Economic and environmental impacts

1. Discuss the impact that continued growth of tourism will bring to Singapore’s natural
environment and economy. [8m]
The continued growth of tourism brings about many positive impacts for both
Singapore’s environment and economy.
In order to attract more tourists, conservation of natural environments and historical
sites will be encouraged and the funding gathered from tourism receipts helps to conserve
and protect this environment. For example, Singapore’s Botanical Garden is currently a
world heritage site.
However, growth of tourism also can lead to negative impacts on the environment.
Tourists will leave behind litter which will cause pest infestation and pollution that will harm
people and wildlife. Cultural, historical and natural environment may be vandalised by
individuals. Large number of tourists can cause overcrowding in areas close to popular
attractions. Due to the large crowd, tourist shops and accommodations can cluster near such
areas and make them even more congested. For example, Orchard road, a popular
shopping district in Singapore is very crowded with tourists and many locals may not enjoy
shopping there.
Economic benefits includes more employment opportunities. The tourism industry
offers many employment opportunities such as workers in hotels, transport vehicles,
souvenir shops and tour agencies Some jobs that are directly linked to the tourism industry
are travel agents, tour guides, hotel staff and waiters and waitresses that cater to the needs
of tourists For example the building of the Integrated Resorts(IR) creates employment
opportunities for the locals.
Growth in tourism can lead to growth in income for individuals and for a country
With a high demand for services from tourists, tour companies will also experience an
increase in revenue. In turn, there will be an overall increase in revenue for the country
through the taxes collected. Tourism receipts which refer to the money received from tourist
spending, also generate large revenue for many countries
Foreign exchange earned from the spending of international travellers plays a big
role in a country’s economy A larger amount of money earned from other countries allows
Singapore to purchase goods and services from elsewhere in the world
For example, Singapore plays host to many international hotel chains such as
InterContinental, Marriott and Shangri-La which invest in building and furnishing hotels and
resorts, and training staff at tourist destinations Because these hotels operate in Singapore,
they exchange their own currency to purchase in Singapore dollars in order to make their
investments This increases the demand for Singapore dollars and contributes to Singapore’s
capital inflow
As Singapore is a tropical country, seasonal unemployment does not really affect
Singapore. The government has also ensured that services such as water and power are
readily available for both locals and tourists. Therefore, negative economic impacts are not a
big problem in Singapore.