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:
“To say that a man is vain means merely that he is pleased with the effect he produces on other people. A conceited man is satisfied with the effect he produces on himself.”
—Max Beerbohm (1872–1956)
“The cities of the world are concentric, isomorphic, synchronic. Only one exists and you are always in the same one. It’s the effect of their permanent revolution, their intense circulation, their instantaneous magnetism.”
—Jean Baudrillard (b. 1929)
“Before the effect one believes in different causes than one does after the effect.”
—Friedrich Nietzsche (1844–1900)