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Benefits and problems of tourism

Exam code: 2217
Written by: Ashika|Reviewed by: Caroline Carroll|Updated 2 July 2026

Specification link

This page covers section 9.3.3 of the CIE O Level specification.

  • 9.3.3 - The benefits and problems caused by tourism, at a range of scales.

The benefits of tourism

The benefits of tourism

Economic factors

  • Income generation:

    • Tourism significantly boosts GDP in many countries, such as the Maldives and Thailand

  • Foreign exchange earnings:

    • International tourists spend money on travel, accommodations, food, and other services, which helps stabilise a country's local currency

    • This helps finance imports and invest in building new infrastructure

  • Job creation:

    • This includes direct employment in hotels, guiding, and transport, as well as indirect employment in construction, agriculture, and retail

  • Multiplier effect:

    • When tourists spend money, it circulates in the local economy and helps suppliers and service providers

  • Improving infrastructure:

    • Roads, airports, and public facilities often enhance services for tourists and benefit locals too

Social factors

  • Cultural exchange:

    • Tourism builds understanding between cultures and boosts global awareness

  • Preservation of culture:

    • Tourism encourages the preservation of traditional crafts, festivals, and heritage sites

  • Improved services:

    • Tourism development often improves healthcare, education, and infrastructure in local communities

  • Social mobility and employment:

    • Tourism creates job opportunities, including apprenticeships for young people, particularly in rural and coastal areas

    • It also supports social mobility by providing opportunities for career development

  • Education:

    • Tourism encourages learning new languages and skills

  • Community belonging:

    • People in host communities feel more connected to their surroundings than those in non-host areas

Environmental factors

  • Conservation funding:

    • Entrance fees and ecotourism fund wildlife conservation and protected areas

  • Awareness raising:

    • Tourism raises awareness of environmental issues and promotes global stewardship

  • Restoration projects:

    • Tourism revenue funds habitat restoration and sustainable resource management

  • Education:

    • Guided tours, educational programmes, and volunteer opportunities teach tourists about the importance of environmental protection

  • Community engagement:

    • Tourism can build community pride and encourage local people to protect their natural resources

  • Wildlife protection:

    • Tourism deters poaching and illegal activities by increasing human presence in protected areas

The problems of tourism

The problems of tourism

Economic impacts

  • Seasonal jobs in tourism lead to job insecurity and fluctuating income

  • Low wages:

    • Many tourism jobs pay low wages and provide few opportunities for career advancement

  • Economic leakages:

    • Profits can flow to foreign-owned companies instead of helping the local economy

  • Over-reliance:

    • Dependence on tourism makes economies vulnerable to global shocks like pandemics, recessions, and conflict

Social impacts

  • Acculturation:

    • This is where culture becomes a product

      Traditions change or are performed to satisfy tourists, resulting in a loss of local language and traditional values

  • Social tensions:

    • An influx of tourists may cause locals to feel resentment if the benefits are not shared fairly, such as a loss of access to local sites (beaches, forests, etc.)

  • Inflation can cause the prices of land, housing, and goods to rise, making life harder for local residents

  • Disruption of local life:

    • Local life suffers from overcrowding, traffic congestion, and noise pollution, which lower the quality of life for residents

Environmental impacts

  • Tourist numbers cause environmental degradation, leading to footpath erosion, coral reef damage, deforestation, and wildlife disturbance

  • Pollution comes from waste, sewage, and air pollution caused by transport and tourism facilities

  • Resource pressure occurs when resorts in fragile environments, like arid regions and islands, use too much water and energy

  • Carbon footprint:

    • Air travel produces a lot of CO₂ emissions, which adds to climate change