Question

You are creating a tourism development that will have a direct economic impact to the local economy. What are some possible negative impacts you will encounter with your project and what is your contingency plan to avoid this negative impact from occurring?	0	0	0	0
	A great example

Answer 1

Tourism industry is one of the fastest growing industry of an economy in the recent time. A huge amount of revenue is generated from the tourism sector every year. It not only impacts the culture and society but also influences the economical situation to a great extent. Thus its development becomes equally imperative.

A tourism development plan comes with both positive & negative aspects and probable impacts. If we talk about the negative impacts of a tourism development plan it could be as below:

• Increase in the cost of developing and maintaining infrastructure.
• There could be inflation due to price rise.
• Employment generation for a short period of time.
• Accidental and climatic risks may hamper the economic growth.
• Although tourism is a growing sector but excessive reliance on tourism for economic and social development could be harmful for the economy.

The above negative impacts could be prevented by a proper contingency plan mentioned below:

• More employment opportunities should be generated even during off season period.
• A proper Risk and Disaster Management System should be designed to cope up with uncertain events.
• Regular monitoring of tourism activities to avoid additional expenditures on infrastructure development.