CHAPTER 2 LITERATURE REVIEW Tourism, the seemingly innocuous act of travel for leisure or relaxation, has bloomed into a worldwide economic powerhouse. Its charm lies in the commitment of monetary flourishing, social trade, and dynamic encounters for the two; guests and hosts. However, underneath this shiny facade lurks a shadow. Potential for rapid tourism growth inflicts a multitude of negative impacts particularly on the community of the area. This research dives into the duality of the tourism industry, investigating its effects on the climate, the sociocultural texture, and monetary value of host communities. It will then explore solutions to navigate all the drawbacks, advocating for a shift towards responsible tourism practices that guarantees a mutually beneficial situation for the guests, hosts, community, and the climate. One of the most unsettling parts of the rapid tourism growth is its effect on the social fabric of communities. In this case, cultural commodification is a concern. Cultural commodification in tourism is defined as the action to turn culture into a commodity, package, and other cultural artifacts, such as crafts, performance, photography, hospitality, and identity (Cole, 2007). 1.Environmental Impact Environmental aspects are the concern of all world organizations for various fields, especially economic activities that must pay attention to the environmental impacts they cause. In tourism development, it is important for in-depth research on the physical conditions of the environment, and how the implications of tourism development are for environmental sustainability (Buckley, 2012; Kiper, 2013; Higgins-Desbiolles, 2018). If tourism development is not well planned, for example, environmental management problems will become a serious problem for local residents such as waste pollution and decreased biodiversity (Higgins- Desbiolles, 2018). Tourism, particularly nature tourism, has shown significant growth globally, as seen in the increase in international arrivals in destinations like the Galapagos Islands, Nepalese Himalaya, and the Maldives (Tyagi, 2016). While this growth brings economic benefits, it also raises concerns about environmental degradation, which can threaten human health and ecological balance (Tyagi, 2014). Ecotourism, a sub-component of nature tourism, aims to mitigate these negative impacts by promoting responsible travel that conserves the environment and improves local welfare (Brown, 2007). It involves balancing the needs of tourism, conservation, and culture to enhance the local environment proactively. However, the concept of carrying capacity, which refers to the maximum number of tourists a destination can accommodate without causing unacceptable damage, is crucial in 9 managing tourism's environmental impact (Pearce, 2011). Overcrowding, as seen in Lembang during holiday seasons, can lead to congestion, dissatisfaction among tourists, and negative environmental impacts, such as damage to homes by long-tailed macaques due to habitat disruption (Saleh, 2022; Larasati, 2017; Ridwan, 2020). Bandung city, a popular tourist destination, faces similar challenges with congestion and pollution, affecting both residents and tourists (Adhi, 2014). This phenomenon, known as overtourism, can diminish the quality of life for locals and the visitor experience, highlighting the need for sustainable tourism management (UNWTO, 2018; Seraphin et al., 2018). 2.Social Impact Culture is the most important thing for local residents. Basically, local people really uphold the culture they have. In the context of tourism, the presence of tourists can be an arena to promote and preserve their culture. Previous research states that the culture in an area can be an asset for that area to attract tourists to visit these tourist attractions (Rasoolimanesh et al., 2017; Chin et al., 2018). Tourism has led to the commodification of local cultural products and practices in Lembang, with cultural attractions being packaged for tourist consumption (Kartika et al., 2022). This process involves adding or subtracting elements to make cultural products more appealing to tourists, which can impact the authenticity of local culture. The politicization of culture is evident in the investment in tourism development, where government policies support investment projects to accelerate tourism village development (Kartika et al., 2024). However, this can lead to changes in social structures and community ideology (Ristiawan, 2018). One of the indirect impacts of tourism in Lembang is the emergence of prostitution in certain areas, which has become an unresolved issue affecting various layers of society (Biroli, 2015). The presence of prostitution can create a stigma within the community, disrupt cultural and religious continuity, and tarnish the image of the tourism area (Saputra, 2020). 3.Economy Impact Economic factors affect the quality of life of local residents such as job opportunities, increased income, business opportunities and so on. Several studies have shown that Community Based Tourism (CBT) has a positive influence on new job opportunities in tourism, increases family income and stimulates the growth of new entrepreneurs, which can further boost the standard of living of local residents to support the sustainability of local tourism (Eshliki & Kaboudi, 2012; Kachniewska, 2015; Mathew & Sreejesh, 2017). On the other hand, there are drawbacks from the existence of tourism from an economic aspect, namely the higher the cost of living and the rising prices of goods and services (Gullion et al., 2015). 10 The economic impact of tourism can be measured through direct, indirect, and induced impacts, reflecting the effects of tourist spending on the local economy (Cianga & Sorocovschi, 2017). The direct impact is the initial spending by tourists on accommodations, food, transportation, and entertainment, which directly benefits businesses in the destination, such as hotels and restaurants in Lembang. The indirect impact results from the additional economic activity generated by the re- spending of the initial tourist expenditure within the local economy, benefiting suppliers and service providers to the tourism sector. The induced impact refers to the economic effects of spending by employees of tourism-related businesses on local goods and services, contributing further to economic growth. Together, these impacts form the total economic impact of tourism, often expressed through the multiplier effect, which captures how tourist spending circulates through the local economy, generating additional economic activity. However, it is essential to consider the balance between economic benefits and the potential negative impacts on the environment and social fabric. Sustainable tourism practices can help maximize the positive economic effects while mitigating negative consequences. 4.Unequal Benefit Distribution Core-periphery imbalances and regional disparities figure prominently on the agenda of several disciplines, which result from their enormous impact on economic and social development around the world. In sociology, international relations, and economics, this concept is crucial in explanations of economic exchange. There are few countries that play a dominant role in world trade (sometimes described as the “Global North”), while most countries have a secondary or even a tertiary position in world trade (the “Global South”). Moreover, when we are discussing global, continental, regional, and national economies, we can present regions and even smaller territorial units (such as subregions, provinces, districts, or counties) which have higher wages than some underdeveloped areas within the same larger area in focus. The core-periphery model was also of interest to John Friedmann. He further developed this concept in 1966 by underlining the role of spatial distances from the core. His approach is sometimes interpreted and combined with the growth pole theory (focusing on input-output linkages) of Franęois Perroux (1955) as well as with later works of Albert O. Hirschman (Coghlan, 2012) who, among others, described the “trickle-down effect” in the theory of unbalanced development. Moreover, it can be noted that Friedmann’s model combines elements of the export-based approach presented by Douglass C. North (1955) and parts of Gunnar Myrdal’s (1957) theory of cumulative and circular causation with the “spread effect” (whereby development spreads from city to the suburbs and all adjoining areas) and the “backwash effect” (whereby the development of the city tends to gather resources and labor force away from surrounding areas and that may degrade these places Hirschman (Coghlan, 2012). 11 Friedmann’s version of the core-periphery model includes an explanation of why some inner-city areas enjoy considerable prosperity, while others show signs of urban deprivation and poverty, even as urban areas, in general, have some advantage over peripheral rural areas. This model of regional development thus focuses on spatially diversified development. It recognizes the tendency by the most competitive entities to locate their manufacturing and service activities in the most developed regions. Economic centers (cores) dominate over peripheral areas not only in the economic sphere but also in the political and cultural fields. The core, which is usually a metropolitan area, contributes to the development of the periphery even as, at the same time, it is subordinating it in the social and economic dimensions. Centers typically have a high potential for innovation (improvement) and growth, which shapes the geographic diffusion of innovations (Rogers, 1998). At the same time, according to Friedmann, peripheral regions experience lagging growth or even stagnation and may rely on growth driven mainly by the core area’s demands for resources. The concept of the core-periphery model is also part of Wallerstein’s theory, which he proposed in the 1970s to explain the genesis and functioning of capitalism while also seeking to interpret the phenomenon of globalization. This theory assumes that the world-system is a specific spatial and temporal entity, including various political and cultural units that are functioning based on certain specific principles. An essential element of this theory is the core- periphery hierarchy, whereby discrepancies in interests and inequalities result from the domination of the vibrant center over the weak periphery. Regarding other issues, this theory is quite similar to Prebisch and Friedmann’s approaches. In fact, it is often considered as being identical to Prebisch’s concept. However, in Wallerstein’s theory, center and periphery are inextricably linked together in both material and sociocultural terms. Thus, while dependency theory only suggests that one area is dependent on the other, here neither of the two would function the way it does without the other. Wallerstein shows that the core regions are innovative and play an active role in international trade, export capital, generate high incomes, and have high productivity and stability of the political system. The core is the site of the exchange of products between the monopolized and free-market zones and the flow of profits to the former. Peripheral areas are less innovative, have low incomes and productivity, are dependent on capital import, have a minor role in international trade, and are politically unstable. Therefore, in this approach, peripheries are rather dependent on the centers and disadvantaged by unequal terms of trade. Moreover, Wallerstein (1974) distinguishes semi-peripheries that are interpreted as a kind of buffer between the center and the periphery. Even if the semi-peripheral countries and regions experience the highest mobility, their prospective promotion to the status of a core region is decided primarily by international or governmental interventions. Some of the semiperipheries were previously the central areas, while some have advanced from the periphery. In Wallerstein’s 12 opinion, the countries of the periphery and the semi-peripheries that build for a comparative advantage on cheap labor stand to lose the investment thus attracted. Labor costs will increase in time on a global scale due to the depletion of the resources of the rural population. Krugman, a Nobel laureate economist, underlines that it is scandalous that economists have ignored the core-periphery model for so many years . He uses some categories and terminology, especially from Wallerstein, and combines the idea of the core-periphery model with some assumptions from classical location theories. The first of these theories included Johann Heinrich von Thünen’s model of the dual economy that discusses the city center and its periphery (Georghe, 2020). Some other assumptions come from works of Alfred Marshall (2015) who considered the significance of relations between the development of industrial districts and large local markets. Also, based on the theory of international trade, Krugman thus developed the model of new economic geography. In addition to the positive impacts outlined, tourism also has negative consequences. For instance, there is income disparity among businesses in tourist areas, with some having advantages over others. Sherif, as cited in Apriliani (2018), mentions that income distribution and its effects on the economy have always been a concern for economists, with experts divided into two camps: one argues that income inequality can benefit economic performance, while others believe that inequality makes it difficult to achieve desired outcomes. According to Samimi & Sadeghi, as cited in Adhitya et al. (2020), the tourism sector can redistribute development from urban centers to underdeveloped regions, thus making tourism development a means to address income inequality. 5.Community Based Tourism for Mitigating Negative Impact Generally, Community Based Tourism (CBT) is perceived as a viable tool for community development by linking income generation, social inclusion, gender equity, and environmental sustainability (Burgos et al., 2017). However, the success of the CBT model hinges on the active and genuine participation of community members in the tourism development process. It is only through the active participation of communities that the benefits derived from tourism will trickle down directly to community members and accelerate the socio-economic development process. The prospects of CBT lies in its potential to create jobs and provide income-earning opportunities for local communities as well as generate revenue for infrastructural development in particular and socio-economic development as a whole. CBT provides direct employment opportunities like tour guiding, wildlife rangering, resource management, cultural performances, catering and housekeeping as well as indirect employment opportunities in areas such as agriculture, transportation and trade. These are jobs 13 that do not usually require specialised training and therefore suit community members in especially rural communities in developing countries. For instance, at the Khama Rhino Sanctuary Trust (KRST), a community-based wildlife project near Serowe, Botswana, the community makes money from activities such as guided game drives, rhino and giraffe trails, birdwatching, nature walks and the provision of accommodation (Sharpley, 2012). Also, Li (2018) found that in the Jiuzhaigou Biosphere Reserve which is a UNESCO World Heritage site situated in a valley in the Sichuan province of China, almost the entire community residents within the reserve had received economic benefits from tourism in a variety of ways. These included direct employment in the tourism industry, small business ownership or employment in related jobs. According to Li (2018), these benefits were a result of the replacement of traditional means of subsistence farming and hunting with tourism. CBT is based on the active participation of the local community. This is why the creation of community events which may favour this type of tourism, while at the same time helping to create a relationship between the local community and visitors, is so important. To facilitate this, different public administrations, Non-Governmental Organisations (NGOs), private institutions and the local community itself should get involved and work together. According to Nyaupane et al. (2011), the main limitations local communities have to face when implementing tourism projects are the following: lack of financial resources, infrastructure or know-how; limitations of a cultural kind; and potential conflicts between the different public administrations. At the same time, the following factors are described as being highly important for CBT implementation (Kibicho, 2008): the inclusion of stakeholders, the evaluation of individual and collective benefits, the setting of objectives, and analysis of decisions to be implemented. The main benefits of community tourism are the direct economic impact on families, socioeconomic improvements, and sustainable diversification of lifestyles (Manyara and Jones, 2007; Rastegar, 2010).