NEGATIVE IMPACT AND DIVERSIFICATION
There is no one clearly acknowledged method of analysing the impacts of tourism and there are a number of different criteria for its measurement.Most studies are able to display the benefits generated and contributive to the balance of payments and deployed income supplied by the government.Yet few have included the analysis of negative effects.Negative economic impact has an effect on the local scale with destinations suffering economically when dependent on tourism.Diversification if applied to the local economy is able to positively reverse such consequences with the development of tourist goods and services replacing the previous gains from traditional activities.Yet there is fragility, with instability ever present due to alteration of tourist routes,ineffective publicity,and influence from ever changing tourist fashions in response to seasonal variation of production.An inflationary spiral frequently develops.This inflationary aspect is sublimative with prices and taxes affecting the local population.It has no regard for anything existant before and it becomes patently obvious in the escalation of food prices and that of goods etc.Those who are directly involved in the industry experience improved benefit but not the local population. There occurs disruption of traditional productive sectors of capital destinations within areas of tourist development.Foreign capital is not limited to a local effect as it leaves the receiving country thereby contributing to a loss of currency.Some authorities assert that for the long term,low potential productivity from a tourist company has a depressive effect on local economic growth. Possible inflation may occur from tourist activity,the purchasing potential being greater than that of the resident population therefore leading to escalating prices for food and services.There is loss of potential economic benefits with a high dependency on foreign capital.resulting in distortion of the local economy.Concentration of economic activity becomes channeled into one type of activity,with a resultant fluctuating impact upon the level of employment.