Sustainable Development and Impact of Tourism in Hungary

Programme:	Business & Tourism Management
Level:	Level 5	Module Title:	Tourism Impacts and Sustainable Development
Module code:	BTM5TSD	Module leader: Deputy Module Leader:	Lisa Whitaker
Assignment No:	1	Assignment Type:	Case Study
Assignment weighting %:	100%	Assignment Word Count: (or equivalent)	4000

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Introduction

The case study provided below will aim to provide an understanding of the sustainable development and impact of tourism within the specific destination. For this, the case study will initiate an effective explanation of the definition of sustainable development and tourism impact. Also, the case study will involve the selection of a specific destination with a specific type of tourism to provide the essential understanding of sustainable development and the impact of tourism on the destination. The study will also involve the analysis of several theories and concepts related to Tourism Impacts and Sustainable development. Also, it will involve the analysis and evaluate the negative and positive impact of tourism on the selected destination within the specific types of tourism. Finally, the case study will also identify a sustainable issue for the selected destination for effective formulation of strategies to minimise and mitigate the negative impact on the selected destination.

Definitions

Impact of Tourism

The impact of tourism refers to the several effects formed by tourism practices and activities on a tourist destination's culture, society, economy, and environment. From an economic point of view, tourism often raises employment and income. Tourism generates income through services related to hospitality and entertainment. At times, tourism also contributes to inflationary pressures and economic dependency on the sector. From an environmental perspective, tourism can be good and bad as well. On the one hand, it engenders efforts and consciousness in conservation, whereas on the other hand, it supports the exploitation of resources and degradation of the environment to such areas as pollution and habitat destruction (Ahmed and Ünüvar, 2022. p.102-117). Culturally, tourism will give means for cross-cultural exchange and preservation, but it often leads to the commercialization or erosion of the traditions of the local scene. Internationally, it fosters understanding and unity but contributes towards overpopulation, increasing living costs, and displacement of local communities.

Sustainable Development

In simple words, sustainable development is a situation of man's life underneath which the current needs are satisfied without compromising the future generation's ability to meet their own needs. An approach which henceforth would consider balance in economic growth, social inclusion, and environmental protection formed the focus on long-term prosperity through efficient use of resources, reduced pollution, and social equity. This promotes new ways of doing things that consider the impact of business and government activities on the natural resource base, while natural resources are conserved for future generations (Mio et al., 2020. p.3220-3245). Socially, this kind of development seeks to improve the quality of life of all with a reduction in inequality and easy access to basic services such as education, health, and clean water. Economically, it promotes growth strategies that do not degrade the environment, hence encouraging a more resilient and inclusive society to face future challenges more robustly.

Overview of the selected destination and type of Destination

Selected Destination – Hungary

Hungary is a Central European country with high cultural values and historic icons. Its capital, Budapest, is said to be one of the most beautiful cities in Europe by many travellers; it accommodates famous buildings and structures like the Parliament Building, Buda Castle, and the historic Chain Bridge. Besides, Hungary is famous for its thermal baths that attract visitors from all over the world to provide a unique experience in well-being and rejuvenation. Hungary's varied natural landscape consists of such attractions as the Danube River, which is the largest freshwater lake in Central Europe, Lake Balaton, and several national parks. Hungary boasts a rich mix of cultural heritage, historic sites, and a natural treasure that offers an extremely broad range of attractions to travellers interested in visiting (Visit Hungary, 2024). Its lively festivals, delicious food, and friendly people make it even more attractive. Overall, Hungary provides a round of experiences for both leisure and cultural tourists, ranging from urban explorations to rural escapes.

Selected Type of Destination – Events Mega Sports Events Tourism

Mega sports events tourism, for instance, can be defined as tourism that revolves around major international sporting activities. It is one of the largest types of tourism activities that would promote any economy and, hence, improve, generally, the status of the host country in the world arena. Such mega-events as the Olympic Games, FIFA World Cup, and Formula 1 Grand Prix attract millions of people, many of which are sports fans, while others are passers-by. Visitors not only attend sporting competitions, but they also visit cultural and natural attractions in the host country and therefore create more tourism impact (UN Tourism, 2024). All infrastructure enhancements from stadium improvements through transportation to accommodation have a lasting legacy at the host destination. Mega events tourism fosters national pride and unites people across cultures; hence, it becomes an influential and dynamic form of tourism that both has short-term and long-term economic benefits to the locals as well as the global tourism industry.

Sustainable Development and Tourism Impacts: Concepts and Theories

Concept of Tourism Impact

Tourism ranks among the world's largest industries, playing a crucial role in sustaining economic growth and process. The tourism industry impacts different spheres and aspects of regions and communities in many diversified influences, both planned and unplanned, both positively and negatively. This understanding would allow the development of sustainable practice, which not only represents a better economic condition but also protection of the environment as well as upward mobility of local communities, residents, and populations (Ahmed and Ünüvar, 2022. p.102-117). Tourism impacts are divided into 3 wide viewpoints which include environmental, economic, and social-cultural. Tourism disturbs the environment of the destination in negative as well as positive ways. It has a relation with the overuse of resources, pollution, habitat disruption, and landscape degradation. Each of these impacts requires significant attention to reach any sustainability goals.

Economic Impacts of Tourism

The tourism industry contributes not only to the economy of country economies by generating income but creating local jobs, stimulating entrepreneurship, enhancing the infrastructure of communities, and generating increased amounts of foreign exchange. However, alongside the known benefits, tourism creates inflationary pressures, increases prices, and raises the cost of living for the residents and appointed communities. Consequently, the implications can impact the dependency of the local community on tourism as the dominant source of income (Baloch et al., 2023. p.5917-5930). This can look like economic leakage, whereby the expenditure from tourism is absorbed within a large share by external businesses or stakeholders like offshore tour companies etc., that provide minimal economic benefit to the local economy.

Some ways to balance the possible economic impact with the risk to communities are required in approaches to development for sustainable tourism. The Spray Model from Lefebre called the "Tourism Multiplier Effect" illustrates how the money spent by tourists is multiplied through circulation through the residents and the economy creates benefits (Godovykh and Ridderstaat, 2020. p.100462). However, it is also clear that for the multiplier of the target for economic impact to take effect locally ownership and control of the time of resources are important considerations.

Environmental Impacts of Tourism

Although popular tourist destination experiences a level of 'over-tourism', other factors will still be there, such as soil erosion, water loss, and species loss. Another environmental issue in conjunction with travel and transportation through the use of air is the carbon footprint and its effects on global climate change, as well as other fossil fuels used in order to facilitate travel (Akadiri et al., 2020. p.470-484).

At the same time, tourism can be part of addressing environmental issues regarding conservation, plasma management, and eco-tourism initiatives. Sustainable practices of tourism encourage minimizing resource consumption, consumption waste, and environmentally-friendly alternatives, based on policies and creative management. Policies consider carrying capacities and may catalyse sustainability problems and environmental degradation. Historically the environmental Kuznets curve (EKC) theory is reflected in the sustainable tourism literature, showing the eventual potential, over time, for wealthier or developed countries, to create improvements (i.e., environmental improvements), through tourism-based economic growth, however, the path requires unsustainable practices from an environmental perspective contributing to degradation (Ahmad et al., 2021. p.22588-22601).

Socio-Cultural Impacts of Tourism

Tourism, also strongly affects the socio-cultural dynamics of host communities, and provides elements of cross-cultural interchange enriched by the experience of both tourists and locals; specifically, cultural tourism aims to preserve the heritage, art, and traditional practices of tourism host communities. However, at times, different cultural contexts may share cultural elements that become commodities (Ramkissoon, 2023. p.442-459). Commoditizing forms of culture may be for tourist consumption while losing cultural integrity.

Socio-economic impacts can include increased crime, instances of irresponsible behaviours or risk, additional stress on communities or resources for tourism, disruption to previous lifestyles or shifts to create changes in community structure. The notion of 'touristification' could transform local spaces and culture into a commodity aimed to satisfy the desires of tourists; this in turn could isolate residents from their own culture (Uslu et al., 2020. p.1-21). Careful planning, and managing tourism impact both environmentally and socio-culturally is critical: consideration given to managing tourism through rigorous social impact assessments as a future component of program management; community participation models, monitoring and ensuring a variety of economic benefits that are dispersed equitably among communities.

Theories of Sustainable Development in Tourism

The consciousness of sustainable development rests upon satisfying the existing needs while ensuring the satisfaction of the future generation's needs. Sustainable tourism development creates the minimum number of negative impacts but increases the awareness of benefits, for the present and future stakeholders. Sustainable tourism development is based on several theoretical concepts:

Carrying Capacity Concept

Carrying capacity is focused on what is the maximum number of visitors a particular destination can accommodate before negative conditions occur. It is multifaceted in that there are environmental carrying capacities, social carrying capacities and economic carrying capacities, which is to say that tourism development should consider a destination’s capacity to manage visitors, which also considers the environmental, social, and economic aspects (Zekan et al., 2022. p.130624). When carrying capacities, or capacity limits, are violated, undesirable consequences (socio-environmental/natural destruction) can result in environmental damage and feelings of disenfranchisement.

TBL (Triple Bottom Line)

TBL (Triple Bottom Line) theory highlights all the factors of tourism which include environmental, economic, and social. TBL will add an assurance layer because tourism development will absolutely ensure some level of economic returns without compromising environmental and other social problems. Sustainable tourism development takes care of the economic benefits to local economies, controls environmental damages, and saves cultural integrity (Nogueira et al., 2022. p.46).

Limits of Acceptable Change (LAC)

Limits of Acceptable Change (LAC) model is more focused on not just carrying capacity, but also the parts of change that are qualitative in nature. When tourism growth occurs, and/or when external factors may negatively (or positively) impact a destination, LAC gauges how much change is acceptable in a destination when tourism growth occurs, within the context of maintaining the ecological and/or cultural integrity of a destination. LAC is advantageous for tourism development planning for protected nature areas, and eco-tourism (Saarinen, 2022. p.21-39).

The impacts of tourism are complex and varied, with significance for the economy, environment, and local communities. To address the sustainability of tourism development, theories of sustainable development such as the Triple Bottom Line, Carrying Capacity, and Limits of Acceptable Change, can provide frameworks that we can explore while moving toward responsible growth. Sustainable tourism development includes plans that confer long-term benefits; opportunities that preserve natural and cultural resources; and plans that facilitate community engagement and capacity (Han, 2021. p.1-21). Managing tourism impacts appropriately will allow destinations to maintain the well-being of their distinctive sense of place and environmental integrity for future generations. Top of Form

Tourism Impact in Hungary

Tourism Impacts of Mega Sports Events in Hungary

Hungary has become a popular location and destination for mega sports event tourism due to its rich culture and historic places. Some global mega sports events, like the Formula 1 Hungarian Grand Prix or international football, attract visitors to Hungary from all over the world. There are advantages and disadvantages of mega sports event tourism in Hungary (Stocker and Laczkó, 2020. 81-98.). In particular, it has positive economic value, as well as visibility for Hungary, but it often creates negative effects such as environmental problems, pressures on infrastructures, and socio-cultural impacts as well.

Positive Impacts

Economic Growth and Job Creation

Mega sports events can provide sports tourism and financial growth by attracting new consumers to the area and allowing for increased tourism-related revenue specifically with accommodation, transportation, food services, and retail. To illustrate, not only accommodation but also traffic builds up as a result of these events i.e. Formula 1 Hungarian Grand Prix lends itself to more demand for goods and services. Specifically, local vendors namely hotels, restaurants and souvenir shops receive a boost in sales during these events, which translates into higher income opportunities and short-term jobs in many of these industries (Akadiri et al., 2020. p.470-484). Lastly, the tourism multiplier effect gives continuous financial impacts throughout the economy by the money a visiting tourist spends which will reach a variety of sectors.

Infrastructure Development

Patronizing mega sports events may require alterations or improvements to current infrastructures for venues, transport systems, or public facilities. Much like the venue, improvement in Hungary will have direct benefits for tourists but leave byproduct improvements for locals. For example, this Hungarian improvement is tangible, permanent, and value added by the endurance of the venue itself, but also improved its status as an accessible tourist location and may draw future events. Second through other channels such as public transport general tourism productivity also improves through government investment in the transport infrastructures (airports, rails, highways) improvements may allow even more visitors to the region or community (Kanwal et al., 2020. p.104014).

Increased International Recognition

While mega sports events increase Hungary's profile as a global tourism destination, they can also result in negative environmental impacts. Events often draw international media attention which highlights the country’s cultural, historical, and other tourism offerings. The aftermath of positive publicity from mega sports events enhances the brand awareness of Hungary, ultimately resulting in the destination being seen as appealing to future tourists (Khan et al., 2020. p.1-32). The extra exposure can stimulate growth in tourism in the long term, as those who came for a sports event may visit later for additional cultural and natural heritage.

Cultural Exchange and Social Cohesion

Mega sports events foster cultural exchange between people from various countries and visitors from diverse backgrounds. In Hungary, international tourists have face-to-face interactions with residents, creating mutual understanding and appreciation of respective cultures (Zhang et al., 2021. p.656-669). Events also encourage Hungarians to rally behind these events and host, bringing communities together. This unity serves to define aspects of national pride and promote social cohesion, which contributes to a positive feeling of national identity.

Negative Impacts

Environmental Degradation

Mega sports events can have significant negative environmental impacts on a destination. In Hungary’s case, mega sports events such as the Formula 1 Grand Prix raises many sustainability challenges such as the typical burdening of natural ecosystems and local resources due to high tourism influxes in a small amount of time. Large expenditures in energy consumption, waste production, and or carbon emissions due to transportation, accommodation, or event renovations, impact the environment and collective well-being and or enjoyment of visitors. Such events can significantly alter the form and function of ecosystems and contribute to the destruction of natural and pristine structures, habitat fragmentation, increased pollution levels in and around event venues, and possibly local disruption through waste (Rosselló et al., 2020. p.104080). Eco-footprints are increasingly severe if events are not organized with sustainability principles in mind.

Infrastructure Strain and Overcrowding

While the infrastructure improvements made possible by mega sports events have a classic positive impact, they can also cause local strain on resources during the event. In Hungary, and particularly in Budapest, public spaces, transportation networks, and accommodations may suffer from overcrowding during the peak tourist season. The increased demand places strain on local services and infrastructure, leading to traffic congestion, booked hotels, and delays getting into tourist attractions (Bolton, 2020. p.1-8). The strain on public resources can lead to disconnections in the quality of life for residents as services they depend upon are disrupted.

Socio-Cultural Disruptions

Mega sports events can also give rise to socio-cultural challenges. Commercializing a sports event may encourage the commodification of the destination culture where tradition and culture are adapted to meet tourist expectations. Loss of authenticity and cultural erosion can occur over generations, using this as a foundation to better understand the challenges faced by sports tourists experiencing the destination culture. An increase in foreign tourists in Hungary can also lead to potential conflict between the customs/values of tourists and residents, in the areas of behaviour, dress, and respect for local traditions (Zunaidi et al., 2022. p.88-105). Cultural tensions such as these can create a divide between tourists and residents; ultimately lessening cultural exchange potential.

Economic Disparities and Dependency

Although mega sports events generally provide economic benefits to the community, these benefits are not always evenly distributed. In Hungary, while communities can receive substantial economic benefits from mega sporting events, large corporations and international stakeholders (i.e. event organizers and sponsors) can capture most of the profit from events. Reliance on mega events to generate tourism, which leans toward not being a year-round sustainable solution, can set communities up for economic dependency for income generation (Adedoyin et al., 2023. p.135-153). Continued reliance on mega sporting events for economic injection may create vulnerability, as a community pressed against economic downturn would rely more heavily on events for economic sustainability travel and patrons during a "busy time."

The phenomenon of mega sports events tourism within Hungary manifests itself through considerations of advantages and disadvantages. On the advantageous side, mega sports event tourism contributes to economic growth, improvements to local infrastructure, enhanced international visibility, and positive cultural exchanges and connections. On the disadvantage side, mega sports event tourism created environmental issues, stress to local infrastructure, Aversion to socio-cultural disruptions, and economic inequality (Fang et al., 2021. p.1669-1691). Therefore, to capture the notions of advantage and/or to lessen the notions of disadvantage, a careful planning process and management policy need to be created for hosting mega sports events in Hungary.

Sustainable issues in Hungary

The topic of sustainability has grown to become a global issue in all sectors particularly in tourism due to the potentially large overall environmental impact. One of the main sustainability issues affecting the tourism sector at the moment is the carbon footprint that is increasing from growth in both the travel and hospitality sectors. Tourism in Hungary has implications for the economy, with Ibusz Travel being one of the main travel agents in the tourism sector, but in addition, the growth of tourism adds carbon emissions from transportation, accommodations, and other services we can all be concerned whether the growth of tourism is sustainable (Ivancsóné Horváth et al., 2023. .p.893-900).

Carbon Footprint in the Tourism Industry

A carbon footprint is a complete system of measurement that records the total amount of all greenhouse gas (GHG) emissions done by human activities within the environment. In the tourism sector, carbon emissions are primarily associated with transportation - accommodation, and/or high energy-consuming activities such as hospitality. Travel for tourism leads to carbon emissions are driven largely by the air travel carbon footprint alone (Akadiri et al., 2020. p.470-484). Air travel contributes a disproportionately high percentage of the overall global carbon footprint generated from tourism. The rapid growth of tourism in Hungary has also led to increased international travel, and therefore carbon emissions for tourism. Other emissions can arise from non-air-based, road transport services, and accommodations needing energy for furnished rooms, and power for food preparation, heating and cooling, and operating amenities for guests. Local excursions and tourism experiences that need transportation further add GHG emissions to the carbon footprint.

Ibusz Travel is a major travel agent in Hungary's tourism sector and has various travel services and options including Group and Individual Guided Tours with a knowledgeable Tour Leader, as well as transportation arranged between locations. The increase in service demand means more services provided and thus more collective carbon footprint. The more tourists come to Hungary, the more carbon footprint Ibusz will also be having on Hungary's carbon footprint (Szennay et al., 2021. P.1000). These are important issues given that Ibusz Travel engages in meaningful discussions about sustainability initiatives around tourism development, the company ought to consider changes to reduce the impacts on the environment, in this case, the carbon footprint for sustainable tourism development.

Role of CSR in Mitigating Carbon Footprint

CSR represents a strategy for social, environmental, and economic orientation of business engagement with concerned parties in the course of operations. In the area of tourism, principles of CSR focus on balanced business profitability, natural resources protection, reduction of environmental impact, and support to the local community. The implementation of CSR will reduce the carbon footprint with a focus more on environmentally sustainable practices and better business behaviour (Nguyen and Ngo, 2022. p.241-256).

For Ibusz Travel, adopting CSR as part of its business model is decisive in sustainable tourism. Being a travel agency, it must reduce its environmental footprint while ensuring that service quality is not compromised. This would require the company to reduce carbon emissions not only in its operations but also those of its clients and partners it serves. Thus, incorporating CSR-focused strategies will allow Ibusz Travel to be aligned with global sustainability goals and, conversely, improve the reputation of the company as an environmentally responsible entity.

Mitigating Carbon Footprint: A CSR-Based Strategy for Ibusz Travel

Reducing Transportation Emissions

Transportation is the most significant source of carbon emissions in the tourism industry; especially in air and road travel. Accordingly, within its CSR strategy, Ibusz Travel should promote low-carbon alternatives for travel. For instance, packages centred around environmentally friendly options, like renewable energy trains or hybrid-technology buses, are sold. Another area via which the company can interact with an airline to ensure that they have a successful relationship with them is by contracting airlines that are investing in sustainable aviation fuel (Aminzadegan et al., 2022. p.2508-2529). This potentially reduces carbon emissions by up to 80% more than conventional jet fuel.

On the other hand, Ibusz Travel can encourage its customers to offset their carbon footprint by using carbon offset programs. This can be achieved by engaging with companies that are credited for any kind of carbon offsetting activity. This way, the company can present clients with the opportunity to compensate for emissions caused through travel with contributions to reforestation or renewable energy projects. This can easily be done at the time of booking and become part of sustainable tourism.

Promoting Sustainable Accommodation

Accommodations represent another main carbon source mainly due to energy consumption for heating, cooling, and lighting. Ibusz Travel can be proactive and collaborate with the different tourism accommodations that have green and sustainable operations which include energy renewal resources, water saving from conservation, and energy-saving technologies (Abdou et al., 2020. p.9624).

The company would cooperate with green-certified accommodations and use them within its packages. It also helps raise awareness among tourists on the importance of choosing sustainable accommodations so that the carbon footprint can be lower. Additionally, Ibusz Travel could collaborate with hotels and advance on environmental audits that observe energy and water consumption constantly towards sustainability.
Implementing Sustainable Tour Practices

Ibusz Travel must, therefore, develop sustainable vacation packages, low-impact holiday activities, cycling tours, walking tours, and eco-tours that attract the local culture to the tourists but do little to nature. The other product would be tourism which focuses on nature conservation, wildlife preservation, or visits to protected areas, thus making the products of the company responsible and ethical with its CSR mission (Sung et al., 2021. p.1185-1199).

Education is another very important component. Ibusz Travel should educate their clients with prudent ways of travelling by reducing any garbage products respecting existing ecosystems and helping local businesses. This will educate the tourists to make eco-friendly decisions while touring and help to reduce carbon footprint as an end for the individual.

Investing in Renewable Energy and Offsetting Programs

As part of CSR, Ibusz Travel should invest in renewable energy. This can be made in the form of either solar or wind power projects within Hungary or even globally. Such contributions will help the company offset part of the carbon emissions thus closer it would get to carbon neutrality (Aldy and Halem, 2024. p.1-47).

Ibusz Travel could further present company-wide carbon offset work in a contribution form - towards global reforestation or sustainable energy projects. To this effect, not only would the firm be able to continue broadening the ambient cause where action is needed, but also get its employees and customers at large involved in such causes.

Conclusion
The major issue for this company is its carbon footprint related to transportation and accommodation. However, the company can use ideas regarding CSR strategies for their consideration to begin to reduce their potential impact on the environment and support sustainable tourism options. Some potential ways for Ibusz Travel to try to reduce its carbon footprint may include transportation emissions reductions, sustainability tourism accommodations development, eco-friendly tours, and supporting and investing in renewable energy. Beyond i7bsatisfying the company as an advocate for environmental sustainability these strategies could also help Ibusz Travel to be unique as one of the more respected responsible tourism companies in Hungary. The effective reduction of carbon footprint and long-term sustainability within the tourism sector for Ibusz Travel can be ensured if its business model comes up with a combination of CSR principles.

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