Due to the persistent downturn in tourism, destinations have learned to do more with less. In this context, reducing tourism leakage is a way to retain important resources to fuel a lasting development of the local community.
To prevent the leakage of tourism capital, DMOs should work out a plan to add businesses and other local stakeholders to the tourism value chain.
Regarding this topic, Destination Think published an article discussing some actions that destinations can take in order to reduce leakage and retain tourism revenue. Below we summarized the main points of it.
The majority of traveler’s expenditures on all-inclusive packages go to third-party companies, such as airlines and other international companies. With less all-inclusive options, travelers should turn to local providers in order to have a complete stay.
Big international hotel chains have headquarters abroad, which means that profit is drained away from the destination. On the other hand, local accommodation providers promote local culture and employ locals.
The local community is a great workforce source, services, and products that should be explored. Local producers can supply food to hotels, artisans make souvenirs and tradesman build infrastructure.
Choosing to finance sustainable tourism models is a great way to help with community growth and empower locals to offer better products and services to the tourism ecosystem.
Niche activities have greater value-added than mass tourism products, at the same time, they are offered by small local companies.
Tourism plays an important role in developing communities across the globe. If you are a DMO looking for generating more value to your destination, Orioly can help you.
Schedule a call with us and check how to develop your destination through smart tourism.
on October 8, 2020
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