The Effects of Tourism on the Small State of Monaco Research Paper

The Effects of Tourism on the Small State of Monaco - Research Paper Example detrimental ecological and environmental effects from tourism has resulted in the development of policies for sustainability in Monaco, termed sustainable tourism . 5 Social and Cultural Effects 6 Tourism has significant effects on the social environment of the area where it is occurring. It separates those who are involved in the tourism industry from those who are not, and limits the choices that the population can make, as any decisions must take into consideration the effect of the decision on tourism . This is particularly true for Monaco, which has focused on tourism since before the Second World War. Now, tourism and banking are the two major sources of income for the state, and any decisions that the state makes need to carefully take into account their effects on the tourism industry. In addition, there are specific effects that the form of tourism in Monaco has on the people and the community. Gambling is often associated with crime and prostitution, even in expensive casin os, such as those in Monaco . 6 Research Design 7 Problem Statement 7 Tourism in Monaco is a booming industry that is the focus of much of the activities of the state for more than 100 years. While there is significant evidence in the literature of the impact that the industry has had on the state as a whole, such as increasing economic output, allowing the state to be self-sustainable, the creation of many jobs, and a high standard of living. There have also been negative effects, such as tourism aiding in the spread of an invasive species, the financial reliance that the state has on tourism, and the potential alienation of citizens that are not part of the tourism industry. There has not been much discussion in the literature about the reaction of citizens to the industry, whether they... The state experiences a Mediterranean climate with hot, dry summers and wet, mild winters. In is two square kilometers in area, making it the second smallest independent state in the world, with only Vatican City being smaller. It is almost entirely urban, with a high standard of living and currently has the longest life expectancy at birth of the independent states. As well as attracting tourists through its gambling facilities, the state is also a major banking centre, and acts as a tax haven with no income tax and low taxes for business. The country is a constitutional monarchy, having a head of state as well as a head of government and a cabinet (Central Intelligence Agency, 2011). The state has little to no natural resources, which limits its ability to develop sustainably (D'Hauteserre, 2005). The rapid growth of tourism worldwide has been a consequence of advances in transportation, with global transportation no longer being a complex venture, as well as being cheaper, safer and more convenient. In addition advances in communication and in technology have played a substantial role as well as other factors, such as the prevalence of people with high disposable incomes that are seeking pleasure, relaxation and comfort (Smith & Eadington, 1992). The first real influx of tourism to Monaco was in 1863 when a performer known as the Magician of Monte Carlo began to manage a new gaming company. This provided most of the revenue for the state until World War II began. Currently the state now hosts millions of visitors a year and has many investors (D'Hauteserre, 2005). The production of a world famous casino during this period was one of the key methods that the state benefited from tourism.