The direct income for an area is the amount
of tourist expenditure that remains within its borders.
Very often, this is a relatively small amount due to
"leakage" - the amount of money that
is drained out of an area due to tax payments, profits
and wages paid outside the area and expenditure for
imports. When tourists demand standards of equipment,
food and other products that the host country cannot
supply. In most all-inclusive package tours, about 80%
of travellers' expenditures are leakage. They go to
the airlines, international companies (who often have
their headquarters in the travellers' home countries)
and not to local businesses or workers.
Local businesses often see their
chances to earn income from tourists severely reduced
by the creation of "all-inclusive" vacation
packages. When tourists remain at the same cruise ship
or resort for their entire stay, which provides everything
they need and where they will make all their expenditures.This
means that there is not much opportunity left for the
local people to profit from tourism.’ All-inclusive
import more and employ fewer people per dollar of revenue
than other hotels (Source: Tourism Concern).
the Bagicz area development plan sustainable?
The town of Bagicez is located on the sea shore 5 km
from Kolobrzeg (Poland).
In December 1992 the local community Ustronie Morskie
took over 200 hectares of former military airport from
the treasury. The local council decided to open this
area to recreational-tourist investment.
It created in 1995 a corporation of Finnish, German
and Polish shareholders. The idea was to combine the
potential of partners from many domains: architecture,
planning, gastronomy, consulting, marketing, law, etc.
Even though the idea was good and developing tourism
would in principle be of benefit for the community.
Instead of deciding on the Spatial Development Plan
of 1997 was not based on sound environmental and physical
planning principles nor economical feasibility.
It included instead the development of
the following infrastructures:
- International airport with an area
of 85,58 hectares adopted for planes with wingspan
of 24 meters.
- Landing field for helicopters, place
for private "air taxies", magazines, service
stations, gas stations, administration and technical
- Hotel and harbour complex.
- Aqua park and swimming pool complex
with sea water, therapeutic basins and hotel for 300
In 2002, the Ustronie Morskie council
singed an agreement with the Danish company "Baltic
Centre Poland". Within six years the plan should
be carried out, with a cost of 350 million EURO.
Questions and answers:
1. What are the risks of this project?
In 2004 the works still have not started and experience
shows that many of these oversized development projects
never come to live. With a smaller investment, small
scale tourism could already be improved for the benefit
of the local community. Promoting sustainable forms
of tourism is more cost-effective and the positive economical
results to local inhabitants are higher.
2. In the case the Centre is constructed,
employment will be generated (positive) but the "direct
income" for the area (tourist expenditure) will
be minimum because the benefits will remain with the
developing corporation and not with the local population.
3. The impact that these infrastructures
will have on the coastal environment would probably
be enormous and result in habitat destruction and land
degradation. In this way, not only nature is destroyed,
but also the values that would attract the visitors
and decreasing their number.
environmental management and planning and assessment
of the financial feasibility of investments and their
impact on nature (considering nature as one of the tourism
products) would result in forms of tourism that benefit
nature and the local population.
Good practice examples:
Link to Slovenia CAMP Case Study and Estonia Case Study.
character of jobs
The seasonal character of the tourism
industry creates economic problems for destinations
that are heavily dependent on it. Problems that seasonal
workers face include job (and therefore income) insecurity,
usually with no guarantee of employment from one season
to the next, difficulties in getting training, employment-related
medical benefits, recognition of their experience, unsatisfactory
housing and working conditions.