 Tourism
can usher the poor smiling all the way to the bank
By Elisha Mayallah
As the United Nations has pointed out - the
paradox is that despite the successes of economic development – more than 1
billion people still live on less than one US dollar income per day and almost 3
billion live on less than two US dollars income.
Poverty has commonly been identified using
income or consumption criteria, but more recently the emphasis has shifted. To
some people the argument here is that poor people highlight lack of income, low
levels of access to health, education, basic needs, and a sense of
powerlessness, insecurity and vulnerability.
Tourism is a major international industry and
there are many ways in which it can help meet the challenge of reducing the
number of people living in poverty.
Tourism can contribute to poverty reduction in
several ways. Economic benefits are generally the most important element, though
there can be social, environmental, cultural benefits and costs.
Tourism is already one of the most important
sources of foreign exchange earning and job creation in many poor and developing
countries. The World Tourism Organization (WTO) is convinced that the power of
tourism – one of the most dynamic economic activities in the globalization era
– can be more effectively harnessed to address the problems of poverty more
directly.
Poverty reduction impacts are part of the
assessment of sustainability, and one of the cornerstones of sustainability is
the well-being of poor countries and their environment.
Tourism creates important opportunities to
diversify the local economy. It can often be developed in poor and marginal
areas with few other export and diversification choices.
Tourists are often attracted to remote areas
because of their high cultural, wildlife, heritage, and tourism presents
opportunities to capitalize on those assets.
One of the best ways to increase economic
benefits to the local community and to increase the contribution of poverty
reduction is to increase the extent of linkages between the formal tourism
sectors (hotels, lodges, restaurants, tour operators and transport providers)
and the local economy.
When the tourism industry purchases more from
the domestic market, it strengthens the local industry and provides extra
revenue. Similarly, tourism reduces foreign exchange leakages from the tourism
industry, reducing importation.
Tourism leakages generally are defined as the
amounts subtracted from tourist expenses for taxes, repatriated profits, wages
paid outside the country, and imported goods and services.
Tourism also contributes to poverty reduction
by creating many jobs, which benefit the poor.
Being a much more diverse industry than many
others, it can build on a wide resource base. Diversity increases the scope for
wide participation, and for the informal sector through livelihood
diversification. The greater the proportion of total tourism spending in a
particular area, the stronger and more diverse the local economic base.
Tax revenue from tourism is also an important
economic benefit at national and local level. Taxes can provide the much-needed
financial resources for infrastructure development, improvement of services and
public facilities, tourism marketing and training needed for developing tourism
as well as help finance poverty reduction programmes by the Government.
In summary, tourism development, in many Least
Developed Countries (LDC’s), can be an avenue to increase participation in the
global economy, reduce poverty and achieve socio-economic progress. In other
words, tourism, therefore, should be assessed objectively against other
opportunities for pro-poor economic growth.
E-mail contact: ermayallah@yahoo.com
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