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Reading: Shock report reveals 50-80% of tourism spend ‘leaks’ from destination
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Travel Weekly > News > Shock report reveals 50-80% of tourism spend ‘leaks’ from destination
News

Shock report reveals 50-80% of tourism spend ‘leaks’ from destination

Staff Writers
Published on: 22nd October 2024 at 12:42 AM
Edited by Staff Writers
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Benefitting the local community is often touted as a benefit of tourism, especially for countries that are less economically developed.

However, a report published by The Travel Foundation has described the present global tourism market as “part of the problem” when it comes to issues around environmentalism and inequality, adding that the “travel industry at large is not doing enough to alter its part of the problem”. 

Shockingly the report, available here, revealed that globally around 50-80 per cent of tourism spend is “leaked” from the destination, providing little or no benefit locally.

This conversation is important given there has been a backlash against tourism in many popular destinations including Spain where the mayor of Barcelona is moving to ban Airbnb.

Why everybody should care that Barcelona is looking to ban Airbnb

As tourism grows to record levels, the report examines how tourism’s benefits don’t always reach communities, and in some cases tourism activity can exacerbate local inequalities.

The report, developed in collaboration with the Centre of Expertise in Leisure, Tourism and Hospitality (CELTH), the European Tourism Futures Institute, Breda University of Applied Sciences, HZ University of Applied Sciences, the Netherlands Board of Tourism and Conventions (NBTC), and Destination Think.

Some of the top recommendations include:

  • Because tourism relies on public resources and maintaining a social licence to operate, destination management should be driven by local needs first and foremost, and consider which groups benefit most from tourism and which bear the burdens. It’s time to move beyond general discussions about tourism’s contributions and critically examine where the benefits are going.
  • Destination managers can be blind-sided by issues relating to equity. Simply spreading tourism further, bringing in more jobs, or attracting high-spending visitors won’t automatically or necessarily make it fairer – and may even make things worse.
  • Destination managers should recognise the potential broader value that tourism can bring to communities, particularly residents not directly involved in tourism and marginalised communities, for example by contributing to urban regeneration, public infrastructure development and nature restoration.

Tourism is a global and growing industry with significant potential to drive positive societal change, and DMOs are increasingly recognising their role in supporting broader community goals. The report provides 25 case studies where tourism has significantly contributed to local entrepreneurship, improved community wellbeing, and other positive outcomes. These examples offer both inspiration and lessons learned, and demonstrate how tourism stakeholders are already applying tried-and-tested mechanisms to better serve community interests. The report outlines 40 mechanisms to consider, including:

  • Taxes and revenue-sharing initiatives,
  • Business incubation and training programs,
  • Licensing and zoning regulations,
  • Community enterprises and volunteering programs,
  • Product development that integrates local culture and environment protection.

“This report is essentially a roadmap for a more equity-driven management approach,” says lead author, Bernadett Papp. “You start by identifying the broader community goals that tourism can contribute to, then review the evidence-based mechanisms and real-world case study examples we have gathered and consider our practical guidance on implementation and measuring impact, before deciding what might work in your context.”

Implementing these mechanisms will require destination managers to strengthen partnerships with local agencies and embrace a participatory approach with community groups. Policymakers and DMOs should also pay particular attention to balancing foreign investment and economic leakage, resident access to tourism-related opportunities and services, and retaining control of local resources such as land and housing. The report concludes that a more equitable tourism system can only come by strengthening the hand of destination governance, underpinned by a mandate to serve the whole community.

Rodney Payne, CEO of Destination Think, a project partner and lead sponsor, said: “The world is in crisis, but this research shows that so many of the solutions we need are ready to be adopted. We have invested in this report to enable the Travel Foundation and their research partners to lay out a clear path for the travel industry to take bold action.”

Feature Image: Estonia

FAMIL: With destinations jaded by overtourism, the Solomon Islands offers a chance to build differently

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