Theory: Tourism Impacts and Challenges

Tourism Impacts and the Triple Bottom Line

Because sustainable tourism not only promotes economic development, but also environmental and cultural conservation — it employs the concept of a triple bottom line. 

The triple bottom line is an accounting framework that incorporates the three dimensions of performance: socio-economic, cultural and environmental. It should also be noted that the triple bottom line applies to all tourism stakeholders, not only businesses. The triple bottom line measures the impact of an organization’s activities on the world.  

For example, tourism providers can benefit communities by supporting cultural diversity and promoting tolerance and acceptance of different lifestyles and belief systems. When a tourism organization or business enhances its positive socio-cultural impacts and helps local communities maintain their cultural integrity in the face of vast economic and developmental pressures, this can greatly benefit both business and community. 

It is important to note that a net gain in the triple bottom line does not imply the absence of losses or damages across all three of these dimensions, it only means that the final tally is on net positive, where positive impacts outweigh negative impacts. Managing a destination or business’ triple bottom line is a balancing act. 

This unit focuses on each of the three components of the triple bottom line, looking at both benefits and negative impacts resulting from tourism. On the next page you will find an interactive presentation of the three pillars of sustainability.