There are many hidden costs to conventional tourism and they can have unfavourable economic effects on the host community. Often rich countries are better suited to profit from tourism than poor ones. Although the least developed countries have the most urgent need for income, employment and general rise of the standard of living by means of tourism. They are often the least capable to realize these benefits. Among the reasons for this are large-scale transfer of tourism revenues out of the host country, exclusion of local businesses and products.
Leakage
The direct income for an area is the amount of tourist expenditure that remains within its borders. Very often, this is a relatively small amount due to "leakage" - the amount of money that is drained out of an area due to tax payments, profits and wages paid outside the area and expenditure for imports. When tourists demand standards of equipment, food and other products that the host country cannot supply. In most all-inclusive package tours, about 80% of travellers' expenditures are leakage. They go to the airlines, international companies (who often have their headquarters in the travellers' home countries) and not to local businesses or workers.
Local businesses often see their chances to earn income from tourists severely reduced by the creation of "all-inclusive" vacation packages. When tourists remain at the same cruise ship or resort for their entire stay, which provides everything they need and where they will make all their expenditures.This means that there is not much opportunity left for the local people to profit from tourism.’ All-inclusive import more and employ fewer people per dollar of revenue than other hotels (Source: Tourism Concern).