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How does it work? 💵
Tourism is one of the world's largest economic sectors, supporting 1 in 11 jobs globally according to the International Labour Organization (ILO). But that number masks a structural problem: most of the money tourists spend never reaches the communities hosting them.
This is called economic leakage—the portion of tourist spending that flows out of the destination and into foreign-owned airlines, international hotel chains, and imported goods. According to the United Nations Conference on Trade and Development (UNCTAD), leakage reaches 50–80% of total tourist spending in developing countries, and as high as 80% in Caribbean nations.
Photo by Sean Foster on Unsplash
The good news: traveler behavior directly determines how much money stays local. Here's what the evidence says you can actually do.
Why your spending doesn't automatically help locals ⛴️
When you book an all-inclusive resort or a large chain hotel, your money flows primarily to corporate headquarters—often in a different country.
The UNWTO has documented leakage rates of 70% in Thailand and 80% in Caribbean countries, driven by foreign-owned operators, imported food, and international airlines.
The contrast is stark: 76% of spending on an adventure travel itinerary stays with local suppliers, according to a 2023 market sizing report by the Adventure Travel Trade Association (ATTA).
By comparison, 96 cruise tourists are needed to generate the same local economic value as just 4 adventure travelers.
Leakage isn't about individual bad actors. It's a structural outcome of how tourism is organized.
Photo by Adam Gonzales on Unsplash
Changing it requires deliberate choices by travelers at every stage of a trip—before, during, and after.
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What you can do before you leave 🛋️
The most powerful decisions are made before boarding. Research at the booking stage determines who captures the majority of your spending.
Book GSTC-certified operators
Choose locally owned accommodations
Local guesthouses, family-run B&Bs, and community lodges keep profits in the destination. ILO research confirms that "leakage is minimal when firms are in the hands of locals."
Photo by Donald Teel on Unsplash
Find Community-Based Tourism (CBT)
UN Tourism's CBT framework supports tourism activities designed, led, and owned by local communities. Programs include community guides, homestays, and local food experiences directly tied to community funds.
Ask about local supply chains
Before booking, ask operators what percentage of food, guides, and services are sourced locally. The ILO recommends this as a core traveler practice to build sustainable supply chain linkages.
What to do once you're there 🗺️
"Tourism generates massive economic value, but host countries don't always reap the benefits—even when millions of visitors arrive each year."
In-destination choices compound over the length of your stay. Every meal, taxi, and souvenir is a decision about who benefits from your trip.
Photo by Markus Winkler on Unsplash
Eat and drink local produce
Imported food and beverages create import leakage. Ordering local dishes made with regional ingredients keeps money with farmers and food producers. The ILO specifically flags "local sourcing" as a key mechanism for poverty reduction through tourism supply chains.
Hire local guides—not platform aggregators
When guides are certified and paid directly, earnings stay in the community. UN Tourism's Rural Development recommendations explicitly support locally led guide programs as a tool for inclusive economic growth.
Buy artisan goods directly from producers
Markets and craft cooperatives accredited by local governments cut out intermediaries. UNWTO's CBT documentation confirms that when travelers purchase directly, funds contribute to community development programs.
Spread your spending geographically
Staying in multiple smaller accommodations rather than one large resort distributes economic benefit more widely. This is supported by the UNWTO's recommendations on rural tourism development as a strategy to reduce economic concentration.
Programs that show this works 🌳
These are verified, active programs—not editorial picks—built on frameworks from international organizations and documented in peer-reviewed or official sources.
Annapurna Conservation Area, Nepal
Tourism revenues are directly reinvested in community education and healthcare and documented by UNWTO as a model for eco-tourism aligned with SDG 1 and SDG 8.
Monteverde Cloud Forest Reserve, Costa Rica
Eco-conscious travelers purchasing sustainably produced local goods drive documented income for both producers and conservation efforts. Cited in UNWTO-aligned academic research.
REST / CBST Network, Thailand
The Responsible Ecological Social Tours Project pioneered community-based tourism standards. All revenue from participating tours is managed and distributed by community councils.
These programs are searchable through UN Tourism's community-based tourism project directory and the GSTC's certified operator database.
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