Leakage effect

The percolation rate ( engl. leakage) is a model of tourism research to explain the backflow of foreign exchange earnings from tourism in foreign countries. This is caused by importing required for tourist goods ( including food and drink ) or by hiring of foreign service providers (transport, construction work). The more differentiated the economic structure of the destination, the higher is the possibility of self- supply of consumer goods and services, and the lower the percolation rate.

The percolation may arise in two ways:

• By importing: If the tourist demand for standards requires that can not be provided by the host country. Especially in less developed countries, food and drink are often imported - either because local products do not meet the expected standards, or because there is no local production of the products. This share of the jobs created by tourism income to be spent for importing the goods requested. According to UNCTAD, the import -based percolation rate is at most developing countries, between 40 % and 50 % of the gross revenue, while it is for developed and diversified countries between 10% and 20 %.
• Through Export: Multinational corporations and large foreign companies can have a high proportion of the percolation rate. Especially in new, undeveloped destinations, they are often the only ones with the necessary capital to fund tourism infrastructure. Thus, a percolation rate is caused by the export, because the company " take " the profits in the country of origin.

Another variation is caused by changes in consumption patterns due to increased revenues from tourism. This allows the local demand, also stimulated by the "model" of tourists, change in favor of imported products and thus further increase the percolation rate.

Even if profit outflows can reduce the revenue from tourism, the tourism compared to other export production relatively favorable net foreign exchange effects, since one seeks wherever possible to rely on local resources.