TOURISM AND DEVELOPMENT
Why develop tourism in low-income countries?
Charting a path of sustainable development Despite challenges, tourism remains a highly attractive development option for many LICs for several key reasons.
Limited alternatives: Many LICs lack the capital,
Bhutan uses tourism as a development tool while enforcing strict sustainability measures.
infrastructure or natural resources to develop large-scale manufacturing or extractive industries. Tourism, especially nature-based or cultural options, can generate income with relatively low initial investment. Foreign exchange and job creation: Tourism is often one of the fastest ways to earn foreign currency and create jobs, especially for women and youth. In many cases, it provides employment in areas where few alternatives exist. Leverage of natural and cultural assets: Many LICs, MICs and SIDS possess unique attractions – pristine beaches, biodiversity and rich cultural traditions – that are difficult for other countries to replicate. Tourism allows them to monetize these assets without depleting them, at least in theory.
Do the disadvantages outweigh the advantages?
Is tourism really beneficial?
Not necessarily – but it depends on how tourism is managed. The disadvantages of tourism, such as environmental degradation, economic leakage and cultural disruption tend to occur when tourism is: • Poorly planned (e.g., lack of zoning or environmental protection). • Overly relied on (with little economic diversification or spillovers). • Dominated by foreign entities (limiting local benefits and increasing leakage). • Not community-inclusive (excluding locals from decision-making or profit sharing). In contrast, well-managed, community- based and sustainable tourism can generate net positive outcomes, especially if profits are reinvested in local infrastructure, education and environmental protection.
Tourism can be genuinely beneficial, but it is not a silver bullet to the development challenges that many LICs face. It must offer many, often competing, benefits in sometimes complex settings amid a backdrop of entrenched poverty, joblessness and deprivation. For this tourism has to be: • Strategically developed to ensure long-term resilience and benefit- sharing. • Complemented by other sectors (like agriculture, education and manufacturing) to avoid over- dependence. • Monitored for sustainability, including caps on tourist numbers and robust environmental regulations. For example, countries like Costa Rica and Bhutan have used tourism as a development tool while enforcing strict sustainability measures. On the other hand, overtourism in places like Thailand or Bali has highlighted the dangers of unchecked growth. The bottom line is: Tourism in low-income countries is a double- edged sword. It can drive growth and opportunity – or exacerbate inequality and environmental harm. Its success depends, unsurprisingly, on how it is planned, managed and integrated into a broader development strategy.
Investment in infrastructure: A potential benefit of tourism
Development catalyst: Tourism can trigger broader economic activity, encouraging investment in infrastructure, small businesses and even governance reforms when tourism becomes a national priority.
Sustainable tourism in Costa Rica
Photo: Galyna Andrushko/Shutterstock
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