Leakage effect
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The leakage effect[1] is a concept within the study tourism. The term refers to the way in which revenue created through tourism in LEDCs (Less Economically Developed Countries) can 'leak' back to richer countries. Examples of the way this leakeage can occur is through the money paid to tour operators especially in all-inclusive holidays.
[edit] Example
"A study of tourism 'leakage' in Thailand estimated that 70% of all money spent by tourists ended up leaving Thailand (via foreign-owned tour operators, airlines, hotels, imported drinks and food, etc.). Estimates for other Third World countries range from 80% in the Caribbean to 40% in India" ,[1].
[edit] References
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