The United Nations Environment Programme (UNEP) cites
that in most all-inclusive mass tourism package tours,
about 80% of travelers’ expenditures go to the airlines,
hotels, and other international companies (who often have
their headquarters in the travelers’ home countries), and not
to local businesses or workers. Of each USD 100 spent on
a vacation tour by a tourist from a developed country, only
around USD 5 actually stays in a developing destination’s
economy.3 UNEP cites several studies that approximately
tourism leakage to be up to 40% in India, 70% in Thailand,
and 80% in Caribbean countries due to factors such as
foreign-owned operators, airlines, hotels, and imported
food and products.
In ATTA’s Industry Snapshot 2014,4 the adventure tour operators
polled estimated that 65.6% of the total trip cost from
an adventure package remains in the destination(s) visited.5
Airfare,
origin country
expenses &
overhead
Outbound
operator &
agency profits
Main urban
center
operator costs
& profits
LEAKAGES
Inbound country
expenses
Destination
specific
expenses
(lodging,
foodservice)
Revenues for local
economy
Source: UNEP (n.d.)
Of each USD 100 spent on a vacation tour by a tourist from
a developed country, only around USD 5 actually stays in a
developing-country destination’s economy. The figure below
shows how the leakage happens.