When a country's tourism policy is geared to financial benefit based on numerical increases, there have been two distinct results. Tourism has brought considerable economic benefit to a local minority and enhanced foreign exchange earnings. At the same time, tourism has left the economically weak worse off and damaged the cultural and natural environment. Often, the benefits of employment have gone to those from outside, leaving only menial jobs for the unqualified locals. Meanwhile, established traders dominate marketing.
A conspicuous example of what can go wrong with tourism is the case of Acapulco, the Mexican resort. The growth of the holiday industry led to an influx of outsiders seeking financial gain. Local culture was undermined and all forms of vice including prostitution, drugs and gambling were introduced. Hotels and restaurants bought up the once plentiful local supplies, increasing the economic burden of the local majority. The natural environment of Acapulco Bay was irreparably damaged, so much so that tourists are now moving away to nearby Cancun, where the process is now being repeated.
Closer to home, Sri Lanka also faced the problems of vice and cultural dislocation. However, it managed to preserve the coastal environment, which was under threat, by imposing and implementing building and zonal restrictions. In Thailand and the Philippines, sex and drug tourism dominate and are often run by criminal elements.
India and Nepal have also faced similar problems. Goa, Mussorie and Kathmandu were, and to a degree still are, centers for drug use, distribution and smuggling. The damage to the environment has also been considerable, with Sir Edmund Hillary going as far as to urge the closure of the Everest route for five years. In Mussorie, expansion of holiday homes are endangering the stability of the hillsides. Similar stress exists in all former hill stations. The major cause is unplanned haphazard development, fueled by tourism.