This publication, produced by the World Tourism Organization and PlaNet Finance, examines the impact of tourism in relation to poverty reduction strategies in developing countries through the use of microfinance options in tourism projects. The report considers seven different approaches for promoting benefits for the poor from tourism development (including employment options, provision of services and products and tourism taxation); the role of small and medium sized businesses; and financing tourism through microcredit schemes, using the example of rural tourism development in Morocco.

Abstract: The tourism industry has begun to incorporate microfinance into a new type of niche tourism that integrates local entrepreneurs and tourists. This type of tourism is called microfinance tourism. The study investigates the tourist role in poverty alleviation using the Theory of Planned Behavior to explore how attitude, perceived behavioral control, and social norms impact intention to continue investment and/or donation to microentrepreneurs and microfinance organizations. The study was conducted in conjunction with Investours, a non-profit organization that offers `microfinance tours' in Dar es Salaam, Tanzania and Puerto Vallarta, Mexico. The study found perceived behavioral control and attitude to be strong predictors of intention to donate and/or invest in microentrepreneurs and/or microfinance organizations.

This publication contains details of private or public tourism projects that have been presented by WTO Member States as examples of good, sustainable practices for poverty reduction through tourism. They are drawn from 26 case studies from 20 countries including three LDCs (least developed countries) of Ethiopia, Mali and Mozambique, and include examples of projects relating to agro-tourism, tourism micro-entrepreneur networks, village tourism, community-based hotels, parks or protected areas, guide training and handicraft development.

Tourism is a key export for many developing countries, and this industry can play a significant role in promoting balanced sustainable development which generates benefits for poorer communities. This report reflects this concern by examining the contribution which tourism development can make to the elimination of poverty in developing countries, as well as making recommendations for action by governments, the industry, development agencies and local communities.

1. Introduction -- 2. Poverty and tourism unpacked -- 3. Tourism entrenches poverty -- 4. Poverty attracts tourists -- 5. Tourism reduces poverty-- tourism industry approaches -- 6. Tourism reduces poverty--government approaches -- 7. Tourism reduces poverty-- development agency approaches -- 8. Conclusion.

Pro-poor tourism is currently receiving enormous attention from the World Tourism Organization, government, industry, and NGOs. Through a series of cases and reviews this book provides one of the first assessments of the effectiveness of pro-poor tourism as a development strategy and tackles the issue of who benefits from tourisms potential role in poverty reduction.