How to Ensure Your Travel Expenditures Truly Benefit Local Communities

As conscientious travelers, we often assume that most of our spending directly supports the communities we visit. However, this belief is somewhat misguided. According to a report from the World Tourism Organization last fall, only about $5 of every $100 spent by tourists from developed nations actually remains in the economies of developing destinations. The majority of that cash flows to airlines, hotels, and multinational corporations located far from where it was spent. Nevertheless, travel spending can boost local economies and communities if we make informed choices.

Holly Tuppen, the author of Sustainable Travel: The Essential Guide to Positive-Impact Adventures (White Lion Publishing, 2021), emphasizes that while this process may require substantial research, the benefits are threefold: you’ll know where your money goes, support businesses that are likely more considerate of their influence on local people and the environment, and enjoy a much more genuine and fulfilling experience.

Begin with a responsible tour operator

Numerous tour operators prioritize the economies in which they operate and inform their clients about their contributions. For instance, Dinogo Travel Vanguard honoree G Adventures provides a Ripple Score indicating how much of each trip’s revenue supports local businesses. Similarly, Modern Adventure, a B Corp based in Portland, Oregon, reports that 67 cents of every dollar generated from its trips is reinvested in the local area, benefiting restaurant owners, hotel operators, guides, and Indigenous communities. The organization actively seeks community partners, “auditing their practices” to ensure they “offer fair wages and adhere to responsible tourism,” according to CEO and founder, Luis Vargas.

Travelers can embrace this approach themselves, Vargas emphasizes. “It requires less effort than ever before,” he states, recommending two booking platforms dedicated to sustainable accommodations and community support: Holiable and Responsible Travel. Another alternative is Kind Traveler, which offers hotel discounts once travelers contribute a minimum donation of $10 to a local charity with each booking.

Consider the ownership of your hotel

To ensure your money stays within the local economy, opt for locally owned or independent hotels. Approximately 80 percent of the over 400 properties featured by the Leading Hotels of the World group are family-run establishments.

Nonetheless, it's essential to confirm that your accommodation hires locals and compensates them fairly—not something guaranteed even in locally owned properties. “There are instances where foreign-owned establishments employ locals sustainably and positively impact the local economy,” remarks Wes Espinosa, interim executive director of the Center for Responsible Travel.

It can be challenging to uncover this information, but you may find details on a hotel’s website. Alternatively, you could reach out to the general manager via email and inquire whether the hotel employs local staff. “That’s a compelling question to pose,” Vargas suggests.

Support local businesses

During your travels, prioritize independent shops over fast-food chains. It makes a difference. Florencio Moreno, who guides tours throughout Mexico for Modern Adventure, explains that tourist spending helps artisan weavers sustain their craft instead of seeking employment elsewhere. “This income helps preserve our cultural traditions,” he states. “It enables our local artisans to pass on their skills.”

Espinosa notes that tourism boards can be a valuable resource as well. “They can inform you about which businesses are locally owned and where to find authentic local cuisine from specific cultures or communities.”

Tip generously

Remember to consider unseen workers when leaving tips. After a recent visit to Nanuku resort in Fiji, I learned that guests were encouraged to contribute to a team fund. This approach ensures that all staff, including overnight security personnel, benefit alongside those who provide visible services like massages.

While we may never know the exact path of every travel dollar, we can make a conscious effort to ensure our spending has a positive impact. As Vargas points out, it’s about transforming wonderful destinations into thriving communities: a "virtuous cycle of nurturing the very essence and purpose of our travels to these locales."