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In Cape Town, many international hotel chains operate in popular tourist areas s...

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In Cape Town, many international hotel chains operate in popular tourist areas such as the V&A Waterfront. Although these hotels attract large numbers of foreign tourists, a significant portion of the revenue is transferred to the parent companies overseas to cover management fees, marketing and imported goods. As a result, only a small percentage of the income remains in the local economy. 

This scenario illustrates the concept of economic leakage in tourism. 

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