Well-planned, well-managed nature-based tourism is a massive development opportunity. Money spent by tourists on activities, transportation, food, and accommodation ripple through local communities. In destinations with rich natural assets but limited economic opportunities, nature-based tourism provides pathways to create jobs, strengthen value chains, drive growth, develop the private sector, diversify rural incomes, finance protected areas and biodiversity conservation, and empower communities.
It can also generate financing for biodiversity conservation. In many countries, visitor entrance fees, tourism concessions and leasing fees, and other financial mechanisms play a significant role in local budgets. As a result, more countries are prioritizing nature-based tourism, and the market is growing in all regions of the world.
It is critical that countries’ natural capital is not taken for granted as tourism opportunities are developed.
Developing countries face challenges in building the foundations, enhancing the policy environment, and attracting the private capital necessary to create jobs from nature-based tourism. In addition, weak management of nature and protected areas, pollution, poaching, and fragmented landscapes constrain and degrade the quality of the natural assets that visitors are seeking and are willing to pay for.
The World Bank Group is investing in country programs that help countries protect their natural assets, grow and diversify business opportunities linked to nature-based tourism, and share the benefits from tourism with local communities. It also invests in new tools and knowledge to measure the local economic impacts of nature-based tourism, to help inform policies for sustainable development and conservation of protected areas. The World Bank Group also helps clients manage risks that can arise from expanding tourism, developing tourism-related infrastructure, or managing protected areas.
Nature-based tourism supporting jobs and livelihoods
Tourism is projected to contribute 10.3 percent of global GDP—about USD 11.7 trillion—and support a record 371 million jobs worldwide in 2025 (World Travel & Tourism Council, 2025). Nature-based tourism drives about 8 billion unique visits each year to protected areas representing 17% of the world’s land and 8% of the world’s marine areas. World Bank analysis (see tabs below) shows that these visits deliver income multipliers of two dollars per tourist dollar in Uganda and Madagascar and supports 13 percent of local employment in Fiji.
World Bank analysis found that in Madagascar, for every tourist dollar, local incomes increase by $2.48 in the local economy of Nosy Be surrounding Nosy Tanikely National Park. In Uganda, each tourist dollar generated an increase in local incomes by $2.03 in the local economy surrounding Queen Elizabeth National Park. And in Zambia, tourism generated jobs for 30 percent of the working age population around Zambia’s South Luangwa National Park.
Nature-based tourism is an engine for sustainable development and economic growth. Tourism in Bwindi Impenetrable National Park generated $31.7 million in economic benefits, compared to a park budget of $2.3 million. And in Lao PDR, the Nam Ha National Protected Area integrates trekking tourism with homestays, generating cash income for over 20 ethnic groups.
Strong operational partnerships and coordination mechanisms are needed among public institutions, private firms, and local people to drive lasting development impacts from tourism. Investment is needed in both natural and built assets, as well as people’s capacity to participate in the tourism economy – and improving the enabling environment to attract high quality investors is also key.
Meaningfully engaging with local communities—especially those directly impacted by projects—is fundamental to this approach. The World Bank Group is proactively working with governments to strengthen processes that identify, avoid, and minimize social and environmental risks early in project design and implementation. To support this, the Bank has developed a Good Practice Note on Managing the Risks of Projects Involving Protected Areas.
Estimating the economic impact of tourism in protected areas on local economies
Local economy-wide impact evaluation (LEWIE) models are being used to quantify both the direct and indirect impacts of tourist spending on economies around protected areas. These approaches measure visitor numbers and tourist spending in protected areas and gather data from surveys of local households and businesses. The resulting data can make the case for greater investments in natural areas and tourism and inform policies that improve tourism and refine business models. Assessments can also help identify those protected areas that are generating high returns from government investments.
In Banking on Protected Areas, the World Bank published a LEWIE approach for protected area tourism, presenting data from assessments in Brazil, Fiji, Nepal, and Zambia. It has also piloted a new LEWIE-lite methodology in Madagascar and Uganda. Both studies revealed that the economic impacts of nature-based tourism spending were higher on non-tourism activities than on tourism activities. These additional impacts should be considered in country economic development plans, policy design, or cost-benefit studies before undertaking new tourism projects. Funding for the studies was provided by PROBLUE, PROFOR, PROGREEN, the Global Wildlife Program, and WAVES. Increased investment in raising awareness of the economic impacts of nature-based tourism—and in improving the design and implementation of related activities at national, regional, and global levels—will be essential moving forward.
