Paradise Lost: Effects of Tourism on Poor Populations of Small, Developing Tropical Nations

Abstract

By some measures tourism is the largest industry in the world, and many small developing nations are economically dependent upon revenue generated by international tourism. Literature on tourism is varied and extensive, but the distribution of gains from tourism within developing countries in understudied. Research has shown that tourism development exacerbates income inequality, leads to foreign exchange leakage and perpetuates cultural subjugation which draws parallels to the colonial era. This paper traces the development of tourism in small, developing tropical states through the lens of comparative politics, and investigates the circumstances which lead to various outcomes for the poor in these countries. It therefore argues that tourism can be a source of inclusive, poverty-alleviating economic growth, but achieving such development is contingent upon several key decisions made by the state, which must manage the influence of multilateral organizations and multinational corporations.