Mountains and Money: The Financial Impact of Mass Tourism on Hill Communities

By | December 11, 2024

On International Mountain Day, we reflect on how mass tourism in hill stations impacts local economies, culture, and the environment, and the need for sustainable practices – both environmental and financial.

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Growing up amidst the majestic peaks and tranquil valleys of the hills and mountains in India, well before any of them were discovered by tourists, has been one of the greatest privileges of my life. The crisp morning air, the towering trees with twittering birds, the whispering of leaves rustling in the breeze, the sharp scent of sun-warmed cypress and eucalyptus leaves — these are the sounds, sights and scents that shaped my childhood. Whether it was the mist rolling in over the hills or the ochre hues of the setting sun casting long dancing shadows over the sprawling tea plantations, my life was woven into the very fabric of the mountains.

I was born and raised in the hills, and to this day, the mountains feel like home. No amount of urban living can ever dent that part of me. The mountains are not just a backdrop to my memories but the very pulse of my being. The bond that people like me share with the mountains runs deep — it’s in the way we walk, talk, and even think. Yet, over the years, something has started to change. The mountains, once serene and untouched, are increasingly being affected by a force that we can’t control — mass tourism.

As we observe International Mountain Day today, it feels like the perfect time to reflect on the joys of living in the mountains, but also the pressing issues that have begun to erode their charm.

The Nilgiris, Coorg and Wayanad — these are some of the places where I grew up and hold dear, places where the mountains seem to stand timeless. However, increasingly, I see the brutal marks of mass tourism. It pains me to admit that what was once a peaceful haven for us locals is now a hotspot for chaos and over-exploitation. And beyond the environmental and cultural impacts, there’s another, less talked-about concern — the effect of mass tourism on personal finance in the mountains.

Here, from a personal perspective, are some of the challenges that those of us who live in the mountains face today — challenges that also have significant financial implications for individuals and families in hill stations across India.

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Overcrowding and Strain on Infrastructure: A Financial Drain on Resources

One of the most glaring issues that comes with mass tourism is overcrowding. As a child, I remember walking through meandering misty roads, barely ever seeing anyone else in the area. While jackals, leopards, elephants and gaur were common, it was rare to see tourists. The few tourists we did encounter were usually respectful of the local culture and environment.

However, today, especially during peak seasons, the same roads are crammed with vehicles — tourists flocking to the hills for a weekend getaway, heedless of the strain they put on the infrastructure.

In our hill stations, the infrastructure is simply not equipped to handle the influx of thousands of visitors each month. Take for instance that Coorg’s tourism numbers have grown substantially over the years, from 1.5-2 million visitors annually in the early 2010s to over 4 million by 2023. According to reports, Coorg receives about 15,000-20,000 tourists on weekends, with numbers spiking during the tourist season (October to March). The peak season sees an even higher influx, with up to 30,000 to 40,000 tourists per day during public holidays, festivals and the summer months.

From roads to water supply, everything is overburdened. For those of us living here, this situation also has financial consequences — primarily in the form of higher costs of living. The prices of everyday essentials like groceries, transportation, and even basic utilities can spike during peak seasons. As locals, we are left to absorb the financial pressures while tourists, mostly unaware, continue to flood in, contributing little to alleviating the strain they cause.

Further, many locals, wary of the traffic jams and crowded towns during long weekends, prefer staying home rather than heading out to the local markets and shops. This leads to a significant drop in foot traffic, leaving shopkeepers who sell everyday essentials with fewer customers and, as a result, experiencing financial losses.

Additionally, tourism drives up the cost of property in these areas, making it increasingly difficult for local residents to afford housing. As the demand for tourist accommodations increases, the cost of renting or owning property rises, pushing many locals to the periphery. This creates a widening economic divide between locals and tourists, and unfortunately, those most affected are often the people who have lived here for generations. For them, the financial burden is both tangible and ongoing.

Environmental Degradation: The Hidden Financial Cost

Living in the mountains has always meant being close to nature, but in recent years, it feels like nature is being pushed aside in favour of development. Environmental degradation is not just an ecological issue — it has financial repercussions too.

The unregulated development of resorts, hotels, and tourist infrastructure is leading to the destruction of fragile ecosystems. In places like Coorg and Wayanad, which have witnessed horrifying killer landslides and floods in recent years, coffee and tea plantations that once stood in harmony with the natural surroundings are being replaced by large ugly concrete structures to accommodate tourists.

For the locals, this change is not just an aesthetic loss but also an economic one. The long-term economic impact of environmental destruction can be severe — from decreasing agricultural productivity to the loss of income from sustainable industries like farming and handicrafts.

More tourists also mean more garbage. While waste disposal systems are already stretched, the cost of cleaning up and managing waste falls on the local government and businesses. For many local families and small-scale businesses that rely on tourism, this results in increased operational costs. They often have to spend more on waste management or on replacing damaged infrastructure caused by irresponsible tourist behaviour. When unable to bear the high cost of efficient waste disposal, local homestays, often unlicensed, dump garbage along the roadside or less habited areas in and around plantations, resulting in unsightly landfills.

In short, the financial toll of environmental degradation is not just about the loss of natural beauty — it’s also about the loss of income and opportunities for locals who depend on sustainable industries.

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Loss of Local Culture and Identity: The Economic Price of Commercialisation

One of the saddest consequences of mass tourism is the erosion of local culture. Growing up in the mountains, I was taught to respect the traditions and practices of my community. We had our own customs, festivals, and ways of life, which were passed down through generations. However, as tourism has taken root, there has been an increasing push towards commercialising local traditions or ignoring them altogether. Most tourists visiting today have very little interest in learning about local culture.

In many hill stations that are home to indigenous communities, local art forms and cultural practices are often reduced to tourist spectacles – after all, most tourists want something to post on the Gram. Festivals, which were once intimate community affairs, are now staged for the enjoyment of outsiders.  While this might seem like a financial opportunity for some, the long-term economic effects are concerning. As the local culture becomes commodified, it loses its authenticity, and so does the tourism experience. When cultural practices are commercialised to attract tourists, their economic value diminishes, and they no longer serve as a sustainable source of income for locals.

Moreover, the increasing cost of living due to tourism means that many local artisans, farmers, and small business owners find it hard to make ends meet. The influx of wealthier tourists has pushed up prices for everyday goods, making it difficult for locals to afford housing, food, and healthcare. Thus, the financial gains from tourism often do not trickle down to the community as a whole but instead create economic disparities.

The Impact on Local Livelihoods: Financial Strain on Traditional Jobs

For many people living in the hills, tourism has become both a blessing and a curse. While some locals have benefited from running small homestays or acting as tour guides, others are left at the mercy of exploitative practices. Mass tourism leads to an inflationary spike in prices, making it difficult for the local population to afford essentials.

The increasing cost of living and the shift in the economic landscape have made it harder for locals to maintain traditional livelihoods, such as farming and craftsmanship. Instead of focusing on sustainable, long-term sources of income, many are forced to rely on tourism, which can be seasonal and unpredictable. If a village or region depends too heavily on tourist traffic, any downturn in tourist numbers — like during off-peak seasons, bad weather, or economic recessions — can lead to financial instability.

Sustainable Tourism: A Path to Financial Stability and Preservation

As we celebrate International Mountain Day, it’s essential to look forward and think about the future of our beloved mountains. The economic model that relies solely on mass tourism is clearly unsustainable. Sustainable tourism is the key to balancing financial stability with environmental and cultural preservation.

By encouraging responsible travel practices and eco-friendly infrastructure, we can ensure that tourism continues to provide income for local communities without sacrificing the integrity of the environment or the authenticity of local culture.

For those of us who live here, it’s crucial that we diversify our sources of income beyond tourism, focusing on sustainable agriculture, local craftsmanship, and the preservation of heritage. By investing in these areas, we can create a more stable economy that is not entirely dependent on the whims of tourism.

Moreover, tourists too have a role to play. Through responsible spending and conscious decision-making, they can support local businesses and ensure that their economic footprint is positive rather than exploitative. Supporting local artisans, paying fair wages, and choosing eco-friendly accommodations are all ways in which tourism can become a source of long-term financial benefit for the locals.

International Mountain Day is a reminder of the intrinsic value of the mountains — both as natural wonders and as homes for people like me. While tourism can be a financial boon, it has also caused significant strain on our local economies, ecosystems, and cultures.

The challenges posed by mass tourism are not just environmental; they are deeply financial. As we celebrate this day, it’s crucial that we adopt sustainable practices, not just for the preservation of nature but for the financial well-being of those who call the hills home. Only through careful stewardship can we ensure that the mountains remain a source of livelihood and beauty for generations to come.

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About Sarita

Sarita is Head of Product Content, Design & Customer Voice at BankBazaar. She is passionate about languages, writing, reading, animals and new travel experiences. She dreams of a Utopian world filled with wagging tails, perfect grammar and non-fractured funny bones.

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