Human Rights Issues in Tourism Development - Tourism and Development: Concepts and Issues - page 395

uneven business competition between MNCs and small local entities also
facilitates economic leakages (Akama & Kieti, 2007; Sindiga, 1999). MNCs are
more likely to repatriate their profits to developed countries where they are
based. For instance, all-inclusive package tours are appealing to most tourists.
Because tourists pay the fees through tour operators in the developed nations
before departure, no real spending happens in the destination (George &
Varghese, 2007). This situation often leaves local economies in debt, especially
if the governments borrowed to develop certain infrastructure and social ser-
vices with the view to opening up areas to attract tourism investments.
Uneven competition between MNCs and small local business entities
resulting from ownership and control of capital and technology or economic
leakages do not constitute human rights violations per se since every person
or organisation has the right to acquire wealth or invest in any venture and
make a profit. However, they may constitute a human rights violation if the
manner through which they occurred is linked to exploitation or interna-
tional monopoly that denies the social progress of others. If this is the case,
the MNCs have violated the human rights principles enshrined in Article
12(c) of the UN Declaration for Social Progress and Development (UN, 1969).
In the era of globalisation and the internet, many MNCs have realised
that they cannot thrive in an environment where human rights are deni-
grated. Therefore, the MNCs' choices of location where they operate concern
the human rights factors of the destination nations. MNCs are also becom-
ing aware of how their own approach to the human rights of employees
impacts their reputation. Unfortunately, MNCs with poor human rights
records will likely not be impacted in terms of their share prices and they
will not go out of business as they have high profiles and are large-scale busi-
nesses. However, most MNCs that take actions to improve their human
rights records seem to care about public opinions and their place in the
market (Muchlinski, 2001; see Chapter 4). MNCs affect the socio-economic
welfare of the communities where they operate, which in turn impacts the
economic and social rights of community members. Increasingly MNCs are
producing corporate social responsibility documents outlining how their
operations are positively contributing to local communities and environ-
ments; however there is a danger the documents are more about marketing.
Muchlinski (2001) argues that assuming MNCs will self-govern to ensure
the human rights of their local employees and community members will not
work, instead legal duties must be introduced to legally mandate MNCs'
observation of fundamental human rights.
Tourism's impacts on the environment
Like any other human activity, tourism development may also have a sig-
nificant impact on local environments. For instance, the construction of
infrastructure and other recreational facilities such as hotels, restaurants,