of tourism in Thailand [ (Laws, 2004) ]. Now we will discuss and analyze these two impacts separately in order to get the proper understanding of the study. Positive Impacts Contribution to GDP The research findings for the contribution of Tourism to the GDP i. e. Gross Domestic Product [ (Barro, 2008) ] of Thailand (Direct & Total) are shown in the following table and figures:Table [ 3 ]: Contribution of Tourism in Direct & Total GDP of Thailand Source: [ (WTTC, 2011) ] Figure [ 1 ] Source: [ (WTTC, 2011) ] Figure [ 2 ] Source: [ (WTTC, 2011) ] Contribution to Employment According to WTTC (2011) tourism is expected to create 1,858,000 jobs directly in 2011, which occupy about 4. 7% of the employment of the economy. The following data will help in understanding the contribution of tourism to employment: Table [ 4 ]: Contribution of Tourism in Direct & Total Employment of Thailand Source: [ (WTTC, 2011) ]Figure [ 3 ] Source: [ (WTTC, 2011) ] Figure [ 4 ] Source: [ (WTTC, 2011) ] Contribution to Visitor Exports: Visitor exports mean the spending made by the tourists for business, leisure or the transportation [ (Blanchard, 2006) ]. The following table and figure will help in seeing the contribution of visitor exports of tourism in Thailand in the present and the upcoming year: Table [ 5 ]: Contribution of Tourism in Visitor Exports of Thailand Source: [ (WTTC, 2011) ] Figure [ 5 ] Source: [ (WTTC, 2011) ] Contribution to Capital InvestmentCapital investment is one of the key elements of the economy [ (Krugman & Wells, 2009) ] and due to tourism growth the capital investment of Thailand shows an increasing trend in 2011 and in the next 4 years as shown in the following table and chart: Figure [ 6 ] Source: [ (WTTC, 2011) ] Table 6: Contribution of Tourism in Visitor Exports of Thailand Source: (WTTC, 2011) Negative Impacts Some of the major negative impacts of tourism growth in Thailand which are related to socio-economic and environmental conditions (Brian Archer et al. 2005) are discussed as follows: * Economical: Due to tourism growth the economy of Thailand depends upon the earnings of this sector which is risky for the economy as other sectors’ development is also crucial but often ignored. Due to huge tourism in Thailand there is the domination of international investors over the local market and especially in the hotel businesses which proves out to be a hurdle for the development of local hotel sector due to competition with giant investors and in the end the local growth of the economy suffers (Durbarry & Ramesh, 2004). Unequal Developmental Activities: Due to tourism growth there are unequal developmental activities which means the developmental activities mostly meant to support the tourism sector of the country which is unjust for many other sectors of the economy and especially the sectors which are related to support the local or domestic industry. Moreover the facilities being provided to the tourists by the state often ignore providing even the needful of facilities to its nationals which create an environment of injustice in the state [ (Brian Archer et al. , 2005) ]. Environmental: Tourism growth in Thailand has harmed the environment to a great extent. Not only the natural resources and the ancient places have being effected but also the overall atmosphere of the country has been affected due to pollution (Kaosa-ard, 2001). * Leakages: Leakage can simply be called as the difference between the amounts earned through tourism and retained locally after all the taxes, profits and wages; and amount paid for the imports. According to a study around 70% of money spent by tourists in Thailand’s leaves the country in the end [ (Brian Archer et al. , 2005) ]. Socio-Cultural Issues: Clash of cultures and social problems like drug abuse and prostitution and the overall culture and norms of the country are disturbed which creates a situation of social unrest [ (Brian King et el. , 1992) ]. Conclusion In the end the study explains that there is no doubt that tourism is crucial for Thailand and its sustainability and is contributing a great deal to its economic growth but at the same time it is also harming the Thailand by its negative impacts on its economy, environment and culture; and acting as a hurdle in the economic development of the country.If Thailand wants its economic growth to be sustainable and high standard of living for the people of Thailand, it has to make strong and effective policies for the development of local industry and its sustainability; and it also has to make the laws of environment stricter [ (Tearfund, 2002) ] and should take the needful steps for the cultural protection. Recommendations The following are the needful recommendations for handling the growth in tourism in Thailand to make the growth in the economy sustainable [ (ECOSOC, 2007) ]: Governmental level: The government of Thailand should make policies for the support of local industry [ (Keyser, 2002) ]. * It should not only support the international investors but also give equal chance to the local investors [ (Ashley, Roe, & Goodwin, 2001) ]. * It should make environmental protection laws strict [ (Talacko et al. , 1998) ] in Thailand and take strong actions against the protection of its ancient places and natural resources. * The public sector should join hands with the private sector [ (CPPP, 2002) ] to make the economic growth in Thailand sustainable.Corporate Level: * The local investors should make efforts to come closer to each other and join hands to make investment in different projects, only then they will be able to compete with the foreign giants (Virola et al. , 2001). Individual Level: * Each resident of the state is responsible for its state’s development [ (Cowe, 2001) ] and if each and every individual start making effort for the sustainability of the economy, Thailand can achieve prosperity [ (Greening the WSSD, 2003) ]. References: Ashley, et al. (2007).The Role of Tourism Sector in Expanding Economic Opportunity. Economic Opportunity Series . Ashley, R. & Goodwin, (2001). Pro-poor tourism strategies. Making tourism work for the poor. Barro, J. , (2008). Macroeconomics: a modern approach By Robert. Thompson South West. Blanchard. (2006). Macroeconomics . Prentice Hall. Brian, et al. (2005). The positive and negative impacts of tourism. In W. F. Theobald (Ed. ), Global Tourism (3rd ed. ). Elsevier Inc. Brian, et el. (1992). Social impacts of tourism: Host perceptions. Annals of Tourism Research .Chumni, M. (2001). Tourism Demand Model: Determinants of Thailand’s International Tourist Receipts. Thesis (M. A. ), Chulalongkorn University, Thailand . Cooper, et al. (2009). Tourism Principles and Practice (3rd ed. ). Harlow: Pearson Education. Cowe. (2001). Investing in Social Responsibility. Risks and Opportunities. CPPP. (2002). Community Public Private Partnership Tourism Strategic Document. Durbarry, Ramesh (2004). Tourism and economic growth: the case of Mauritius. Tourism Economics. Volume 10, Number 4, pp. 389-401(13) Ecosoc. (2007).Regional study on the role of tourism in socio-economic development. Economic and social commission for Asia and the pacific. Greening the WSSD. (2003). Responsible Tourism Handbook. A Guide to go Practice for Tourism Operators. Kesmanee, C. , ;amp; Charoensri, K. (1995). Case study on the effects of tourism on culture and the environment Thailand. RACAP Series on Culture and Tourism in Asia . Keyser. (2002). Tourism Development. Oxford University Press. Krugman, P. R. , ;amp; Wells, R. (2009). Macroeconomics. Worth Publishers. Laws, E. (2004).Tourism in the 21st Century: lessons from experience (2nd ed. ). London: Thomson Learning. M. Kaosa-ard. (2001). Domestic tourism in Thailand: supply and demand. The Native Tourist Virola et al. , (2001). Measuring the Contribution of Tourism to the Economy: The Philippine Tourism Satellite Account. Talacko et al. (1998). Being green keeps you out of the red. An easy: guide to environmental action for accommodation providers and tourist attractions. Tearfund. (2002). Worlds Apart: A call to responsible global tourism. Todaro, M. P. , ;amp; Smith, S. C. (2008).Economic Development (10th ed. ). Pearson. UNESCAP. (1991). The Economic Impact of Tourism in Thailand. Bangkok: UNESCAP. UNESCO. (2004). Impact: The Effects of Tourism on Culture and the Environment in Asia and the Pacific: Tourism and Heritage Site Management in Luang Prabang, Lao PDR. Bangkok: UNESCO. UNO. (1996). The economic impact of tourism in Asia. Economic and social commission for Asia and the pacific. Vanegas, ;amp; Croes. (2000). Evaluation of Demand, US Tourists to Aruba. Annals of Tourism Research 27, 4: 946-963 . Wall, ;amp; Mathieson. (2006).Tourism: change, impacts and opportunities. Harlow: Prentice Hall. WTO. (2000). General Guidelines for developing the Tourism Sattelite Account (TSA): Measuring Tourim Demand, Volume 1. WTO. (2000). General Guidelines for developing the Tourism Sattelite Account (TSA): Measuring Tourim Supple, Volume 2. WTTC. (2011). The economic impact of travel ;amp; tourism. Thailand: World Travel and Tourism Council. WTTC. (2011). World Travel and Tourism Council. Retrieved October 23, 2011, from WTTC: http://www. wttc. org/eng/Tourism_Research/Economic_Data_Search_Tool/

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