Archive for category: Tourism

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How Georgia’s Wine and Tourism Are Helping Communities

Georgia’s Wine and TourismGeorgia, the birthplace of wine, has rightfully earned its title as “wine country.” The investment in wine-making has boosted the economy and helped many communities find their way out of rural poverty. Winemaking is deeply rooted in the country’s history and evidence shows that viticulture dates back 8,000 years in Georgia. Vineyards cover most of the country’s rolling hills, making the wine extremely popular worldwide.

The Georgian Grape Subsidy Program

A subsidy is financial assistance provided by the government to help keep prices stable and encourage economic participation among vulnerable producers. Specifically in Georgia, subsidy programs were made to stabilize farmers’ incomes, guarantee smooth harvests and ensure that even lower-quality grapes could be sold, especially those used for wine production. Subsidies have played an integral role in sustaining Georgia’s agricultural sector.

Between 2014 and 2024, nearly 45% of government agricultural spending went toward subsidy programs. These funds support the production of key crops such as wheat, hazelnuts, tangerines, apples and, most importantly, grapes. The Georgian grape subsidy program began in 2008 and, except for 2018 and 2019, has been implemented every year since.

The government has used both direct and indirect subsidies to support farmers. Direct subsidies provide cash payments to grape growers for each kilogram harvested. In contrast, indirect subsidies operate through state-owned companies that purchase grapes directly from farmers, especially when private buyers leave surplus crops on the market.

Although direct financial support declined sharply after 2017, the government continued its grape purchasing program to protect growers from market fluctuations and ensure no farmer was left behind.

Challenges in the Vineyards

Despite the progress, Georgia’s small-scale grape producers remain among the country’s most economically vulnerable people. Many still rely on outdated production methods, lack access to quality inputs and agricultural services and face limited competition opportunities in international markets. After the land reforms of the ’90s, following the collapse of the Soviet Union, farmland in Georgia became scarce.

This left most vineyards too small to support efficient production. This has resulted in high costs and limited access to capital and markets. Because of these constraints, some wineries have started to grow their own grapes to secure consistent, high-quality supplies, leaving smallholders struggling to find buyers. These farmers face the added risk of unpredictable weather and fluctuating market prices, making planning or investing in new technology difficult.

Tourism

Georgia’s wine and tourism industry is helping communities by creating jobs for local community members. Georgia’s wine culture is especially unique and the production of wine in Georgia competes with other luxury brands in the market. Research has shown that tourists appreciate the experience of learning about the process of winegrowing as much as they enjoy tasting the wine. Wine-makers in Georgia hope this trend will continue.

A Path Forward

The story of how Georgia’s wine and tourism are helping communities remains one of resilience and renewal. The government’s sustained investment in agriculture and the international demand for Georgian wine have opened new economic opportunities in rural areas. As vineyards expand and production methods improve, Georgia’s winemaking tradition continues to do more than fill glasses; it helps fill livelihoods, turning an ancient craft into a modern tool for fighting poverty.

– Arielle Telfort

Arielle is based in Purchase, NY, USA and focuses on Global Health for The Borgen Project.

Photo: Unsplash

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A Party against Poverty: Caribbean Carnivals Impact

Caribbean Carnivals ImpactThe impact of Caribbean carnivals across the region has helped the vibrant celebrations transcend into the realm of socio-economic development for locals. Every year, thousands of international tourists flock to the Caribbean for the atmosphere, sounds and cultural experiences that carnivals offer. For locals, equating carnival with community has shown how these celebrations can encourage collaboration, drive sustainability and bring prosperity to a region that consistently showcases creative talent.

While carnivals characteristically personify positivity and togetherness, the unstable tropical climate, combined with the repercussions of COVID-19 in the Caribbean, are two key reasons for slowed development in the region. By 2030, the United Nations (U.N.) projects that climate change will cause an additional 100 million people to suffer from conditions of extreme poverty. Natural disasters such as hurricanes and earthquakes have increasingly plagued the fragile islands of the Caribbean, leaving life-changing damage to property and devastation in their midst.

The severe implications of the global pandemic have also highlighted how important carnival is to economic growth. Without commercial and tourist interest, the monetary rewards and employment opportunities created by carnival can no longer be assured. Now that COVID-related travel restrictions have been lifted, the economic recovery of these island nations has revolved around a larger annual celebration of carnival.

Cruising into Celebration

Conventionally arriving in the Caribbean by plane or boat, international tourists come to experience the iconic impact and cultural showcases that carnivals offer. Having arrived on sandy shores, tourists seek to indulge in local festivals, cuisine and events which revolve around carnival season. On the picturesque island of Saint Vincent and the Grenadines, the Vincy Mas carnival takes months to prepare, opening up job vacancies such as event organizers, costume curators and float designers. These paid responsibilities are examples of longer-term contract roles that are available for native islanders to get involved in. The tourist demand for extra lavishness, pomp and splendor continues to drive the capacity and standards of carnivals year on year. In Vincy Mas alone, the 2022 Miss SVG contest generated more than $100,000 in revenue.

Alongside an increase in employment opportunities for local residents, carnival spectators are not limited to international tourists. The celebrations also have a powerful ability to unite Caribbean communities. In Trinidad and Tobago, carnival has an institutional dimension. Unlike other festivals with religious or political affiliations, carnival unifies people through creative dance, performance and expression. By appealing to those historically marginalized, carnival plays an important role in promoting the interests of the Caribbean community.

The National Carnival Commission of Trinidad and Tobago (NCC) has overseen the development of carnival enterprises since the 1990s. As a result, the festival has attracted one of the largest crowds in the Caribbean and promotes values of collaboration, equality and togetherness. This sense of community identity reinforces the impact of Caribbean carnival on development initiatives.

Procession, Publicity and Promoting Development

The creative forms of communication and expression are broadcast to thousands of people annually. In Antigua and Barbuda, the Antiguan government chose to promote its 2024 Sustainable Development Goals (SDGs) on a carnival float paraded through bustling streets. Using Caribbean carnival impact to grow public awareness for sustainable development initiatives enables governments to outline pathways toward ‘poverty alleviation’ and ‘well-being amongst others.’ The carnival float has a visual appeal that official documents or speeches do not.

Furthermore, official U.N. initiatives promoting development and climate awareness projects have recently adopted a carnival-style approach to relaying important messages. The 2025 Small Island Future Festival held in Barbados incorporated performances and showcases from more than 100 different creatives. An opening address by Mrs. Limya Eltayeb of the United Nations Development Program (UNDP) encouraged the Caribbean to work as a collaborative network of island nations striving to achieve sustainable targets by 2030. The festival championed innovative measures, such as tackling the dangerous rise of Sargassum algae arriving on once pristine coastlines.

Looking Ahead

Caribbean carnivals continue to have an impact on the Caribbean economy. Festivals across the region draw large numbers of tourists and create job opportunities for local residents. Beyond tourism, carnival has also been used to raise awareness of inequality and poverty brought on by natural disasters and the pandemic. The celebrations unite Caribbean communities through dance, performance and music and local governments increasingly use carnival as a platform to promote sustainability and crisis management.

– Ash Fowkes-Gajan

Ash is based in London and focuses on Good News and Politics for The Borgen Project.

Photo: Unsplash

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How Tourism Alleviates Poverty in Croatia

Poverty in CroatiaFrom Split, to Hvar to Dubrovnik, whether it be for the beaches or the nightclubs, tourists are flocking to the small European nation on the Adriatic Sea in record numbers. In 2024, the Croatian National Tourist Board recorded nearly 21.3 million visitors, which was 4% more than the previous year. The rise in tourism also boosted transportation industries, with more than 4 million air passengers and about 76.5 million rented cars.

According to the Croatian National Bank, tourism generated about €13.19 billion in revenue in just the first nine months of 2024. Croatia’s Minister of Tourism Tonči Glavina said, “Particularly gratifying is the notable growth during the pre-season and post-season, confirming Croatia as a year-round destination.”

Tourism’s Role in the Economy

This increase in tourism in Croatia has made the industry an increasingly significant part of the Croatian economy. Overall, tourism represents about 26% of Croatia’s GDP, which is more than any other country in the European Union (EU). This coincides with a high number of jobs that tourism generates. Croatia’s Central Bureau of Statistics (CBS) estimated the industry, when it’s analyzed as a whole, has created around 150,000 jobs.

In 2024, the accommodation and food preparation and serving industry created about 115,000 jobs. The jobs created by tourism are important in Croatia, as poverty is a major issue in the country. In 2023, the CBS nearly 21% of the population is at risk of poverty. Additionally, women in Croatia face a poverty risk rate 10% higher than men.

Benefits for Small Businesses and Infrastructure

Small businesses in Croatia have also benefited from visitors. According to research, small businesses, whether they be sport, food preparation or boating-related, make up about 90% of Croatia’s tourism industry. As tourism in Croatia continues to grow in the country, small businesses prove to be both resource-efficient and innovative. Furthermore, research has found that there is a correlation between small businesses and the reduction of seasonal success in the tourism industry; this is significant since one of the biggest challenges with tourism anywhere is the fact that it can attract many visitors at one time of the year and few at other times.

Additionally, tourism in Croatia has led to new infrastructure in order to accommodate the increased number of guests. These include investments in renewable energy, such as wind and solar and in transportation, such as airports and roads. For example, under the National Recovery and Resilience Plan, around €106 million was awarded in grants to multiple cities. The aim of the grants is to improve health and wellness facilities and clean energy. Since 2020, Croatia has invested around €200 million in improvements to marinas, airports and roads. In 2021, the Pelješac Bridge connected the city of Komarna with Brijesta after years of construction and €526 billion in investment, facilitating travel for both citizens and tourists.

Looking Ahead

Tourism in Croatia is fueling job creation, empowering small businesses and prompting infrastructure improvements that benefit citizens and visitors alike. As the industry continues to expand, tourism offers Croatia a pathway to reduce poverty, strengthen its economy and build long-term resilience, ensuring that growth is shared across communities.

– Seth Pintar

Seth is based in La Jolla, CA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Tourism and Wealth Inequality in Costa Rica

Wealth Inequality in Costa RicaCosta Rica enjoys a reputation as one of Latin America’s success stories, largely thanks to its thriving tourism industry and political stability. Despite this, 5.9% of Costa Rica’s 5 million people live in extreme poverty and wealth inequality is increasing across the country. Though historically it has generated many advantages, tourism is now one of the most significant factors contributing to wealth inequality in Costa Rica. The World Bank’s recent aid provision for the country sets out a program of inclusive growth designed to tackle this issue.

Wealth Inequality in Costa Rica

Costa Rica is a small Central American nation with many impressive development indicators. It ranks 62nd (globally) on the Human Development Index and its people live longer on average than those in the U.S. and Saudi Arabia. Costa Rica’s welcoming image is shaped by the government’s decision to dissolve its military in 1948 and its reputation as a global leader in rewilding and ecotourism. It contrasts sharply with many of its Latin American neighbors, especially its troubled border nation, Nicaragua.

Yet, as well as those living in extreme poverty, 25% of Costa Ricans live below the poverty line. The country’s GINI Coefficient, a measure of wealth inequality, increased more than any other country between 2010 and 2021. This makes Costa Rica one of the most unequal countries in Latin America.

Wealth inequality in Costa Rica disproportionately affects those with African heritage, indigenous peoples, single mothers and Nicaraguan immigrants. Following the COVID-19 pandemic, the rate of Nicaraguan migrants living in poverty became 50% higher than that of any migrant group in Costa Rica, such that they are considered to live with a “structurally higher poverty rate.”

Tourism in Costa Rica

Costa Rican tourism has flourished since the ’90s, with popular sites such as the Monteverde cloud forest and Manuel Antonio National Park attracting millions of visitors yearly. Tourists from the U.S., Canada and Europe bring vast amounts of money into the country.

Around 8% of Costa Rica’s total GDP is attributed to tourism, making it one of the country’s largest economic sectors besides foreign investment. The industry employs about 550,000 people, more than 10% of the population and has lifted many out of poverty. Costa Rica also attracts large numbers of expatriates, many of whom stay longer to work remotely.

Impacts on Locals

Tourism in Costa Rica is presenting serious challenges. The emergence of the so-called “Gringo Market” highlights the sharp rise in food and rental prices in popular tourist areas. In these places, the cost of living reflects the purchasing power of tourists rather than residents. These prices overspill into the rest of the country, compounded by the sheer volume of Costa Rica’s land area on the tourist circuit.

Locals are often priced out of their homes and only 16% of the population can financially access the typical living costs of a short-term tourist, reflecting a stark divide. While many benefit from being employed in tourism, many lose out on the distorted living costs that tourism generates.

Visitor numbers declined in the last year, owing to the rising strength of the Costa Rican colon against the dollar and the consequently lower exchange rates afforded to visitors. This foreshadows a long-term tourism climate where only the wealthiest visitors can afford to come. As a result, food and rental inflation will continue, driving out middle-class tourists on whom Costa Rica’s tourism industry and thousands of affiliated jobs depend.

Wealth inequality in Costa Rica is exacerbated by many factors other than tourism. These include import taxes on basic foods, clothing and electronics and governmental bureaucracy slowing economic growth. Yet the overarching concern surrounding Costa Rica’s tourism dependence is that its government and businesses continue to prioritise the needs of tourists ahead of its people. Opposition to tourism in Costa Rica is feared by stakeholders who are cautious of discouraging foreign investors.

Taking Action: The World Bank

The World Bank supports several aid programs in Costa Rica, with a combined value of more than $1.6 million, mainly through U.S. funding. Its 2024 Country Partnership Framework (CPF), administered in cooperation with the Costa Rican government, focuses on pursuing inclusive economic growth to address the country’s rising wealth inequality.

Acknowledging the rising wealth inequality created by Costa Rica’s foreign investment and tourism-driven economy, the CPF has introduced several initiatives. These include diversifying the economy and strengthening the country’s social protection systems. These measures will directly benefit disadvantaged groups such as Nicaraguan migrants, indigenous peoples, single mothers and Afro-descendants.

By 2026, the scheme anticipates reducing Costa Rica’s poverty rate from 25% to 19.5% and its GINI coefficient from 0.509 to 0.493.

Conclusion

Tourism is vital yet challenging for Costa Rica, creating many job opportunities while also deepening wealth inequality. However, initiatives such as those supported by the World Bank offer a chance to address some of this dominant industry’s drawbacks and provide disadvantaged groups with a more inclusive economic outlook.

– Joseph Webb

Joseph is based in Norwich, UK and focuses on Politics for The Borgen Project.

Photo: Flickr

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Tourism in Developing Nations: Which Countries Are Advancing?

Tourism in Developing NationsTourism has long been a vital source of income for many nations, supporting infrastructure, employment and development. Tourism provides a unique opportunity for developing nations facing poverty or economic instability to diversify income sources. As global travel rebounds following the pandemic, countries like Georgia, Mozambique, Kenya and Sudan stand at a crossroads, each with untapped potential and lessons from other nations where tourism has greatly benefited the economy.

Georgia: A Model of Strategic Diversification

Nestled between Europe and Asia, Georgia has emerged as a rising star in tourism by leveraging its rich cultural heritage, wine traditions and dramatic landscapes. Georgia’s Tourism Strategy 2015–2025 focuses on diversifying markets, improving service quality and creating niche experiences that appeal to high-value travelers.

The strategy has eight strategic objectives to promote tourism growth in the region. They include respecting, enhancing and protecting Georgia’s natural and cultural heritage. Also, to strengthen competitiveness, through the delivery of world-class visitor services to promote the region. Key initiatives:

  • Investment in infrastructure and hospitality training.
  • Strategic marketing to attract visitors from Russia, Turkey and the European Union.
  • Creation of unique and authentic visitor experiences of Georgian Culture.

Georgia’s success lies in its ability to package authenticity with accessibility, making it a country of economic potential to elevate its tourism profile.

Mozambique: Unlocking Coastal and Eco-Tourism Potential

Mozambique boasts more than 1,500 miles of pristine coastline, vibrant marine life and rich cultural diversity. Yet, despite welcoming around two million tourists annually, the country’s tourism sector contributes just 4% to its gross domestic product (GDP) in 2024.

The Strategic Tourism Development Plan (STDP), approved in 2015, aims to change that by positioning Mozambique as a premier African destination. Core strategies of the plan include:

  • Developing eco-tourism and community-based lodges.
  • Reinforcing leisure tourism and further strengthening business tourism.
  • Enhancing infrastructure in conservation areas like Gorongosa and Quirimbas.
  • Promoting investment through incentives and public-private partnerships.

Mozambique’s challenge is balancing growth with sustainability. Focusing on low-impact, high-value tourism can protect its natural assets while boosting local economies, attracting tourists to enjoy the beautiful sights the country has to offer.

Kenya: From Safari Stronghold To Diversified Destination

Kenya has long been associated with safari tourism, attracting millions to its famous parks and reserves. However, the country’s National Tourism Strategy 2025–2030 aims to expand its appeal by investing in niche markets such as sports tourism, agri-tourism and cultural experiences.

This strategy aims to enhance the contribution of Kenya’s tourism sector to the economy through effective development, management and marketing in partnership with stakeholders. Highlights of Kenya’s National Tourism Strategy:

  • Targeting five million annual visitors by 2030.
  • 12% contribution of tourism to GDP.
  • Enhancing domestic tourism and regional connectivity.
  • Promoting sustainability and resilience through green financing and safety protocols.
  • Kenya’s strength lies in its brand reputation and biodiversity, but its future depends on regional innovation. Embracing transformation and continuous investment in the tourism sector can ensure that tourism benefits all parts of society.

Conclusion

Tourism is more than a leisurely pursuit; it’s a lifeline for transformation. Tourism becomes an engine of inclusion and innovation for developing nations confronting poverty and instability, not just lifting economies, but elevating voices. As travelers increasingly seek deeper, more immersive experiences, destinations like Georgia, Mozambique and Kenya hold the power to redefine what meaningful exploration truly means.

With long-term strategies and community-focused planning, these countries stand ready to turn landscapes into legacies and history into hope. Tourism growth here isn’t just about numbers; it’s about connection, empowerment and rewriting global narratives. And as the world watches, it may discover that the most compelling journeys enchant travelers and uplift the people who make those experiences possible.

– Dylan Fly

Dylan is based in Detroit, MI, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Food Systems in the Galapagos Islands

Food Systems in the Galapagos Islands Galapagos—known for its incomparable biodiversity—thrives from its wildlife. Although more people depend on food imports, this causes a significant reliance on shipments. Food production has been slowing down since the 1970s. Farmers have experienced ongoing struggles with harvesting and sustaining agricultural lands.

Every day, approximately 1,100 food imports, consisting of related food, drink and basic equipment, travel 700 miles to arrive in the Galapagos city port, Puerto Ayora. Much of the population obtains imports such as crates of cereal and apples. The prices of food increased over the years due to the timely travel of shipments. Based on forecasts, food imports could increase by around 95% by 2037. 

Efforts to Regenerate Food Systems

Environmental conservation organizations like Global Nomadic are diving into regenerating food systems across the islands. The organization accepts individual internships for an in-person experience, helping promote food manufacturing. More than 10,000 people applied as interns and volunteers to participate in Global Nomadic’s initiatives. The organization also provides instructors to guide committed students in assisting with these projects. About 40 countries have achieved transformation under these initiatives.

The organization involves small, dedicated groups of farmers helping restore soil and protect ecosystems. Some of its present projects range from harvesting gardens, composting, testing fertilizer packaging and seed germination. Global Nomadic believes in restoring organic farming management to grow the ethnic food supply. This is crucial for the Galapagos Islands, which rely significantly on daily shipping. By educating others to cultivate locally fresh crops, the organization aims to enhance sustainable efforts.

Impact of Tourism on Farming in Galapagos

Farmers do not exactly welcome the idea of traditional agricultural farming with enthusiasm due to the number of tourists visiting the islands each year. The industry sold more tours than the amount of food produced. Many local farmers use chemically-based equipment to nurture crops, so they proposed transitioning to a wholesome food system.

Efforts to Promote Family Farming

Galapagos’ Corporate Office, based in Quito, Ecuador, has rolled out two programs to swiftly run food production in the regions. The Heifer Ecuador Organization developed the National Flagship Program to promote family farming to build systemic modifications to improve food systems in the Galapagos Islands. Furthermore, the program gives producers a chance at transforming economic and social progress.

The Flagship Program started in 2020 and has reached nearly 189,000 families living in rural and urban areas. Its 2030 goal is to help 16,000 rural households to diminish all rates of poverty. The organization believes in raising the income of all families to improve lives. In 2019, about 18 value chains were constructed, aiding 32 families. It also spurred 123 organizations and 55 alliances to form, galvanizing strong unity across all communities.

Looking Ahead

Many consider the Galapagos Islands to be a special paradise to visit. The most iconic wildlife discovered there are the green tortoises and blue-footed boobie birds. Despite the vivid diversity, food is scarce for many of the locals. However, ongoing initiatives aim to improve food systems in the Galapagos for the better. The islands continue to hope for a new, revolutionized era.

– Janae Bayford

Janae is based in Centennial, CO, USA and focuses on Business and Good News for The Borgen Project.

Photo: Flickr

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Peru Shows How Tourism Can Reduce Poverty

Tourism Can Reduce PovertyPeru created its national brand, “Marca Perú,” in 2011. PromPerú and the Peruvian Ministry of Tourism launched the initiative to promote the country’s global image. Its objectives include promoting Peruvian products, attracting foreign investment and boosting tourism. Machu Picchu, located in Cusco, became a central feature of this strategy, as one of the New Seven Wonders of the World. The campaign led to results beyond initial expectations, including new business creation and long-term poverty reduction in the region. As 2025 approaches, Marca Perú aims to replicate Cusco’s success by decentralizing tourism across the country to support development in other regions.

Success in Machu Picchu

Peruvian Society of Foreign Commerce (COMEXPERU) reported that Cusco had a poverty rate of 63.8%, which dropped to 21.6% by 2022. While other sectors, such as mining, played a role, tourism significantly contributed to local job creation. Jobs emerged around the capital and the route to Machu Picchu—from restaurants and lodges to craft shops and guiding services. The Peruvian government expanded its international promotion efforts, placing Machu Picchu at the center of its campaigns.

Research by the University of Girona in Spain found a direct link between PromPerú’s tourism promotion and job creation in Cusco, contributing to the province’s development. Since the brand’s launch, Machu Picchu has been featured in major advertising, including the 2012 launch video and targeted campaigns for specific regions such as Japan. A prominent example of this visibility includes Machu Picchu’s placement on welcome signs at Jorge Chávez International Airport.

While local management of funds remains a concern, data suggests tourism played a key role in Cusco’s recent poverty reduction. In 2024, the Ministry of Tourism reported that 2.9 million international visitors arrived in Peru. Of those, nearly 1 million visited Machu Picchu, which attracted twice as many tourists as the second most-visited site, Ollantaytambo.

Peru’s Plan to Decentralize Tourism

To spread the benefits of tourism more widely, Peru is pursuing decentralization through efforts led by both the government and Marca Perú.

  • Government Initiatives. The Peruvian government has started developing eight cableway lines to reach remote destinations. Kuélap, a fortress in the Cusco region known for its historical significance, is one such line. The improved access allows tourists to experience the site more easily. In addition, the government is offering special credit and loans to small businesses in the tourism sector—such as artisans, hostels, restaurants and guides. These loans offer low interest rates and flexible repayment to support small enterprises in underserved regions. The Ministry of Commerce also launched “Pueblos con Encanto” (Towns with Charm), a program promoting lesser-known towns like Oyantaytambo, Oxapampa and Sibaya. The initiative encourages the development of tourism in welcoming but under-visited areas.
  • Marca Perú Campaigns. Marca Perú introduced the “Peru Wow” campaign to showcase destinations and gastronomy across the country. The campaign targets international audiences in the United States (U.S.), Spain, Mexico, Germany and France, reaching an estimated 61.6 million people. A promotional video featuring astronauts aired in Times Square, showcasing Peru’s diversity to a global audience. The second campaign, “Perú, País de Dones Infinitos” (Peru, Country of Infinite Gifts), promotes national pride and cultural identity among Peruvians. The goal is to encourage domestic tourism and inspire Peruvians to share the richness of their heritage. The campaign features testimonials and short videos on social media platforms.

Expanding to New Destinations

To reduce poverty beyond Cusco, Marca Perú now promotes tourism in lesser-known but culturally and environmentally rich regions.

Moving Forward

Cusco reveals that tourism can help reduce poverty when paired with inclusive economic planning. Peru continues to develop infrastructure, promote destinations globally and foster local entrepreneurship. Decentralizing tourism could open new opportunities in high-poverty regions like Puno, where 41.6% of the population lives in poverty. A traveler’s next visit could contribute directly to sustainable development in these communities, highlighting how tourism can reduce poverty.

– Luis Felipe Rios

Luis is based in Miami, FL, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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The Ha Giang Loop and its Impact on Poverty Reduction

Ha Giang LoopThe Ha Giang loop is one of the jewels in the crown of exciting activities available to travellers visiting Southeast Asia. The Ha Giang Loop provides an unforgettable and intimate glimpse into the largely untouched Ha Giang province in upper northern Vietnam. The loop generally lasts three or four days by motorbike and weaves around the rural highlands, passing through remote villages and breathtaking scenery.

Many of those fortunate enough to have embarked on the 350 km Ha Giang Loop regard the journey as a truly once-in-a-lifetime experience. Fortunately, the increased influx of adventurous travellers into Ha Giang is slowly beginning to make a tangible positive impact on the lives of many local people.

The Power of Tourism

Tourism is a valuable asset and conduit which can drive economic development and reduce poverty. Through the multiplier effect, tourism, particularly backpacker tourism, can significantly positively impact the areas they visit. In Vietnam, every job in the tourism sector, generates another 1.5 jobs elsewhere.

Ha Giang province contains some of the poorest districts in the whole of Vietnam. The mountainous topography and often challenging climate of the region provide obstructive barriers to traditional agricultural development. Moreover, the population of Ha Giang consists of more than 20 different ethnic groups, with the largest being the H’mong people known for their distinctive traditional clothing and intricate craftsmanship.

The ethnic groups of Vietnam make up 15% of the total population but account for more than 70% of the extremely poor. There are numerous factors behind this stark inequality including; geographical isolation, societal intricacies such as culture and language and limited access to education. Many ethnic groups have failed to fully benefit from the sweeping positive initiatives and developments enacted across Vietnam over the past two decades.

Positive Developments in Ha Giang

In recent times, the Dong Van province within Ha Giang has made positive development strides through agricultural reforms. To combat the agrarian difficulties inflicted by the terrain and climate, local farmers were encouraged to switch to alternative crops such as rice hybrids and corn. Additionally, many local farmers have now become effective cultivators of honey, as a result of interest-free loans being allocated to prospective beekeepers.

The cultivation of buckwheat has also proved to be profitable, and the annual Dong Van Buckwheat Festival attracts many tourists which provides an additional valuable source of revenue for the locality. Moreover, employment initiatives to support handicrafts and flax weaving enterprises have secured employment prospects for many local women.

These policies have greatly aided the widespread inclusion and involvement of poorer households and erected multiple avenues for potential income and revenue. Consequently,  living conditions have greatly improved and poverty rates in the province, which were once as high as 18.5%, have fallen by more than 6%.

Charitable Efforts

The Blue Dragon Foundation helps to empower ethnic minority women in Ha Giang by preventing the exploitation and trafficking of women and providing educational resources. Blue Dragon also assists families by teaching life skills and helping to develop sustainable income sources through the provision of livestock.

Thon Tha is a responsible tourism co-operative that aims to help develop local communities to access a better life, by providing visitors with an authentic and responsible Vietnamese travel experience. Established in 2014, Thon Tha works to reduce poverty by creating long-term sustainable visions for local people. Their work includes; creating job opportunities through services such as homestays and bike rental shops; preserving cultural traditions and discouraging employment activities such as street vendors; and providing authentic travel experiences to showcase true Vietnam.

Problems of Tourism Development

Ha Giang welcomes more than 2 million visitors annually, in turn earning an estimated $200 million from the tourism industry. The province was also named Asia’s leading emerging tourist hotspot in 2023. However, Ha Giang suffers from a distinct lack of proper tourist infrastructure and is currently incapable of fully capitalizing on the proliferation of visitors to the area. However, the government established initiatives such as tax exemptions for homestays, as well as charging small fees for visitors to access particular areas to help bolster the burgeoning of tourism.

Conclusion

The Ha Giang Loop is already having a direct positive impact on the local people, by providing locals with important sources of additional income. As a direct result of the loop, enterprising locals are capitalizing on the newly buoyant tourism industry by establishing homestays and roadside shops.

It is encouraging to see the direct positive impacts arising from the popularity of the loop. However, careful management and nurtured responsibility remain vitally important for the upsurge of tourism in Ha Giang. Thus, ensuring sustainability in the accretion of tourism generated revenue into the region going forward; and in turn the ensuing continued reduction of poverty.

– Ollie Roberts

Ollie is based in North Wales and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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Innovations in poverty eradication in Barbados

poverty eradication in BarbadosBarbados is an eastern Caribbean island with a population of about 282,000. Being a small island, Barbados is very susceptible to economic disturbances caused by external factors such as natural disasters as well as raises in import costs. COVID-19 also played a huge factor in an increase in poverty on the island, drastically affecting tourism, one of the island’s main sources of income. There have been many innovations in poverty eradication in Barbados including a post-COVID-19 tourist boom, as well as government-led plans and programs which target the economy to alleviate poverty on the island.

Tourism Effect

The increase in tourists to pre-COVID-19 levels has definitely helped the poverty issue within Barbados as the economy has since grown by 4.5% with the return of tourists to the island post-pandemic. GDP rose 4% just in 2024 in Barbados, and both tourism and manufacturing have seen a 5.5% increase in the traded sector while non-traded sectors went up by 3.7%.

The number of prolonged tourist visits in Barbados increased by 10.7%, and the number of cruise calls increased by 53, causing a 40.8% rise in tourists by cruise, according to the Central Bank of Barbados. These event tactics that focus on tourist booms are critical to the economy and are a huge innovation in poverty eradication in Barbados as their economy relies heavily on tourism, as 50% of export income is attributed to tourism, and is truly a driving point for the economy.

The Role of BERT

Along with tourism, there are multiple ongoing and promising government-led plans, one of the most prominent being the Barbados Economic Recovery and Transformation (BERT). BERT recently received support from the International Monetary Fund (IMF) along with the Extended Fund Facility (EFF) as well as an arrangement by the Resilience and Sustainability Facility (RSF). Help from these facilities if approved by the IMF would mean a total of $56 million between both facilities would be made available to BERT.

BERT is one of the most important innovations in poverty eradication in Barbados as it has been working and reimplemented since 2018 in a mission to restore and support the macroeconomics of the island, by doing structural reforms and shifting towards a more tourism based economy.

BERT has also worked against certain external shock factors such as natural disasters to not disrupt the visitor-based economy it is building. It has started the Stormwater Management Act to combat flood risks, has started to shy away from fossil fuels and is looking at renewable energy sources to prevent economic growth from stunting due to such factors.

The BERT plan was based on the government’s anti-poverty alignment and strives for long-standing and sustainable growth and has so far proven to be beneficial to the island. In combination with new tourism business and tactics, Barbados is on the right track toward economic success. These innovations in poverty eradication in Barbados have benefited Barbados greatly as unemployment rates drop, and domestic business has increased since both the tourist boom and the reimplementation of BERT.

– Cheyenne Weller

Cheyenne is based in Boston, MA, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

The Truth About the Caribbean Tourism Industry

Caribbean Tourism IndustryDespite the Caribbean tourism industry contributing more than $60 billion to the total Caribbean GDP in 2022, the average poverty rate in the Caribbean is 30%. While the Caribbean is incredibly dependent on the tourism industry to provide jobs and boost the national economies, low-wage labor and the concentration of wealth in foreign hands are perpetuating the poverty of local communities.

The Situation

The Caribbean’s history of colonization and exploitation of resources created long-lasting socio-economic disparities. Many Caribbean countries still face economic dependency, political instability and exploitation through unfair trade policies and foreign-controlled industries like tourism, according to Caribbean Issues.

Many governments across the Caribbean offer concessions, land or building rights and other incentives to the Caribbean tourism industry to stimulate economic activity and create jobs, despite these jobs often being low-wage. Instead of contributing to the local economy, the majority of profits go to foreign corporations. Governments may continue supporting the tourism sector due to its immediate economic contributions, but the benefits are not as significant or long-lasting for the local population as they are for tourists or international investors.

Cruise Ships

In 2023,  there were 32.2 million tourist visits to the Caribbean and 31.1 million of those visits came from cruise ships alone. Rather than supporting the local economy, cruise lines provide low-cost excursions, profiting immensely while providing few jobs for locals. Additionally, Caribbean countries often invest heavily in port infrastructure for essential trade and end up losing the space to cruise ships. On top of everything, cruise ships often evade environmental regulations, disrespecting the beautiful oceans that allure tourists in the first place by harming the already fragile ocean ecosystems.

Solutions

The Bahamas Family Islands’ Destination Stewardship Initiative is a program that empowers local communities to take a leadership role in the development and management of tourism, with an emphasis on making sure economic rewards stay within local communities. This initiative, which earned the Caribbean Tourism Organization’s 2023 Destination Stewardship Award, aims to rebuild tourism in the wake of the COVID-19 pandemic and a fiscal crisis. Through the creation of four Destination Stewardship Councils, the initiative has prioritized community involvement in decision-making, giving residents a direct stake in shaping their tourism economies.

By working with stakeholders including the Global Sustainable Tourism Council, the initiative has ensured that tourism development reflects community values and priorities such as waste management, cultural heritage preservation and visitor safety. Sustainable waste management, cultural site preservation and safety improvements are all initiatives that enhance the overall visitor experience while generating new business and employment opportunities for residents. The Ministry of Tourism is committed to expanding the initiative, with plans to establish more councils across the Family Islands.

This expansion could ensure that even more communities benefit from tourism’s economic potential while maintaining a focus on responsible, community-led development that supports long-term sustainability and economic stability. The Bahamas Family Islands’ Destination Stewardship Initiative is a positive step toward addressing the socio-economic disparities created by the Caribbean’s dependence on the foreign-controlled Caribbean tourism industry.

– Nina Bujewski

Nina is based in San Luis Obispo, CA, USA and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr