Is tourism employment a sufficient mechanism for poverty reduction? A case study from Nkhata Bay, Malawi

Abstract

Extensive attention has been paid to the magnitude and distribution of economic benefits derived from tourism employment by impoverished populations. However, less is known about how economic benefits, such as increased income, relate to poverty conditions at the intra-household level, particularly within the unique contexts of least developed countries. In this paper, we examine the relationship of tourism employment to poverty conditions in a lakeshore community in Malawi. First, we quantitatively compare employment and poverty conditions among the households of tourism employees with those of employees of non-tourism sectors. Secondly, we undertake a qualitative investigation into lodge employment, and its remuneration and fringe benefits from the perspectives of lodge owners and employees. Our findings of the former analysis reveal that while employees of the tourism sector experienced better working and monetary conditions, this group did not exhibit an improved status in other poverty conditions. The latter qualitative analysis shows that most tourism lodge owners adhered to labour standards of minimum wage, and voluntarily offered fringe benefits such as paying medical, funeral, and education expenses of lodge employees. However, despite this adherence to labour standards, there is little evidence that lodge employees and their households experience an improvement in poverty conditions.