Abstract: | Although tourism's apparent financial benefit to the Guatemalan economy in terms of earning foreign exchange is well known, there has been little micro-economic research done on how the country's third largest export industry affects individual communities. Therefore, this study compares price and wage data to provide initial leads on how tourism affects the food purchasing power of wage earners in the developing tourist community of Panajachel. Research shows that between 1964 and 1978, tourist-industry demands on local food supplies helped inflate food prices far above wage increases, and contributed to a wage laborer's loss of food-purchasing power. Thus in most cases, wage-labor employment in Panajachel is not efficacious in terms of maintaining or increasing the ability to purchase food. |