Leak rate

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The leakage effect (Engl. Leakage ) is a model of tourism research to explain the backflow of foreign exchange earnings from tourism in foreign countries. This occurs through the import of goods required for tourists (such as food and beverages) or through commissioning foreign service providers (transport, construction contracts). The more differentiated the economic structure of the target country, the greater the possibility of self-sufficiency for consumer goods and services and the lower the seepage rate.

The seepage rate can arise in two ways:

  • Through import : When the tourist demand demands standards that cannot be met by the host country. In less developed countries in particular, food and drinks are often imported - either because local products do not meet the expected standards or because the products are not produced locally. As a result, parts of the income generated by tourism are used to import the goods in demand. According to UNCTAD , the import-based seepage rate for most developing countries is between 40% and 50% of gross revenues, while for developed and diversified countries it is between 10% and 20%.
  • Through export : Multinational corporations and large foreign companies can have a high share of the seepage rate. Especially in new, as yet undeveloped destinations, they are often the only ones with the necessary capital to finance tourist infrastructures. This creates a seepage rate through export, since the companies "take" the profits back to the country of origin.

Another variant arises from changes in consumption patterns due to increased income from tourism. As a result, local demand, also stimulated by the "role model" of tourists, can change in favor of imported products and thus further increase the seepage rate.

Even if profit outflows can reduce the income from tourism, tourism shows relatively favorable net foreign exchange effects compared to other export productions, since one tries to fall back on local resources wherever possible.

See also

Individual evidence

  1. ^ UNEP , Economic impacts of Tourism
  2. ^ Vorlaufer, Karl: Tourism in developing countries , Darmstadt, 1996