Institutions and perceptions are an important element of transformation (Mwangi, 2006), so it is appropriate
that the dynamics of tourism transformation have been frequently investigated using resident perceptions of
the industry (Allen, Long, Perdue and Kieselback, 1988; Andereck, Valentine, Knopf and Vogt, 2005; Andriotis,
2005; Ap, 1992; Belisle and Hoy, 1980; Besculides, Lee and McCormick, 2002; Harrill, 200
; Horn and Simmons, 2002;
Johnson, et al. Indeed, this has been extended to suggest that population perceptions can be indicators of destination decline (Faulkner & Tideswell, 1997; Diedrich & Garcia-Buades, 2009).
Paradoxes often occur if tourism is adopted simply for the economic benefits it can provide, such as
employment opportunities, increased income and standards of living and improvements in infrastructure
(Archer and Cooper, 1998; Lindberg, 2001; Liu and Var, 1986; Allen, Hafer, Long and Perdue, 1993) as it can also have
negative impacts, such as inflation, leakage of tourism revenue, changes in value systems and behaviour,
crowding, littering and water shortages (Buckley, 2001; Ceballos-Lascurain, 1996; Mathieson and Wall, 1982). Transformation theory is about structural
change that results from modifications of human institutions (Seliger, 2002).
Some common paradoxes of transformation are cited within the literature. These studies have often been undertaken for two primary
reasons: to overcome barriers to successful and sustainable tourism development (commonly termed
paradoxes) and to provide insight into the level of impact tourism has on the community (Diedrich and Garcia-
Baudes, 2009). This paradox, however, does not occur consistently and often
development is deliberately cultivated by the community (Gonen, 1981). Institutions are collective human-
designed action, such as government strategies, plans, policies or laws, business or industry norms, social
norms, cultural beliefs or the general patterns of consumer behaviour (Mantzavinos, North and Shariq, 200
). Diedrich and Garcia-Buades (2009) show that as tourism grows and has more severe impacts on an area, so does the population's perception of tourism implications. As the transformation process is
intertwined with human institutions, a detailed model of the process must consider both structure and
institutions; yet many structural models omit institutional factors and this has been considered their greatest
weakness (Williamson, 2000).
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