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.
Increase in prices
Increasing demand for basic services and goods from tourists will often cause raised prices that negatively affect local residents whose income does not increase proportionately. Tourism development and the related rise in real estate demand may dramatically increase building costs and land values. Not only does this make it more difficult for local people to meet their basic daily needs; it can also result in a dominance by outsiders in land markets and in-migration that erodes economic opportunities for the locals. Long-term tourists living in second homes cause price rises in their new homes if their numbers attain a certain critical mass.