The developments in the tourism sector have resulted in a windfall for scores of people. It has actually helped to reduce the number of people in the unemployed list. In
Kerala trips to far off destinations often involves the work of more than 5 people belonging to different categories. While such stereotyping over-simplifies a complex labor market and disregards the presence of a core group of employees who fit into none of these categories, many of the tourism jobs do suffer from some (or all) of these characteristics. Such problems are particularly acute in the case of foreign developments in tourism.
Studies of tourism related employment in the Caribbean and Africa, for example, show a recurring pattern with local labor placed into the low-pay, low-skill jobs, while positions with responsibility, higher earnings and prospects for advancement tend to go to foreign workers who possess appropriate skills and training. Even so, the allure of working in tourism and the enhanced working conditions that may prevail in comparison to other sectors (such as farming) can create imbalances in local workforces and create labor shortage in other sectors.
Lastly, any evaluation of the economic potential from tourism development needs to take into account the negative ‘externalities’. These are the wider ‘costs’ that are attached to tourism development and those that are not always quantifiable in precise economic terms, even though they have an economic dimension. Traffic congestion in resort areas, over-use of water supply and sewerage systems and the pollution that may result, tourist-related crime – all have attached, though often unseen, costs that need to be recognized and considered as part of the overall economic balance.
Thus, a comparison of the developments surrounding tourism and economic development will show as to how the developing nations have been able to withstand several of the wider impacts discussed above and yet pass on the benefits to the larger population.