Managing Destinations Sustainably » Job Creation for Local People

What you'll learn this session

Study time: 30 minutes

How tourism creates jobs for local people in destinations
The different types of employment tourism generates (direct, indirect and induced)
Strategies for maximising local employment benefits
Challenges in creating quality jobs for locals
Case studies of successful local employment initiatives

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Job Creation for Local People in Tourism

Tourism is one of the world's largest industries and a powerful tool for creating jobs. When managed well, tourism can provide valuable employment opportunities for local people in destinations, helping communities thrive economically while preserving their cultural and natural resources.

Key Definitions:

Sustainable Tourism: Tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities.
Local Employment: Jobs created within the tourism sector that are filled by residents of the destination area.
Economic Leakage: When money spent by tourists leaves the local economy through imported goods, foreign ownership, or non-local staff.

Types of Tourism Employment

Tourism creates three main types of employment opportunities for local people:

💼 Direct Employment

Jobs directly in tourism businesses that serve tourists face-to-face:

Hotel and accommodation staff
Restaurant workers
Tour guides
Transport operators
Attraction staff

📋 Indirect Employment

Jobs in businesses that supply the tourism industry:

Food suppliers to hotels and restaurants
Construction workers building tourism facilities
Craftspeople making souvenirs
Laundry services for hotels
Marketing and website designers

💰 Induced Employment

Jobs created when tourism workers spend their wages in the local economy, supporting:

Local shops and markets
Healthcare services
Education
Entertainment venues
Housing construction

The Multiplier Effect

When tourists spend money in a destination, it doesn't just create direct jobs. The money circulates through the local economy, creating a multiplier effect:

How the Multiplier Effect Works

A tourist spends £100 in a local restaurant. The restaurant uses that money to:

Pay local staff (who then spend their wages locally)
Buy food from local farmers
Purchase services from local businesses

This circulation of money can multiply the original £100 spent into £250-300 of economic activity in the local area!

Challenges in Creating Quality Local Jobs

While tourism creates many jobs, there are several challenges in ensuring these jobs benefit local people:

⚠ Skills Gap

Local people may lack the specific skills, qualifications or language abilities needed for tourism jobs, especially management positions.

📅 Seasonality

Many tourism jobs are seasonal, creating unstable employment patterns and income insecurity for local workers.

💲 Economic Leakage

Foreign-owned hotels and tour operators may bring in outside workers or import goods, reducing benefits for locals.

Strategies for Maximising Local Employment

Sustainable tourism management includes several strategies to ensure local people benefit from tourism jobs:

1. Training and Education

Investing in skills development for local people is essential for sustainable tourism employment:

Hospitality training schools that teach specific tourism skills
Language courses to help locals communicate with international visitors
Business management training to help locals start tourism enterprises
Apprenticeship programmes that combine work and learning

2. Local Ownership Policies

Encouraging local ownership of tourism businesses helps keep profits in the community:

Micro-loans for local entrepreneurs to start tourism businesses
Requirements for foreign investors to partner with local businesses
Community-owned tourism enterprises where profits benefit the whole community
Cooperatives where local people pool resources to run tourism ventures

3. Local Supply Chain Development

Creating strong connections between tourism businesses and local suppliers:

Farm-to-table programmes linking local farmers with hotels and restaurants
Craft markets where local artisans can sell directly to tourists
Local guide associations that ensure tourists use local expertise
Policies requiring hotels to purchase a percentage of goods locally

Case Study: Eco-tourism in Costa Rica

Costa Rica has become a world leader in eco-tourism that creates quality jobs for locals:

Local guides are trained in ecology and conservation
Many eco-lodges are owned by local families or communities
25% of the country is protected as national parks, creating jobs in conservation
Local farmers supply organic food to eco-lodges
Certification programmes ensure businesses follow sustainable practices

Result: Tourism employs over 150,000 Costa Ricans directly (about 6.6% of jobs) and supports thousands more indirectly while protecting the environment.

Measuring Success in Local Employment

How do we know if tourism is creating good jobs for local people? Sustainable destinations track several indicators:

Local employment rate: Percentage of tourism jobs filled by local residents
Wage levels: Whether tourism jobs pay fair wages compared to local cost of living
Job quality: Full-time vs. part-time, year-round vs. seasonal
Career progression: Opportunities for locals to advance to management positions
Gender balance: Equal opportunities for men and women in tourism jobs
Economic leakage rate: Percentage of tourism spending that stays in the local economy

Case Study: Community-Based Tourism in Kenya's Maasai Mara

The Maasai people in Kenya have developed community-based tourism initiatives that create local jobs while preserving their traditional culture:

Maasai-owned and operated eco-camps and lodges
Cultural tours led by Maasai guides sharing authentic traditions
Craft cooperatives where Maasai women sell traditional beadwork
Conservation fees that fund community projects and schools

These initiatives provide income for communities that previously had few economic opportunities, while allowing them to maintain their traditional lifestyle and protect wildlife.

The Future of Local Employment in Tourism

As tourism evolves, new opportunities are emerging for local employment:

💻 Digital Tourism

Local people can now connect directly with tourists through:

Online platforms for home stays and local experiences
Social media marketing of local businesses
Virtual tour guiding
Digital marketplaces for local crafts

🌾 Sustainable Tourism

Growing demand for sustainable travel creates new local jobs in:

Renewable energy for tourism facilities
Organic farming for tourism food supply
Conservation and wildlife protection
Traditional building techniques for eco-lodges

Summary: Keys to Sustainable Local Employment

Creating quality jobs for local people through tourism requires:

Investment in education and training
Policies that encourage local ownership and participation
Strong connections between tourism and other local industries
Reducing economic leakage by keeping tourism spending in the local economy
Measuring and monitoring the quality and quantity of local jobs
Adapting to new trends and technologies in tourism

When managed well, tourism can provide sustainable livelihoods for local people while protecting cultural and natural resources for future generations.

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