Ace Your AICE Travel & Tourism Test 2026 – Embark on Your Adventure to Success!

The term "tourist leakage" specifically refers to the situation where tourism revenue primarily benefits outside entities rather than the local economy. This can occur when large international hotel chains, tour operators, or other tourism-related businesses take a significant portion of the money generated from tourism away from the destination. For example, if tourists stay in hotels owned by foreign companies, or if their tours are operated by entities that do not hire locally or source goods and services from the local community, much of the income generated does not contribute to the local economy. This phenomenon can hinder the economic development of the area, as the expected benefits of tourism do not reach the local population or support local businesses. Understanding this concept is crucial for effective tourism management and ensuring that local communities receive the economic benefits that come from tourism activities.