New Report Reveals How Tourism Can Better Serve Communities

Forty actions that can help policymakers, Destination Management Organisations (DMOs), and National Tourism Organisations (NTOs) distribute tourism’s benefits more equitably across local communities are outlined in a new report released on Tuesday.

The report, “Creating Equitable Destinations: How to Manage and Distribute Tourism’s Value to Better Serve Communities”, is a collaboration between the Travel Foundation and several institutions, including Breda University of Applied Sciences and the European Tourism Futures Institute.

50%-80% of tourist spend “leaks” from destinations

In light of this summer’s protests in popular tourism destinations, the report examines how tourism often fails to benefit local communities and can exacerbate inequalities. It notes that tourism revenue is frequently concentrated in the hands of a few, with 50 percent to 80 percent of tourist spending “leaking” from the destination, providing little or no benefit locally.

Key recommendations:

– Prioritize local needs: Destination management should focus on local community needs, identifying which groups benefit from tourism and which bear its burdens.
– Address equity issues: Simply increasing tourism or attracting high-spending visitors does not guarantee equity and may worsen existing disparities.
– Broader community value: Destination managers should recognize tourism’s potential to contribute to broader community goals, such as urban regeneration and public infrastructure development.

Photo source: Travel Foundation

According to the report. tourism has significant potential to drive societal change, and DMOs are increasingly acknowledging their role in supporting community objectives.

The report features 25 case studies demonstrating how tourism has positively impacted local entrepreneurship and community well-being.

Among the 40 mechanisms proposed are:

– Taxes and revenue-sharing initiatives
– Business incubation and training programs
– Community enterprises and volunteering programs
– Product development integrating local culture and environmental protection

“This report is essentially a roadmap for a more equity-driven management approach,” said Bernadett Papp, the report’s lead author, adding that it emphasizes identifying community goals, reviewing evidence-based mechanisms, and considering practical guidance for implementation.”

“Implementing these mechanisms will require destination managers to strengthen partnerships with local agencies and embrace a participatory approach with community groups. Policymakers and DMOs should also pay particular attention to balancing foreign investment and economic leakage, resident access to tourism-related opportunities and services, and retaining control of local resources such as land and housing.”

The report concludes that a more equitable tourism system can only come by strengthening the hand of destination governance, underpinned by a mandate to serve the whole community.

Photo source: Travel Foundation

The report is available for free here, and a launch webinar will be held on Wednesday, October 23.

The Travel Foundation is a leading global NGO and charity that works in partnership with governments, businesses, and communities to develop and manage tourism in a way that maximizes the benefits for communities and the environment. Founded in 2003, it has worked in over 30 countries around the world.