Tag Archive for: Tourism

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Reducing Overtourism in the Canary Islands

Overtourism in the Canary IslandsIn the vast waters of the Atlantic Ocean, near the coast of northern Africa, lie the Canary Islands, an autonomous region of Spain. With a population of 2.2 million people, the Canaries are most famous for their renowned beaches, rich history and culture, year-round mild weather and distinctive cuisine. Due to all this, it is a popular vacation destination for many tourists who wish to see all the wonders of the Canaries.

Tourism in the Canaries

Tourism is a large part of the islands’ economy, similar to many other European regions. It has the potential to benefit the country and islands. Yet, it can also be the root of more issues, especially regarding the local residents and the poverty they face. Fortunately, there is a way to reduce mass tourism in the islands.

In moderation, tourism can be beneficial for the country and its people, as it gives them more recognition from the outside world. It allows more people to learn about their islands and culture, as well as providing new job openings, such as hotel employment, airline work, travel agencies and tour guides. It is not inherently a negative practice; however, too much of it can quickly become an issue, which is what is happening in the Canary Islands.

The number of tourists has greatly increased over the past few years; the islands drew a record 18.4 million visitors in 2025, or roughly 1.5 million a month. This is particularly an issue for the Canary locals, whose quality of life is negatively affected. When so many foreign visitors arrive, it strains the islands’ resources. Hotels and tourist-related companies strive to accommodate tourists, but this quickly causes problems for residents.

Housing Costs

Overtourism in the Canary Islands leads to overcrowding that makes it difficult for locals to move around and go about their daily routines. It raises house prices, as properties are increasingly used to house tourists—a notable example being Airbnb, as people buy property specifically to rent it to visitors—which leaves locals with housing costs they cannot afford. In May 2026, average home prices rose 19.3% compared with the same month in 2025—the largest increase anywhere in Spain—and prices are now 24.8% higher than at the peak of Spain’s 2007 property boom, according to valuation company Tinsa. Overtourism can also raise the price of food and other goods, as businesses cater to tourists, and locals end up paying more too. Mass tourism further strains the islands’ environment, as waste accumulates and resources are stretched.

All of these issues leave many residents facing worsening financial hardship as they struggle to afford a basic quality of life. In May 2025, Canary Islands locals held large protests against overtourism, arguing that it was the root cause of many of the islands’ issues and demanding that the government take action.

How to Change It

The government has created a voluntary contribution program as an alternative to a mandatory tourist tax. It allows visitors and travel companies to donate money online to fund the islands’ sustainability and community projects. Known as the Canary Islands Tourism Regeneration and Nature Restoration Fund (RegNext), the scheme operates across the islands, including Tenerife, Gran Canaria and Lanzarote.

RegNext’s main goal is to channel those voluntary contributions into habitat restoration, species recovery, landscape improvement, new green jobs and support for local communities and social projects. Tourism already provides jobs for 280,534 people in the Canaries, and RegNext aims to fund additional green jobs to further reduce unemployment. The initiative is also collaborating with major travel companies—including easyJet holidays, TUI and Jet2—to develop regenerative tourism.

This recent development allows any willing visitor to contribute and help improve the islands and, by extension, help their people thrive. The Canary Islands are a beautiful destination, but overtourism has become a large issue for both the islands and their people, worsening residents’ quality of life. RegNext is intended to help ease that strain and the financial pressures Canary locals face, so that residents can live without the burden of overtourism and their communities can benefit from the program, improving their quality of life.

– Michalistsa Kontogianni

Michalitsa is based in Washington, DC, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Wikimedia Commons

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Community-Based Tourism in Kyrgyzstan Is Building Rural Income

Community-Based Tourism in KyrgyzstanIn the mountain villages of Kyrgyzstan, herding has long been the only source of steady income, but a network of local guides and homestays is opening a new path. Community-based tourism (CBT) in Kyrgyzstan now spans 17 member communities across the country, turning trekking routes through some of Central Asia’s highest terrain into a shared source of household income, rather than a resource controlled by a handful of large operators.

The stakes behind that shift are significant. Kyrgyzstan’s national poverty rate stood at 25.7% in 2024, a decrease of 4.1 percentage points from the year before, yet roughly 1.87 million people remained in poverty, and nearly 62% of them lived in rural areas, according to the National Statistical Committee. For herding families in the mountain regions, where livestock has historically been the only dependable income, that concentration of poverty in the countryside is exactly the gap community-based tourism sets out to close, turning trekking routes and spare rooms into a second household income tied to the same land families already depend on.

From One Village to a National Network

The first community-based tourism group formed in the village of Kochkor in May 2000, with support from Helvetas, the Swiss Association for International Cooperation. The groups formalized the network on Jan. 3, 2003, as the Kyrgyz Community Based Tourism Association. Branded internationally as Hospitality Kyrgyzstan and headquartered in Bishkek, the association now unites 17 destination communities spread across the country’s mountain regions, each operating with substantial local autonomy under a shared set of standards.

That growth has translated into measurable gains for member households. A 2009 study by Watanabe and colleagues found that CBT groups had generated 412 jobs by 2008, a meaningful supplement for families who previously relied on herding alone.

How the Model Spreads the Income Around

The structure behind community-based tourism in Kyrgyzstan works to keep income from concentrating with a small number of well-placed operators. Local residents rather than outside investors own and staff the homestays. Member communities book guides, drivers and craftspeople from the same villages alongside them. Member communities coordinate pricing and rotate bookings so that demand spreads across participating households instead of funneling toward the same handful of families. In the Chon-Kemin valley, the Shumkor Association applies a similar community-run model to visitor stays. The Baibosun Community-Managed Micro Reserve in Ton district takes a related approach, pairing tourism income with conservation work; the Ilbirs and Camp Alatoo foundations support both efforts.

Riding a National Tourism Boom

The growth of community-based tourism in Kyrgyzstan is unfolding alongside a broader surge in visitors to the country. Roughly 10 million tourists visited Kyrgyzstan in 2025, contributing more than $1 billion to the economy, and the State Agency for Tourism Development is forecasting close to 12 million arrivals in 2026, up from an annual flow of just 2 million to 3 million visitors before 2020. Tourism now accounts for more than 5% of gross domestic product, with the National Statistical Committee estimating the sector’s direct value added at 3.8% of gross domestic product (GDP) in 2024, and the government has set a target of raising that share to 7.5%.

What Still Stands in the Way

That national growth cuts both ways for the community-based model. Rising visitor numbers mean more potential income for member villages, but they also raise the risk that demand concentrates in a few already well-known destinations rather than spreading to newer or more remote member communities still building a reputation. Keeping bookings distributed across the network, rather than letting a handful of standout villages absorb most of the growth, is likely to determine how much of Kyrgyzstan’s tourism boom actually reaches the herding families the model aims to support. Even so, the trajectory of the past two decades is difficult to dismiss. What began as a single homestay initiative in one mountain village has grown into a nationwide network that gives rural families a second livelihood tied directly to Kyrgyzstan’s landscape, without requiring them to leave it behind.

– Saakshi Bhat

Saakshi is based in San Marcos, CA, USA and focuses on Business and Global Health for The Borgen Project.

Photo: Wikimedia

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Fiji’s Coral Restoration Economy Reducing Poverty

Fiji's Coral Restoration EconomyHealthy coral reefs are more than environmental assets in Fiji; they are economic lifelines for thousands of families. People, the environment and cultural heritage are deeply interconnected, but the changing climate, overfishing, coastal development and pollution are putting pressure on reefs that support food security, tourism, fisheries and local economies.

The stakes are particularly high for people living in poverty. According to the Asian Development Bank, 29.9% of Fiji’s population lived below the national poverty line in 2019. For low-income coastal households, a decline in reef health can mean fewer fish to catch, less income from fishing and tourism, greater exposure to storms and coastal erosion. These households often have fewer financial resources and fewer alternative livelihoods to fall back on when marine resources decline.

Fiji is responding by developing what can be described as a coral restoration economy: an approach that treats healthy reefs as economic infrastructure and invests in businesses and conservation projects that protect them. The goal is not simply to restore ecosystems, but to create jobs, strengthen food security, diversify incomes and make coastal communities more resilient.

Why Coral Reefs Matter to Communities Living in Poverty

Coral reefs are closely tied to Fiji’s food supply and livelihoods. Island communities obtain about 75% of their dietary protein from the ocean, while small-scale fishing provides food and income for coastal households. Reefs also support tourism and protect communities, infrastructure and farmland from storms and erosion.

When coral ecosystems deteriorate, fish habitat can decline, reducing catches and making fishing less reliable. Tourism businesses can also lose income when reefs become less attractive to visitors. For households already living on limited incomes, these losses can mean reduced access to food, lower earnings and greater financial insecurity.

The connection between reef health and poverty is particularly important because many coastal households depend on several benefits from the same ecosystem. A healthy reef can provide food for a family, income from fishing and tourism, and protection from coastal hazards. Losing those services simultaneously can leave vulnerable households with few alternatives.

How Fiji’s Coral Restoration Economy Is Creating Jobs

Investing in coral reefs can create employment in conservation, tourism, fisheries, agriculture and other parts of the blue economy. The Global Fund for Coral Reefs (GFCR) and the United Nations (U.N.)  Joint Sustainable Development Goals (SDG) Fund back Fiji’s Investing in Coral Reefs and the Blue Economy program, which uses blended finance to fund reef-positive businesses and sustainable livelihoods.

The program has set targets including hundreds of new jobs, benefits for tens of thousands of people and improved management of coral reef ecosystems. These are projected impacts, not outcomes the program has already achieved.

One example is Beqa Adventure Divers, which works with Galoa Village around Fiji’s Shark Reef Marine Reserve. The company employs local villagers as commercial divers and supports marine conservation, while a reserve levy from dive customers provides a recurring income for the village. The United Nations Development Programme (UNDP) reports that fish populations have increased within the reserve and neighboring reefs have experienced increased fishing yields.

Beqa Adventure Divers also reports contributing more than 500,000 Fijian dollars (about $220,000) directly to grassroots communities and training more than 50 diving professionals. Its youth program has helped school leavers develop skills for employment in the tourism industry.

Investing in Reef-Positive Businesses

Fiji’s coral restoration economy extends beyond tourism. GFCR-supported businesses are addressing the causes of reef degradation while generating commercial activity.

Fertile Factory & Co., for example, is developing a natural fertilizer from green waste and manure to reduce reliance on synthetic fertilizers and agricultural runoff that can damage reefs. Mango Fish is developing land-based aquaculture to increase domestic fish supplies while reducing pressure on coral reefs, with revenue supporting coral gene banks and locally managed marine areas.

The financing model aims to attract further investment. The Joint SDG Fund program has allocated about $5.5 million alongside approximately $4.7 million in co-financing to leverage up to $50 million in additional investment.

Lessons for Other Countries

Fiji’s experience shows that conservation can deliver economic benefits when local communities have a direct interest in protecting natural resources. Indonesia and the Philippines are developing similar approaches through ecotourism, sustainable aquaculture, marine protected areas and other reef-positive enterprises.

Coral restoration alone cannot eliminate poverty, but Fiji shows how environmental investment can address several development challenges at once. For other coastal nations facing changes in the climate and persistent poverty, the lesson is clear: protecting nature does not have to compete with economic development. When investment centers on the people who depend on ecosystems, healthy reefs can become the foundation for stronger and more resilient communities.

– Anna Morin

Anna is based in Fairfield, CT, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr

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The Limits and Economic Effects of Cuba’s Market Reforms

Cuba’s Market ReformsOn June 18, 2026, Cuban lawmakers approved a collection of 176 free-market and decentralization reforms, marking the most significant transformation to Cuba’s socialist model since the 1959 revolution led by Fidel Castro. These reforms principally seek to authorize private real estate development, private banks, private enterprise (effectively lifting the previous 100-employee limit on private businesses and mandatory intermediaries), and to dissolve the requirement that foreign investors form joint ventures with the state.

The U.S. Embargo and Cuba’s Economy

The United States (U.S.) has maintained a comprehensive economic embargo on Cuba since 1962, originally implemented by President John F. Kennedy. President Donald Trump strongly enforced and expanded these restrictions during both his first and second terms, introducing several “maximum pressure” campaigns to isolate the Cuban government. The Trump administration’s pressure campaign toward Cuba forms part of “a broader strategy to assert U.S. primacy in the Western Hemisphere and limit the influence of adversaries such as China and Russia,” according to the Council on Foreign Relations.

When the embargo was first implemented, Cuba efficiently adjusted through trading opportunities with Soviet Bloc countries. According to a 2001 study from the U.S. International Trade Commission, “Soviet economic assistance, which peaked at nearly $6 billion annually in the 1980s, largely offset any adverse effects of U.S. sanctions and enabled the Cuban economy to grow.”

However, in 1991, upon the collapse of the Soviet Union and consequent loss of Soviet assistance, Cuba experienced an extended economic crisis called Período Especial (“Special Period”). Deprived of vital trade subsidies and cheap oil, the country’s GDP plummeted by 35%, bringing about severe food and fuel shortages, leading to widespread power blackouts and famine.

Since the Special Period, the U.S. embargo has cost the Cuban economy nearly $144 billion, as estimated by the Cuban government. Humanitarian organizations such as the Washington Office on Latin America, a United States nongovernmental organization (NGO) working for social and economic justice in Latin America and the Caribbean, argue that expanded sanctions and travel restrictions have contributed to shortages in fuel, medicine and food. As of 2025, a reported 89% of Cubans live in extreme poverty, according to a survey by the Cuban Observatory of Human Rights (OCDH), a Madrid-based group that has received U.S. government funding. Notably, that same OCDH survey found Cubans themselves cited power outages, food scarcity and low wages as their top concerns, while only 3% named the U.S. embargo as a primary worry. The continued impact of the embargo provides important context when evaluating the extent to which Cuba’s market reforms can improve conditions, as the embargo has not been lifted alongside the reforms — though Cubans’ own reported priorities suggest domestic factors weigh heavily on daily life as well.

Economic Effects of Cuba’s Market Reforms on Banking

Cuban Prime Minister Manuel Marrero stated that new private banks will operate under the regulatory supervision of the Central Bank of Cuba and theoretically on “equal terms” with existing state commercial banks. The reforms also authorize private and foreign capital institutions to set up operations on the island and provide microcredits directly to its growing entrepreneurial sector.

Due to U.S. secondary sanctions, many global banks are reluctant to conduct business with Cuban financial institutions. However, the banking reforms provide alternative channels for international investors, remittance companies and foreign vendors to route transactions through private entities, which significantly lowers the risk of triggering U.S. compliance penalties. If these changes attract greater foreign capital into the newly privatized banking sector, they could increase the financing available to domestic businesses and support expansion within the economy, potentially creating more employment and income opportunities for Cuban households.

Reviving Real Estate and Tourism

In his speech at the Extraordinary Plenary Session of the Central Committee of the Communist Party of Cuba (PCC), Miguel Mario Díaz-Canel Bermúdez, first secretary of the Central Committee of the PCC and president of the republic, announced plans to “develop a productive, regulated real estate market” that includes leasing idle state-owned properties, renting commercial and industrial spaces, and opening transparent bidding to state, private, cooperative and mixed-ownership entities.

Although the reforms are intended to stimulate tourism and economic activity, widespread flight cancellations persist due to U.S. sanctions, fuel shortages and the departure of major international hotel chains such as Blue Diamond Resorts (Canada), Meliá Hotels International and Iberostar (Spain). In January 2026, the U.S. government imposed additional tariffs on imports from countries that directly or indirectly supply oil to Cuba. Following the action, Cuba experienced a 58.4% decrease in international visitors during the first five months of the year compared to the same period in 2025, according to the Oficina Nacional de Estadística e Información. These external pressures may limit the effectiveness of Cuba’s efforts to support the economy through revitalizing tourism despite the introduction of private and mixed-ownership opportunities.

Retail and Food Services

The sector of Cuban food and retail services will undergo substantial change under Cuba’s market reforms alongside the shifts in the financial, tourist and real estate sectors. The government is eliminating “la libreta,” the state-issued booklet established in 1962 that entitled each Cuban household to a ration of heavily subsidized goods, and replacing it with a system of subsidized assistance exclusively for the “socially disadvantaged,” according to IPS News.

Simultaneously, state-owned enterprises and agricultural cooperatives will become autonomous, gaining authority to set their own worker pay scales, keep or reinvest their profits and directly partner with private companies. MiPymes, or MSMEs (private micro, small and medium-sized businesses), no longer have to navigate state intermediaries to purchase goods from abroad, allowing for direct imports of agricultural products, retail merchandise and other goods.

While the reforms are expected to increase the availability of imported goods through private trade, they may also deepen existing economic inequalities. Because MiPymes price imported goods in dollars at unregulated market rates, their shelves remain out of reach for millions of Cubans still living on fixed peso salaries or small pensions. For example, according to reporting from Barron’s, a liter of cooking oil at one Havana MiPyme costs $3, which makes up half of the monthly pension of retired security guard Joaquín Velázquez.

The Prospects for Economic Recovery

The economic effects of Cuba’s market reforms may rewire how business is conducted on the island, but they are unlikely to transform the country’s financial reality in isolation. By expanding the role of private enterprise, the government has created new opportunities for investment and commercial activity, yet many of the conditions that have contributed to Cuba’s economic crisis remain in place. As inflation continues to erode purchasing power, the benefits of greater market liberalization may remain out of reach for many Cubans. Nevertheless, greater access to private financing and fewer restrictions on businesses could allow the reforms to generate new sources of income and economic activity even under significant external and domestic constraints. If effectively implemented, the reforms could make Cuba’s emerging private economy a greater source of economic opportunity for its population.

– Nilani Mathur

Nilani is based in Longmeadow, MA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr

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Bafa Resort Reducing Poverty in Sierra Leone

Poverty in sierra leoneThough Sierra Leone is known for its beautiful beaches and vibrant culture, this West African country also faces persistent poverty. Inflation, minimal career opportunities and unequal access to resources and education contribute to almost two-thirds of citizens living below the poverty line. Repeated media coverage of tragedies in Sierra Leone, such as civil war, natural disasters and disease outbreaks, often deters tourists from visiting and supporting local businesses. However, tourism may have the potential to strengthen Sierra Leone’s economy. Here is how places like Bafa Resort can create new financial opportunities for Sierra Leone.

Poverty in Sierra Leone

As of 2024, about 65% of Sierra Leoneans, more than 5.5 million people, were living below the national poverty line. Poverty is especially prevalent in rural areas, where the poverty rate is roughly three times higher than in most urban areas. One of the many factors that contribute to the prevalence of poverty is the lack of stable job opportunities, particularly in rural areas. In 2022, about 289,000 adults were unemployed in Sierra Leone. Most people rely on inconsistent, low-paying jobs to survive, with 91.7% of working adults holding informal jobs.

Youth ages 15 to 24 and women are especially at risk of being unemployed or underemployed. Approximately 15.6% of adult women and 35% of youth in the workforce are underutilized. Low-income families often lack the funds to send their children to school, forcing youth to accept low-paying jobs and about 30% of girls to marry before age 18. Even when children can go to school, many schools do not have sufficient school supplies, qualified teachers or decent classrooms to effectively teach students.

About Bafa Resort

Bafa Resort is an eco-resort in the Banana Islands of Sierra Leone. Guests can enjoy meals made from locally sourced ingredients and partake in activities such as fishing, free diving, hiking and kayaking. Bafa Resort also offers several camping packages to suit guests’ preferences and budgets, ranging from guests pitching their own tents to relaxing in one of several “glamping tents” overlooking the ocean.

Bafa Resort has made intentional efforts to support islanders and local businesses. By buying locally sourced foods, Bafa Resort supports more than a dozen Sierra Leonean businesses while providing guests with fresh, quality meals. The community also receives “development fees” on behalf of resort guests to help support local industries and higher education. Additionally, locals are given priority for employment opportunities, especially women and youth.

One local who has benefited from working at Bafa Resort is kitchen manager and team leader Kona Keitell, affectionately known as “Aunty Kona” or “Aunty K.” Despite only having a Grade 2 level education, Keitell ensures that daily operations in the kitchen and the rest of the resort run smoothly. In 2018, Keitell was the first Bafa employee to benefit from the resort’s three-month paid maternity leave after welcoming her baby, Augusta. With the responsibility and skills she has learned through Bafa Resort, Keitell hopes to one day open her own restaurant.

Looking Forward

According to tour guide Peter Momoh Bassie, tourism is crucial in fostering economic growth in Sierra Leone. Places like Bafa Resort not only provide jobs and the chance to escape poverty for locals, but also advertise the nation as a tourist hotspot where visitors can relax, explore and enjoy the natural beauty. By changing global perceptions and supporting local businesses, tourism offers Sierra Leoneans a second chance at life.

– Lily Alexander

Lily is based in Surrey, BC, Canada and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons

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Backpacker Tourism: The Crux for Alleviating Poverty in Laos

Poverty in laosTucked away in Southeast Asia lies Laos, one of the poorest nations in the region. Its landlocked borders have historically caused it to be overlooked. However, Laos is rebranding itself as a tourist destination. Within its borders are unique landscapes: blue lagoons, cascading waterfalls, and bucolic villages set against mountains and rice paddies. These natural assets are attracting more tourists to this verdant gem.

Like the unexploded ordnance buried deep within the land, the scars of poverty and economic underdevelopment linger in Laos. Economic recovery has gained traction in the last two decades. The World Bank recorded a decrease in the national poverty rate from 27.6% to 18.3% between 2007 and 2018. That trend continues despite a sharp decrease in tourism due to COVID-19. Foreign investment, primarily from neighboring China, has prompted large infrastructural developments, increasing connectivity. Economically, progress is evident. However, the government sees tourism as the most promising sector: an untapped resource helping to alleviate poverty nationwide.

Current Minister of Information, Culture and Tourism Suansavanh Viyaket is leading the development of Laos’ tourism growth. “Tourism,” she asserts, “is a sector prioritized by the Party and State to stimulate economic growth.” Her plan is to “stimulate economic growth by harnessing the nation’s rich tourism potential,” and this has been actioned via a set of 10-year plans focused on regions in Laos harboring the richest promise.

Vang Vieng: The Tourism Blueprint for Laos

The first of these 10-year plans is set in the backpacker capital Vang Vieng. Nestled in the Vientiane Province, Vang Vieng has been crucial for producing one of the lowest poverty headcounts in Laos. Its strategic location between two renowned destinations, Luang Prabang and Vientiane, has allowed tourism to prosper; recent infrastructural developments compound upon this, improving access by road and rail.

Vang Vieng-based publican Gary O’Donoghue has owned his Irish-Laos bar for 18 years and has witnessed tourism-driven developments in the area. Speaking to The Borgen Project, O’Donoghue noted that “during the early stages, most backpackers came specifically to go tubing,” back when “it really was a party town.” Vang Vieng has utilized its reputation as a party hub for backpacking tourists, now attracting foreign visitors for its expansive options for outdoor activities. From tubing and hiking to paragliding and hot air balloons, Vang Vieng offers a plethora of activities.

Under the Master Plan, Vang Vieng has moved toward diversifying its tourism. The government noted that historically, the region showed an “over-reliance on the cheaper-end, lower-spending Western backpacker markets” which has been the predominant demographic of visitors. However, through adherence to ASEAN tourism standards, lifting industry safety standards, the region expects to see that demographic diversify. O’Donoghue’s insights reflect on “the new infrastructure” which has “encouraged people of all ages to come here.” Hard infrastructure developments like the high-speed rail and express road, he comments, have “been a massive game changer,” along with the recent development of “several high-end hotels.”

Government records in Vang Vieng reflect positive growth under the Master Plan. By 2033, Laos PDR forecasts up to 741,535 annual visitors, producing approximately $75 million in direct expenditure. Such numbers would see tourism contribute to over 40% of GDP and could generate 4,500 direct jobs. Significant opportunities would not only be limited to the higher-paid service sector but would indirectly develop the agricultural, manufacturing, and construction sectors. O’Donoghue stresses how vital international tourism is for the local community. During COVID-19, he notes, “the entire community was desperate for tourism to come back. Tourism creates a lot of jobs, and without it this area would struggle badly.” Impacts trickle down, not only creating jobs but promoting better and more sustainable urban planning in the town, increases in education opportunities, and local participation in administration. Tourism has bolstered both opportunity and quality of life for local people.

Following Suit: The Spread of Tourism

Tourism has proved crucial to alleviating poverty here. Elsewhere in Laos, the poverty headcount remains high. Almost a quarter of the population of Luang Prabang province remain in poverty. Champassak province to the south has an upper limit of 18.8% of its population in poverty. Both governmental and local initiatives to alleviate poverty in these regions center on tourism.

Mirroring the Master Plan for Vang Vieng, Viyaket has proposed a Master Plan focused on the Don-Det and Don Khon Area between 2026-2036. The region, situated in the southern province of Champassak, is home to the uniquely beautiful “Four Thousand Island” area. Tourism development focuses on the area’s nature-based attractions and local way of life, with hard infrastructure being implemented mindfully to mitigate negative impacts of development along the Mekong River. The government has outlined zoning plans and development guidelines to manage tourism influxes sustainably. The plan indicates that the government is attempting to spread similar benefits to those reaped by Vang Vieng to alleviate poverty elsewhere in Laos.

Despite no official government-led plans being implemented in Luang Prabang’s northern communities, areas such as Nong Khiaw are driving a tourism boom independently. Locally run schemes such as Yensabai Organic Farm are capitalizing on the region’s agricultural industry, promoting “agritourism.” Tourists are invited to stay at the farm, working the land alongside Laos locals. Five percent of the profits are donated to the local community.

Travel blogs such as Indie Traveller are advertising Nong Khiaw as an off-the-beaten-path destination that is home to unique and authentic opportunities. Just outside of UNESCO World Heritage Site Luang Prabang, Nong Khiaw offers a hotspot of ecotourism in Northern Laos. From Pha Daeng Peak and Som Nang Viewpoint to Pho Tok Caves and the hundred waterfall tour, Nong Khiaw is driving a decentralized economic boom in one of Laos’ most rural and underdeveloped regions.

Southeast Asia’s Rising Star

Laos has already seen tourism increase by an astounding 21% between 2023 and 2024. This is before the implementation of the government’s Master Plans. In 2026, experts recorded that high transport and accommodation costs in Southeast Asia are the most significant limiter to increasing tourism. With Laos’ reputation for affordability, especially compared to tourist hotspots Thailand and Vietnam, Laos is set to become a bucket list destination. This anticipated boom in tourism is set to alleviate poverty nationwide.

– Millie Lavington-Owen

Millie is based in London, UK and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

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Economic Benefits of Sustainable Tourism in Indonesia

Lush Indonesian landscape with tourists exploring, highlighting sustainable tourism's economic benefits. Sustainable tourism in IndonesiaIn communities across Indonesia, tourism provides more than a source of income; it creates opportunities for economic mobility, entrepreneurship and long-term growth. Tourism creates more than jobs — it creates pathways out of poverty. Across destinations such as Bali, Lombok and Java, sustainable tourism helps local workers, entrepreneurs and families earn income, start businesses and improve their quality of life. As visitor numbers increase and development projects expand, the economic benefits of sustainable tourism in Indonesia continue to create opportunities for communities that depend on tourism-related industries.

Poverty and the Promise of Tourism

Although Indonesia has made significant progress in reducing poverty over the past two decades, many rural communities still face economic hardship. According to the World Bank, Indonesia’s national poverty rate fell from approximately 24% in 1999 to below 9% in recent years, lifting millions of people out of poverty. However, families in rural areas often continue to rely on seasonal work, agriculture and informal employment that provide unstable incomes and limited opportunities for advancement.

Poverty can restrict access to education, health care and transportation, making it difficult for families to improve their economic situation. Sustainable tourism helps address these challenges by creating jobs, supporting local businesses and attracting investment to underserved regions. By connecting travelers with local guides, drivers, restaurants, accommodations and artisans, tourism generates income that remains within communities and supports long-term economic growth.

Recovery After the Pandemic

The COVID-19 pandemic exposed the vulnerability of tourism-dependent communities when international travel came to a sudden halt. Indonesia recorded a 75% decline in international tourist arrivals in 2020 compared to 2019, disrupting livelihoods for millions of workers who depended on tourism-related industries. Many drivers, guides, hospitality workers and small business owners experienced significant income losses as visitor spending disappeared almost overnight. In response, Indonesia partnered with international organizations to rebuild the tourism sector through sustainable development initiatives that prioritized local communities, environmental protection and economic resilience.

The United Nations Educational, Scientific and Cultural Organization (UNESCO) supported community-based tourism programs that encouraged cultural preservation while helping local residents benefit directly from tourism revenue. As tourism recovered, workers gained access to new opportunities through infrastructure improvements, workforce training and digital business development programs. Indonesia’s average monthly wage now exceeds 3.5 million rupiah ($196), while minimum wages have increased by more than 30% since 2020, reflecting broader economic recovery efforts. These initiatives focus on creating long-term opportunities rather than short-term recovery.

The United Nations and Sustainable Tourism

The United Nations (U.N.) has also recognized tourism’s role in supporting economic recovery and sustainable development. According to U.N. News, tourism generates employment opportunities, supports local entrepreneurship and creates pathways for women and young people to participate in economic growth. These benefits become especially important in developing regions where employment opportunities may be limited. By investing in sustainable tourism practices, communities can strengthen local economies while preserving cultural and environmental resources for future generations.

A Local Entrepreneur’s Story

Barna, owner of Rizkynata Bali Tours and Transfers, has experienced these opportunities firsthand. Before the pandemic, he built a successful career in Bali’s tourism industry and watched visitor spending on support drivers, guides, restaurants, hotels and small business owners throughout the region. According to Barna, tourism creates opportunities for families to earn stable incomes, invest in their futures and improve their overall quality of life. He has seen local entrepreneurs expand their businesses and create jobs as tourism demand increases.

When international travel slowed during the pandemic, Barna returned to his hometown in Java and helped his brother manage the family farm. Many tourism workers made similar decisions and temporarily found work in agriculture, construction and retail. Although these industries helped families earn income during difficult periods, they often provided fewer opportunities for growth than tourism-related work. As visitor numbers recovered, many workers returned to tourism and rebuilt their businesses. Barna’s experience demonstrates the importance of creating resilient local economies that can adapt to economic disruptions.

Infrastructure and Investment

Today, communities across Indonesia continue to benefit from investments in sustainable tourism infrastructure. In destinations such as Lake Toba and Lombok, tourism development projects upgraded roads that connect villages, tourism sites, airports and ferry terminals, making travel faster and more reliable for residents and visitors. The projects also expanded access to clean water, improved wastewater management systems and upgraded public sanitation facilities, helping protect local ecosystems while improving public health. According to the World Bank, these investments supported approximately 1.15 million jobs, helped more than 20,000 tourism businesses establish an online presence and provided skills certification to more than 84,000 tourism professionals. By improving infrastructure and expanding economic opportunities, these initiatives help communities attract investment, support local businesses and strengthen long-term economic growth.

Digital Tools for Small Business Growth

Digital technology has expanded access to economic opportunities for entrepreneurs across Indonesia. Barna uses Facebook and TikTok to connect with travelers and market his services to international visitors. He believes digital platforms allow small businesses to compete more effectively while reaching customers they might never meet through traditional advertising. His long-term goal is to create a transportation network that connects travelers with local drivers across Bali and Java, creating additional income opportunities for workers throughout Indonesia.

Rather than increasing prices during slower seasons, Barna focuses on providing reliable service, affordable rates and positive customer experiences. He believes strong customer relationships, repeat visitors and positive reviews create sustainable business growth. His approach reflects the values behind the economic benefits of sustainable tourism in Indonesia, where local entrepreneurs rely on trust, quality service and community support to build successful businesses that contribute to local economic development.

Looking Ahead

Barna remains optimistic about the future. He plans to diversify his income through agriculture and additional business ventures while continuing to expand his tourism company. He hopes future generations of his family will benefit from the opportunities tourism has provided him. His story demonstrates how sustainable tourism can reduce economic vulnerability, strengthen local economies and create pathways toward financial stability. As Indonesia continues investing in tourism development, entrepreneurs like Barna show how innovation, resilience and community partnerships can drive lasting economic progress and help communities move closer to sustainable prosperity

– Kianna Hines

Kianna is based in Brooklyn, NY, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Barna

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Rwanda’s F1 Ambitions: A Race To Transform Africa

Rwanda's F1Rwanda, a landlocked nation in East Africa, is making a high-speed push onto the global stage and Formula 1 (F1) may be its most powerful vehicle yet. Rwanda’s F1 ambitions and economic growth have become central talking points in development circles as the sport turns its attention back to Africa for the first time in more than three decades. Rwanda positions itself not only as a host of the race but also as a model for how developing nations can use global sporting events to accelerate economic transformation.

Rwanda’s $1.2 Billion F1 Bid

The Rwandan government has officially bid to host Africa’s first F1 Grand Prix since the 1993 South African Grand Prix at Kyalami. The centerpiece of the initiative is a $1.2 billion state-of-the-art circuit planned near the new Bugesera International Airport, about 40 kilometers from the capital, Kigali. Construction is expected to begin in 2026, with the inaugural race targeted for 2027 or 2028. 

Rwanda’s Foreign Minister, Olivier Nduhungirehe, confirmed that the country remains in active talks with F1 leadership, pointing to the nation’s growing track record of hosting major international events. “We have demonstrated the capacity to host major sporting events,” Nduhungirehe told Semafor Africa.

The Economic Case for a Grand Prix

The link between F1 and Rwanda’s economic growth and long-term poverty reduction is grounded in concrete data. According to Further Africa, each F1 Grand Prix injects more than $100 million into a host country’s economy. Television broadcasts reach more than 400 million viewers worldwide and generate significant sponsorship and hospitality revenue.

Rwanda’s broader economy is already on a strong upward trajectory. The World Bank reported that Rwanda’s real GDP grew by 8.9% in 2024, surpassing the previous year’s rate of 8.2%, driven by robust private consumption, significant investment and strong performance in the services and industry sectors. That growth also produced tangible results for workers, with more than half a million new jobs created year over year. 

Sports Tourism Already Delivering Results

Rwanda has not waited for F1 to begin building its sports economy. The country signed sponsorship deals with Arsenal, Paris Saint-Germain, Bayern Munich and Atlético de Madrid as part of its “Visit Rwanda” tourism campaign. This strategy helped drive a 36% increase in tourism revenue to $636 million in 2023.

In 2025, the Rwanda Development Board (RDB) reported tourism revenues rising to $685 million, supported by 1.49 million visitor arrivals, a 9% year-over-year increase. That year also saw Rwanda host the UCI Road World Championships, a historic first for Africa, alongside Season 5 of the Basketball Africa League at the BK Arena in Kigali and the 73rd FIFA Congress. Rwanda’s travel and tourism sector contributed a record $1.5 billion to the national economy in 2024, representing 9.8% of GDP.

Building the Infrastructure of Growth

Rwanda’s sports ambitions are matched by targeted infrastructure investment. The Ministry of Sports has set a target of generating approximately $20.4 million (Rwf 30 billion) from sports tourism by 2029, a dramatic increase from the roughly $681,000 (Rwf 1 billion) projected for the 2024/25 fiscal year. Plans also include the construction of 540 sports facilities nationwide by 2028/29, with priority given to schools and public spaces to broaden access to athletics and associated economic opportunities.

Job creation is a direct priority. Experts forecast steady growth in sports tourism jobs, with positions increasing from 2,625 in 2024/25 to 3,190 by 2028/29. This growth across hotels, event planning and sports support services will create clear employment opportunities for young Rwandans.

A Blueprint Beyond the Track

Rwanda’s sports-led growth model aligns with its broader Vision 2050 agenda, which prioritizes economic diversification, job creation and sustainable development. The RDB reported $2.62 billion in registered investments across 799 projects in 2025, which are expected to generate more than 38,000 jobs in real estate, manufacturing and tourism. Analysts tracking the relationship between F1 and Rwanda’s economic growth say the motorsport bid reflects a broader pattern of using high-visibility events to attract foreign investment and build lasting infrastructure.

Local drivers Eric Gakwaya and Queen Kalimpinya have expressed optimism that Rwanda’s motorsport ambitions will also catalyze the development of local talent. It will inspire a new generation to pursue careers in competitive racing and the industries that support it.

If Rwanda secures the Grand Prix, it will restore Africa’s presence on the F1 calendar. It will also demonstrate how strategic investment in major sporting events can drive poverty reduction, infrastructure development and long-term economic growth across the continent.

– Nay Mohamad 

Nay is based in Milan, Italy and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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How Eco-Tourism Is Supporting Poverty Eradication in Albania

Poverty Eradication in AlbaniaWhile Albania has made significant economic progress in recent decades, poverty remains a challenge in many rural communities. Across the country, however, innovative development initiatives like eco- tourism are creating new opportunities for economic growth and poverty eradication in Albania.

Although Albania’s economy has steadily expanded over the past two decades, many rural residents still struggle with unemployment, limited infrastructure and unequal access to education and public services. According to Germany’s Federal Ministry for Economic Cooperation and Development, people living outside major urban centers often face reduced economic opportunities and limited access to jobs, housing and education. Older people and members of minority groups are particularly vulnerable to poverty and social exclusion.

These challenges have made tourism an increasingly important source of economic opportunity. Albania’s tourism industry now plays a major role in supporting employment, particularly in rural regions where other industries remain underdeveloped. According to the World Travel and Tourism Council, the tourism sector supported approximately 269,000 jobs in Albania in 2023, accounting for nearly one in five jobs nationwide. As Albania’s tourism industry expands, many leaders see sustainable tourism as a promising strategy for poverty eradication in Albania.

Tourism in Albania

Known for its rugged mountains, protected national parks and Adriatic coastline, Albania is quickly gaining international attention as an emerging Mediterranean destination — offering a quieter alternative to the region’s often crowded seaside hotspots. Albania ranked fourth globally in 2023 for the largest percentage increase in international tourist arrivals, recording growth of 56% since 2019. To protect these ecosystems and the economic opportunities they provide, Albania is looking towards eco-tourism.

The World Bank states that the Albanian government is currently prioritizing “sustainable growth with a special focus on tourism” as part of its broader economic development strategy. In recent years, international organizations and government agencies have invested heavily in sustainable tourism initiatives designed to strengthen local economies while protecting environmental and cultural resources.

Job creation in Albania’s Heritage Communities

In southern Albania, eco-tourism and heritage tourism are helping transform communities that once faced economic decline and population loss. According to the World Bank, “for years communities across Southern Albania experienced sluggish growth and an exodus of residents, especially youths, seeking opportunity elsewhere.” However, investments in sustainable tourism infrastructure and cultural preservation projects have helped towns such as Berat, Gjirokastër, Përmet and Sarandë are now experiencing significant economic growth. 

Through initiatives like the Integrated Urban and Tourism Development Project (PIUTD), the World Bank helped restore and improve access to historic sites including Gjirokastër Castle, the Sarandë promenade and the Qafa e Pazarit bazaar. Workers rehabilitated nearly 200,000 square meters of public space through projects that repaired cobblestone streets, expanded hiking trails and improved lighting, sidewalks and visitor centers. These investments helped fuel a tourism boom across southern Albania, where tourist arrivals in Berat nearly quadrupled between 2019 and 2024, while arrivals in Gjirokastër increased sixfold.

Family-Run Guesthouses

Unlike large-scale resort tourism, locally owned businesses heavily drive Albania’s eco-tourism industry. The rapid growth of tourism has created new economic opportunities for local residents. Families have converted historic homes into guesthouses and bed-and-breakfasts, while entrepreneurs have launched cultural tours, hiking excursions and outdoor recreation businesses. Importantly, the World Bank states that this growth remains inclusive: “over half of the thousands of the new jobs created are held by individuals who are often excluded from the labor market, such as women, youth, and persons with disabilities.”

Moreover, tourism growth has expanded Albania’s tourism season beyond the summer months, creating more stable year-round income for local businesses. This has also encouraged some Albanians who previously emigrated to return home and invest in tourism enterprises, contributing to long-term community revitalization and further supporting poverty eradication in Albania.

Balancing Tourism and Conservation

Rapid tourism growth also brings environmental pressures, including risks to natural landscapes and biodiversity loss. In response, the Albanian government established a combined Ministry of Tourism and Environment in 2017 to better align economic development with environmental protection, ensuring that tourism expansion does not come at the expense of natural ecosystems.

Building on this approach, Albania expanded its protected areas in 2022 to cover 21.4% of the country’s territory, up from 17.5%. This expansion included the creation of the Albanian Alps National Park. Encompassing dramatic mountain scenery and valleys, the park is designed to strengthen biodiversity conservation while also supporting sustainable rural development and eco-tourism in surrounding communities.

The Albanian Alps attract thousands of international hikers each year, and encourage local communities to invest in environmentally conscious tourism services. Many guesthouses and agritourism businesses in these regions use locally sourced food, traditional architecture and small-scale accommodations that minimize environmental impact while supporting local agriculture and family-run enterprises.

Looking Ahead

As Albania’s tourism industry continues to grow, eco-tourism is emerging as one of the country’s most promising strategies for poverty eradication in Albania. From family-run guesthouses in the Albanian Alps to heritage restoration projects in historic southern cities, sustainable tourism initiatives are creating jobs, supporting local businesses and strengthening rural economies. While challenges related to poverty and regional inequality remain, Albania’s investment in sustainable tourism demonstrates how community-based development can create new economic opportunities for some of the country’s most vulnerable populations.

– Lucy Alexander

Lucy is based in Montreal, Quebec, Canada and focuses on Technology and Solutions for The Borgen Project.

Photo: Unsplash

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From Party Town to Ecotourism: Reducing Poverty in Vang Vieng

Poverty in Vang ViengA small and often overlooked country in Southeast Asia, Laos remains popular among backpackers and intrepid travellers seeking an alternative to highly developed tourist destinations. Nestled against the striking backdrop of the Karst mountains and vast expanse of paddy fields, Vang Vieng has long benefitted from tourist interest. However, it is only in recent years that the rural town has departed from its hedonistic party history to a model centred on ecotourism, with growing implications for local livelihoods and the reduction of poverty in Vang Vieng.

Background

Situated in central Laos, is providing an idyllic escape for respite between the cities of Luang Prabang and Vientiane. Laos is one of the poorest countries in Southeast Asia, with World Bank statistics suggesting that 15% of the population lived below the national poverty line in 2024. Vang Vieng itself is located in the relatively wealthy Vientiane Province. Its poverty severity index of 0.5-1 indicates relatively low levels of extreme poverty; the low poverty rate is extremely significant considering its status as a rural town in a country that experiences regional economic disparities. The reduction of Poverty in Vang Vieng can partially be attributed to its sustained commitment to tourism and the economic opportunities for local people that the sector provides.

Tourism and Poverty Reduction

In Laos, tourism has become increasingly important to the economic welfare of the country, with 4.1 million tourists visiting in 2024, representing an increase of 21% from 2023. This rise in foreign interest has had a direct financial impact, bringing in $1 billion to channel back into the economy. These developments in tourism have had a tangible impact on the country’s GDP; in 2024 Laos recorded a GDP growth of 4.1%. According to the Laotian Times, tourism in Vang Vieng specifically created a revenue of $57.4 million in 2024 and the target for 2025 stood at $78.6 million. This sustained growth highlights the sector’s expanding role in generating income and strengthening economic resilience in communities like Vang Vieng.

Tourism’s Dark Past in Vang Vieng:

Tourism in Vang Vieng however, has had neither a linear or pleasant historical progression. Famed for its party reputation, backpackers in the 1990s flocked to the area to enjoy its lax approach to regulating drugs and unrestrained nightlife. Thirty years ago, a visit to Vang Vieng would have entailed a blur of mushroom laced nights and intoxicated days. This lifestyle undeniably harmed local environments and livelihoods, with the prolific drug culture compounding the impact of poverty in Vang Vieng.

A hedonistic party culture is by no means the darkest chapter of Vang Vieng’s past. The evolution of tourism in the area has been punctuated by a series of fatal tragedies. In 2011, 27 tourists died while tubing down the Nam Song river, a popular activity characterised by riverside bars and high levels of alcohol consumption. This event resulted in authorities officially banning the activity, although one can still participate in tubing with some companies in Vang Vieng even today.

The summer of 2024 saw Vang Vieng once again become the site of a serious incident, in which six tourists died in Nana’s Backpacker Hostel after consuming methanol-contaminated alcohol reportedly provided by staff. Lao authorities responded by closing down the hostel. It has since been reopened under a different name, illustrating once again a schism between official regulation and the reality of enforcing such measures.

Developments in EcoTourism: Transformation of Vang Vieng

Today, the region has largely reclaimed its turbulent past and has become home to a flourishing ecotourism industry that has been vital to the reduction of poverty in Vang Vieng. Despite the continued presence of certain high-risk recreational activities, tourists are now increasingly engaged in more regulated forms of leisure, such as hiking in Tha Hon Kham and visiting the Blue Lagoons.

Companies like Wonderful Tours Laos offer dedicated Eco-tours that allow travellers to enjoy the countryside safely and sustainably. Additionally, there has been a huge influx of eco-friendly hotels in the town, such as The Elephant Crossing Hotel. These hotels focus on sustainability, environmental protection, and creating community-driven job opportunities.

The transition to ecotourism has important socio-economic implications, particularly in terms of poverty reduction. According to the Vang Vieng District Authorities, the rate of poverty in 2017 in the area was just 2.03%.  Recent developments have generated employment, diversified income sources and increased local participation in the tourism sector.

For the Riverside Boutique Resort in Vang Vieng, a commitment to local Community and culture is central to its ethos. Indeed, the hotel prioritises the employment of Vang Vieng residents, ensuring that revenue generated through tourism goes to the local economy and supports local livelihoods.

Conclusion

A problematic and controversial past undeniably marks the history of tourism in Vang Vieng. Once sought out for its party scene and nightlife, the town has since undergone a significant transformation into a hub of ecotourism that has proved vital for local development and poverty reduction. Its metamorphosis serves as a model for other tourist destinations to keep sustainability and community central to their economic structures.

– Polly Laws

Polly is based in Cardiff, UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr