Can Tourism Development Help Reduce Poverty? A Question for the MCA

The Millennium Challenge Account (MCA) aims to “reduce poverty through economic growth.” It works on an innovative model rather like a foundation: eligible countries apply to the MCA to fund national development priorities. The MCA then assesses the proposals based on their potential to yield economic growth and poverty reduction. Several MCA-eligible countries have included tourism components in their funding proposals. But does tourism promote poverty reduction? In this MCA Monitor Analysis, Sarah Lucas offers a brief assessment of the potential effects of tourism on poverty reduction and suggests lessons for maximizing the poverty-reducing potential of tourism.