How to Make Sure Your Tourism Dollars Benefit Local Communities
When your searching for a place to stay, it’s normal to notice a chain you recognize and book it – after all, these brands instill in us a sense of security in knowing what to expect and that a certain quality level will be met.
Or when choosing a dinner spot, we’re sometimes drawn to the trendy eatery with a western menu & imported ingredients over purchasing from a street food vendor.
Maybe we hire a British tour guide because we know her English will be better than the local guide who speaks with a strong accent.
These are things we often do without thinking twice when traveling. But the more seasoned I’ve become as a traveler, the more I’ve strived to practice good travel habits – and encourage others to do the same. For me, this means paying more attention to where and how I spend my money when visiting a destination. I feel immensely grateful that people are sharing their homeland with me and inviting me to witness their culture and customs – and that gift should be repaid by benefitting the local community.
This wasn’t something I always thought about – so if you are new to this, don’t sweat. The fact that you are here and reading this article says a lot. It means you are committed to trying to be a better traveler. You might not always do everything 100% right….and that’s ok. But taking small steps wherever possible, whenever possible can really go a long way in supporting the people who share their homes with us.
First off, it’s worth noting that travel can have both positive and negative impacts on a place. The three buckets I want to talk about are Economic, Cultural, and Environmental.
Learning from the BEST local guide in Bali, Panca
Economic
Tourism can have a tremendous impact on a place – creating jobs, infrastructure, and boosting education and community development (all examples of the POSITIVE impact of travel).
However, when a place starts gaining popularity as a tourist destination, it can also risk being subjected to tourism leakage.
What’s tourism leakage?
It’s the system in which the vast majority of tourism revenue leaks out of the local economy and into the pockets of big international companies.
So we’re taking up space and resources in the destination we’re visiting, but only a small percentage of it goes back into the local economy.
For example, we’ll see foreign-owned hotel brands & restaurants come in and take away business from local B&Bs & mom & pop joints. Imported goods will be brought in to cater to tourists taste buds, quality standards, etc – instead of purchasing products & ingredients locally. Foreigners may be brought in who have stronger English skills than the locals, taking potential jobs away.
Sadly, this is pretty common. And not only is the local community denied the economic benefits, but they are also having to put up with the negative side effects of tourism such as inflated prices (locals not being able to afford living in the main parts of town), increased waste (and often times mismanagement of waste), shortages of water and other resources, and just general over-crowdedness.
While there is potential for jobs to be created, these are often low paying jobs with limited room for upward mobility.
Learning to make baskets with women in Uganda
Social & Cultural
Tourism also has an impact on a place’s culture. A positive example of this would be tourism preserving heritage due to an increased interest and awareness brought about by tourism. For example, taking a tour that supports a traditional practice or business that might die out if people weren’t seeking it out – such as taking a class in basket weaving or learning about traditional herbal medicines. In this way, tourism is actually helping these traditions stay alive for generations to understand and experience.
Another positive aspect of tourism would be exposure to a more diverse array of people from all over the world - creating a more cultured population and encouraging the learning of English (opening up the doors for more job opportunities).
There are many tour companies out there that also serve as social enterprises – employing locals and maximizing benefits to their community & environment.
For example, when I was in Sapa, Vietnam, I did a 2 day trek with a company called Sapa Sisters – a company that was fully female owned & operated that employed ethnic minority Hmong women (who traditionally face greater levels of poverty and access to opportunities). They also are dedicated to paying fair wages to their guides (some of the best paid in Sapa), provide professional training, paid parental leave, access to healthcare, and more.
It was far from the cheapest company I found, but I liked their mission and commitment to the community. It made me feel good to spend my money with a company that aligned with my own values.
But on the negative end of the cultural spectrum, you might find something like a lack of tourism re-distribution. And what I mean by this is when a local restaurant becomes such a hot spot for tourists, that it’s monopolizing all the tourism dollars – instead of allowing the money to be spent all over town at various restaurants. Not to mention, the locals can’t even eat there anymore because food prices have become so jacked up and it’s impossible to get a table.
As local people learn English and become accustomed to interacting with tourists, there is a risk of losing native customs, traditions and languages. Or we even see people engage in criminal activities to scam money from tourists - raising crime rates and encouraging anti-social activities that go against moral and religious values.
Exploring nature in Uganda
Environmental
Like the other categories, there can be positive impacts of tourism on the environment as well. An example of this would be bringing greater awareness and education to the masses on how to protect nature. Or spending money to preserve facilities, monuments and landscapes.
However, there are obviously a lot of negative impacts as well. With tourism comes things like emission of greenhouse gases and waste generation (hotels catering to tourists serving big western portions) – which are pretty much impossible to avoid. Water, energy and other resources often face shortages as well. Often times environmental regulations are weak at best and frequently poorly enforced. Not to mention overcrowding, poor sanitation, traffic congestion, and more.
As tourism grows, land can be cleared and trees cut down to make room for hotels, restaurants, and other resources – changing the natural landscape and upsetting ecosystems that have been in place for centuries. Wildlife and breeding patterns can become disrupted, and areas can become more prone to flooding and storm damage.
As a city makes room for these new visitors, local and indigenous people are often displaced and pushed further and further away from the city center and the place they call home – as the best real estate transfers from locals’ hands to foreign developers.
So what can YOU do to make a difference? Well I’m glad you asked!
1. Stay in locally owned guesthouses and hotels
I don’t know about you, but the largest part of my travel budget is usually accommodations. That’s why it’s important to make sure you put that money to good use and that it’s benefitting the community in some way. I will often check the ‘About’ section on hotels websites to see if the hotel is locally owned (if you scroll to the bottom of the website you can often find out if it’s a part of a big hotel brand as well).
I know it can be more challenging to choose a locally owned hotel if you’re trying to use reward points (those tend to be a lot of chains), but if you HAVE to stay at a chain hotel – at least make sure they are hiring within the local community and employing good sustainability practices to lessen the negative effects on the environment and community. Reach out to the hotel to ask if you aren’t sure!
2. Eat at local restaurants
Food really is one of the BEST ways to experience a place. When you can have curry in India or mie goreng in Malaysia - why on earth would you ever go to a pizza place!? I have a rule when traveling - eat the local food as much as possible. Before I leave on a trip, I will research the national dishes and make a list of everything I want to try. I almost always do a food tour when I’m in a destination as well.
You have to eat each day and a great way to make sure you support the local community is by choosing restaurants that are locally owed (or being brave and ordering street food!) This is the best way to ensure that ingredients are sourced locally. Big western restaurants often import foods to cater to tourists taste buds….which doesn’t help the local community at all.
3. Hire locals to be your guide
A great way to make sure the community benefits from your visit to their country is by hiring a local as your guide. Not only are you helping a local put food on their table and support their family, but you’re also getting a more authentic look into the people and culture of a place. There is no better way to experience a place than thru the eyes of someone who lives there.
The people you meet has always been one of my favorite parts of travel….and I’ve never just meant other travelers. Engaging with locals can be an incredibly enriching and eye-opening experience. Plus it’s the best way to get insider tips on a destination – from where to get the best bahn mi to how to avoid getting scammed on rug prices.
4. Search ‘Minority Owned’ businesses
Now that sustainability and shop local have become trendy terms, companies are building these keywords into their marketing – making it harder to find small locally owned businesses that could really use your support. A way around this is to search for ‘Minority Owned’ or ‘Female Owned’ which are less used terms.
5. Talk to locals: find out where they eat, stay, shop
There’s no better way to get immersed in a place than to talk to locals and figure out where THEY spend their time, where they eat, where they shop, etc. They are the experts on their hometown and going to be a better resources than any Lonely Planet book (no If you are looking to uncover the REAL side of a destination, this is key.
6. Buy local products as souvenirs
It’s super common to find cheap souvenirs that seem like a great idea (but they are really made in China lol). I recommend looking up what is made locally and try to find stuff that is tied to the economy. Plus this is going to make the purchase a lot more special in the long run if there’s a particular significance to the country. For example, buying a hand woven basket in Uganda or a rug in Turkey can be a lovely way to add a spot of color to your living room.
6. Make sure to unavoidable off-set ‘bad’ practices
I totally get that when you’re traveling with your family it can sometimes be harder to push for the locally owned bed and breakfast. Often times this means traveling with people who aren’t seasoned pros, or old and young people who need certain amenities. If you have to stay at a chain, contact the hotel to see about their hiring practices (do they employ local people, provide valuable training, etc), how do they support the local community (do they make charitable donations, etc), do they practice sustainability, etc.
If you have to do touristy things because family members are pushing for them, make sure you employ a local guide to show you around and go early to avoid hoards of tourists.
7. Be wary of greenwashing
What is greenwashing you ask? It’s a marketing ploy that companies will use to make their products appear more environmentally friendly. For example, a company might label itself an elephant sanctuary - but at the same time have the animals perform in “talent shows” or have elephant riding. Or a company might say they use biodegradable plastic bags - which to a consumer may feel like a great thing for the planet, but in reality these types of products take up a lot of energy and resources to make and are still SINGLE USE. So really not very helpful at the end of the day. Often times companies aren’t even doing this maliciously, it’s simply a lack of deep understanding and education on the topic.