Tourism has become a source of revenue, for example the people that used to farm in agriculture sectors in Chiang Mai now work in their own homes to provide for a tourism destination. And they are reliant on tourists to come and visit. Also the Karen could also get a small sum of money for showing tourists how it is like when they take out their neck rings.
Employment opportunities
There are now more employment opportunities as high class hotels usually require manpower and it would be easier to recruit locals. For example, hotels, restaurants, taxis and souvenir shops are part of services that tourists would demand. And all these provide for a better paying job than working as farmers.
Price inflation
The local tradition which is the Khantoke evening would definitely be the first to be affected by inflation. Tourists have higher purchasing power than locals in Chiang Mai and this increase in purchasing power and demand for basic goods and services could drive up the cost of living in Chiang Mai. For example, the price of the Khantoke evening would keep rising as demand for it is constantly on the rise. Locals staying in such tourist destinations may find the price increase difficult to accept if they are not working in tourism sectors.
Economic inequality
Areas that are popular with tourists would be more developed than the rest of Chiang Mai and this would lead to great economic disparities within the city of Chiang Mai. See the difference in the photos below.
Interaction between tourists and locals
There would be cultural exchange between tourists and locals. It can be of educational value and enable both parties to appreciate each other's cultures and practices and encouraging mutual respect. However, there could be social and cultural clashes due to misunderstandings and different opinions.
Ethical issues
Unethical and illegal practices might occur as there would be might be child labour and prostitution. There could be children under the age of 18 working at street vendors or at the Night Bazaar where there is a demand. Commercial sexual exploitation of children and young women could be widely seen in Chiang Mai as it is one of the the major centres for prostitution. There is a lure of easy money therefore it leads young women into trading their bodies for material possessions. For example as quoted from wikipedia: "Ethnic hill tribe children: these children live in the border region of northern Thailand. They suffer from disproportionate levels of poverty in relation to the general population and most of them lack citizenship cards. This means that they do not have access to health care or primary school, which limits their further education or employment opportunities." This makes it easier to lure them with the promise of easy money.
Conservation of cultural heritage
Tourist demand for local cultural skills and products may ensure the preservation and survival of local cultures and traditions. For example, the income earned from the stage cultural performances in Chiang Mai has ensured the survival of some traditional dance troupes. Tourists' demand for Lanna Tai dances and artwork has also revived local interest.
Revenue generated from tourism could provide funds needed to conserve local cultural heritage like the 300+ temples in Chiang Mai. For example, entrance fees collected can be used for the maintenance and refurbishment of the temples.
However, conservation efforts are not always beneficial as conservation of cultural heritage often includes a choice of what is to be conserved and what not to be conserved. For example, the local people of Chiang Mai are becoming displaced in the new and modern facades of the restaurants and souvenir stores catering to tourists.
Local cultural festivals and religious rituals are modified accordingly to meet the demand and expectations of tourists. This applies whenever tourists pay to see such rituals and festivals performed. Local cultures become commercialised when souvenirs related to local historical and cultural sites are mass produced and sold to tourists. Commercialisation of religious festivals and cultural items would reduce their authenticity and significance. The best example in Chiang Mai relating to this point is the Khantoke dinner. The different dances of different ethnic tribes performed are not supposed to be performed in one single ceremony. And it usually only contains small segments of what it originally was.
Tourism related infrastructure and facilities
Infrastructure and attractions initially meant for tourists can also benefit locals and improve their way of life. For example, in Chiang Mai, many attractions such as the Chiang Mai Night Safari are not only meant for tourists but for locals to visit as well.
Locals also benefit from the development of tourist facilities and services. The upgrading of health services, transportation networks, recreational facilities and other public services in Chiang Mai certainly helps to improve the standard of living.
There would be conflicts in the types of land use or resource use in a tourist destination. As tourist attractions and hotels are more profitable that other local land use (eg, agriculture), locals would stand to lose out when such land use conflicts arise. One example is the Night Safari in Chiang Mai. The Night Safari pollutes the river which affects the livelihood of the locals living near the river.
References:
http://en.wikipedia.org/wiki/Prostitution_in_Thailand
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