Tourism brings a host of impacts including:
Economic
Tourism certainly helps to improve the Malaysian economy by means of tourism receipts. In 2008, the tourism earnings was RM49.6 billion. Tourism earnings in 2009 was RM53.4 billion. This illustrates the increase of RM3.8 billion.
(Figures from Tourism Malaysia)
However, the negative impact is economic leakages. Economic leakages will occur due to the fact that many hotels and other tourism establishments are owned by foreign investors. Thus, part of the earnings will flow back to the investors and out of Malaysia.
Socio-cultural
Tourism enables tourists to learn about the Malaysian culture and heritage. Likewise, the locals get to interact with tourists and have a glimpse of their lives back home. This exchange of information between the two parties is a good outcome.
On the other hand, the locals may abandon their culture and traditions and adopt the Western way-of-life. Instead of eating food using their hands, which is the normal Malay way, the youths are using forks, spoons and knives. Also, they have a preference for Western food such as spaghetti, pizza and fried chicken instead of local food. Traditional festivals such as Hari Raya may also have less significance to these youngsters.
Environmental
Tourism can bring about greater awareness about the protection of the environment as Malaysia promotes Ecotourism.
In the negative form, tourism is also able to cause destruction of the environment as more land gets cleared to make way for tourism development.
Thus, we need to manage the whole process of tourism well so as to reduce the negative impacts.