Tourism Economic Leakage and Policy Strategies: A Literature and Case-Based Analysis

Tourism economic leakage refers to the structural outflow of revenue generated from tourism that fails to benefit local economies. This issue poses a major challenge to sustainable development, particularly in developing countries and tourism-dependent regions. To examine the characteristics of tourism economic leakage and seek policy strategies, this study conducts a systematic literature review and bibliometric analysis of 117 SSCI journal articles, complemented by a comparative case analysis of Bali, Indonesia and Bhutan. The results highlight a shift in research focus from growth-oriented models to sustainability, local linkages, and community engagement. Both revenue and import leakages are shaped by ownership structures, supply chain capacities, and sociocultural contexts. Based on these findings, the study proposes multi-level strategies to mitigate tourism economic leakage and enhance policy design tailored to local conditions. Limitations of this study include the limited focus on English-language sources and a narrow set of case studies, which highlight the need for broader future research.