This document discusses enclave tourism and the concept of leakage in tourism. It provides the following key points: 1) Enclave tourism, like all-inclusive resorts, is characterized by high levels of leakage as tourists rarely interact with local communities beyond resort staff. Most spending goes to international companies rather than local businesses. 2) Leakage occurs through import leakage when resorts import goods to meet tourist demands, and export leakage when profits are repatriated overseas by foreign investors. This can result in up to 80% of tourist spending leaving the local economy. 3) Reducing leakage and maximizing local economic benefits requires strategies like regulating foreign ownership, supporting small local businesses, and reinvesting

1. UNIT ONE
Travel and Tourism Sector
Balwant Dhaliwal

6. Enclave tourism
• Sandals Resorts and Club Med villages are typical
examples. The enclaves can be defined as political
geography, as pieces of land totally surrounded by a
foreign territory, like West Berlin from 1949 to 1990.
• According to Lomine & Edmunds (2007), enclave
tourism is characterised by a high level of leakage –
with few interactions between tourists and locals
(with the exception of low-paid resort staff (
• Tourists hardly ever leave the resort, except for pre-
organised excursions.

7. Can in your groups consider the
advantages to enclave tourism?
• High investment in small projects focuses specifically on
traveller demand
• Use the profile of a resort as a strong marketing tool
• Creates employment of local people
• Can also limit potential environmental damage, cultural
erosion or political influence

8. Can you consider the disadvantages of
enclave tourism?
• Economic dependence on foreign businesses
• High levels of leakage
• Seasonality of employment
• Local goods and services not readily used and are limited
to pockets of business
• Tourists experience of the region may be inaccurate

9. Leakage defined.
•The direct income for an area is the
amount of tourist expenditure that remains
locally after taxes, profits, and wages are
paid outside the area and after imports are
purchased; these subtracted amounts
are called leakage.

10. Negative economic impacts - leakage
In most all-inclusive package tours, about 80%
of travellers' expenditures go to the airlines,
hotels and other international companies,
and not to local businesses or workers.

11. Negative impacts of leakage WTO
A study of tourism 'leakage' in Thailand
estimated that 70% of all money spent by
tourists ended up leaving Thailand.
Estimates for other Third World countries
range from 80% in the Caribbean to 40%
in India.

12. Leakage
• There are two main ways that leakage occurs:
Import leakage
• This commonly occurs when tourists demand
standards of equipment, food, and other
products that the host country cannot supply.

13. Leakage
• Food and drinks must often be imported, since local
products are not up to the hotel's (i.e. tourist's) standards
or the country simply doesn't have a supplying industry.

14. Export leakage
Often, especially in poor developing destinations, large
corporate companies are the only ones that possess the
necessary capital to invest in the construction of tourism
infrastructure and facilities.

15. leakage
An export leakage arises when overseas investors who
finance
the resorts and hotels take their profits back
to their country of origin.
Can you think of any examples?

45. Private Landowners.
• In developing countries, land owned by local people is
often bought up cheaply by developers.
• If local authorities are powerful enough they can prevent
this happening and ensure that local people are involved
in development.
• Where locals own the land they can make money from
tourism and stop the advent of large hotel chains

46. Bahamas.
• The government policy is to extend the economic benefits
derived from tourism and to have a hotel sector that is
private sector led.
• In the UK it is the norm for hotels to be privately owned
but in 1992 in the Bahamas 20% of hotels were
government owned.
• In the last 10 years, most of these have been privatised.
Many hotels were bought and refurbished by
international investors and developers. New hotels
have also been built and redevelopment of resorts has
taken place.

47. TO.
• Travel and tourism organisations have a part
to play in tourism development.
• Airlines and tour operators often instigate development by
introducing services and package holidays to a
destination.
• They are also represented by their industry bodies
allowing them to have a voice in government policy
decisions.
• Go to TUI and Thomas Cook Sustainable Tourism.

48. National and Regional Organisations
• The Department for Culture, Media and Sport (DCMS) set
down its strategies for tourism in
the UK.
• ✱ A blueprint for the sustainable development of tourism.
• ✱ Initiatives to widen access to tourism.
• ✱ More money for a more focused and
• aggressive overseas promotion programme.
• ✱ New Internet systems to deliver more worldwide tourist
bookings for Britain.

49. Activity.
Theory into practice
Summarise the role of the DCMS in relation to tourism
development. What evidence can you find of a commitment to
responsible tourism? Discuss with your colleagues.
www. culture.gov.uk will help you.

50. Voluntary Organisations
• Many voluntary sector organisations are charities and
pressure groups. Probably the best known in tourism is
the National Trust. There are several voluntary
organisations related to tourism development and
responsible tourism.

51. Tourism Concern Activity
• 1. Visit the Tourism Concern website and choose one
current campaign.
• 2. What is the role of Tourism Concern in this
campaign?
• What other partners are involved in the campaign?
• What sector does each of the partners belong to?
• Extension task: How do the objectives of Tourism Concern
in your chosen campaign conflict with those of
government or developers?

52. Voluntary Organisations
• English Heritage works in partnership with the central
government departments, local authorities, voluntary
bodies and the private sector to:
• ✱ Conserve and enhance the historic environment
• ✱ Broaden public access to the heritage
✱ Increase people's understanding of the past.
• Source: www.english-heritage.org.uk

56. Maximise Positive Impacts
• Retention of visitor spending
• Where tourist facilities are owned by local people, more of
the income from tourism is retained in the community.
This can be achieved in various ways:
✱ Regulation on ownership of hotels so that they cannot
be entirely foreign owned.
✱ Encouraging the development of small businesses.
✱ Encouraging partnerships between local people.

57. Widening Accessibility
• There are many examples of good practice
where the proceeds of tourism are used to bring improved
facilities and a better standard of living to local people.
• Turtle Island is a privately owned resort in Fiji. It has
Green Globe status and it has implemented projects to
aid local people.

58. Staff training and development.
• The benefits of training staff include a more satisfied staff
who are more likely to remain in their job. This leads to
lower staff turnover and costs.
• If the staff are satisfied with their work this will lead to
better customer relations and in turn customers will
be more likely to remain loyal.
• Training may take many forms from induction to specific
job training.

59. Training and employment for Host
• First Choice, the tour operator, whose sustainable policy
you noted on page 20, claim to employ local people
where possible.
• Their company, Paradise Management, in the Specialist
Holidays sector in Egypt employs 98% of its staff from the
local area.
See company sustainable policy.

60. Invest in community projects.
• Income from tourism should be reinvested in social and
public projects.
• Tourism taxes are often in place for such purposes

61. Minimise negative impacts
• Visitor and traffic management
• It should not always be assumed that the
objective of tourism is to maximise visitors.
• Where resources and space are limited then the aim is
to manage visitors and prevent negative impacts which
occur through erosion of paths, buildings and over-
development.
• Can you think of any examples?
• . Examples of such visitor management occur in many
historic towns and at historic sites such as Stonehenge

62. Planning control
• How many tourists are too many?
• Some small islands in the Mediterranean have begun to
try and reduce tourist numbers in order to minimise the
negative effects of tourism.
• Visitor management is needed to stop locations being
flooded with tourists. Carrying capacity.
• In Majorca tourism has become the most important
source of revenue to the economy. Parts of the island
became over developed due to mass tourism.
• Eventually action had to be taken to try and reverse the
decline in the island’s image as a cheap destination for
low spending, heavy drinking tourists.

63. Activity
• Choose a UK tour operator and find out what they are
doing to encourage responsible tourism.
• Find out if they have a sustainable tourism
policy and how it is implemented.
• Find out how they communicate the policy to customers
and encourage customers to practice responsible tourism.
• Present your findings to your group.

64. Investigate…Homework.
• The Brundtland Report 1987
• The Commons Of Tragedy
• Agenda 21