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Tourism Leakages - Dissertation Example

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Tourism Leakages

However, due to other factor like tourism leakages a country can experience serious economic crisis. This is because, the growth of tourism industries results into high demand for the imported goods that are more expensive than the locally processed goods. Bhattacharya (131) indicates that goods, which are provided internationally, leave the local community with a very small portion of the earnings. This problem affects mostly the developing countries. These leakages thus diminish the positive influences of tourism to a country (Bhattacharya 131). Countries that are developed benefit more that developing countries in tourism. This is because such countries lack industries to process goods that tourists need. UNEP indicates that a government ensures that the positive effects of tourism are maximized by reducing the tourism leakages. For this to happen, Governments especially in the developing countries should promote the ownerships of tourism resources by the local communities. In most cases, the governments have favored the ownership of the tourism resources by the private sectors or the foreigners. Consequently, a recognizable percentage of the tourism resources belong to the foreign investors. Therefore, the local communities benefit less from the tourism revenues due to the leakages of tourism profits. The ownerships of large portions of tourism businesses in developing countries belong to the foreigners (UNEP). This has resulted into a tourism agenda distorted in favor of external benefits. The result of the high leakage through repatriation of profits, employment for foreign emigrant, importation of goods and services from foreign countries and the use of airlines that foreign countries own. The leakage in developed countries is not very high (Jones 65). The government should come up with strategies to promote the ownership of the tourism resources by the local community. The application models for agricultural development can be integrated to tourism development to enhance the local community ownerships of the tourism resources. An example of the agricultural development model is the one, which, farmers engage in agricultural businesses by forming associations to manage important functions like marketing. Exploitation of land by foreigners should be discouraged because it is the local communities, which will suffer environmental degradation after the foreigners have left. There should be the emphasis of strong connection between the local communities and the tourism industries to reduce leakages and to increase the benefits from tourism. Moreover, the increase of leakages is due to the high expenditure by the government to meet the high tourists’ demands. The governments use a lot of money to import goods to meet tourists’ demands. Apparently, the escalation of tourism expenses due to importations result into the reduction of profits leading to economic constrains. To reduce high importation, there should be the emphasis on the use of the locally produced goods to enhance increased output effects of tourism (UNEP). Tourism Policies Kenkel (2) indicates that tourism is a very important business internationally. It is one of the central sources of revenues particularly, in those countries that are still developing. However, the high demands of tourism have had undesirable effects on the local people and the environment. The growth of tourism has showed some serious adverse impacts. Continuous planning and ...Show more


Name: Instructor: Task: Date: Tourism leakages Most countries have benefited from tourism economically due to foreign exchange. However, some countries have not highly benefited from the venture. This is because of the high expenditures that these countries incur due to the demands of the tourists…
Author : pdietrich
Tourism Leakages essay example
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