Luxury tourism in Africa: Wealth that leaves, communities left behind

25-08-25

Africa has been promoted as an ideal destination for luxury tourism under the slogan “high value, low impact,” a formula that promises economic benefits without harming local environments. However, a recent study by the University of Manchester published in African Studies Review argues that these promises rarely translate into real advantages for local communities and often operate as closed enclaves that fuel inequality rather than reduce it.

The study points out that “all-inclusive” luxury hotels and exclusive eco-lodges act as isolated bubbles that capture almost all tourist spending without integrating into the surrounding economy. Many of these establishments hire less than 20% of their staff locally, discourage visitors from exploring beyond their facilities, and import a large portion of their food and services, limiting the positive impact on local businesses.

Moreover, more than 70% of the most profitable eco-lodges are owned by foreign companies. As a result, a considerable share of revenue is diverted to overseas travel agencies, spent on imported goods, or repatriated, instead of being reinvested in local development.

This luxury tourism model tends to concentrate wealth in the hands of foreign corporations or a small national elite, while the jobs accessible to local populations are poorly paid and lack development prospects, exacerbating socioeconomic divides.

The mismatch between expectations and reality is beginning to spark social tensions. In Kenya’s Maasai Mara reserve, for instance, a local activist has filed a lawsuit to halt the opening of a new Ritz-Carlton lodge featuring private pools and personal butler service. The Maasai community argues that the project threatens their ecosystems and traditional ways of life.

In Tanzania, tens of thousands of Maasai have been displaced to make way for hunting lodges, triggering protests and violent clashes with police. These conflicts reflect the growing discontent of communities that feel marginalized in favor of elitist tourism.

This situation is not exclusive to East Africa. In destinations across the north and southwest of the continent—such as Morocco, Mauritius, South Africa, and Egypt—similar patterns are repeated: foreign investors acquire extensive coastal or rural areas to build luxury resorts, while farmers, fishers, and local groups are excluded and denied participation in the benefits.

The underlying problem is the so-called “leakage” phenomenon: a typical feature of luxury tourism whereby much of the spending does not remain in the host economy but instead flows out to external operators, thereby depressing local development potential.

Against this backdrop, the study calls for a reconsideration of Africa’s tourism model. It stresses the need to shift toward more inclusive and resilient approaches, where communities have a real voice and genuine participation. This includes:

Prioritizing local hiring and skills development, such as training guides, artisans, or small service businesses.
Promoting auxiliary economies that encourage tourists to spend beyond the hotels: in markets, craft workshops, community-led tours, independent restaurants, and more.
Redefining the concept of “eco-tourism” so that it is not only environmentally sustainable but also socially fair and equitable, respecting territorial rights and strengthening local economies.
Implementing schemes like Kenya’s conservancy models, where the Maasai act as landowners leasing their territory to tourism operators, generating income while maintaining control over tourism management.

Only in this way can tourism become a true driver of development—one that generates decent jobs, strengthens rural economies, preserves traditions, and protects ecosystems—instead of serving merely as an engine of profit for a select few.

The University of Manchester study dismantles the notion that luxury tourism is an automatic solution for African development. Instead, it urges a commitment to equitable, sustainable, and people-centered models, where the benefits truly reach those who live in and depend on these destinations.

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