Two hotels in a mountain valley earn the same amount. Hotel A is owned locally and buys its food from nearby farms. Hotel B is owned abroad, imports much of its food and sends its profit home. Which helps the valley more?
- Hotel A's profit stays with a local owner, who spends it in the area.
- Its food orders give income to local farmers, so the money is passed on again.
- Much of hotel B's income leaves the valley as payment for imports and as profit sent abroad.
Answer: Hotel A, because more of the tourists' money stays in the valley and reaches other local businesses.