Thailand-based DMC Tripseed has launched the first phase of its
Economic Distribution Disclosure Initiative, a groundbreaking project
that aims to map and label the economic benefit distribution of its
Thailand operations and the positive economic impact they are creating
within the country.
To date, more than 80 day tours and half-day tours have been labelled
on the Tripseed website, communicating where the economic benefit from
each of those tours goes geographically.
Tripseed - majority locally owned and women owned - says the
initiative to measure and report on economic leakage represents a first
of its kind in the touring industry, “conducted with an unprecedented
level of rigour and accuracy, providing transparency to travel trade
partners and their clients regarding who genuinely benefits from each
tour financially”.
Economic leakage refers to the phenomenon where money spent by
tourists does not remain in the local economy but instead flows out to
other regions or countries.
This often occurs, Travelseed says, when tourism-related businesses
are owned by foreign entities and individuals, or when goods and
services are imported rather than sourced locally.
“Measuring and reporting on economic leakage transparently is crucial
to creating a more sustainable and positively impactful tourism
industry,” the DMC says.
The DMC quotes a UN report showing 70% of Thailand’s tourism revenue
leaks out of the country, and draws attention to the significant
challenges posed to local businesses by overseas entities concealing
their foreign ownership through the use of local nominee shareholders.
“By addressing these imbalances, the tourism sector can lead efforts
to create fairer economic opportunities, ensuring that tourism benefits
genuinely reach local populations,” Travelseed says.
Ewan Cluckie, co-founder and director of growth at Tripseed, says,
"Achieving zero economic leakage is unrealistic, sometimes locally
provided alternatives are not viable, and it's important that foreign
investors receive a fair return on their investments since this
incentivises participation.
“However, we must discern where beneficial investment ends and greed
and exploitation begins. A standardised and transparent framework for
calculating tourism's economic benefits provides greater clarity for
everyone involved.”
Tripseed invites individuals and travel businesses dedicated to
sustainable transparency to join this initiative. Interested parties are
encouraged to contact sustainability@tripseed.com for more information on how to get involved.