Holiday pay

Did you know that when you travel in a developing country, as little as $5 out of every $100 you spend might stay in the local economy?

That’s the depressing estimate of the United Nations Environment Programme, which says about 80 per cent of expenditure on all-inclusive holiday packages goes to airlines, hotels and other international companies, with further ‘‘leakage’’ occurring along the way.

The Canadian founder of adventure-tour operator G Adventures, Bruce Poon Tip, calls for a different way of thinking about travel and how it is packaged and sold. The huge growth in all-inclusive holidays, cruising and discount packages is robbing developing countries of tourism benefits.

Travellers are increasingly staying in resorts where they never leave the compound or sailing in and out of destinations on Westernbubble cruise ships, leaving little money in the hands of the locals.

‘‘We’ve got to move away from juggernaut holding companies making money for their shareholders. They’re constantly trying to find cheaper ways to operate so they can offer better deals,’’ Poon Tip says. ‘‘The consumer has been conditioned to bargain hunting and going for the best price point, but they’re not aware they’re squeezing any kind of benefit from the local community.’’

Poon Tip says travellers need to be better educated about the type of holiday they are booking and where their money goes. ‘‘Go online and do a bit of research,’’ he says.

‘‘Who owns the companies? Where is the money going?’’

Poon Tip says consumers should also be suspicious of heavily discounted deals such as two-for-one offers, as companies can only offer such deals by squeezing those down the line. ‘‘If it’s done properly, tourism can be one of the greatest forms of wealth distribution the world has ever seen.’’

Poon Tip is particularly scathing about cruising, saying it is the ‘‘most unsustainable model’’ of tourism, with cruisers spending little money away from the ship. About 60 per cent of money travellers spend with his company stays in local communities, he says.

The company hires and trains local guides, only uses locally owned and family-run hotels and avoids using middlemen who take a share. ‘‘We pay fair prices for all services and salaries and pay in hand, direct to the operators and staff,’’ he says.

‘‘We have to stay competitive and we do get good deals on volume business, but we’re pretty adamant about making sure we’re actively benefiting local communities.’’

Poon Tip likens his vision for tourism to organic food, which was once unregulated and treated with cynicism, but is now a regular part of many people’s diet. He hopes responsible tourism choices will gain greater understanding and acceptance, so money can go where it is most needed.

Fairfax NZ

In command: G Adventures chief Bruce Poon Tip.