Analyzing Outbound Tourism as a Form of Economic Leakage: A Qualitative Approach

Abstract

This paper aims to understand and analyse the concept, impacts and factors causing outbound tourism leakage, as well as to guide decision-makers and tourism entrepreneurs on how to reduce outbound tourism leakage and mitigate its impacts. This study used stakeholder theory as a theoretical base for analysing the perspectives of the stakeholders of the tourism and hospitality (T&H) sector. Qualitative research method was used in this study. Semi-structured interviews were conducted. Thematic analysis was used. Interview quotes were categorized into themes. The findings revealed that outbound tourism leakage resulted in lost tourism revenues, investor reluctance, a balance-of-payments deficit, a reduction in the economic multiplier effect, and inflationary pressures on the economy. The main causes of outbound tourism leakage were the high prices, high constructional and operational costs, lower quality of infrastructure and superstructure services, limited marketing, and lack of participation and collaboration. There is a lack of conceptual and qualitative research that analysed the phenomenon of outbound tourism leakage. Therefore, this study was developed to fill a knowledge gap and qualitatively analyse the concept, impacts and factors causing outbound tourism leakage.

Keywords

• outbound tourism
• economic leakage
• economic sustainability
• tourism economics
• stakeholder theory