Tourism is one of the most powerful economic forces in the world. By 2025, it is projected to be worth $10 trillion and account for more than 10% of global GDP. But size alone does not guarantee success for destinations. The real question is not how big the tourism “pie” is, but how it is shared.
In our latest Impact Insights Bites video, Caroline Bremner, our Data Insights Specialist, is joined by Rebecca Armstrong, our Head of Impact, to explore what equity really means in a tourism context and why it matters more than ever.
How much visitor spend reaches local businesses and communities?
As Caroline highlights in the discussion, the benefits of tourism are not automatically shared. In some emerging markets, economic leakage can be as high as 50–80%. That means the majority of visitor spending never reaches local businesses, workers or communities. In Jamaica, for example, only around 40 cents of every tourism dollar is estimated to remain in the country. Even destinations generating billions in revenue are grappling with how to “plug the leakages” by strengthening local supply chains and connections between tourism and other sectors, such as agriculture.
What does an equitable destination look like in practice?
As Rebecca explains, equity goes beyond income. It includes ensuring that
- local businesses and people have a fair share of tourism opportunities
- natural resources are managed so communities are not left bearing the environmental costs
- residents can access public spaces and amenities
- and that all cultures and communities are fairly represented in how a destination tells its story.
Tourism has enormous potential. One in ten jobs globally are in tourism, more than 80% of tourism businesses are SMEs, and around 40% of the workforce are women. With the right mechanisms in place, tourism can support genuinely inclusive local economies. But this does not happen by default – it requires deliberate choices.
Creating equitable destinations
Our Creating Equitable Destinations report sets out around 40 practical mechanisms already being used around the world to strike a healthier balance. These range from revenue-sharing models and licensing policies to SME support, business incubation and strengthening local supply chains. The report includes 25 case studies that show how destinations are taking action to grow tourism in ways that also distribute its benefits more fairly.
This work also connects directly to our wider Where Next? agenda, which calls for a fair deal for communities to become a consistent expectation in tourism planning and invest.
Watch the full video below to hear the conversation in full and explore the report to see how your destination can move from intention to action.
Alongside this, our Impact Insights offer with Caroline Bremner provides expert, data-led analysis on global travel trends, risk and resilience. Through tailored briefings and strategic insight, Caroline supports destinations and businesses to understand the forces shaping tourism and respond with confidence.
If retaining more value locally is on your agenda, get in touch: [email protected]
