The Dual Economy

So I need to get something off my chest. One thing that is really bugging me here, and I guess it is true in most developing countries, is that although tourism is booming, not much of the money seems to benefit the local community.

In the Lake Atitlan area, as in most of Guatemala, poverty is a huge problem. Of course, hand in hand with that is lack of education, poor health care and malnutrition. These are not things that are easy to fix and many tourists believe that by coming here they are contributing to the local economy.

I’m starting to think that tourism is a backwards step for the locals. What often happens is that gringos come and buy houses thereby driving up property prices. They set up businesses where they employ very few locals (sometimes none), and usually only for the menial low-paid work. Generally the gringos have a better idea of what the tourist market is interested in and so they get named in the guide books and are busy and popular.

In effect, the locals are often priced out of their own town as they can’t afford the property and their businesses are less profitable. That’s why in the villages around Lake Atitlan, down near the water live the gringos and all their businesses, and up higher are the local villages.

As a tourist, it is impossible to entirely avoid the gringo businesses but my philosophy is to buy from the locals as much as possible and where possible, stay in a locally owned hotel. I also try to ensure that I don’t do much repeat business anywhere I stay if I can help it – thereby spreading the little money I am spending across as many businesses as possible. And of course, spending big in the local markets to support those communities, and occasionally buying chickens for people.