for access to the countryside, especially to environmentally sensitive areas subject to congestion at peak periods. The use of permits which restrict entry into the national park in North America and the ‘take’ in hunting or fishing is a case in point. The example of Bermuda is slightly different in that by controlling the amount of hotel accommodation available it restricts the numbers of tourists entering the island. This has had the effect of raising its holiday prices and curtailing demand by lower income tourists and thus making it exclusively the preserve of the wealthier tourist. While the restriction of the numbers of tourists has had a beneficial impact on the island’s human-made and natural environments, it may have had detrimental effects, for instance residents who have been displaced or suffered more limited economic opportunities.
Whether these licence or permits would be tradable might depend on the circumstances. A more firmly market –based method would be to levy taxes on suppliers who exceed set limits, or entry taxes, perhaps at a punitive rate, to control numbers of tourists. Charge and taxes, such as the fairy widespread imposition of departure and entry taxes at airports, are already in operation but not at a level that is likely to deter entry. This form of tax is used as a revenue-raising device but is unlikely to be applied to mitigate the environmental impact of tourism travel by air. There are exceptions; for instance, in Vancouver the exit tax on air passenger is specifically state as being for the improvement of the airport and the environment adjacent to it.
The problem with physical or financial means of controlling numbers is that inefficiency and inequity are likely to result. Economies of scale in providing travel, accommodation, facilities and services may be lost on the supply side, while if increase cost are generated and passed on to tourists, or a direct charge made on them, those in lower-income groups may be priced of the market. Moreover, those working in tourism sectors in host communities may be disadvantaged if the level of activity is reduced. There are also other factors which may create significant costs, for example the administration of the instruments or simply whether they are cost-effective. Other issues raised are their compatibility with environmental and regulatory objectives, their acceptability and what kind of incentive they offer to tourists and firms to find their own solutions, which, on the one hand, might circumvent the restrict but, on the other, obviate the need for publicly applied instruments. Rather than attempt to restrict numbers, and alternative approach, which might resolve the problem of overcrowding in existing destinations, would be to levy user charges and allocate the revenue raised to institute environmental protection or reparation. This strategy is not favoured by many environmental economists for it suggest attempting to cure the affliction as opposed to preventing it from occurring
Thus, reducing the use of material and energy and the generation of waste, and controlling numbers of tourists, can involve the application of virtually all the policy instruments examined and evaluated. Current policy thinking has not advanced so far as to perceive the operation of service activities in the same light as manufacturing activity. Consequently it has not considered the full range of instruments as being applicable as indicated here. Given the potential and actual detrimental effects of tourism, the time is approaching when restricts on its development and operation almost certainly have to be more severe.
To this point, the evaluation of policy instruments in the tourism context has echoed that given in the literature of emphasizing the environmental costs of economic activity. However, the many possible beneficial effects of tourism mean that the instruments presently proposed might counteract such effect. The general consensus in economics is that beneficial externalities should be enhanced, the instruments being to compensate or subsidize those making such provision whether or not they are in the private or public sector. Prime examples, already given, are the occupiers or owners of listed heritage building or sites, who incur additional costs to conserve them. Both grants for capital cost and subsidies for recurrent expenditure are seen as the principal instruments. However, many tourism resources are natural and open access environmental so that property right do not exist or cannot be exercised. With respect unique resources of global significance, such as Antarctica, the oceans, rare flora and fauna, whose importance transcends national boundaries, the possibilities of allotting grants or subsidies are, at the very least, problematic. It is necessary to establish international bodies and agreements to oversee and manage such resources. This means instituting international regulations and administrative structures; there is little evidence of such a holistic approach, as demonstrated in the case studies examined in chapter 9.
Past experience with conventions on whaling and fishing give rise to pessimism that agreements can be made binding and adequate funding made available for enhancement and/or policing of resources, although the position in Antarctica gives cause for a greater degree of optimism. There is a strong case for, and indeed likelihood of, the introduction of some kind of ownership structure, and thus of property rights being enforced through international law. These kinds of issues go beyond mere implementation of policies and instruments, which are applied at a specific and operational level. Overall, it would be appear that policy instruments advocated in environmental economics are equally relevant to service activities such as tourism. However, their application needs to be assessed within the wider context of the global environment and strategic policy-making if the instruments are to be effective in both a restrictive and positive way.