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Negative Economic Impact Of Tourism In Thailand

Tourism brings positive and negative impact to Thailand; however, this study is more focused on the disadvantages of tourism in Thailand’s economy. The negative impact of tourism in the economy of Thailand shows that there is an imperceptible export that creates a stream of foreign exchange in the country. This results to existing account of balance payments. This is similar to export businesses, when the return of income results to business turnover, employment, government revenue, and household income.

The production process does not end at this time. Some part of income received by businesses, private people, and government agencies is unfavorable with regards to destination economy, which results to further rounds of economic activity. The secondary impact can exceed the primary effects. Studies regarding the impact of tourism in the economy must weigh the overall impact created by successive rounds of economic activity produced by first expenditure. The procedure has been recorded with emphasis drawn to weaknesses, strengths, and limitations to different strategies.

The effect of domestic tourism is similar to the host area of a country and it redistributes money partially within the counties boundaries. While, international tourism delivers a stream of foreign currency into a country. Therefore experts observe that export within domestic area not noticeable. Income produced in other regions is used within the host region and this creates another business earnings, employments, and government earnings. The approach in secondary revenue, earnings, and employment generation in the host region is similar to national economy. The primary difference during these secondary stages is that one part of a country is less self contained economically. As a result a greater portion of income may go to the regional systems going to other regions. The secondary impact in individual region are lesser compared to the national economy.

Tourism appears more effective than other business in making employment and revenue in the developed areas. It is also noticeable that opportunities for growth and development are limited. The growth of tourism in the underprivileged regions requires infrastructure existence like hotels and other facilities to accommodate tourism. In some instances, these infrastructures are not available to accommodate visitors. As a result, government will spend big amount of money for the construction of highways, establishments, airports to cater tourism. This provides an opportunity for marketers to produce local goods. Unfortunately, with this development there are still local individuals who receive little amount of benefits from these developments. This kind of strategy truly creates a problem in both physical and economic distribution.

The continuous development of tourism within a region results to increasing demands on the scarce of resources. When a land portion is greatly needed, the price of the said land is more likely to increase. Landowners will be encouraged to sell their land and this will result to being landless and low payment for work. On the other hand, farmers working for the land will have no other choice but to give up what they have and this leads them to a jobless life. This issue can be resolved if the government acquired the land for a fair market price or if the land is leased rather than sold to investors.

Thailand’s economy increased from 6 to 7 percent in the previous year. The Prime Minister added that both agricultural and industrial exports are performing well and the forecast for the coming months are promising. This is connected with the growing ASEAN economies and worldwide economic recovery. He also reported that the exports during the first half of 2010 increased to 93.07 billion dollars, up 36.6 percent annually.

Finance Minister Korn warned that trade and export is possible to slowdown in China and this is a threat for the economy of Thailand. The value of Euro made a great impact to Thailand’s tourism. He also said that there needs to be a change in the Thailand’s tourism strategy.