Impact Of Sustainable Tourism On Economy


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Sustainable tourism refers to the process of establishing a suitable balance between economic, socio-cultural and environmental aspects to minimize the negative impact of tourism activity on environmental and local culture. Tourism activities in a country are essential as they provide an opportunity to earn foreign exchange. This project is based in Qatar, a country with a rich culture and history. This assignment includes an explanation of shareholders' benefits from planning tourism development along with advantages and disadvantages. It further discusses features of tourism development planning at different levels and methods to measure the tourist impact. This project also includes the implication of balancing supply and demand as well as moral & ethical issues of enclave tourism. In addition to this comparison between issues associated with emerging destinations and developing countries as well as recommendations for future development of tourism.


1.1 How stakeholders get benefited from planning of tourism development

Tourism refers to the set of activities related to a person travelling to and staying in an environment which is different from their usual place for the purpose of leisure, business and fun. Stakeholders are the ones who can affect or being affected by the organisation's actions, objectives and policies. Stakeholders are the base of tourism development in Qatar which includes organisation, government, customers, local community and supporting authorities. The development of tourism provides several benefits to stakeholders which directly or indirectly support business growth. So, in order to achieve higher sustainability Qatar's tourism companies must involve their stakeholder in the process of development. Benefits to stakeholders are given below:

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  • Employment opportunity:- Development in the tourism industry also supports increasing employment opportunities as local people arrange many activities and events that are appreciated by tourists. So with the development of tourism sectors, more people get the chance to contribute toward providing a better experience to tourists and earn money.
  • Economic growth:- The tourist industry is also linked with other industries such as airlines, hotels, local transport etc. So, these sectors also get growth opportunities with the development of the tourism industry. Therefore, the overall economy of Qatar also developed with the improvement in Qatar's tourism industry.
  • Community development:- The Development of the tourism sector also supports Qatar to improve the social and economic condition of the country. It provides employment opportunities to local people in different industries such as hotels, transport, vendors or local guides which support toward improvement and development of the community.
  • Maximising benefits of Tourist:-Visitors are one of the most essential stakeholders in the tourism industry as they are the major sources of revenue for tourism organisations as well as the economy of Qatar. Therefore, effective policies related to tourism activities must be formulated by the Qatar government. This will be beneficial for both the tourist as well as tourism industry. As tourists get satisfactory travel experiences tourism companies will be able to attract a large number of visitors.

2.2 Advantages and disadvantages in Tourism Planning and development

Qatar is one of the well-known countries for the tourism sector as it has a rich culture and history related to the Middle East. It is also a country which hosts various sports and other events which is one major factor in the attraction of tourists to this place. But apart from this, it requires attention that provides better development and growth.  This can be better achieved with the help of forming a partnership between public-private that helps in increasing the effectiveness of tourism places by providing better coordination. The following points describe the advantages and disadvantages of public-private sector partnerships in tourism planning and development:


  • Partnerships in the public and private sectors help Qatar ensure better utilisation of resources by planning future actions to be performed in advance.
  • The private sector can offer better services to public sector tourism in Qatar through their experience, adoption of best practices and innovation.
  • Return on investment over infrastructure projects will be higher in comparison with projects that are executed individually by both sectors.
  • Private-public partnerships by combining their capital and power will provide better growth opportunities to Qatar's economy which further contribute toward the sustainability of the tourism industry.


  • This partnership involves the risk for private participants who don't accept to compensate for the risk. This may increase the cost of government.
  • The distribution of roles and responsibilities among both experts affects the growth and sustainability of the community. Problems related to decision-making have a direct impact on the competitive decision taken by a firm.
  • The difference in purposes of private sector companies and government agencies of Qatar are different which may cause problems in the execution of projects.


2.1. Features of tourism development planning at different levels

The development process begins with the recognition of options that are available for further enhancement.  For successfully designing and implementing the development plan it is very essential to have a clear understanding of the development objectives required to achieve at different levels. There are basically four levels in tourism development planning in a country and its features to support planning of other levels are explained below:-

International:- These organisations work toward promoting policies to improve the economic and social well-being of people across the globe. International tourism organisations coordinate with the government with an aim to identify the forces that bring changes in economic, social and environmental factors to improve tourism and destination attraction. QTA measures productivity and the global flow of investment as well as trade to analyse &compare data for predicting future trends.

National:- These organisations are both public as well as private under the control of the government, national volunteers or private organisations associated with the government. The main aim of Qatar Tourism Authority is to promote Qatar all over the world to increase the number of visitors to the country and to make it a more attractive destination.

Regional:- These organisations have the capability to create and develop attraction in destinations by integrating different strategies to promote business. Regional plans are limited to cities and particular destinations. At this level, Qatar generally focuses on formulating strategies related to marketing and promotion of location to attract a large number of visitors.

Sub-regional: The main feature of this level is that it works with regional and national level organisations to promote and protect the attraction and destination. At this level, Qatar handles strategic development and situational plans by collecting data from different levels.

These levels are independent but are interrelated and support in formulating a plan for developing the tourism sector that provides higher sustainability and growth in this sector.

2.2 Significance of interactive planning system and process in tourism development

Qatar hosts various promotional events in order to promote and gain the attention of people around the world. The country is planning to host World Athletics Championships and various countries are participating in this event. So, the reputation of Qatar is at risk because each country has its own expectations related to the arrangements made by the host nation. At this development, interactive planning is very essential for the successful implementation of plans and execution of events. Interactive planning refers to a system which allows regular monitoring, evaluation and modification of plans in order to respond to changes by involving stakeholders in the planning process. This process suggests that there must be collaborative, cooperative and participatory planning for better decision-making. This helps eliminate the complexity of the process so that the plan can be implemented effectively. It also supports controlling the impact of tourism on the environment, culture, society etc.

By implementing interactive planning in the tourism development process, Qatar will be able to provide the right product according to the needs of customers. The importance of the interactive planning process is as follows:

  • Interactive planning helps in ensuring that all the levels of organisation, community and tourists are involved By the Qatar Tourism Authority in the planning process so that overspending and negative impact on the community can be minimized.
  • This planning also provides an opportunity for stakeholders to participate in the decision-making process.
  • Interactive planning is a continuous process that involves modification of the plan according to changes which provides better results by minimizing future uncertainty.
  • It also supports Qatar in interacting with tourists effectively for tourism services by using some promotional methods or advertisements to persuade customers and make them aware of the tourist services available.
  • It helps Qatar in designing efficient services according to the demand and preferences of the market segment.

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2.3 Different methods available to measure tourist impact

The development of the tourism industry is largely affected by the way in which activities are performed and managed. These activities have an impact on different factors like social, environmental and economic which can be positive or negative. But QTA is responsible for making sure that the impact is positive so that  Qatar as well as the local community will positively benefit from these tourism activities. The main aim of the planning process is to identify and evaluate whether the objective is being fulfilled or not by measuring the impact of these factors. Following are the methods through which impact can be measured:

Economic measure:- Tourism development planning is mainly connected with economic prosperity, so the measure of tourism impact is associated with the economy. By using an economic modelling process known as STEAM (Scarborough Tourism Economic Activity Monitor). This model uses quantity data such as a number of visitors, visitor expenditure level, income generation, occupancy rate etc. to find out the trends and changing demand of visitors. It identifies the impact of tourism activities on the economy of the country which can be further used by the government of Qatar to plan and analyse the finance required for further development. But it doesn't consider the environmental damage which happens due to various tourism activities.  

Environmental measure:- Activities related to tourism development have a direct impact on the environment in which these changes have been implemented. These impacts can be positive or negative. By proper planning and monitoring the negative impact can be minimised which promotes better growth and sustainability. For measuring the environmental impact EIA (Environmental Impact Assessment) model can be used. It helps in evaluating the impact that particular activity has on the environment and the damage that occurs over it. By using this model QTA can measure the environmental impact of tourism to avoid future risk and ecological imbalance but this setback fails to determine the economic benefits which have been derived from tourism activities. The EIA process must be performed by the tourism industry of Qatar at an early stage of tourism development which helps in avoiding environmental damage.

Social measure: The socio-cultural impact of tourism is difficult to measure because it is highly qualitative and subjective in nature. It nature of social impact can be measure by collecting data related to the safety level of tourists, crime rate, infrastructure, type of disease etc. In order to collect information related to social impact measurement there are mainly two methods i.e. primary and secondary. Primary research includes surveys, interviews etc., and secondary research includes collecting information through newspapers, the Internet, governmental records etc.


3.1 Concept of sustainability in tourism development

Sustainable tourism development considers all the present as well as future economic, environmental and social impacts of tourism by examining the different community needs, tourists and trends in the sector. Qatar is an emerging destination and its growth can be determined through different market research, as last year's country market was 1.235 million travellers in the year. This depicts the growth opportunity in the tourism sector and sustainable tourism also provides long-term advantages to the country.

Sustainability contributes toward eliminating the negative impact of tourism on local biodiversity. Further, it also encourages optimum utilisation of resources that help in securing natural resources for future use. The main advantage of sustainability is that it supports creating development opportunities by involving local communities in the decision-making process. This further supports reducing the chance of conflicts.

3.2 Factors that hinder/prevent sustainable tourism development

Sustainable tourism development signifies economic, social and environmental aspects which provide numerous opportunities and benefits to stakeholders as well as minimizing the additional costs. It works towards protecting and safeguarding the environment as well as the culture of the country. Factors that affect the sustainable tourism development are as follows:-

  • Climate changes: Fluctuations in climate hinder tourism development as it limit the number of tourist activities in the Tourists generally prefer to visit destinations which have stability in climate and environment. But Qatar faces various storm which sometimes affects tourism activities.
  • Pollution: Qatar is the main spot of oil and natural gas production and conversation which creates air and water pollution. Qatar is required to manage its oil conversation processes in order to avoid air and water pollution as it hinders tourists from visiting the country.  
  • Resources availability: A major consideration toward tourism development is the availability of resources as improper utilisation or unavailability of resources also prevents the tourists from visiting the country. Qatar's government must work toward improving the infrastructure of the country in order to develop and attract a large number of visitors to the country.
  • Human rights: Laws and policies related to human rights also have a huge impact on tourism development. The government of Qatar must try to alter its human rights policies in order to attract a large number of tourists to their country.

3.3 Different Stages in Planning for Sustainability

Sustainability planning refers to a set of activities or processes which assist in improving the performance of a business, country or region by considering economic, social and environmental factors.

Phase 1: This stage focuses on deciding the long as well as short-term objectives for sustainability.

First of all the objectives toward tourism development and sustainability are decided along with the time required to achieve those.

Phase 2: Develop a plan for achieving the desired goals and objectives.

After deciding the objectives next step is to formulate a plan which depicts various actions to be taken by Qatar tourist organisations in order to develop sustainability.

Phase 3: Identification of various stakeholders which get affected by sustainable development.

The next step is to identify and evaluate the stakeholders that get affected by this plan in order to identify any negative impact of the plan so that it can be removed in a timely manner.

Phase 4: Issues related to sustainable development are identified in this phase

under this stage different issues related to this plan are identified such as licensing from the government. Qatar Tourism Authority must consult these issues with stakeholders to avoid conflicts.

Phase 5: Causes behind the conflicts are evaluated and solutions for them are identified.

After determining the conflicts and the cause behind them next step is to determine the solution to eliminate those issues from the data collected through stakeholders.

Phase 6: Guidelines are created to attract visitors to the country to boost economic growth.

After solving all the issues next step is to draft guidelines by considering the demands and preferences of all the stakeholders to attract a large number of tourists.


From the above information, it can be concluded that sustainability is a positive activity that works toward making the tourist place safe and secure to attract large number of visitors. It also helps in protecting the environment and other natural resources.


4.1 Methods of resolving conflicts of interest to ensure the future well-being of developing tourism destination

Several conflicts may arise while performing operations as the travel and tourism industry is a highly competitive sector where trends keep on changing daily. The level of competition may be a little bit higher in a country like Qatar due to the limited availability of resources. These conflicts may arise due to differences in the interest of stakeholders or it may be related to the conversation of natural resources.  So in order to eliminate the conflicts following are the factors that must be considered by tourism operators for keeping stakeholders and local people satisfied:

  • Stakeholder satisfaction: The interest and will of stakeholders in tourism activities are also responsible for creating conflicts. If tourists are not satisfied with hospitality services in Qatar then it will affect the profit of the tourism industry to a large extent and create problems in developing international standards.
  • Stakeholder engagement: Tourism operators must consider the goals and preferences of stakeholders while formulating strategies related to future actions. They must also involve stakeholders in the planning and decision making process in order to perform activities according to their demands. Avoidance of this may create conflicts that might result in heavy losses to the company.

These are the factors that must be considered by tourism operators in Qatar in order to eliminate the conflicts that may arise in the travel and tourism industry. Read more about travel & tourism management. Apart from this, there are certain methods that can be used by QTA in order to resolve the conflicts which are as given below:

  • Negotiation: It is one of the most widely used methods to solve conflicts by promoting a clear communication interaction between the parties involved. This method suggests that parties must interact with one another for negotiation purposes in order to identify a solution that creates a win-win situation for both parties.
  • Mediation: Under this method both the parties participate in conflicts actively and discuss the matter. These comments are then judged by the Qatar Tourism Authority which acts as a mediator to find a better solution. The main drawback of using this method is that sometimes it becomes difficult for the mediator to ensure fair judgement for both parties due to adverse situations. But it is helpful too, as it provides various options to be performed in particular situations and the best one is selected without compromising.

4.2 Implication of balancing demand and supply

A balance between demand and supply is very essential in the tourism industry as an imbalance may create certain difficulties in operating business activities effectively and satisfying customers. When the demand is more than supply because of an increase in the number of visitors there may be overbooked hotels and delayed of flights that create more dissatisfaction. Similarly, when supply is more than demand it will minimize the profit earned by the company. Therefore the balance between supply and demand is very essential for preserving the natural activities in Qatar as the demand for green tourism is rapidly increasing. There are various methods through which the balance between demand and supply in the tourism sector can be managed which are given below:

  • Imposition of limits: In order to manage a balance between demand and supply, it is very essential for travel as well as tourism industry of Qatar to impose some limitations on their services. For instance, they can set a limit on the number of visitors allowed to come at a particular time or limit the tickets or hotel booking. This helps in avoiding the overcrowding situation, as it makes it harder for tourism operators to provide services effectively.  
  • Seasonality arrangements: Tourism demand in some seasons like summer & winter vacations, Christmas, New Year etc. is generally higher. For instance, Qatar welcomed more than 864,444 visitors in the first quarter of the year 2017 at the time of their shopping festival which provides hospitality and entertainment offers (Qatar Tourism Analysis, 2018). For this season Qatar government must manage the services according to the demand of customers. They must employ extra employees to provide better services to tourists. On the other hand government of Qatar must also construct or arrange extra hotels to balance the demand for tourists. This helps in avoiding the chances of overcrowding and overbooking as it directly affects the goodwill of the company.  

4.3 Moral and ethical issues of enclave tourism

Enclave tourism is an act performed over a small geographical area with the aim of satisfying the needs of visitors by allowing them to get the entire experience of their travel intention at one place without moving or travelling to different places. The main reason behind opting for enclave tourism is to generate maximum profit by minimizing the expenses over facilities and providing the expected experience to visitors in one place. Large organisations related to the travel and tourism industry are not implementing this strategy in their services which provide maximum benefit without spending much.

Various foreign tourism organisations are now entering Qatar's tourism sector with lots of resources and assets that provide tough competition to domestic enterprises. Further, they are blocking the domestic companies from the market as these small tourists don't have adequate resources to compete with them and because of this they are not able to contribute toward the economy of Qatar. This is the main issue faced by the government which is not considered as an ethical activity. Apart from this local community of Qatar will not get any sort of benefit because of enclave tourism, as this strategy limits the accessibility to different places and tourism organisations are using this to rule over an area with the aim to maximize their benefit. Another ethical issue faced by Qatar is tourism enterprises are taking licences in an unethical manner with an aim to expand their business to attract more customers. Apart from this capturing the land for their business and limiting the resources such as water, land and forests for locals is one of the major moral issues faced in Qatar. In addition to this, these organisations provide employment at lower income which is also an immoral practice faced by people in that nation.

Therefore, enclave tourism is beneficial for tourism organisations but its practices involve some ethical issues which may affect the economy of the country. It also hampers the culture as well as the environment of the county. In order to avoid these unethical practices it is very essential for QTA to form some tourism policies and strategies which support protecting the interest of the country as well as local tourism companies.  


5.1 Factors associated with tourism development

The tourism sector is influenced by various factors that affect the development of tourism sectors in developing countries like Mexico and emerging destination Qatar. A comparison given in the below table between Qatar as an emerging tourist destination and Mexico as a developing country shows various differences on account of problems associated with tourism development.

Basis of comparison




Oil conversion is one of the major activity performed within Qatar which largely affect the environment of the country. It creates air, land and water pollution which continuously damages the natural wildlife heritages. This is one of the major environmental faced by Qatar in tourism development.  

Mexico is a well-known tourist spot due to the beauty of the country, which leads to the development of various tourist organisations to enhance tourism services. However, the expansion of business destroys forests and other natural spots which largely affect the environment of the country.


The boycott done by Iran by blocking the Strait of Hormuz affected the trade of the country. This largely affects the economy of the country and apart from this due to the establishment of foreign tourism companies capturing the share of domestic tourism organisations. Because of this domestic tourism players generally fail to contribute toward the economic growth of the country.

The establishment of various foreign tourism organisations in Mexico restricts local companies from earning foreign currency which affects the economic growth of the country.


Major of the people who live in Qatar belong to the Islamic religion and because of this they sometimes fail to cater for visitors effectively which belong to different cultures. Islamic people don't have adequate knowledge related to other religions.

Due integration of different cultures invited several unethical and legal practices such as child labour to fulfil the demands of visitors. This is the major issue which affects the culture of the country.

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5.2 Recommendations for future development of tourism

Qatar is an emerging tourism destination which puts several efforts toward improving the services provided to visitors in order to attract a large number of tourists to the country. There are a number of strategies and schemes determined above that support Qatar in improving its tourism sector. Further, the government must also formulate certain policies and actions for tourists such as tax payments, exchange rates and many others. It will support removing the negative impact on the economy and also support eliminating the social problems. Weaker infrastructure and facilities are the biggest drawbacks that may affect the tourism sector's growth. So, QTA must work toward improving the destination to make it more attractive.

Apart from this sustainable tourism depicts the activities as well as decisions taken to remove the negative impact of tourism. It is very essential for both countries whether it is developing or emerging tourism destinations so that income opportunities can be balanced and the safety of the environment is assured. Some major factors like social, economic and environmental factors must be focused on by Qatar in order to increase the positive outcome of tourism practices. Following are the recommendations for Qatar and Mexico:-

  • Both countries are required to formulate strategies and impose certain restrictions over unethical practices in order to save the culture and minimize the negative impact on the socio-cultural environment of the country.
  • To reduce the environmental impact it is very essential for both the countries to encourage minimum wastage of natural resources and actions must be taken to limit pollution.
  • Both countries are required to provide equal chances to foreign as well as domestic tourism industries and must impose restrictions on the establishment of foreign tourism companies to promote economic prosperity.


From the above-given report, it can be concluded that tourism is one of the fastest-growing sectors which contributes toward the economic growth of the country. Economical, social and environmental factors are some major considerations that support the development of the tourism sector. There are some practices that support the sustainability in tourism sector which include fiscal policies, proper utilisation of resources and participation of business people. The development of tourism supports achieving competitive advantage and also helps in improving foreign exchange which strengthens the economy of the country.

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