{"id":47644,"date":"2020-08-31T11:31:00","date_gmt":"2020-08-31T10:31:00","guid":{"rendered":"https:\/\/travindy.com\/?p=47644"},"modified":"2020-09-04T11:06:31","modified_gmt":"2020-09-04T10:06:31","slug":"what-can-your-destination-do-about-tourism-leakage","status":"publish","type":"post","link":"https:\/\/travindy.com\/news\/2020\/08\/what-can-your-destination-do-about-tourism-leakage\/","title":{"rendered":"What can your destination do about tourism leakage?"},"content":{"rendered":"<p><a href=\"\/?p=47732\" rel=\"nofollow\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-47731\" src=\"https:\/\/travindy.com\/wp-content\/uploads\/2020\/08\/Tourism-leakages.jpg\" alt=\"Man selling watermelons at a local market\" width=\"1204\" height=\"674\" srcset=\"https:\/\/travindy.com\/news\/wp-content\/uploads\/2020\/08\/Tourism-leakages.jpg 1204w, https:\/\/travindy.com\/news\/wp-content\/uploads\/2020\/08\/Tourism-leakages-300x168.jpg 300w, https:\/\/travindy.com\/news\/wp-content\/uploads\/2020\/08\/Tourism-leakages-1024x573.jpg 1024w, https:\/\/travindy.com\/news\/wp-content\/uploads\/2020\/08\/Tourism-leakages-768x430.jpg 768w\" sizes=\"(max-width: 1204px) 100vw, 1204px\" \/><\/a><\/p>\n<p><strong>Reduce tourism leakage with long-term strategic goals and new success metrics<\/strong><\/p>\n<p>When tourism revenue is funnelled to outside economies, the knock-on effects in your destination are widespread. Tourism leakage leads to problems like fewer job opportunities for residents and smaller budgets to build and maintain tourism infrastructure. These struggles also challenge how DMOs measure success. New metrics must acknowledge <a href=\"https:\/\/destinationthink.com\/blog\/reimagining-travel-preventing-tourism-leakage\/\" rel=\"nofollow\">economic value as part of a system<\/a> that goes beyond revenue to include social, cultural and environmental well-being.<\/p>\n<p>Beyond adopting new metrics, here are some ways your destination can help retain tourism revenue to benefit both your local industry and the wider community.<\/p>\n<p><strong>Restrict the number of all-inclusive resorts<\/strong><\/p>\n<p>In most all-inclusive package tours, <a href=\"http:\/\/www.oceansatlas.org\/subtopic\/en\/c\/72\/\">about 80% of travellers\u2019 expenditures go to airlines, hotels and other international companies instead of local businesses or workers<\/a>. Aruba Tourism Authority, a participant at Destination Think\u2019s international <a href=\"https:\/\/destinationthink.com\/blog\/worlds-leading-dmos-collaborate-forum-2016\/\" rel=\"nofollow\">Forum 2016<\/a> event, sought to address this imbalance with a <a href=\"https:\/\/destinationthink.com\/blog\/keeping-destination-profitable-people-happy-aruba-cap-on-all-inclusive-resorts\/\" rel=\"nofollow\">cap on all-inclusive resorts<\/a>. Tourism and travel contribute 91% of Aruba\u2019s gross domestic product (GDP) \u2013 the second-highest percentage worldwide. Considering Aruba\u2019s high level of dependence on the tourism industry, it was imperative to formulate a policy that met island residents\u2019 needs.<\/p>\n<p><strong>Empower locally-owned accommodation providers&nbsp;<\/strong><\/p>\n<p>A hotel owned by an international chain will send profits back to company headquarters. It may also employ internationally trained and non-local staff. By contrast, supporting the development and promotion of locally-owned accommodation providers is one way to stop profits from flowing out of your destination. <a href=\"https:\/\/destinationthink.com\/blog\/boutique-destinations-massive-impact\/\" rel=\"nofollow\">Boutique hotels<\/a> that reflect the unique aspects of a place have the added advantage of improving demand for local cultural and culinary experiences. An example of this in practice is <a href=\"https:\/\/www.bambuindah.com\/\">Bambu Indah<\/a> in Ubud, Indonesia. In addition to local service staff, cooks and chefs, the hotel works closely with nearby industries. Local producers supply food, tradesmen build infrastructure using local materials like bamboo, and artisans create meaningful souvenirs. Hiring locally helps Bambu Indah keep revenue in-house and tell a story that celebrates the unique culture of the place.<\/p>\n<p><strong>This is an excerpt from an article by Katie Shriner, originally published by <a href=\"https:\/\/destinationthink.com\/blog\/what-can-your-destination-do-about-tourism-leakage\/\" rel=\"nofollow\">Destination Think<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stopping tourism leakage requires long-term strategic goals and new success metrics. It also requires a holistic approach that focuses on niche markets, supports local businesses and workers, and protects destinations\u2019 unique social and natural assets.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,131,16,263,535,264,141],"tags":[3725],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What can your destination do about tourism leakage?<\/title>\n<meta name=\"description\" content=\"Stopping tourism leakage requires long-term strategic goals and new success metrics. 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