The Social Impact of Tourism

Tourism is everywhere. From the ancient alleys of Hoi An to the revitalized docks of Cardiff Bay, it moves people, money, and ideas. It also moves expectations. Behind the glossy brochures and influencer reels is a powerful economic engine that shapes lives, and not always for the better.

In 2022, tourism accounted for 7.6% of global GDP and supported 1 in 11 jobs worldwide. These numbers are impressive, but they only scratch the surface. Tourism has the power to create opportunity, reduce poverty, and fund cultural preservation. It can also displace communities, strain local resources, and turn authentic cultures into commodities.

So, how do we make sense of it all? Let’s unpack the social impact of tourism, the good, the bad, and what travelers like us can do to make it better.

What Is the Social Impact of Tourism?

Social impact refers to the effect tourism has on the lives of individuals and communities. This includes how it influences employment, income distribution, cultural preservation (or erosion), infrastructure development, and quality of life.

Tourism isn’t just about moving people. It moves labor markets, real estate, education systems, and public attitudes. These impacts can be grouped into four broad categories: economic, social, cultural, and environmental.

And they are deeply tied to global development goals. The United Nations’ Sustainable Development Goals (SDGs) highlight tourism as a lever for:

  • SDG 8: Decent Work and Economic Growth
  • SDG 10: Reduced Inequalities
  • SDG 11: Sustainable Cities and Communities

Tourism can create pathways to prosperity. It can also create friction when unmanaged. Understanding both sides is critical.

Positive Impacts of Tourism

Youth Employment and Opportunity

Tourism provides millions of young people with their first formal job. According to the International Labour Organization, the sector directly employed 18.9 million youth (ages 15–24) in 2019, up from 14.5 million in 2010.

Youth employment in tourism is especially significant in the Caribbean, where in some countries over 25% of young people work in the sector. In high-income countries, the percentage is even higher, up to 6.4% of all youth employment.

This is more than just a job. It’s a chance to develop soft skills, earn income, and participate in a global industry. In places where youth unemployment hovers in the double digits, tourism is often the only lifeline.

Infrastructure Development That Benefits All

Tourism brings infrastructure: roads, airports, water systems, internet connectivity. While these are built for tourists, they often improve life for locals too.

Take Cardiff Bay, for example. The redevelopment of the docks into a cultural and commercial hub didn’t just attract visitors. It revitalized a neglected part of the city, added new roads, cleaned the waterfront, and preserved historic buildings like the Pierhead.

Local people now benefit from better public transport, more entertainment options, and a stronger economy. Tourism was the catalyst, but the dividends are widely shared.

Cultural Exchange and Revival

When tourism is thoughtful, it sparks pride. It fuels the revival of music, dance, storytelling, and traditional crafts.

In places like Bali, Oaxaca, and Luang Prabang, tourists are actively seeking cultural experiences. This has encouraged communities to preserve local languages, cuisine, clothing, and rituals. Cultural tourism can empower communities to become stewards of their own heritage, on their own terms.

It also builds mutual understanding. A traveler who spends a day with a weaving cooperative or attends a local festival is far more likely to leave with respect and curiosity rather than stereotypes.

Negative Impacts of Tourism

Displacement and Rising Costs

Tourism can push people out, literally.

In popular destinations, locals are priced out of their own neighborhoods by the rise of second homes, vacation rentals, and speculative real estate. This is especially visible in national parks, coastal towns, and heritage cities where demand for accommodation drives up land and rental prices.

Jobs also shift away from traditional sectors like farming and fishing into lower-wage, seasonal tourism roles. While tourism creates work, it can also hollow out local economies and make communities overly dependent on visitors.

Cultural Erosion

Not all cultural tourism is respectful. In many destinations, local customs are “performed” for visitors in ways that strip them of meaning or reduce them to clichés.

The problem isn’t cultural sharing. It’s commodification, when traditions are reshaped or exaggerated to fit tourist expectations. This can happen subtly (menus featuring international cuisine instead of local dishes) or overtly (rituals modified into shows for tips).

As UNESCO warns, uncontrolled tourism can lead to a loss of cultural identity, especially in destinations that experience rapid mass tourism without meaningful local input.

Environmental and Social Strain

Tourism brings more than people. It brings trash, traffic, noise, and resource strain.

  • Pollution: Flights and cruises emit greenhouse gases. Trains, buses, and cars crowd cities and trails.
  • Waste: In fragile ecosystems, even small amounts of litter can disrupt biodiversity.
  • Water scarcity: Tourists use up to twice as much water per day as locals. In dry regions, this causes tension.
  • Congestion: Think Venice in summer, or Machu Picchu’s strict visitor caps.

In fact, tourism is estimated to be responsible for 8% of global greenhouse gas emissions.

Overdependence on Tourism

When COVID-19 hit, the tourism industry collapsed almost overnight. The pandemic cost 62 million tourism jobs in 2020 alone.

Many destinations learned the hard way: too much reliance on tourism is dangerous. When planes stop flying and borders close, entire economies grind to a halt. Recovery is slow, especially in places with few alternative industries.

Case Study: The Dual Legacy of Hoi An, Vietnam

Hoi An, a UNESCO World Heritage Site, is one of Vietnam’s most visited towns. Its lantern-lit streets and French-colonial architecture attract millions each year.

On one hand, tourism has created jobs, revived ancient crafts like silk weaving, and injected income into local households. Homestays, food tours, and souvenir shops provide work that didn’t exist two decades ago.

But on the other hand, the city is now overwhelmed. Rents have skyrocketed. Cultural performances are often staged purely for tourists. Some locals feel their town no longer belongs to them.

Hoi An shows tourism’s full spectrum: revitalization, then saturation. The question now is how to preserve its soul without turning it into a museum.

How Tourists Can Make a Positive Impact

Want to travel better? Start here:

  • Choose community-based tourism: Stay with locals, join co-op tours, shop at local markets.
  • Reduce waste: Bring a refillable bottle, avoid single-use plastics, and pack light.
  • Offset your emissions: If you fly, consider donating to vetted carbon offset projects.
  • Support cultural integrity: Learn a few local phrases. Ask before photographing. Avoid shows that feel exploitative.
  • Vet operators: Look for certifications like Travelife, Fair Trade Tourism, or B Corp.

Good tourism starts with good questions. Ask who profits from your visit, and who might be harmed.

Conclusion: Can Tourism Be a Force for Good?

Tourism has enormous potential. It can fund hospitals, employ young people, revive culture, and connect people across borders. But it only works when it’s managed with care and equity.

It’s not just about where you go. It’s how, and why.

So ask yourself: When you travel, do you leave places better than you found them