Are High-Spending Visitors Necessarily High-Value Visitors? Researcher Says No

Dr. James Hepple, Managing Director, Tourism Analytics, has 45 years of experience in the travel industry, with a strong focus on the Caribbean. In a recent MPE Caribbean Report newsletter he was quoted on an issue long-discussed in the region.

Are high-spending visitors necessarily high-value visitors? Hepple’s response: “Not necessarily.”

“A visitor paying US$1,000 a night to an internationally owned resort may appear exceptionally valuable but the booking may have been made through a foreign intermediary, much of the food and beverage may be imported, and a significant share of the revenue may leave the destination,” Hepple said.

He contends that a lower-spending visitor travelling differently can have a more positive impact on a destination.

“Another visitor may spend less in total but stay longer and distribute more of that expenditure among locally owned restaurants, guides, taxis, retailers, attractions and cultural businesses. 

Which visitor creates more value? It’s not a simple equation, Hepple said.

“We cannot answer that from arrival totals, hotel occupancy or gross visitor expenditure alone. Value depends on how much money remains in the destination, who receives it, what employment and tax revenue it generates and what infrastructure, social and environmental costs accompany it. 

“A high-spending visitor is therefore not necessarily a high-value visitor.”