Linking Tourism Revenue to Local Development

What is the problem?

Tourism generates substantial income in many European regions, yet its financial benefits often remain concentrated in the private sector. Local communities, especially in rural or less developed areas, receive limited reinvestment in essential infrastructure and services. This imbalance undermines social cohesion and long-term regional development.

What should be done?

Member States should introduce a dedicated local tourism levy or tax mechanism ensuring that a proportion of tourism revenues is reinvested in community projects - such as affordable housing, public transport, or environmental conservation. This system should be transparent and locally managed to strengthen accountability.

Who should act?

National governments, in coordination with local authorities and with guidance from the European Commission on best practices.

What impact will it have?

Redirecting part of tourism profits to community infrastructure will enhance local well-being, reduce regional inequalities, and build more sustainable tourism models. It will also foster citizens’ trust, by showing tangible social returns from the tourism economy.