Theory: Tourism Impacts and Challenges

Tourism Development Challenges for Small Island Developing States Part 2

Higher exposure to external shocks

Area businesses and the destination overall need to be able to achieve and sustain the tourism economy, including securing investment and attracting visitors. For example, in general SIDS experienced a decline in tourism income in response to the 2008-2009 economic crisis.

Economic Competitiveness

Achieving a successful tourism economy is linked to the destination’s ability to manage supply and demand factors, including business activity, policy response, securing investment and attracting visitors. One example of a SIDS competition is the ease of doing business.

Local Prosperity and Poverty Alleviation

Retaining income from tourism in the local economy and creating quality employment allow the opportunity for equally distributing these economic benefits to poorer groups of society. Reviewing the tourism value chain to assess income flows and the percentage that reaches poor communities helps to identify areas that need intervention.