Using evidence from Cusco, Peru, the paper examines the effects of the planned displacement of informal traders from city-centre streets. Although more than 3500 traders were relocated to new off-centre markets, the research identifies the emergence of 'unplanned' alternative city-centre locations for informal trade, especially the new courtyard markets. The municipal-led changes, influenced strongly by concerns to enhance tourism, reveal a process which displays many of the hallmarks of gentrification. Lower-class traders were displaced from city-centre streets for the benefit of middle-class tourists and local people. There was also gentrification of the trading activity itself: by manipulating stall allocation and pricing structures to exclude the poorest traders from the new higher-quality municipal markets. The changing pattern of informal trading can be viewed as an unconventional 'barometer' of the progress of policy-led gentrification, applicable to other cities in the developing world.
The current debate on the tourism-development nexus has a rather static and narrow focus on the impact of tourism and overlooks that tourism has become strongly dependent on links between different localities. This article eschews these place-bounded approaches and focuses on linkages and the interplay between the social and the spatial within tourism developments. Drawing on the empirical case of street vendors in the tourist centre of Cusco, it explores how social capital and the way street vendors manoeuvre themselves in and through global and local environments offer new opportunities for tourism to contribute to poverty alleviation. It is maintained that social capital and interconnectivity are of fundamental importance in gaining a better understanding of the development potential of tourism.
