Effect
As a result of the leakage effect, tourism industries in developed countries often are much more profitable per dollar received than tourism in smaller countries. Islands, in particular, suffer from significant leakage. In countries such as Turkey and the United Kingdom, the benefit to the economy from tourism is twice the dollar amount spent by tourists. In smaller places, such as Micronesia and Polynesia, that benefit is half the dollar amount spent. Some locations have managed to nullify the leakage effect almost entirely - New York City claims to generate seven dollars for the local economy per dollar spent by tourists. Some estimates of the degree of leakage claim only 5% of money spent on tourism remains in a developing country's economy.
Read more about this topic: Leakage Effect
Famous quotes containing the word effect:
“But that intimacy of mutual embarrassment, in which each feels that the other is feeling something, having once existed, its effect is not to be done away with.”
—George Eliot [Mary Ann (or Marian)
“Airplanes are invariably scheduled to depart at such times as 7:54, 9:21 or 11:37. This extreme specificity has the effect on the novice of instilling in him the twin beliefs that he will be arriving at 10:08, 1:43 or 4:22, and that he should get to the airport on time. These beliefs are not only erroneous but actually unhealthy.”
—Fran Lebowitz (b. 1950)
“The attention of those who frequent the camp-meetings at Eastham is said to be divided between the preaching of the Methodists and the preaching of the billows on the back side of the Cape, for they all stream over here in the course of their stay. I trust that in this case the loudest voice carries it. With what effect may we suppose the ocean to say, “My hearers!” to the multitude on the bank. On that side some John N. Maffit; on this, the Reverend Poluphloisboios Thalassa.”
—Henry David Thoreau (1817–1862)