Consuming Africa: The Impact of Tourism on Local African Economies

The author contends that while tourism in Africa has grown significantly, its developmental impact is limited by 'economic leakages' where revenue is expatriated to foreign economies. Using Zanzibar as a case study, the paper demonstrates that foreign-owned all-inclusive resorts dominate the high-end market, while locals are relegated to unskilled labor and struggle to integrate their goods into the supply chain. The document traces this trend to IMF Structural Adjustment Policies (SAPs) of the 1980s, which liberalized economies for foreign investment. To mitigate these issues, the author suggests investing in local infrastructure to meet international standards and promoting intra-African leisure tourism.

• Despite the growth of tourism in Africa, there is a gap between industry growth and socio-economic development because the sector relies heavily on foreign goods and services, leading to revenue being expatriated.
• In Zanzibar, the tourism sector is characterized by a lack of local employment in high-level roles; while Zanzibaris' share of total employment rose from 5% in 2009 to approximately 25% a decade later, they remain concentrated in unskilled labor, making up 83% of accommodation and 70% of restaurant unskilled workers.
• Zanzibar experiences significant economic leakages because high-occupancy four- and five-star hotels are mostly foreign-owned and prioritize imports over local products; as of 2016, only 17% of goods and services in the tourism industry were locally sourced.
• The author attributes the current structure of African tourism to IMF and World Bank Structural Adjustment Policies (SAPs) in the 1980s, which enforced economic liberalization to facilitate foreign investment and loans for tourism, primarily serving foreign interests.

APA

Roberts, I. (2023). Consuming Africa: The Impact of Tourism on Local African Economies. Africa Policy Research Institute. https://afripoli.org/consuming-africa-the-impact-of-tourism-on-local-african-economies

Chicago

Roberts, Isabella. Consuming Africa: The Impact of Tourism on Local African Economies. Africa Policy Research Institute, 2023. https://afripoli.org/consuming-africa-the-impact-of-tourism-on-local-african-economies.

Wikipedia

{{cite report |last1=Roberts |first1=Isabella |title=Consuming Africa: The Impact of Tourism on Local African Economies |publisher=Africa Policy Research Institute |date=19 June 2023 |url=https://afripoli.org/consuming-africa-the-impact-of-tourism-on-local-african-economies |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{roberts2023consuming, author = {Roberts, Isabella}, title = {{Consuming Africa: The Impact of Tourism on Local African Economies}}, institution = {Africa Policy Research Institute}, year = {2023}, month = jun, url = {https://afripoli.org/consuming-africa-the-impact-of-tourism-on-local-african-economies}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }