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Economic leakage is when tourist money that comes into a country goes back to the country it came from due to costs.

For example, thousands of tourists go to beach resorts in places like Jamaica every year, but those resorts are owned by non-Jamaican companies. So, the money that tourists spend while in Jamaica goes back to the US or Europe where the resort owners live.

Or, another example, a Jamaican-owned resort keeps money in Jamaica, but they would still need to buy food for the tourists from the USA to make them happy.

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12y ago

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