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Negative impacts; enclave tourism and other effects
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Local businesses often see their chances to earn income from tourists severely reduced by the creation of "all inclusive" vacation packages. When tourists remain for their entire stay on the same cruise ship or in the same resort, because it provides everything they need, not much opportunity is left for local people to profit from tourism; this is often refereed to as enclave tourism. The Organisation of American States (OAS) carried out a survey of Jamaica's tourist industry that looked at the role of the "all inclusives" compared to other types of accommodation. It found that although all inclusive hotels generate the largest amount of revenue their actual impact on the economy is smaller per dollar of revenue than other accommodation types. It also concluded that "all inclusives" imported more, and employed fewer people per dollar of revenue than other hotels.


Other negative impacts of the tourism industry include:

  1. Infrastructure costs: where tourism development can cost the government and local taxpayes a great deal of money (e.g. road improvement, airport expansion) and may reduce government expenditures in critical areas such as education and health.
  2. Increase in prices: Increasing demand for basic services and goods from tourists will often cause price hikes that negatively affect local residents whose income does not increase proportionately. In addition, tourism development and the related rise in real estate demand may dramatically increase building costs and land values.
  3. Economic dependence: Many countries, especially developing countries with little ability to explore other resources, have embraced tourism as a way to boost the economy. However, as a consequence their survival often has become dependent on regular tourism revenue influx. In The Gambia, for instance, 30% of the workforce depends directly or indirectly on tourism. According to the WTO, in small island developing states, percentages can range from 83% in the Maldives to 21% in the Seychelles and 34% in Jamaica.
  4. Seasonal character of jobs: The seasonal character of the tourism industry creates economic problems for destinations that are heavily dependent on it. Problems that seasonal workers face include job (and therefore income) insecurity, usually with no guarantee of employment from one season to the next, difficulties in getting training, employment related medical benefits, and recognition of their experience, and unsatisfactory housing and working conditions.
  5. Economic crises, like the Asian crisis that hit Thailand, Malaysia and Indonesia a few years ago, can be devastating to inbound tourism flows. September 11th is yet another example of an economic crisis with devastating impacts, especially for small island states that have become severely dependent on tourism revenues for the survival of their economy.
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