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Why fair trade in Tourism?

The tourism industry is dominated by powerful multinational corporations based in developed countries. The impoverished communities whose environments, people and cultures are plundered to provide holidays for the wealthy never have a voice in the development of the tourism economy and, as a result, rarely benefit from it.

We know that tourism already generates $622b in trade a year, employs 220 million workers and is set to double by 2020. Yet, with the industry dominated by big multinationals and much of the profits flowing back to the developed world, the benefits of this huge industry are not going to the poorer communities that provide the cultural and environmental resources the industry depends on.

As little as 10% of the price of a holiday can remain in the local economy. (UNCTAD) From 2000 to 2005 the money flowing into Africa from tourism more than doubled from $10.5b to $21.3b yet poverty levels in Africa remain acute.

Nevertheless, tourism is increasingly being promoted as a means of addressing poverty and a development tool. It is very clear that tourism will only support local livelihoods if the inherently unfair terms of trade are addressed, local communities retain control of tourism development and a means of marketing and distribution is found that is not dominated by the international corporations based in the developed world.

A process that enables fairly traded tourism products to reach their core Northern markets, developed within a transparent and democratic decision making process, with clear development principles and the active involvement of the producers, service providers and communities can create an alternative trade in tourism which will provide healthy economies for local communities.