Here’s another fun fact about economics: “Tourism Leakage” is a term that describes the phenomenon where a significant portion of the revenue generated from tourism in a region does not remain in the local economy but instead “leaks” out to foreign investors, international companies, and overseas suppliers. In many Pacific Island countries, tourism is a major source of income, but a large share of the profits can end up abroad, particularly when hotels, airlines, and tour operators are foreign-owned. This reduces the positive economic impact of tourism on the local communities and highlights the importance of developing local tourism businesses to retain more benefits within the region.
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Image credit: Dennis Tolkach
Lytton Advisory 