Evaluating the economics of park-tourism from the ground-up: Leakage, multiplier effects, and the enabling environment at South Luangwa National Park, Zambia

Economic impacts from tourism may benefit people living near parks and contribute to national-level economic growth. However, economic evaluations of park-tourism, which could be used to advocate for greater support of management, are rare in developing countries. Local multiplier effects of tourist spending, which can potentially promote business growth even where leakage is high, have also received little attention. We demonstrate an approach for estimating these local economic effects from an iterative set of surveys tracing the flow of tourism money near South Luangwa National Park, Zambia, and synthesize results with qualitative and quantitative analyses of national multiplier effects, park finances, local perceptions, and the park's management history. Despite high leakage, tourism accounts for similar to 40% of local household income and at least half of business growth in the gateway community. Results also reveal that GDP contributions are an order of magnitude above park management costs. Circumstances promoting the park's economic performance include key access infrastructure and commercial autonomy in management.

Automated summary

The study demonstrates that despite high leakage, tourism accounts for approximately 40% of local household income and at least half of business growth in the gateway community. Results also reveal that the GDP contributions from tourism are an order of magnitude higher than park management costs. Circumstances promoting the park's economic performance include key access infrastructure and commercial autonomy in management.