TOURISM IMPACTS AND SUSTAINABLE DEVELOPMENT
A CASE STUDY ON MEGA SPORTS EVENTS TOURISM IN HUNGARY
INTRODUCTION
This case study is based on the impacts of the tourism industry on the environment, the people and the country's economy. It will focus mainly on sustainable development, its origin, and how it can help mitigate the adverse effects of tourism on the planet. The case study will also discuss the concerns of resource depletion due to growing tourism. It will specifically consider Mega Sports Events Tourism in Hungary and compare the positive and negative aspects associated with it, while also discussing the impacts of the resource depletion issue in the Cityrama Travel Agency in Hungary. The report will also encourage tourism firms to take their Corporate Social Responsibility seriously and incorporate sustainable practices in tourism operations.
The world has become so individualist and business-oriented, that everyone is only running behind making money and increasing development that the concern about the environment and future generations has become an option when it should be the priority (Gy?ri, 2020.). That is why people do not realise the seriousness of the resource depletion problem, as these precious natural resources are finite and there should be conscious consumption of them. The report will also cover some statistical data which will exhibit the impact of resource depletion and how it can worsen in the future.
Tourism and Its Impacts
What is Tourism?
Tourism refers to the activity of travelling from one place to another for commercial or enjoyment purposes. It is an activity that covers the social, cultural and economic aspects of the destination. It has the potential to largely support the economy of the country. The Tourism Industry is one of the most controversial industries of all time, it is difficult to analyse and balance its positive and negative impacts and come to a conclusion to categorise the sector into beneficial or destructive. There are many perspectives to look at the influence of the tourism industry on society, economy and planet (Máté, 2022.pp.460-476).
Impacts of Tourism
It has both positive and negative impacts which are based on the analysis of its collective effect on different sectors. The study of analysis of the impacts that tourism has is very crucial as it can help identify a potential risk at an early stage and appropriate actions can be taken to mitigate the effects of it. Analysing the impacts has surfaced the issue of resource depletion otherwise this issue would not have been taken seriously, now that the government authorities are aware of it, they have created some plans of action to fight the problem.
What is Ecotourism?
This tourism is environment-oriented and is specifically introduced to focus on the conservation of nature and embrace its beauty. It makes the natural habitats tourist attractions and provides a great tourism experience while also promoting the well-being of the environment and society (Perényi et al., 2023.pp.2087-2107). It involves exploring natural habitats, wildlife, hiking and camping. This is the type of tourism that respects the natural beauty and traditions that the destination has to offer. It also helps in minimising the adverse effects of tourism on the society and environment.
What is Ethical Tourism?
This is the form of tourism that focuses more on the tourists making responsible decisions and focusing on environmental health, respecting the culture and heritage of the destination. It is introduced to counter the effects of over-tourism. It teaches the visitors to work on minimising the negative impacts of tourism by supporting small businesses so it can improve the local economy, staying aware and educated about the consequences of their choices as tourists.
What is Sustainable Development?
This is an approach to living and promoting development in a resourceful manner. It encourages people to utilise the resources mindfully so that future generations are not deprived of the resources to fulfil their requirements (Sánchez-Sáez et al., 2020. p.8798). It is highly important to inculcate sustainability in the core activities to make it work in the long run and be beneficial for society as well as the environment. Solar energy, green space, rainwater harvesting and crop rotation are some of the examples of sustainable practices in various fields.
About the Destination –
Hungary is a small non-coastal country located in the Central Europe. It is famous for its thermal and mineral sources. It has many lakes and baths that are tourist attraction spots. The country is rich in heritage and infrastructure. It comprises many World Heritage Sites for example, the UNESCO Biosphere Reserves, it also consists of the largest lake in Central Europe Lake Balaton, the largest thermal lake in the world that is Lake Hévíz and also the largest natural grassland of Europe, known as the Hortobágy. This shows that it is a beautiful destination to visit and explore. However, the focus of this study will be on mega sports events (Chersulich Tomino et al., 2020.p.4473).
Hungary and Budapest are also very famous for their ability to attract sports enthusiasts by hosting one of the best major sporting events. The World Athletics Championship was the biggest event held in 2023 in Budapest. It highlighted the true celebration of sports and spirit. It also hosts the Formula 1 Hungarian Grand Prix every year at the Hungaroring. This shows the diversity in the sporting events that the place has to offer, it goes from athletics to motorsports and many more.
Origin of Sustainable Tourism
The tourism academics and practitioners analysed the negative impacts of mass tourism on the environment and the local communities, and then they designed and introduced the concept of sustainable tourism. It also encouraged thought-provoking awareness which led to the consideration of the Brundtland Report in the late 1980s which mentioned that the environmental problems were caused due to poverty in the South and non-sustainable practices of consumption and production in the North (An and Alarcón, 2020.p.7758). The Brundtland Commission helps the nations work towards achieving the goal of sustainable development.
Sustainable Tourism is often referred to as Responsible Tourism, the large governing bodies have introduced several international policies and regulations to promote and get more countries to engage with sustainable practices.
Sustainability is not a mere theory, it is a broader perspective of the way of living and it should be incorporated in every field and routine practice of the society.
Relationship between Sustainability, Ecotourism and Ethical Tourism
The interrelationship between these three types of tourism initiatives share a common goal of preservation of the environment, conservation of the resources, benefit to the economy and the well-being of the society. Sometimes, these terms are even used interchangeably but if they are studied closely, it can be seen how they operate differently but contribute towards the same cause. These tourism patterns help in managing tourism activities in an optimum way (Jiménez-García et al., 2020.p.2840).
Ecotourism and Ethical tourism are also referred to being the subsets of Sustainability which focus on the broader image of the issue. For instance, the motive of Ethical tourism is to hold the tourists responsible for making informed decisions while travelling and supporting the cause of conservation of the nature and culture. However, the sustainability concept imposes this responsibility on the tourism firms and the government to develop suitable rules and regulations for the smooth implementation of sustainable tourism. However, the outcome of both tourism initiatives is the same regardless of the approach.
Similarly, Ecotourism prioritises environmental conservation whereas sustainability focuses on all areas, like recycling and reusing resources, waste management, reducing carbon emissions and conservation of biodiversity. Although, if compared, it can be said that ecotourism is one of the many projects of the sustainable development plan.
The relationship between ecotourism and ethical tourism is interdependent (Chersulich Tomino et al., 2020.p.4473). As ecotourism can be properly managed and made easy to continue with the help of responsible visitors who are willing to learn and respect the rules and regulations of the destinations, who interact with and understand the local communities and support them. In turn, if ecotourism is a success, it will offer a better tourism experience to the visitors along with the conservation of nature.
Overtourism
Overtourism or mass tourism is the situation when there are a large number of visitors at a destination which causes consequences towards the environment and negatively impacts the local communities. It also results in reduced quality of the tourism experience, since overcrowding causes congestion and also degrades the quality of the services offered (Yang et al., 2021.). It is caused by the poor management of the tourism sector which leads to environmental degradation, adversely affects the lives of the natives and is one of the biggest reasons behind the issue of resource depletion, as more resources are required to meet the demands of the visitors which is resulting in exploitation of the resources at a fast pace.
Consumption is the act of utilising resources for various purposes like fulfilling daily requirements, development of infrastructure, products and services, etc. But this is turning into overconsumption these days since people are not realising that they are not tracking the usage of resources and have been utilising the resources more than their necessity, which is causing a serious issue of resource depletion in many places. These resources are often taken for granted and assumed to be present in unlimited quantity, but the bitter truth is that they are limited and it is highly critical to control the overconsumption of these resources (Zhao et al., 2023.p.1632).
Wicked Problem
Over tourism is a wicked problem as it is not easy to deal with, it is complicated because of its connection with other factors such as the influence of social media, government policies, poor management of tourism and variations in the cost of travel. All of these factors are difficult to control and balance simultaneously which makes overtourism a wicked problem with no certain solution. There are many faces of overtourism, one of them is its impact on the government, other is the impact on society, tourism experience and the economy. It has several stakeholders like the government, tourism operators, local communities and visitors. This problem can only be dealt with if each of these stakeholders takes accountability and responsibility for their actions.
The Positive and Negative Impacts of Tourism
Just like every coin has two faces, tourism also has a positive and a negative side to it. It has different impacts on different fields of operations (Streimikiene et al., 2021.pp.259-271). These impacts are measured with different dynamics like the social, economic and environmental factors. So that it can be assessed clearly and the plan of action can be customised according to the area where it is most needed.
Economic Impacts: The upsides of Tourism based on economic factors is that it contributes to the development of the country by improving its infrastructure, increasing the GDP, promoting foreign relations exchange and creating tons of job opportunities. But the negative side of it is that it can lead to leakage of the economy if the country is relying too much on the tourism industry to support its economy.
Social Impacts: On one hand it is encouraging community participation, and interaction between different cultures and helping in preserving the heritage of the destination, but on the other hand it is imposing a potential risk of loss of authenticity of culture and disturbance in the lives of the local communities (Peeters et al., 2024.p.104820).
Environmental Impacts: It is encouraging environmental conservation and protection of biodiversity by raising awareness and educating people about the importance of sustainability but it is also contributing to the increasing pollution, waste generation, carbon emissions and overconsumption of resources.
Comparing Sustainable Tourism with Mass Tourism
Sustainable tourism is focused on fulfilling the needs of development without causing harm to the environment, but mass tourism is only concerned about mass production and an increase in profits.
Sustainable Tourism takes measures to preserve and conserve the environment and resources whereas mass tourism is the leading cause of environmental degradation, resource depletion and pollution.
Sustainable tourism helps create economic benefits for the local communities but mass tourism is only focussed on landing the profits into the hands of the big shots.
One spreads awareness about how people can travel more responsibly and enjoy without degrading the environment, the other just aims to expand the industry regardless of its after-effects (Irawan and Hartoyo, 2022.p. 012068).
From London to Hungary
To travel from London to Hungary, one has to cover a distance of 1108 miles and this can be done via train, bus or flight which is the fastest way to get there.
There is a direct flight from London to Hungary which takes around 2 hours and 35 minutes and costs around GBP 440 to 980.
Another way is to fly from London to Budapest and then take a bus or train from Budapest to Hungary. This route takes time but is more cost-effective. It can take 2 hours by flight and 2 hours by bus.
Travelling the whole distance by train is another way which is probably the cheapest but also the most time-consuming. It takes 17 hours to get to Hungary by train and costs GBP 250-350 (Moslehpour et al., 2023.pp.56863-56878).
Mega Sports Events Tourism in Hungary
The country has organised many international sports events in recent years and this has resulted in a hike in the country's economy and has developed its reputation in sports events tourism, now it is popularly known for this particular tourism since the country has leveraged its rich sports culture, artistic infrastructure and natural beauty. Hungary has hosted more than 109 international sports events in 27 cities of the country. It also managed to significantly improve the quality of the events and has been able to develop a good reputation in Hungary in the sports tourism sector.
Major Events – Hungary is popularly known for the following events that have been organised in the past and also the ones that are hosted by the country every year and are setting remarkable standards for the sports events due to which it has been recognised as one of the best destinations for sports tourism (Xu and Zhao, 2023.p.103531).
Hungarian Grand Prix Cycling Event
Annual Formula 1 Hungarian Grand Prix
UEFA Euro 2020
European Football Championship 2022 (UEFA U21)
2023 World Athletics Championships
Popular Sports Destinations –
Budapest (Ferenc Puskás Stadium, Hungarian Formula 1 circuit)
Debrecen (Nagyerdei Stadium)
Székesfehérvár (Sóstói Stadium)
Lake Balaton (water sports, cycling)
The People's Stadium (Népstadion) in Budapest is a centre for Hungarian and international sports competitions.
Impacts of Sports Tourism on Hungary
The mega sports events organisation in Hungary has led to many significant economic, cultural, social and environmental impacts on the country. These impacts shall be discussed below in detail –
Positive Impacts:
Growth in revenue generation. The country has noted that sports tourism has contributed around 150-200 million euros annually and makes approximately 1-2 per cent of the GDP of the country.
Sports Tourism has created as many as 10000-15000 jobs in the tourism and hospitality sector (Baloch et al., 2023.pp.5917-5930).
It has contributed to significant infrastructure development, improving transportation and accommodation facilities and upgrades in the products and services.
Promotes community involvement and cultural exchange through large international crowds, it also creates a sense of pride for the Hungarian people.
Encourages sustainable tourism through the initiative of Green Infrastructure by incorporating environment-friendly designs in the new sports facilities.
With the increase in tourism, the country is also focusing on improving waste management techniques and implementing sustainable transportation options for mitigating the impacts of tourism on the environment.
Negative Impacts:
The increasing number of sports events organised in Hungary is making it one of the most visited countries by sports enthusiasts which is resulting in overtourism. It exerts pressure on the resources and infrastructure and leads to overconsumption.
Environmental degradation cannot be avoided even with the efforts of sustainable practices, since a lot of resources are required to organise such huge events and manage such large crowds (Streimikiene et al., 2021. pp.259-271).
Inflation is another negative impact that can be seen in Hungary as the residents are now facing difficulties in coping with the increased cost of products and services due to excessive tourism.
Sports events on a major level create a lot of noise pollution and that is also one of the concerns in Hungary during the peak events time. It also leads to congestion and traffic when the crowd is gathered outside the stadiums or when they are leaving after the event.
With the gathering of large crowds, there are safety concerns involved and they have to focus a lot on that factor. It can also be a cause of spreading diseases (Csobán et al., 2022.pp.1543-1551).
Tourism Stakeholders and their Corporate Social Responsibility
Stakeholders |
Corporate Social Responsibility |
Aims and Objectives |
Future Vision |
Hungarian Tourism Agency |
Encouraging sustainability in operations and increasing community involvement. |
Growth in industry revenue, job opportunities and appropriate infrastructure development. |
Make the destination a leading brand in the sports tourism industry. |
National Sports Agency |
Promoting health and fitness. Improving sports facilities in the country. |
Encourage more participation of the people in sports. Hosting and managing sports events. |
Improve national health and well-being by promoting sports activities. Inspiring the youth to be involved in sports. |
Hungarian Government |
Providing funds for the development of eco-friendly designs in sports infrastructure. Imposing rules and policies for implementing sustainable practices. |
Boost the economy of the country. Increase accessibility of products and services for visitors. Generate job opportunities. |
Make the country sports tourism hub while offering convenient and accessible services as well as incorporating sustainability in the industry to minimise adverse effects (Havran et al., 2021.pp. 58-76). |
Challenges to Implement Sustainability in Sports Tourism
Lack of awareness about the issue always comes first in the list of challenges to tackle any issue. It is difficult to make people change their habits and choices if they are not well educated about the concerns behind it. So, to implement sustainable practices, the first step should be to raise awareness and educate people about the issue and the grave danger that it can pose.
Lack of stakeholder involvement is another obstacle to the implementation of sustainability. It is the responsibility of the government to take measures to inculcate sustainability into the core of operations of all industries. The industry leaders must also set an example for other firms by implementing sustainability.
Lack of rigidity and strictness in the government policies is also a barrier in the path towards sustainability in tourism. The need is to develop a rigid framework for tourism firms to follow, which revolves around shifting from conventional to sustainable operations (SZ?CSand KONCZ, 2020. p.142).
Lack of adequate funds is another challenge. To develop sustainable infrastructure, transportation facilities and services, initial investment is very high and due to less funds available, the country is unable to incorporate sustainability in tourism.
Lack of prioritisation is also a great factor that is contributing to the list of challenges. Most of the tourism and hospitality companies, people and even the government view sustainability as an option and not as a priority. If it was prioritised, then other factors should have been altered accordingly to fit the narrative of sustainability but the opposite is happening in most cases.
Resource Depletion Issue in the Context of The Cityrama Travel Agency
Cityrama is a private destination management company in Hungary which is headquartered in Budapest. It was one of the first agencies that offered sightseeing tours in and around Budapest. They also offer customised plans for exploring the beauty of the destination and are known to deliver excellence in their services over the past few decades (Müller et al., 2024.pp.1076-1089). However, with the rise of the tourism industry in Hungary, the company has started facing issues with the allocation of resources which is impacting its sustainability and profitability.
Resource depletion is a serious issue which is arising in many countries in the recent times. It is the result of wastage and overconsumption of resources by almost all major sectors of the world. The understanding of the issue is still not optimum enough to tackle the problem by framing a plan of action and addressing the issue practically. But the least that can be done is to limit the consumption and focus on conservation of the resources.
The Prime Areas of Resource Depletion are:
Water Scarcity – A high rise in water consumption has been recorded which is solely based on growing tourism and the requirements to manage services for the visitors (Tütünkov-Hrisztov et al., 2020.pp.31-43). Water is one of the necessities for survival and is required in every work, the only way to deal with the scarcity of water is to start using it mindfully and practice rainwater harvesting, conservation of water and installation of efficient water management systems.
Waste generation – It is no surprise that tourism activities lead to an increase in waste production and initiatives for sustainable development are still not enough to deal with the large amounts of waste that are generated daily with increasing tourism activities. Around 40 per cent increase in waste production is noted with the expansion of the tourism industry. It can be managed by creating composting facilities for areas where the generation of biowaste is considerably high. There should be a separation of waste to facilitate the recycling process of plastic waste.
Energy Consumption – There is a significant rise of 25 per cent in the consumption of energy due to increasing transportation, infrastructure development and providing accommodation facilities to visitors (Jeong et al., 2020.p.8192). It is a tough job to manage the conservation of all the resources at once, but the limitation of usage is possible. This can be achieved by promoting air-source heat pumps, and the usage of energy-efficient vehicles electric appliances and thermostats. Encouraging renewable energy resources is also a reliable solution to counter the depletion of energy resources.
Challenges to address the issue of resource depletion are:
There is limited understanding amongst the public of the impacts of resource depletion issues in the long run. That is why it is difficult to address the issue since people are not even able to recognise it as an actual issue.
There is an insufficient waste management system and recycling facilities.
Not equipped with enough technological advancements to provide better alternatives for limiting the use of non-renewable energy sources.
Inadequate regulations and enforcement of rules for the conservation of resources is also a factor that is serving as a challenge to address the issue and implement effective solutions (Herbold et al., 2020.p.10488).
CONCLUSION
The case study concludes that it is highly critical to balance the growth of the tourism sector with the strategies to manage tourism activities efficiently and prioritise sustainable practices in tourism to minimise the adverse effects that come along with the increasing tourism activities. The report has also discussed the history and origin of sustainable tourism and why it is important. It derived an interconnection between Sustainability and two of its sub-sets called Ecotourism and Ethical tourism. It has also analysed the impact of over-tourism and the concept of overconsumption which is becoming one of the widest known issues and it is the root of other issues such as environmental degradation and resource depletion.
The selected destination for this report was Hungary and the report focussed on one of the most famous tourist attractions at the destination, the mega sports events. The country has established its name in the list of the most favourable destinations for international sports events and has acquired a lot of benefits from the growth of sports tourism. Hungary has noticed that tourism accounts for a significant rise in its economy and has several cultural and social benefits. But it also has some negative impacts on the environment and society that have been discussed in detail in the report and some collective measures to improve the situation are also provided.
The report then progressed with one specific issue of sustainability, which is resource depletion. It is described as a situation when the natural resources are utilised to such an extent that it leads to scarcity and inability to meet basic needs. The case study has taken into account the concern of resource depletion in one of the leading destination management agencies called The Cityrama Travel Agency. It analysed how the rise of the tourism industry has led to increased demand for water, energy, land and other natural resources. It has also addressed the concerning amount of waste that is being generated daily due to tourism activities. This whole scenario is creating difficulties for tourism agencies like the Cityrama to manage their resources efficiently and provide optimum services to the tourists. Some financial constraints and ineffective law enforcement are making it difficult to address the issue properly which is impacting the profitability and sustainable ability of the tourism agencies. In the bigger picture, it is affecting the planet and the upcoming generations.
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