OPEC Fund Quarterly - 2025 Q2

TOURISM AND DEVELOPMENT

Tourism in the Global South: A comparative look at contrasting approaches to tourism outcomes – both countries are in the same income bracket,

Phuket, Thailand – The costs of overtourism

Country context: Thailand is a lower-middle-income country. Phuket is one of its most

Outcomes: Tourism generates a large share of Thailand’s economy, supporting jobs and infrastructure. However, negative impacts include: • Environmental degradation (coral reef damage, water scarcity, plastic pollution). • Traffic congestion and overburdened infrastructure. • Loss of cultural authenticity and local resentment in some communities. • Economic leakage – significant profits flow to foreign investors and large hotel chains. Key lessons: • Rapid, unregulated tourism growth can harm both the environment and local communities.

popular tourist destinations, drawing millions annually.

Tourism strategy: • Focused on mass tourism

targeting international travelers, especially from Australia, China and Europe. • Rapid, large-scale development of hotels, resorts and nightlife infrastructure. • Weak enforcement of zoning laws and environmental protections.

• Overtourism can reduce quality of life for residents and damage the tourist experience. • Economic gains are often unevenly distributed, exacerbating inequality.

Photo: Gill_figueroa /Shutterstock

Phuket: A cautionary example of what happens when economic gains are prioritized over sustainability and local well-being.

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