Exploring the Role of Community-Based Tourism in Boosting Global Economies

Key takeaways:

• Introduction
• Role of community-oriented tourism in social and economic development
• Recent developments in the industry

Community-based tourism is a subset of sustainable tourism, designed to engage communities in various aspects of tourism development, including planning and active participation. This type of tourism involves active engagement and participation of local communities in planning, advancing, and managing tourism initiatives. The primary objective of this approach is to empower local populations, encourage sustainable development, and generate economic prospects, all while safeguarding and celebrating the cultural and natural heritage of the area.

This form of tourism offers travelers authentic glimpses into local life and ensures that their experiences genuinely benefit the residents. Additionally, in this category of tourism, local communities invite individuals to participate in their customs, cuisine, way of life, and set of beliefs. The community-based tourism industry is expanding rapidly and is anticipated to display a notable CAGR of 14.1% by 2032. The growth is attributed to a surge in the locally managed and self-sustained economy, demand for authentic cultural experience in the tourism industry, and heightened protection and value of local culture. 

How is sustainable tourism improving the economic status of the communities?

Community-oriented tourism expands the travel industry by providing travelers with distinctive experiences. It can generate a positive impact and bring about transformative change for regional communities. It contributes to the development of local communities by preserving their heritage, offering jobs, and generating income.

Community-oriented tourism creates employment opportunities, generates income, encourages local acquisition of goods and services, and helps retain funds among the community. Beyond direct income generation, this type of tourism triggers positive effects in local economies. Tourists visiting these communities contribute to the local economy by spending on souvenirs, various goods and services, and transportation. The tourist spending stimulates and supports local businesses. This leads to the development of employment opportunities for residents beyond those directly engaged in tourism activities.

Community-oriented tourism acts as a catalyst for economic progress, promoting a sustainable and vibrant local economy. The Kaula Chhen and Panauti Bike Station in Panauti are prime examples of economic development powered by community-oriented tourism. The Panauti Bike Station, run by the local youths, has successfully established itself as a mountain bike tour firm, providing employment opportunities for youngsters. Moreover, Kaula Chhen, started by a women's group from Panauti, provides an authentic Newari dining experience. These ventures drive the community's overall sustainability and development through tourism.

How is community-based tourism contributing to overall social development?

Community-oriented tourism plays an important role in providing skills training to individuals, creating opportunities for the advancement of community infrastructure, and offering health benefits. Additionally, it offers a more equitable community structure, and interaction with foreign travelers helps boost confidence and satisfaction among the community members. Also, it contributes to preserving and promoting local culture and heritage.

Through the active engagement of locals in sharing their customs, arts, crafts, and traditions, community-oriented tourism contributes to the protection of cultural diversity. This not only provides tourists with an authentic and immersive experience but also implants a sense of pride among locals for their rich cultural heritage. 

An excellent example is the Ranjana Lipi initiative to promote and conserve Nepal’s ancient script. The Community Homestay Network has developed a workshop in Ranjana Lipi by collaborating with Kirtipur Community Homestay where travelers can participate, learn about the script, and write a memento. This unique workshop has become popular among both domestic and foreign travelers. This initiative has boosted awareness regarding Ranjana Lipi and promoted community members as cultural ambassadors.

How are the latest developments shaping the dynamics of the sector?

The community-based tourism industry is an emerging sector and contributing to the development of the travel industry. Government officials, suppliers, and private organizations are collaborating and investing in R&D activities to promote sustainable tourism. For instance, a group of Thai experts visited the Mekong Delta province of Ben Tre to lay the foundation for a project focused on the sustainable development of coastal communities through sustainable tourism. The initiative incorporates the philosophy of a sufficiency economy. During the visit, the experts evaluated the capabilities and gathered input from local households to contribute to sustainable tourism. A representative from the Thai Consulate General in Ho Chi Minh City mentioned that the project in Ben Tre aims to enhance the capabilities of local tourism personnel.

To conclude, the community-based tourism industry promotes the social and economic development of local communities. The rising governmental interest and collaborations with private organizations are estimated to drive the sector’s expansion in the upcoming years. 

For detailed insights regarding market dynamics, investment opportunities, and competitive scenarios of the industry, contact our experts today!  

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