Luxury tourism in Africa fails to benefit local communities, University of Manchester Study Finds

Aug 25, 2025 Business views: 187

Luxury tourism in Africa is often promoted as a high-value,low-impact development model,while its actual benefits to local communities are minimal,a new study from the University of Manchester found.

The study,published in the African Studies Review,raises serious concerns about the long-term sustainability and equity of luxury tourism strategies across Africa.

In many cases,luxury tourism creates isolated enclaves- such as all-inclusive resorts and exclusive national parks- that are disconnected from surrounding communities.

These facilities typically hire less than 20% of their staff locally and discourage tourists from spending money outside the resort,limiting economic benefits for nearby businesses.

The study reveals that over 70% of the most profitable eco-lodges and tourism ventures are owned by foreign companies. As a result,a significant portion of the revenue is repatriated abroad or spent on imported goods,rather than reinvested locally.

Despite being marketed as “low-impact,” luxury tourism often involves high-emission travel,including private jets.

In Mauritius,locals report being excluded from over 60% of prime coastal areas now dominated by foreign-owned resorts,exacerbating social inequality.

The study emphasizes the need for African nations to prioritize economic diversification over niche luxury tourism. It advocates for more inclusive,resilient tourism policies that genuinely benefit local populations,especially in the wake of global shocks like the COVID-19 pandemic.

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