The Implications for Health and Wellbeing of World Trade and Tourism (VCE SSCE Health and Human Development): Revision Notes
The Implications for Health and Wellbeing of World Trade and Tourism
Understanding how trade between nations and international travel affect health outcomes is essential for promoting global wellbeing. Both world trade and tourism create opportunities for economic development in low- and middle-income countries, but they also present challenges that need careful management.
What is world trade?
World trade refers to the exchange of goods and services across international borders. This exchange occurs because different countries have varying production costs, making it more economical for some nations to import certain goods rather than manufacture them domestically.
For many low- and middle-income countries, world trade presents an important opportunity. These countries often lack the infrastructure or technology needed to transform raw materials into finished consumer products. By participating in international trade, countries can:
- Specialise in producing goods they make efficiently
- Share technologies, skills and ideas with other nations
- Benefit from increased competition, which drives innovation
- Foster productivity improvements and economic growth
Recent data shows the growing importance of world trade for developing nations. Low- and middle-income countries represented 48% of world trade in 2018, a significant increase from just 33% in 2000. This expansion of trade has contributed to remarkable poverty reduction, with the number of people living in extreme poverty dropping by half since 1990 to under one billion people.
How world trade promotes health and wellbeing
Economic benefits and employment
World trade creates substantial employment opportunities for people in low- and middle-income countries. When international companies establish operations in these countries, they hire local workers, which increases employment levels and raises the overall standard of living. Higher incomes enable families to purchase essential items like food, water, clothing and shelter.
This economic growth often stimulates the development of small, locally owned businesses. Business owners can access foreign markets to sell their products, further increasing their income and contributing to the local economy. An important aspect of this development is the role of women in these new economic opportunities. Many exporting firms that establish operations in low- and middle-income countries specifically employ women, particularly in industries like clothing manufacturing. For example, women make up the majority of workers in the garment industries in Cambodia and India. This employment pattern has been associated with promoting gender equality and female empowerment.
Impact on physical health and wellbeing
The improved employment and income resulting from world trade has direct positive effects on physical health and wellbeing:
- Reduced hunger: Better incomes mean families can purchase adequate nutritious food, leading to increased energy levels, properly functioning body systems and fewer nutrition-related diseases
- Improved healthcare access: Resources become available for medical care, including preventative services such as check-ups and vaccinations, which help reduce communicable diseases like measles and whooping cough
- Better child health: When children have good physical health and wellbeing, they can attend school regularly and receive an education that equips them with knowledge and skills for healthy living
These improvements contribute to decreased under-five mortality rates and increased life expectancy across populations.
Challenges and concerns with world trade
Unsafe working conditions
Despite the benefits, world trade can have serious negative impacts on health and wellbeing, particularly for vulnerable populations. Some multinational corporations have been accused of social injustices in their pursuit of producing cheap goods. These concerns include:
For women and children workers:
- Forced labour in dangerous conditions for very low wages
- Lack of protective laws regarding health and safety in many low-income countries
- Exposure to unsafe work environments where safety standards are ignored
Impact on health and wellbeing dimensions:
- Physical health and wellbeing: Risk of disability and death from unsafe conditions; crowded factories with poor ventilation increase risk of respiratory problems and communicable diseases
- Social health and wellbeing: Children denied access to school; women denied opportunities for social interaction and relationship development
- Mental health and wellbeing: Unsafe conditions create stress and anxiety; reduced self-esteem
- Spiritual health and wellbeing: Loss of hope and purpose; inability to make choices aligned with personal values and beliefs
Environmental concerns
Other significant issues associated with world trade include:
- Pesticide overuse: Corporate farms in low- and middle-income countries sometimes use excessive pesticides, with host countries failing to enforce environmental standards to keep costs down
- Waste disposal: Improper disposal of industrial waste in the environment
These practices lead to environmental degradation, which has cascading effects:
- Reduced food availability due to damaged ecosystems
- Pollution of water sources
- Increased hunger and malnutrition
- Rise in waterborne diseases such as diarrhoea
All of these environmental impacts negatively affect physical health and wellbeing.
Summary of world trade impacts
| Advantages | Disadvantages |
|---|---|
| Fosters economic growth | Few occupational health and safety rules exist, leading to women and children being forced to work in dangerous conditions for low pay |
| Reduces poverty | Overuse of pesticides can lead to environmental degradation |
| Provides employment for local workers | Incorrect disposal of industrial waste can lead to environmental contamination |
| Supports establishment of small, locally owned businesses largely owned by women | |
| Promotes gender equality |
Understanding tourism
Tourism represents one of the fastest growing industries globally. It is a form of international trade in services and accounts for 10% of the world's exports in goods and services (GDP). The scale of tourism is substantial, with international tourist arrivals increasing from 674 million in 2000 to 1442 million in 2018. Despite disruptions from COVID-19, international tourist arrivals are expected to reach 1.8 billion or more by 2030. The strongest growth is anticipated in Asia and the Pacific regions, where visitor numbers are predicted to increase by 331 million to reach 535 million in 2030.
.jpg)
Why tourism matters
Tourism serves as a critical driver of economic progress and plays several key roles:
- Employment creation: Tourism provides approximately one out of every 11 jobs worldwide and contributes 10% of the world's economic output
- Income generation: International visitors spent US$1451 billion in 2018 on accommodation, food, entertainment, shopping and other services—approximately US$4 billion per day
- Export earnings: In many low- and middle-income countries, tourism ranks as the highest export sector
- Economic transition: Tourism has helped countries like Cabo Verde, the Maldives and Samoa transition from low-income to middle-income status
Tourism involves numerous service providers, both those directly serving tourists and those working behind the scenes to support the industry. The revenue generated encourages governments to invest in infrastructure development, which benefits both tourists and local communities.
How tourism promotes health and wellbeing
1. Inclusive and sustainable economic growth
Tourism's contribution to global GDP (10%) is expected to continue growing. Economic growth is fundamental to helping people and countries escape poverty. Through tourism:
- Job creation increases: More employment opportunities become available, enabling people to earn incomes
- Income supports wellbeing: Families can purchase essential items including food, water, clothing, shelter and healthcare, which promotes physical health and wellbeing
- Education becomes accessible: With income, families can afford to send children to school, creating opportunities to develop relationships and promoting social health and wellbeing
- Confidence builds: Healthier people feel more confident, empowered and resilient, increasing emotional health and wellbeing
- Community connection strengthens: Greater empowerment builds a sense of belonging to the community, promoting spiritual health and wellbeing
2. Social inclusiveness and employment
The tourism industry provides significant employment opportunities, with one in every 11 jobs globally coming from tourism. More than half of all international tourists travel to low- and middle-income countries, bringing economic benefits directly to these regions.
Gender equality: Almost twice as many women are employed in tourism compared to other sectors. This increases female empowerment and gender equality, which promotes social, emotional, mental and spiritual health and wellbeing.
Healthcare improvements: Revenue from tourism can be reinvested in healthcare services, improving maternal health and wellbeing, reducing child mortality and preventing diseases—all of which promote physical health and wellbeing.
Education and training: A well-trained workforce is essential for tourism to thrive. The tourism sector provides incentives to invest in education and vocational training. These educational opportunities benefit youth, women, older people and those with special needs. Tourism has the potential to promote inclusiveness, tolerance, peace, non-violence and global citizenship, supporting all dimensions of health and wellbeing.
3. Resource efficiency and environmental protection
Tourism can be an effective tool for raising funds to conserve wildlife and protect the environment. It provides a mechanism for protecting and restoring biodiversity, which helps promote spiritual health and wellbeing. Environmental protection is also crucial for maintaining physical health and wellbeing by preserving clean air, water and natural resources.
4. Cultural preservation
Tourism can serve as a force for protecting traditional values and customs. It empowers communities and fosters pride in cultural heritage, which promotes emotional and spiritual health and wellbeing. By promoting cultural diversity and raising awareness of heritage value, tourism supports social, emotional, mental and spiritual health and wellbeing.
5. Mutual understanding, peace and security
Tourism can break down cultural barriers and create opportunities to build trust and peace between nations. The industry also demonstrates resilience, able to recover relatively quickly after natural disasters.
Trust and peace between countries help reduce conflict, promoting all dimensions of health and wellbeing. Building trust specifically promotes social and emotional health and wellbeing by fostering positive international relationships.
Challenges of tourism
Sustainability concerns
While tourism generates many benefits for local communities, it can also create significant challenges, particularly when it is unsustainable. The World Tourism Organization defines sustainable tourism as tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities.
Key challenges include:
- Environmental degradation: Tourism can stress fragile local ecosystems
- Overcrowding: Popular destinations may become too crowded, diminishing the experience for visitors and locals
- Infrastructure strain: Local services and infrastructure may be overwhelmed by tourist numbers
- Waste management: The tourism industry generates liquid and solid wastes that can exceed local capacity to treat them properly, potentially contaminating water supplies and impacting physical health and wellbeing
Disease transmission
Tourism presents a significant health threat through the potential spread of infectious diseases. Increasing international air travel, trade and tourism can result in disease-causing organisms being transported rapidly from one country to another.
Economic pressure: Countries may be tempted not to report disease outbreaks due to fears about the economic impact on trade and tourism, which can lead to potential epidemics.
COVID-19 impact: The most significant recent example is COVID-19. To prevent the disease's spread, most countries banned or severely restricted international travel. Australia and New Zealand implemented stringent controls, limiting the number of people entering the country and enforcing 14-day quarantine periods for international travellers and returning residents.
The impact on tourism has been severe. The World Tourism Organization estimated 900 million fewer international tourist arrivals in 2020 compared to 2019, representing a loss of US$935 billion in export revenues from international tourism.
Other examples of disease transmission:
- 2016 Rio Olympics: Widespread concern that the Zika virus would be contracted by 16,000 athletes and 600,000 visitors, potentially spreading through sexual contact and being transmitted to mosquitoes in visitors' home countries
- Cruise ships: Vomiting and diarrhoeal diseases have spread among cruise ship passengers and to local communities at ports
- 2006 FIFA World Cup: 65 people were affected by disease spread through tourism during the event in Germany
- Virus strain variation: Different strains of viruses exist in different countries, requiring careful control to prevent introduction of new strains
Exam tip
When analysing the impact of world trade and tourism on health and wellbeing of people in low- and middle-income countries, consider both the benefits and challenges in your discussion. A balanced response demonstrates deeper understanding of these complex global trends.
Case study: The challenges of tourism in Kyrgyzstan
A tourist village waits for visitors to return
Case Study: Tourism's Impact on Sary-Mogol, Kyrgyzstan
This case study examines how COVID-19 affected the tourist village of Sary-Mogol in Kyrgyzstan, demonstrating both the importance of tourism and the challenges when it declines.
Background: Sary-Mogol is a village with a population of 5200, located at an altitude of 3600 metres near Lenin's Peak, a popular hiking destination. The village is a three-hour drive from the city of Osh in southeast Kyrgyzstan. Life in this high-altitude location is challenging, with short summers and difficult growing conditions allowing only potatoes and barley cultivation. The main economic activities include animal husbandry and a large livestock market, with some residents working as teachers or coal miners.
Tourism development: In 2007, Umar Tashbekov opened the village's first guesthouse and tourist office, recognising an opportunity to attract hikers visiting nearby Lenin's Peak. His company, CBT, became an 'incubator' for the tourism industry, with almost everyone working in tourism passing through its doors at some point. He later opened the village's first yurt camp with 12 traditional Kyrgyz lodgings.
His son Abdilla took over the business after working as a guide for over ten years. He built his own guesthouse and planned another. His innovations included organizing ski training for winter tourism and establishing the Horse and Yak games festival and fair in 2015. This festival engages the entire village, with tourists purchasing tickets and revenue going to villagers who cook traditional foods, perform music and dancing, manage the yurt camp and participate in traditional games.
Economic importance: By 2019, tourism had become integral to the local economy:
- Tourism represented almost 6% of GDP in 2018
- More than 1300 tourists visited Sary-Mogol in 2019
- Almost everyone in the village was connected to the tourism industry in some way
COVID-19 impact: The slow spread of COVID-19 in the village was partly due to traditional living arrangements (grandparents, parents and children living together in crowded homes) and government lockdowns keeping infection numbers low. However, the impact on livelihoods was devastating:
- Tourism revenues were forecast to almost disappear in 2020
- Revenues predicted to fall by as much as 90%
- In 2020, less than a dozen tourists visited (compared to 1300 in 2019)
- The tourist office, yurt camp and guesthouses had to close
Personal impact on families: Umar's other son Ali had worked in tourism since age 13 before studying logistics and welding in Osh. When tourism stopped, he found work as a mechanic in the local coal mine. He described tourism as both more interesting and healthier than mine work, being outside in nature all day. He now worries about the dangerous health effects of breathing quarry gas regularly. With his wife previously working in the family guesthouse kitchen (now closed) and family members requiring expensive medical treatment, the family's resources are severely stretched.
Community response: Despite difficulties, the village maintains its spirit through traditional activities like volleyball and horse games. An entrepreneur named Buunisa Termechikova opened an Ethnographic Museum in July to highlight local products, cultural items and historical artefacts. In the absence of foreign visitors, she uses the space to conduct workshops on making traditional items and welcoming villagers.
Infrastructure legacy: Two years before the pandemic, a Korean tourist and engineer who had a wonderful experience in the village paid to upgrade the water infrastructure. Previously, villagers had to carry water from the river; now they have it in their homes, improving both their lives and tourist stays.
The village looks forward to welcoming visitors again once it is safe to do so.
Case study review questions
Consider how this case study illustrates the themes of tourism's benefits and challenges:
- What percentage of GDP did tourism represent in Kyrgyzstan in 2018?
- How many tourists visited Sary-Mogol in 2019 compared to 2020?
- What examples demonstrate tourism's positive influence before COVID-19?
- How has COVID-19 impacted the community's health and wellbeing across different dimensions?
- Besides tourism, what other economic sectors in Kyrgyzstan might be affected by COVID-19?
- How will the decline in tourism impact Umar's family's health and wellbeing?
Remember!
Key Points to Remember:
-
World trade involves the exchange of goods and services between countries, creating employment and economic opportunities but also presenting challenges related to worker safety and environmental protection.
-
Both world trade and tourism can have positive and negative impacts on all dimensions of health and wellbeing (physical, social, emotional, mental and spiritual).
-
Tourism has grown to become a major economic driver, providing one in every 11 jobs globally and accounting for 10% of world GDP, with particular benefits for low- and middle-income countries.
-
Sustainable tourism balances economic benefits with environmental and social responsibility, addressing the needs of visitors, the industry, the environment and host communities.
-
The COVID-19 pandemic has demonstrated tourism's vulnerability to global health crises, with severe economic and social consequences for communities dependent on tourism income, as illustrated by the Kyrgyzstan case study.