6 ways to Minimize Tourism Leakage Through the Circular Economy: A Win-Win for Travel Companies and Destinations
Tourism is a powerful force that brings economic opportunities and cultural exchange to destinations around the world. However, a concerning issue arises when a substantial portion of the revenue generated by tourism does not remain within the local economy. This phenomenon, known as “tourism leakage,” can hinder the positive impact of tourism on local communities and the environment. To address this challenge, travel companies can play a pivotal role by embracing circular economy practices. In this blog post, we will explore the concept of tourism leakage, delve into the principles of the circular economy, and discuss actionable steps that travel companies can take to minimize tourism leakage and promote sustainable travel experiences.
Understanding Tourism Leakage
Tourism leakage occurs when a significant portion of the money spent by tourists leaves the destination’s economy and flows to external entities. Such leakage happens due to various reasons, including; the importation of goods and services, international ownership of businesses, and the repatriation of profits. As a result, local communities might not fully benefit from the economic gains brought by tourism, limiting their opportunities for development and growth.
Withlocals actually developed to empower more locals to be able to advertise their own cultural experiences to global travelers as freelancers. Although Withlocals is owned & run internationally (operating worldwide), we ask ourselves if these locals would have access to such opportunities without our advertising and promoting them. However, because empowering locals is our top priority, we do not require any exclusivity from hosts, meaning they can work with other companies and platforms as they please, or run their own business as well.
The Circular Economy and Its Role in Sustainable Tourism
The circular economy is an innovative economic model that emphasizes resource efficiency, waste reduction, and sustainable practices. At its core, the circular economy aims to minimize the linear “take, make, dispose” pattern and promote a closed-loop system where products, materials, and resources are continuously reused, refurbished, and recycled. This holistic approach aligns seamlessly with the principles of sustainable tourism, making it an ideal solution to address tourism leakage.
6 Steps for Travel Companies to Minimize Tourism Leakage
- Support Local Suppliers: Travel companies can contribute to the local economy by sourcing goods and services from local suppliers.
Withlocals works hard to include many local suppliers in our experiences to empower not only our hosts but also local businesses and communities. In fact, in 2022 around €8 million went to the local economies we run in.
2. Encouraging tourists to buy locally-made products and engage in authentic cultural experiences helps keep revenue within the destination.
Withlocals offers training to our local hosts in alignment with the UN Sustainable Development Goals which teaches hosts about the importance of promoting local goods.
3. Implement Waste Reduction Strategies: Embrace waste reduction practices by promoting reusable products, encouraging proper waste disposal, and minimizing single-use items. Engage tourists in responsible consumption and help them understand the impact of their choices on the local environment.
Withlocals has a waste reduction office policy, as well as guidelines for the home office and training for hosts on experiences. We also encourage guests to bring their own water bottles on tours and demote hand-outs of plastic water bottles.
4. Adopt Circular Business Models: Consider offering “Product as a Service” options, such as equipment rental or product leasing, to extend the lifespan of items and reduce waste generation. By retaining ownership and responsibility for products, travel companies can ensure proper recycling and refurbishment.
Withlocals lives and breaths this, being in the experience economy and understanding the value of connection and cultural exchange above material goods.
5. Foster Collaboration and Partnerships: Collaborate with local governments, businesses, and non-profit organizations to develop sustainable tourism initiatives. Engaging all stakeholders fosters a shared sense of responsibility and increases the collective impact of circular economy practices.
Withlocals has been making more sustainable partnerships & relationships over the last years including; B-Corp, Tourism Declares a Climate Emergency & Planeterra.
6. Develop Responsible Tourist Experiences: Curate tourist experiences that promote sustainable practices, such as eco-tours that respect wildlife habitats, support community-based initiatives, and highlight sustainable food and farming practices.
Withlocals does its best to reduce any negative impact of tours, in 2022 only 4.5% of our experiences offered were done with private transportation. We also have policies in place that protect animals.
Conclusion
Tourism is a force for positive change when managed responsibly and sustainably. By acknowledging the issue of tourism leakage and embracing circular economy practices, travel companies can make a meaningful impact on the destinations they serve. Minimizing tourism leakage not only empowers local economies but also preserves natural resources and cultural heritage for future generations. Want to find out about Withlocals impacts? Check out our 22’ impact report here.
