For this study I will use the same tourist hotspots to measure the overall effect that tourism has on these areas. I have chosen Jamaica, Italy(Venice), Indonesia(Bali), Peru (Machu Picchu), and Kenya. These spots were chosen due to their world renowned tourist locations and because they offer a diverse range and perspective towards this project.
For this post, I will be focusing on how each of these countries are impacted economically due to tourism.
Jamaica
Tourism has increased Jamaica's total economic growth by 10% in the past 30 years and is the country's main cause for its long-term economic development. In 2024 Jamaica welcomed over 2 million visitors bringing in a total revenue of more than 4 billion dollars. This paired with the tourism that Jamaica has received over the past 3 years is the main supporter to how Jamaica was so quickly able to move on from the Covid-19 pandemic compared to other pandemics that they had previously experienced. During Covid-19 Jamaica's tourism had declined by 64%, marking the largest decline of tourism. This caused a loss of 5 billion dollars and increased Jamaica's poverty rate to 23%. However, once Jamaica reopened the country has been undergoing an all time tourist high wave, which has allowed the country to quickly recover from Covid-19 and has dropped its poverty rate to an all time low of 8%. Jamaica heavily relies on the economic gains that tourism brings to its country.
Italy(Venice)
Venice, Italy experiences both positive and negative impacts with regards to how tourism affects it economically. A positive impact is that with the increased amount of tourists foreign enterprises have invested more money into Venice and its community. This has created more employment opportunities for locals and has brought economic growth to Venice. Also, with more money put into the Venice economy, both from tourists and from tourist enterprises, the government can use the money and put it towards maintaining Venice architecture and natural landscapes. However, a negative impact of increased tourism is that the prices of local goods and services increase as well. This severely affects those that permanently reside in Venice as they are charged more for their goods during the tourist seasons. The increased prices can also shut down local businesses that can not afford to pay the inflated prices of their supplies.
Indonesia(Bali)
Bali is known as one of the world's premier tourist destinations, bringing in over 2 million tourists each year. This high tourism contributes to 70% of Bali's economy and supports 20% of the country's population with jobs. However, while the country depends heavily on tourism to support its economy, there are many negative impacts that tourism is leaving. A major concern is that the locals of Bali are not reaping the economic benefits of tourism. Most money that tourists bring in is going to multinational companies instead of local businesses. This forces the country to become more reliant on outside businesses for support instead of their own. Another concern is the inflation of prices. With more tourists coming over to Bali, the locals have witnessed a rise in the prices for their goods and supplies. This makes it hard for locals to afford their necessities and to keep up their businesses. Lastly, there has been an increase in the gap between the wealthy and the poor. Most money that is making its way to the Bali residents is going to the elite or to the wealthy. This is a concern to the locals that make lower wages as there is a growing economic inequality between the rich and the poor. While Bali is dependent on the economic benefits that it receives from tourism, tourism is slowly destroying the economy of Bali, especially for its locals.
Peru (Machu Picchu)
As one of the 7 world wonders, Machu Picchu is a heavily tourist area. With an entry fee of $20 dollars the hotspot is generating 6 million dollars alone. While this is great for the Peru economy as it brings new money into the community, and creates job opportunities for the locals, it also starts a negative cycle. Most money that Machu Picchu brings in does not go directly to the tourist. Instead it is used to import goods and services for tourists. Also, while more jobs become available for the locals most of the time it is only for the tourist season and once the season is over the locals are laid off. This creates an unstable dependency that the locals and the country of Peru have on tourism. Over the years, Peru has become over-dependent on tourism and if Machu Picchu were to lose its hot spot title then the country would be in a financial crisis.
Kenya
Tourism in Kenya has a significant impact on the poverty rates that build up the country. With over 4 billion dollars coming in each year (450 billion shillings) from tourism, the country has been able to build new infrastructure and create over a half a million jobs. This has allowed even those with no education to be hired enabling them to earn an income and to improve their living standards. Tourism has also allowed Kenya's GDP to grow by over 30% in the past 5 years. However, there are some concerns about the distribution of all the wealth that tourism brings in. It is reported that only around 5% of all tourist income goes directly to the locals in Kenya. Most of the money goes to the government, with least of the money going towards local in rural settings. Kenya's progress of increasing its wealth and lowering its poverty rates may be hindered if the country does not start to evenly distribute its wealth and give back to the country's local communities.
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