What is referred to as money lost from a tourist destination, often taken overseas by corporations?

The correct answer refers to economic leakage, which is a concept in tourism economics that describes the way in which the money spent by tourists does not remain within the local economy. Instead, a portion of that revenue is lost to larger corporations that operate internationally, often taking profits back to their home countries. This can happen when hotels, restaurants, or other services in tourist destinations are owned by foreign entities, resulting in a significant part of the income generated from tourism being transferred out of the local area.

In tourism studies, economic leakage is an important consideration as it can affect the overall benefits that a destination receives from tourism. The goal is to maximize the economic benefits locally and minimize leakage, thereby promoting sustainable tourism practices that ensure that the host community benefits from the tourism activities. Understanding this concept helps analyze the economic impact of tourism on a region and influences policy making to enhance local economies.