Informality and Tourist Development on the Ecuadorian Coast

Abstract

[Abstract] The informal economy is a complex phenomenon that occurs in various forms and degrees worldwide. In Ecuador, the informal sector represents 46.5% of the economy. This research aimed to analyze the situation of informal trade in the tourism sector of Playas Cantón, Ecuador, and its relationship with the regional economic development. The study used a quantitative approach through a structured survey with different actors involved in tourism, such as tourists and residents, informal traders, tourism entrepreneurs, and local authorities, during March and April 2023, reaching a sample of 150 participants. The results showed that the informal sector is an essential part of the tourism economy in Playas. Multiple causes and factors drive and sustain it, including the lack of formal job opportunities, flexibility in working hours, lack of regulation and sanitary control, and insecurity in the area. The study recommends implementing policies and measures to address informality in the tourism sector, including formalizing and training informal workers to strengthen regulation and control of informal activities and ensure sustainable development.