High or Low-Value Tourism

Posted 1 year ago by Manifest Destinations Group

Lessons to Learn

  • Low-Value Tourism is Destructive
  • More impact, less money
  • High-Value Tourism is Desirable
  • Less impact, more money

Low-Value Tourism isn’t worth it

There’s no doubt that tourism is valuable. It can contribute to economic growth and job creation by providing employment opportunities and generating revenue by selling goods and services to tourists. This revenue often goes on to benefit local communities and businesses, particularly in areas that may have limited economic opportunities. Tourism can also help promote cultural exchange and understanding between people from different regions and countries, leading to greater tolerance and appreciation of different cultures and ways of life. In addition, tourism can encourage the preservation and protection of natural and cultural heritage sites by creating conservation and sustainable use incentives helping to preserve these crucial resources are preserved for future generations.

While tourism can bring many benefits, potential negative impacts must also be considered and addressed. Some adverse effects include environmental degradation, cultural erosion, economic dependence, overcrowding, conflict, and crime.

So what causes tourism to cross that line from a benefit to a detriment? Ask academics, and they’ll devise a dozen explanations and another dozen reasons to explain their answer. Our experience boils down to just one cause, the tourists themselves. After over 20 years of working in Morocco tourism, we’ve had a front-row seat as the country went from a once-in-a-lifetime adventure to a commodity you can buy in a three-pack at Cosco.

Race to the Bottom

Morocco used to be a difficult destination to get to with its limited flights and capacity giving a vacation to Morocco the feeling of something special and elite. Tourism suppliers in Morocco were tightly regulated, making it nearly impossible for start-ups to succeed (if they were even allowed to start at all), and existing operators were closely controlled and very reliable. It all changed when Morocco’s “open sky” policy was implemented in the early 2000s. The policy involved liberalizing the country’s air transport market, opening it up to more competition, and allowing foreign airlines to operate more freely within Morocco. So instead of paying $700 for a flight to Morocco, you can fly from Europe for 50 euros (it’s still $700 from the US). And the European tourists it attracted were exactly what you’d expect from clients spending 50 euros on getting there and willing to ride in an overhead bin. As the “50 Euro Tourists” flooded in, the entire tourism industry began a race to the bottom. Once luxurious boutique hotels became run-down Airbnb’s taken over by a whole herd of tourists on a party weekend. Reputable operators that heavily invested in their business started facing competition for anyone and everyone with a car and a camel.

That race to the bottom sent shockwaves through every facet in Morocco and flipped everything on its head. Once, the markets were proud to offer quality handcrafted work from local artisans at a quality price. Now they import cheap machine-made Chinese knockoffs to sell to the “50 Euro Tourists,” causing Moroccan crafts to become endangered. These same tourists are known for being the rudest and most disrespectful visitors to Morocco, making them an almost deserving target for crime. They were the easiest tourists to spot, visiting for a long weekend to get drunk and laugh at the locals while wandering around in booty shorts and crop tops. They didn’t have a name for this tourist class when it started, but now we call it “Low-Value Tourism.”

Low-Value Tourism

The term “Low-Value Tourism” has come to refer to tourists who spend relatively little money while traveling. These are typically tourists looking for budget-friendly options and are willing to compromise on comfort, luxury, convenience, and authenticity to spend as little as possible.

They tend to put little money into the economy through accommodation, dining, transportation, and other travel-related expenses, even to the point of bringing cans and packages of food WITH THEM. They stay in the cheapest accommodations possible, stuffing as many people into a room as possible. And it doesn’t matter if it’s clean or has amenities such as swimming pools, spa services, or restaurants, as long as it’s cheap. They travel for shorter periods, often just a long weekend, skewing accommodation availability and shutting out “High-Value Tourists.” They’re also less interested in luxury or high-end experiences, such as tours, shopping for authentic crafts, culture, or even local restaurants.

More and more destinations are waking up to the devastation the “Low-Value Tourism” have on tourism, the environment, and the culture.

  • Thailand has implemented a 500-baht tourism fee for a “tourism transformation fund” 
  • Indonesia talked about banning backpackers from Bali
  • Barcelona has implemented a tourism tax on visitors to help offset the negative impacts of tourism, such as overcrowding and environmental degradation.
  • Bhutan has implemented a policy of “high-value, low-impact” tourism, which aims to limit the number of tourists and promote sustainable tourism practices. Tourists must pay a minimum daily fee that includes accommodation, meals, transportation, and a guide, which helps ensure that tourism benefits local communities and contributes to the conservation of Bhutan’s natural and cultural heritage.
  • Venice requires day-trippers to pay an entrance fee into the city of up to $11 (€10).
  • Even Iceland (perhaps already Europe’s most expensive destination) has implemented a tourism tax to fund conservation and infrastructure projects. The tax is based on the number of nights tourists spend in the country and helps offset the negative impacts of tourism on the environment.

Aim High(-Value Tourists)

Implementing a system to deter low-value tourists can be achieved through several strategies:

  1. Change the perception: “Low-Value Tourists” is a market unto themselves. There are budget travel magazines, budget travel podcasts, and budget travel bloggers. All this information makes identifying what draws the “Low-Value Tourist” to your destination fast and easy so your changes can be laser-focused, causing the least disruption and most significant value.
  2. Targeted marketing: Develop advertising campaigns and promotions emphasizing high-value experiences, attractions, and activities to attract tourists with specific interests and higher spending capacity.
  3. Pricing adjustments: Adjust pricing structures for accommodations, attractions, and services to encourage higher spending and discourage budget travelers. This could include premium offerings and exclusive packages tailored to attract high-value tourists.
  4. Quality enhancement: Enhance the quality and variety of tourism offerings, such as improving infrastructure, attractions, accommodations, and customer service. High-value tourists are more likely to be attracted to destinations with exceptional experiences.
  5. Visitor screening: Implement pre-screening measures such as visa requirements, advanced booking systems, and thorough traveler profiling to assess the potential value and purpose of visitors’ trips. This can help filter out low-value tourists seeking inexpensive options without contributing significantly to the local economy.
  6. Partnerships and collaborations: Collaborate with high-end travel agencies, luxury brands, and upscale service providers to create exclusive packages and tailored experiences that appeal to affluent tourists. This can help attract a higher caliber of visitors while elevating the destination’s reputation.
  7. Regulation and enforcement: Implement and enforce regulations that discourage low-value tourism, such as limitations on short-term rentals, restrictions on low-cost mass tourism operators, or introducing tourist taxes. These measures can help manage visitor numbers and incentivize higher spending patterns.

Stomp on Toes

There’s a choice: do you want Low-Value Tourists or High-Value Tourists? Do you want responsible tourism that contributes to and sustains the economy and culture? Or do you want hoards of drunks buying cheap Chinese souvenirs and running the economy and culture into the ground? There’s no middle ground on this. So don’t be afraid to step on toes!