Tourism can contribute to poverty by not integrating communities

Some of the most renowned tourism destinations also have the highest levels
of poverty. Despite their economic challenges, people have opportunities to visit and explore some of the world's most economically disadvantaged countries. Why?

Despite steady streams of tourists, the benefits of tourism seldom translate into tangible improvements for the local communities in those destinations. Many of these places grapple with staggering levels of poverty among their local communities. Why? Because the local communities are not integrated in the tourism value chain. This lack of inclusion means that the economic benefits generated by tourism largely bypass those who call these destinations home. Instead, it tends to line the pockets of external stakeholders, such as multinational corporations, hotel chains, or tour operators, who often dominate the tourism sector. Local residents often find themselves on the sidelines, struggling to access economic opportunities or reap the rewards of increased tourism activity. As a result, the socio-economic disparities within these destinations remain stark, with poverty levels remaining high despite the apparent prosperity brought by tourism.

Tourism has the potential to uplift communities, but when these benefits exclude and bypass local residents, poverty can persist, or even worsen.

While the tourism sector creates job opportunities, they often offer low wages and little job security, while the surge in demand for goods and services drives up prices, making essentials unaffordable for local residents.

To realise the potential of tourism in fostering sustainable development, it is necessary to prioritise inclusive strategies that empower and involve local residents in decision-making processes, ensure equitable distribution of tourism revenue, and promote initiatives that benefit the broader community.

Only through efforts that focus on meaningful and effective participatory approaches that prioritise support for community-based tourism, integrated local supply chains for tourism and well-remunerated local workers. Integrating local supply chains ensures that a greater portion of tourism spending circulates within the local economy, creating multiplier effects that benefit the broader community.

Only through efforts to prioritise the well-being of local communities can tourism truly become a force for positive change, lifting communities out of poverty and fostering long-term prosperity.

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Sources: Inspired by the eye-opening documentary "The Last Tourist" published on the tourism industry a couple of years ago, and the wonderful people that contributed to the documentary, shedding light on the complexities and injustices within the tourism industry.