three sectors in a tourism industry

Complete Overview of the 5 Sectors in the Tourism Industry

Overview of the sectors in tourism

The interplay of sectors in tourism, impact of each sector on the tourism industry, challenges and opportunities in each sector.

The tourism industry is one of the most dynamic landscapes . That’s primarily because it consists of several unique sectors. Each one of these sectors goes through comprehensive changes and is subject to many factors. 

Nevertheless, understanding these sectors is quite essential! Why? Because it can help you make informed business decisions, identify valuable growth opportunities, future-proof your travel brand, and, ultimately, set it up for success.

Below you can find an in-depth analysis of the different sectors in tourism, how they affect each other, and the industry as a whole. Finally, you will discover unique challenges and opportunities for each sector.

The tourism vertical is quite extensive. It consists of six sectors, making it one of the most diverse industries. These sectors are transportation, accommodation, food and beverage, travel agencies, and attractions. Let’s take a closer look at the sectors, their sizes, and their economic impact.

Transportation in Tourism

Transportation in tourism is a big sector. It encompasses a wide range of forms of travel and enables tourists to reach their destinations safely and efficiently. The sub-sectors include air travel, land transportation, and maritime travel. 

When it comes to inbound tourism, air travel comprises the largest share, 57% . Travelers trying to reach faraway destinations often choose from various travel options. One can actually gauge the momentum of the tourism sector recuperation after the COVID-19 pandemic by looking at air transportation trends. The latest report states that total air traffic is up by 52% compared to 2022 . 

Land transportation for tourists has been increasing in recent years. A recent study reveals that car transportation makes up 77% of all journeys . The reasons that explain this trend are flexibility, price, and independence. 

Maritime travel or cruise tourism is also experiencing steady growth. This subsector is estimated to continue to grow at a CAGR of 10.4% from 2022 to 2031 .

Transportation is one of the pillars of the tourism industry, and as such, it has a tremendous economic impact on the vertical – its efficient functioning is critical for not only attracting tourists to destinations but also enabling them to reach their desired locations . It allows companies to generate revenue through ticket sales. However, by enabling tourists to reach their destinations, it also drives economic activity in hospitality.

Accommodation in Tourism

All the lodging options tourists can choose from comprise the accommodation subsector of the tourism industry. It includes hotels, resorts, hostels, vacation rentals, Airbnb, and more.  

The hotel occupancy rates metric is the best one to keep track of the developments in this subsector simply because there are almost 750,000 hotels and resorts worldwide . In April 2022, hotel occupancy rates were highest in the Americas, reaching 64% . Europe was in second place with the hotel occupancy rates at 63%, followed by the Middle East and Africa at 49% and the Asia Pacific at 48%. 

When it comes to the economic impact, the best metric to track is revenue per available room or RevPAR. The RevPar reached $93.27 in 2022, an 8.1% increase compared to 2019 . The average daily rate is up by 13.6%, which makes $148.83 for the same period. Occupancy rates are still not at the pre-pandemic level, but with only a 4.9% difference, they are getting there. 

The revenue this sector generates has a tremendous impact. The money is used toward creating new jobs, developing infrastructure, and boosting local economies. Local communities and governments also benefit from the taxes and fees collected from accommodation providers. 

Food and Beverage in Tourism

The food and beverage tourism sector is quite diverse and doesn’t just include restaurants and cafes. It also encompasses various dining establishments where tourists can experience local culinary traditions and cuisine.

According to the National Restaurant Association research, the sales in the fine dining segment to travelers and visitors went down by 41% . However, total restaurant industry sales are projected to reach $.1.2 trillion by 2030 , and traveler purchases will significantly contribute to this positive development. The food tourism market is projected to reach $1,796.5 billion by 2027 in size, which is a 16.8% growth given that its size in 2022 is $1,116.7 billion. 

One of the most extensive studies done recently encompassed the data from over 50,000 travelers to conclude that 64% of travelers base their traveling decisions on the food and drink options available at their destination. 

There are two sides to the economic impact of food and beverage in tourism. First, it helps generate more direct revenue, and second, it fosters culinary entrepreneurship and can significantly boost agricultural and food production sectors. It can also help create more job opportunities.

Travel Agencies and Tour Operators 

Travel agencies are travel brands that specialize as intermediaries. They provide tourists with access to accommodation and other tourism options. Travel agencies can also offer various services, such as tour packages, accommodation reservations, and transportation booking . 

Online travel agencies or OTAs are currently dominating this space. In 2022, the online global travel market size reached $475 billion and is projected to reach over one trillion US dollars by 2030. OTAs, including the most significant players such as Booking.com, Trip.com, and Expedia, captured over 40% of the total market . 

While travel agencies continue to generate revenue, it’s important to note that global travel agency revenue is growing at a CAGR of 2.5% . 

Travel agencies, both offline and online, are vital parts of the entire travel ecosystem. They both contribute to the whole sector and facilitate tourism overall. Travel agencies stimulate economic activity through other sectors as they are responsible for actually funneling tourists to destinations. They also help create new jobs, improve travel satisfaction, and ensure repeat business.

Tour operators, the companies that create packages for travel agencies to sell, also make up a sizable sub-sector. The market size of the tour operators industry in the US in 2022 was $8.6 billion . The US market will continue to grow at a CAGR of 17% to reach $30 billion in size by 2023 . Across the ocean, we have Europe, with its tour operator market size projected to reach $74 billion by 2026 , with Germany as the leader in the field with a market size of $24 billion.

Tourism Attractions

Tourism attraction is a place of interest. Generally speaking, tourism attractions’ primary role is to attract tourists to a particular destination. It can be anything from natural wonders and historical sites to museums and cultural landmarks. 

According to the latest data , the most visited attractions are spread across the globe. These include Nagashima Spa Land, Japan; Universal Studio, USA; Palace of Versailles, France; and Bourbon Street, USA.

Theme parks are also among the most popular tourist attractions. In 2022, these parks attracted almost 200 million visitors . The museums are right behind theme parks, with an attendance of 57 million. 

Tourism attractions also have a significant economic impact. They support jobs in the vicinity, boost local economies, and positively impact the overall tourist experience. They are also the number one factor that often drives visitation. 

The most important thing to understand about sectors in the tourism industry is that they are not separated from one another. In fact, the interplay of sectors in tourism is quite elaborate and happens on so many different levels. 

Let’s start with transportation. The affordable, dependable, and reliable means of transportation can facilitate visitation. Transportation is also responsible for the tourist experience. It can improve access to tourism attractions, make tourism agencies more attractive, and drive sales in the accommodation and food and beverage sectors. 

Accommodation in tourism often interplays with travel agencies. It can help improve the brand image of a travel agency by enhancing the stay experience. It can also lead to increased food and beverage sales if the hotel or a resort has its own facilities, such as a restaurant or bar. In return, the food and beverage sector can improve the standing of accommodations and destinations in the eyes of travelers.

Travel agencies interplay with all of the sectors. The services they offer have to live up to the descriptions found on the websites. They can help boost the average daily rates for accommodation providers, increase booking rates at transportation companies, and bring more people to attractions. 

The best way to look for the interplay of sectors in tourism is to closely examine partnerships. The transportation, accommodation, and other various travel brands have recognized the value of the interplay and decided to partner up to reap even more benefits. 

The most common are partnerships between airlines, hotels, and travel agencies. It enables airlines to remain competitive while helping hotels and travel agencies maintain high customer satisfaction and enhanced travel experience.  

The real-world example that comes to mind is Wilderness Safaris’ partnership with Qatar Airways . The big hospitality brand wanted its guests to arrive well-fed & rested, ready to engage in adventures in the great outdoors. Given that Qatar Airways received high marks in the catering and business class areas, it was the perfect pick for Wilderness Safaris.

Another real-world example is AEGAN’s partnership with Booking.com. Here, we have a transportation company and OTA joining forces together to reap unique benefits. AEGAN, an airline brand, wanted its customers to be able to conveniently check hotel availability in real-time, book accommodation at competitive prices, and benefit from friendly cancellation policies. 

To encourage travelers to choose AEGAN services through Booking.com, the company also launched the Frequent Flyer Program and awarded consumers extra miles with every hotel booking using AEGAN transportation services.

As one of the largest industries, the tourism vertical contributes 10% of all jobs or 333 million . All sectors contribute to job creation and the global tourism market size of $2.4 trillion . 

Accommodation and food and beverage sectors have a significant impact on the tourism industry as well. In terms of GDP, these sectors contributed 3.3% , a significant growth, given that the US average is 2.87% .

In raw numbers, it looks like the following. Global accommodation in tourism generates $903 billion . Almost half of it, 49%, comes from the USA sector. Europe, APAC, Middle East, and Africa contribute with their shares of 25%, 22%, 3%, and 2%, respectively. The global hotel and resort industry currently employs approximately 10.5 million people . 

The global travel agency services industry’s revenue has reached $475 in 2023 . Travel agencies in the US employ 402,835 people. Over the last 5 years, the number of people working in the travel agency sector went up by 12%. On a global scale, travel agencies employ approximately 2 million people . 

While every industry and sub-sector is unique, they all share a few things in common. In each one of them, you can find a couple of opportunities and encounter a few challenges. Let’s see what challenges and opportunities there are in each sector. 

Transportation in tourism

Challenges:

• Ever-increasing prices of fuel – to remain profitable, airlines need to manage operational costs, and one of the enormous costs is fuel;
• Becoming green – transportation companies need to reduce carbon emissions and adopt sustainable travel practices, which can be challenging and costly;
• Infrastructure in remote destinations – building roads and developing infrastructure can be pretty challenging in remote destinations with tremendous tourism potential.

Opportunities:

• Using technological advancements – transportation technologies can help improve customer experience and improve operational efficiencies;
• Implementing sustainable practices – becoming eco-friendly can help brands attract environmentally conscious travelers;
• Improving connectivity – with connectivity expansion, transportation brands can help local economies and create new tourism opportunities.

Accommodation in tourism

• Online offer – as more and more competitors join online marketplaces, accommodation providers need to embrace a new paradigm;
• Overtourism – limited accommodation capacity is a massive problem in destinations where over-tourism is a norm;
• Guest safety and security – in some situations and locations, accommodation providers can struggle with ensuring guest safety and security.
• Going digital – embracing cutting-edge technologies can help enhance guest experience and ensure longer and repeat stays;
• Personalized accommodation – offering boutique and experiential lodging can help accommodation providers cater to modern travelers;
• Partnerships – aligning with relevant companies and local brands can help providers attract more travelers.

Food and beverage in tourism

• Quality and safety of food – upholding the highest food quality and safety standards can be challenging;
• Fluctuating demand – seasonal destinations can struggle with handling fluctuating food and beverage demand;
• Shifting dietary preferences – guests may have diverse dietary preferences, which require planning and management.
• Innovation – innovative dishes and fusion cuisines can attract guests who feel more adventurous;
• Farm-to-table – cooperating with local farmers can help bring fresh ingredients to restaurants;
• Focus on local cuisine – bringing local dishes into the spotlight can help attract people interested in authentic cuisine.

Travel agencies

• Harsh competition – travel agencies have to compete against hundreds of online travel booking platforms;
• Tailored services – many travelers look for personalized experiences, which can prove hard to provide if you are a small agency;
• Agility is required – getting ready for a wide range of disruptions is costly and hard to sustain at scale.
• Customization – offering unique packages can help generate more bookings;
• Multi-channel presence – being present across online and offline channels is paramount;
• Focus on a niche market – staying focused on a specific travel niche can help you truly cater to the needs of your target customers.

Tourism attractions

• Preservation – sustainable management of tourism attractions can be challenging; 
• Seasonality – if traction generates the majority of the revenue through seasonal visitors, it can be a problem;
• Infrastructure demand – a growing number of visitors can cause infrastructure strain.
• Collaboration – partnerships can help create a better ecosystem;
• Interpretive guides and interactive displays – interpretive experiences can delight a wide range of visitors;
• Expanding offer – You can offer new activities to make the offer more attractive.

As you can see, the tourism industry landscape is quite comprehensive, with a lot of moving pieces on the board, and the best way to understand the vertical is to take a look at its subsectors.

Hopefully, now you understand transportation, accommodation, food and beverage, travel agencies, and tourism attraction sectors better. They are all intertwined, with many interplay activities. While the tourism sector comes with its fair share of challenges, there are also many opportunities. The current stats and projections tell us that all subsectors are prosperous and expected to grow in the foreseeable future. 

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Marc Truyols has a degree in Tourism from the University of the Balearic Islands. Marc has extensive experience in the leisure, travel and tourism industry. His skills in negotiation, hotel management, customer service, sales and hotel management make him a strong business development professional in the travel industry.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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What Are the 8 Sectors of Tourism Industry?

By Robert Palmer

Tourism is one of the most significant industries worldwide, generating income and creating job opportunities for millions of people. It is a dynamic and ever-evolving industry, with many different sectors that contribute to its success. In this article, we will explore the eight sectors of the tourism industry.

1. Accommodation

Accommodation is a crucial sector of the tourism industry, as it provides travelers with a place to stay during their trip. This sector includes hotels, motels, resorts, hostels, and vacation rentals. These accommodations can range from budget-friendly to luxury options.

2. Food and Beverage

The food and beverage sector is an integral part of tourism as it provides travelers with dining options during their trip. This sector includes restaurants, cafes, bars, food trucks, and other food establishments.

3. Transportation

Transportation is another critical sector of the tourism industry as it allows travelers to move around during their trip. This sector includes airlines, trains, buses, taxis, rental cars, and other modes of transportation.

4. Travel Trade

Travel trade involves tour operators and travel agents who provide services such as booking flights and accommodations for travelers. They also create packages that include various activities such as sightseeing tours or adventure excursions.

5. Attractions

The attractions sector includes all tourist destinations such as museums, art galleries, theme parks, historical sites or landmarks that attract visitors from around the world.

6. Events and Conferences

Events and conferences are another significant aspect of the tourism industry that brings people together for business or leisure purposes. This sector includes trade shows, exhibitions or conventions.

7. Adventure Tourism

Adventure tourism provides thrill-seeking travelers with activities like hiking, rock climbing, bungee jumping, scuba diving and other outdoor adventures.

8. Tourism Services

Tourism services refer to the support services that travelers need during their trip. This sector includes things like travel insurance, currency exchange, language translation services and more.

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The Tourism Industry: An Overview

• First Online: 30 September 2017

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• Mark Anthony Camilleri 2  

Part of the book series: Tourism, Hospitality & Event Management ((THEM))

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This chapter introduces its readers to the concept of tourism. It sheds light on the rationale for tourism, as it explains the tourists’ inherent motivations to travel. It also describes different aspects that together make up the tourism industry. Tourists travel to destinations that are accessible to them. They require accommodation if they are visiting a place for more than 24 h. Leisure and business travellers may also visit attractions, and engage themselves in recreational activities. Hence, the tourist destinations should have the right amenities and facilities. In this light, this chapter clarifies how destinations may offer different products to satisfy a wide array of tourists. Tourism products can include; urban (or city) tourism, seaside tourism , rural tourism , ecotourism , wine tourism , culinary tourism , health tourism, medical tourism , religious tourism , cultural (or heritage) tourism , sports tourism , educational tourism , business tourism (including meetings, incentives, conferences and events), among others. In conclusion, this chapter lists major points of interest in North America to clarify how diverse destinations may be appealing to different tourists, for many reasons.

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Camilleri, M.A. (2018). The Tourism Industry: An Overview. In: Travel Marketing, Tourism Economics and the Airline Product. Tourism, Hospitality & Event Management. Springer, Cham. https://doi.org/10.1007/978-3-319-49849-2_1

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What are Sectors of Tourism? Accommodation, Transportation, Intermediaries

• Post last modified: 28 August 2021
• Reading time: 15 mins read
• Post category: Tourism

What are Sectors of Tourism?

Tourism is an economic, environmental, and socio-cultural phenomenon. It reaches various sectors of the economy and society and it involves many different forms, such as leisure tourism, sports tourism, cultural tourism, business tourism, conference, and exhibition tourism, tourism for religious reasons, and Eco-tourism.

Table of Content

• 1 What are Sectors of Tourism?
• 2 Sectors of Tourism
• 3.1 Resort Hotel
• 3.2 Airport Hotel
• 3.3 Bed & Breakfast (B&B)
• 4.1 Transport by Air
• 4.2 Transport by Sea or Water
• 4.3 Road Transport
• 4.4 Rail Transport
• 5.1 Types of Intermediaries
• 5.2 Travel Agencies
• 5.3 Tour Operators
• 5.4 Corporate client travel agencies
• 5.5 Sightseeing tour companies
• 6 Merits of using Intermediaries (Travel Agency)

The broad nature of tourism makes it quite difficult to be defined and there is no universally accepted definition of it As tourism development has both positive and negative effects on the tourist location, the study will also discuss what are the factors reducing the positive effects of tourism and then what strategies should be adopted in order to reduce the negative effects and maximize the positive.

Sectors of Tourism

These are some various sectors of the tourism industry:

Accommodation

• Transportation
• Intermediaries

Accommodation is a temporary home for travelers. It ranges from simple sleeping places to deluxe suites for eating, entertainment, and sleeping. Travelers can stay overnight in any kind of lodging from an African treehouse to a castle in Europe.

The accommodation industry is made up of hotels, motels (motor hotels), resort hotels, campgrounds, hostels, and guesthouses. Hotels are classified in various ways. One of the most common ways is by location, such as resort, city center, airport, suburban, or highway.

Types of Hotels:

Resort Hotel

Airport hotel, bed & breakfast (b&b).

A resort hotel can be considered as a destination itself. It offers a full range of services and amenities for the guests to enjoy their vacations within the property. Typical features of a resort hotel include restaurants, shops, sporting facilities, pools, spas, casinos, and even private beaches.

Examples: 1. Hong Kong Gold Coast Hotel , 2. Mission Hills Resort Shenzhen in China .

Airport hotels are located in or near airports. This type of accommodation is selected by travelers for necessity. A major feature of airport properties is convenient for early morning departures or late evening arrivals. It is mainly for airline crew members and passengers with overnight layovers r canceled flights.

Example: Hong Kong Regal Airport Hotel .

B&B is a guest house or private house providing clean, attractive accommodation and breakfast. The B&Bs offer a home-like atmosphere. The owner of the B&B usually lives on the premises and provides all the necessary labor. Community breakfasts with other lodgers and hosts enhance this atmosphere.

The other way of classification is rating (grading), for example, five-star, four-star, three-star, two-star hotels. This grading system is commonly used in China.

Types of Transportation

There are a number of different types of transportation modes: air, water, road and rail. The various types of transport modes can be subdivided into:

Transport by Air

Transport by sea or water, road transport, rail transport.

Air Transport First-class travelers enjoy the privacy of their own private cabin area with seats that can be converted into 6’6″ flatbeds. Plenty of good food, in-flight entertainment, and a personal video screen is provided.

They are also welcome to use the arrivals lounge. Business-class travelers have wide comfortable seats with plenty of legroom. They can also enjoy good food, free drinks, and complimentary newspapers. Economy-class travelers though have narrower seats, still are provided with suitable services and meals.

In general, most of the airlines provide different classes on board; they are first, business and economy class. Some airlines nowadays introduced ‘premium economy class’. This class of service offers better individual service (e.g. more comfortable seat) to passengers at a lower price comparing with business-class service.

What is a cruise? A cruise is a vacation trip by ship. This definition excludes traveling by water for primarily transportation purposes. It offers the passengers a chance to relax in comfortable surroundings, with attentive service, good food, and a liner that changes the scenery from time to time.

Despite the potential positive impact of cruise tourism to the local economy, there is also a danger the local tourism industry faces is that cruise tourism can displace other forms of tourism as hotels and tours fill with cruise passengers, reducing the capacity for other tourists.

Cruise ships are basically self-contained destinations where guests live, eat, are entertained, and travel. Cruises are voyages taken for pleasure and not only for the purpose of transport. Most cruises start and end at the same port. A cruise with all-inclusive fare nowadays may combine:

Transportation costs such as airfare between cruise passengers’ point of origin and the destination port. Sometimes the cost of accommodation at the destination port is included in the all-inclusive fare.

Traveling by road is the most flexible and economical form of mass transportation. Modern motorway networks have made major cities easily accessible.

Coach Services

• Local Service.
• Regional – between Hong Kong and Shenzhen.
• International express services – services between Canada and United States in North America.
• Tour and sightseeing operations.
• Shuttle buses for airport transfers.

Car Services

Car travelers have greater freedom in choosing their route, destination, and timing of their journey. Examples are Private cars for rental, Taxis, Private cars.

Business and vacation travelers book car rentals for different reasons. Business travelers are looking for a convenient and reliable form of ground transportation to get them from point A to point B with the minimum amount of fuss and bother.

Vacation travelers are looking for a comfortable form of transportation to places where they plan to visit but these places are not easily accessible by public transportation.

The importance of rail travel has given way to private cars and air travel, but is picking up now since a number of services have been designed specifically for the tourist trade on a local and international level.

Examples include “Orient Express” in Europe and “Indian-Pacific” across Australia. Others include the “Trans-Siberian Railway” and the “Bullet Train” of Japan.

Examples of Other Rail Transport: Underground train services in a most urban city, Airport express train service; and Scenic rails.

One of the world’s eminent traveling experiences is to travel on a luxury train. Traversing the world’s varied landscapes along alternative train routes, the train combines all the comfort and luxury of a five-star hotel with a globally unparalleled journey.

Intermediaries in Tourism

Intermediaries are “Middle-Men”, acting as a link between the customer and the supplier. In the travel business, the suppliers consist of airlines, cruise and ferry companies, coach/bus companies, railways, hotels and motels, and car rental agencies.

The customers include holidaymakers, business travelers, and those visiting friends and relatives.

Tourism and the Structure of the Tourism Industry Travel agencies, in their role as “middlemen,” combine tourism activities originally carried out on an unconnected, individual basis, linking customers with tourism service suppliers and thereby promoting the development of the tourism industry.

Tourism service suppliers include airlines, hotels, restaurants, car hire companies, and companies that operate reception services at destinations.

Types of Intermediaries

Types of Intermediaries are chiefly divided into two categories:

Travel Agencies

Tour operators.

Appointed representatives such as tourism service suppliers or wholesalers are authorized to sell customers a series of tourism-related products and services such as airline tickets, cruise liner berths, hotel rooms, car rentals, and train tickets, etc.

Their role is to provide guests with relevant tourism consultant services, book travel products on behalf of customers, and provide special services for customers in accordance with their needs, etc. Their income is mainly derived from agency commissions.

• Wholesalers.
• Inbound travel agencies/outbound travel agencies.

Wholesalers buy large volumes of products at a relatively low price from tourism service suppliers such as transport companies, hotels, and tourist attractions, and then sell them to tourism retailers that then sell to the retail market.

They won’t normally sell travel products directly to the general public. However, some powerful travel agencies will also establish retail departments to sell these products directly to customers.

There are also some wholesalers that are operated by a number of airlines and chain hotels and promote package tours put together from their own products.

Retailers order large volumes of various different types of travel products from tourism service suppliers or wholesalers such as transport companies, hotel, and tourist attraction products and services, then design and combine these individual products and add in their own services such as tour guide services, etc., turning them into packaged travel products, which are then sold to customers.

Outbound tour groups will take locals to another city or country and provide travel products such as transport, accommodation, and tickets to tourist attractions. Generally speaking.

This type of intermediary will regularly organize groups to take people from Hong Kong all over the world, wherein they will be accompanied by a group leader or tour guide from the very start.

Corporate client travel agencies

Sightseeing tour companies, merits of using intermediaries (travel agency), please share this share this content.

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Tourism’s Importance for Growth Highlighted in World Economic Outlook Report

• All Regions
• 10 Nov 2023

Tourism has again been identified as a key driver of economic recovery and growth in a new report by the International Monetary Fund (IMF). With UNWTO data pointing to a return to 95% of pre-pandemic tourist numbers by the end of the year in the best case scenario, the IMF report outlines the positive impact the sector’s rapid recovery will have on certain economies worldwide.

According to the World Economic Outlook (WEO) Report , the global economy will grow an estimated 3.0% in 2023 and 2.9% in 2024. While this is higher than previous forecasts, it is nevertheless below the 3.5% rate of growth recorded in 2022, pointing to the continued impacts of the pandemic and Russia's invasion of Ukraine, and from the cost-of-living crisis.

Tourism key sector for growth

The WEO report analyses economic growth in every global region, connecting performance with key sectors, including tourism. Notably, those economies with "large travel and tourism sectors" show strong economic resilience and robust levels of economic activity. More specifically, countries where tourism represents a high percentage of GDP   have recorded faster recovery from the impacts of the pandemic in comparison to economies where tourism is not a significant sector.

As the report Foreword notes: "Strong demand for services has supported service-oriented economies—including important tourism destinations such as France and Spain".

Looking Ahead

The latest outlook from the IMF comes on the back of UNWTO's most recent analysis of the prospects for tourism, at the global and regional levels. Pending the release of the November 2023 World Tourism Barometer , international tourism is on track to reach 80% to 95% of pre-pandemic levels in 2023. Prospects for September-December 2023 point to continued recovery, driven by the still pent-up demand and increased air connectivity particularly in Asia and the Pacific where recovery is still subdued.

Related links

• Download the News Release on PDF
• UNWTO World Tourism Barometer
• IMF World Economic Outlook

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Related content, international tourism reached 97% of pre-pandemic level..., international tourism to reach pre-pandemic levels in 2024, international tourism to end 2023 close to 90% of pre-p..., international tourism swiftly overcoming pandemic downturn.

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Chapter 1. History and Overview

1.1 What is Tourism?

Before engaging in a study of tourism , let’s have a closer look at what this term means.

Definition of Tourism

There are a number of ways tourism can be defined, and for this reason, the United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure (United Nations World Tourism Organization, 2008).

Using this definition, we can see that tourism is not just the movement of people for a number of purposes (whether business or pleasure), but the overall agglomeration of activities, services, and involved sectors that make up the unique tourist experience.

Tourism, Travel, and Hospitality: What are the Differences?

It is common to confuse the terms tourism , travel , and hospitality or to define them as the same thing. While tourism is the all-encompassing umbrella term for the activities and industry that create the tourist experience, the UNWTO (2020) defines travel as the activity of moving between different locations often for any purpose but more so for leisure and recreation (Hall & Page, 2006). On the other hand, hospitality can be defined as “the business of helping people to feel welcome and relaxed and to enjoy themselves” (Discover Hospitality, 2015, p. 3). Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry (Go2HR, 2020). You’ll learn more about accommodations and F & B in Chapter 3 and Chapter 4 , respectively.

Definition of Tourist and Excursionist

Building on the definition of tourism, a commonly accepted description of a tourist is “someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons” (LinkBC, 2008, p.8). The United Nations World Tourism Organization (1995) helps us break down this definition further by stating tourists can be:

• Domestic (residents of a given country travelling only within that country)
• Inbound (non-residents travelling in a given country)
• Outbound (residents of one country travelling in another country)

Excursionists  on the other hand are considered same-day visitors (UNWTO, 2020). Sometimes referred to as “day trippers.” Understandably, not every visitor stays in a destination overnight. It is common for travellers to spend a few hours or less to do sightseeing, visit attractions, dine at a local restaurant, then leave at the end of the day.

The scope of tourism, therefore, is broad and encompasses a number of activities and sectors.

Spotlight On: United Nations World Tourism Organization (UNWTO)

UNWTO is the United Nations agency responsible “for the promotion of responsible, sustainable and universally accessible tourism” (UNWTO, 2014b). Its membership includes 159 countries and over 500 affiliates such as private companies, research and educational institutions, and non-governmental organizations. It promotes tourism as a way of developing communities while encouraging ethical behaviour to mitigate negative impacts. For more information, visit the UNWTO website .

NAICS: The North American Industry Classification System

Given the sheer size of the tourism industry, it can be helpful to break it down into broad industry groups using a common classification system. The North American Industry Classification System (NAICS) was jointly created by the Canadian, US, and Mexican governments to ensure common analysis across all three countries (British Columbia Ministry of Jobs, Tourism and Skills Training, 2013a). The tourism-related groupings created using NAICS are (in alphabetical order):

• Accommodation
• Food and beverage services (commonly known as “F & B”)
• Recreation and entertainment
• Transportation
• Travel services

These industry groups (also commonly known as sectors) are based on the similarity of the “labour processes and inputs” used for each (Government of Canada, 2013). For instance, the types of employees and resources required to run an accommodation business whether it be a hotel, motel, or even a campground are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation. The same is true of the other four groupings, and the rest of this text explores these industry groups, and other aspects of tourism, in more detail.

It is typical for the entire tourist experience to involve more than one sector. The combination of sectors that supply and distribute the needed tourism products, services, and activities within the tourism system is called the Tourism Supply Chain. Often, these chains of sectors and activities are dependent upon each other’s delivery of products and services. Let’s look at a simple example below that describes the involved and sometimes overlapping sectoral chains in the tourism experience:

Before we seek to understand the five tourism sectors in more detail, it’s important to have an overview of the history and impacts of tourism to date.

Long Descriptions

Figure 1.2 long description: Diagram showing the tourism supply chain. This includes the phases of travel and the sectors and activities involved during each phase.

There are three travel phases: pre-departure, during travel, and post-departure.

Pre-departure, tourists use the travel services and transportation sectors.

During travel, tourists use the travel services, accommodations, food and beverage, recreation and entertainment, and transportation sectors.

Post-departure, tourists use the transportation sector.

[Return to Figure 1.2]

Media Attributions

• Front Desk by Staying LEVEL is licensed under a CC BY-NC 4.0 Licence .

Tourism according the the UNWTO is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes.

UN agency responsible for promoting responsible, sustainable, and universally accessible tourism worldwide.

Moving between different locations for leisure and recreation.

The accommodations and food and beverage industry groupings.

someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons

A same-day visitor to a destination. Their trip typically ends on the same day when they leave the destination.

A way to group tourism activities based on similarities in business practices, primarily used for statistical analysis.

Introduction to Tourism and Hospitality in BC - 2nd Edition Copyright © 2015, 2020, 2021 by Morgan Westcott and Wendy Anderson, Eds is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Travel, Tourism & Hospitality

Global tourism industry - statistics & facts

What are the leading global tourism destinations, digitalization of the global tourism industry, how important is sustainable tourism, key insights.

Detailed statistics

Total contribution of travel and tourism to GDP worldwide 2019-2033

Number of international tourist arrivals worldwide 1950-2023

Global leisure travel spend 2019-2022

Editor’s Picks Current statistics on this topic

Leading global travel markets by travel and tourism contribution to GDP 2019-2022

Travel and tourism employment worldwide 2019-2033

Further recommended statistics

• Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2033
• Basic Statistic Travel and tourism: share of global GDP 2019-2033
• Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
• Basic Statistic Global leisure travel spend 2019-2022
• Premium Statistic Global business travel spending 2001-2022
• Premium Statistic Number of international tourist arrivals worldwide 1950-2023
• Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
• Basic Statistic Travel and tourism employment worldwide 2019-2033

Total contribution of travel and tourism to gross domestic product (GDP) worldwide in 2019 and 2022, with a forecast for 2023 and 2033 (in trillion U.S. dollars)

Travel and tourism: share of global GDP 2019-2033

Share of travel and tourism's total contribution to GDP worldwide in 2019 and 2022, with a forecast for 2023 and 2033

Total contribution of travel and tourism to GDP in leading travel markets worldwide in 2019 and 2022 (in billion U.S. dollars)

Leisure tourism spending worldwide from 2019 to 2022 (in billion U.S. dollars)

Global business travel spending 2001-2022

Expenditure of business tourists worldwide from 2001 to 2022 (in billion U.S. dollars)

Number of international tourist arrivals worldwide from 1950 to 2023 (in millions)

Number of international tourist arrivals worldwide 2005-2023, by region

Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

Number of travel and tourism jobs worldwide from 2019 to 2022, with a forecast for 2023 and 2033 (in millions)

• Premium Statistic Global hotel and resort industry market size worldwide 2013-2023
• Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
• Basic Statistic Leading hotel companies worldwide 2023, by number of properties
• Premium Statistic Hotel openings worldwide 2021-2024
• Premium Statistic Hotel room openings worldwide 2021-2024
• Premium Statistic Countries with the most hotel construction projects in the pipeline worldwide 2022

Global hotel and resort industry market size worldwide 2013-2023

Market size of the hotel and resort industry worldwide from 2013 to 2022, with a forecast for 2023 (in trillion U.S. dollars)

Most valuable hotel brands worldwide 2023, by brand value

Leading hotel brands based on brand value worldwide in 2023 (in billion U.S. dollars)

Leading hotel companies worldwide 2023, by number of properties

Leading hotel companies worldwide as of June 2023, by number of properties

Hotel openings worldwide 2021-2024

Number of hotels opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

Hotel room openings worldwide 2021-2024

Number of hotel rooms opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

Countries with the most hotel construction projects in the pipeline worldwide 2022

Countries with the highest number of hotel construction projects in the pipeline worldwide as of Q4 2022

• Premium Statistic Airports with the most international air passenger traffic worldwide 2022
• Premium Statistic Market value of selected airlines worldwide 2023
• Premium Statistic Global passenger rail users forecast 2017-2027
• Premium Statistic Daily ridership of bus rapid transit systems worldwide by region 2023
• Premium Statistic Number of users of car rentals worldwide 2019-2028
• Premium Statistic Number of users in selected countries in the Car Rentals market in 2023
• Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Airports with the most international air passenger traffic worldwide 2022

Leading airports for international air passenger traffic in 2022 (in million international passengers)

Market value of selected airlines worldwide 2023

Market value of selected airlines worldwide as of May 2023 (in billion U.S. dollars)

Global passenger rail users forecast 2017-2027

Worldwide number of passenger rail users from 2017 to 2022, with a forecast through 2027 (in billion users)

Daily ridership of bus rapid transit systems worldwide by region 2023

Number of daily passengers using bus rapid transit (BRT) systems as of April 2023, by region

Number of users of car rentals worldwide 2019-2028

Number of users of car rentals worldwide from 2019 to 2028 (in millions)

Number of users in selected countries in the Car Rentals market in 2023

Number of users in selected countries in the Car Rentals market in 2023 (in million)

Carbon footprint of international tourism transport worldwide 2005-2030, by type

Transport-related emissions from international tourist arrivals worldwide in 2005 and 2016, with a forecast for 2030, by mode of transport (in million metric tons of carbon dioxide)

Attractions

• Premium Statistic Leading museums by highest attendance worldwide 2019-2022
• Basic Statistic Most visited amusement and theme parks worldwide 2019-2022
• Basic Statistic Monuments on the UNESCO world heritage list 2023, by type
• Basic Statistic Selected countries with the most Michelin-starred restaurants worldwide 2023

Leading museums by highest attendance worldwide 2019-2022

Most visited museums worldwide from 2019 to 2022 (in millions)

Most visited amusement and theme parks worldwide 2019-2022

Leading amusement and theme parks worldwide from 2019 to 2022, by attendance (in millions)

Monuments on the UNESCO world heritage list 2023, by type

Number of monuments on the UNESCO world heritage list as of September 2023, by type

Selected countries with the most Michelin-starred restaurants worldwide 2023

Number of Michelin-starred restaurants in selected countries and territories worldwide as of July 2023

Online travel market

• Premium Statistic Online travel market size worldwide 2017-2028
• Premium Statistic Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
• Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
• Basic Statistic Market cap of leading online travel companies worldwide 2023
• Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
• Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Online travel market size worldwide 2017-2028

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023

Estimated desktop vs. mobile revenue of leading online travel agencies (OTAs) worldwide in 2023 (in billion U.S. dollars)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Estimated EV/Revenue ratio in the online travel market 2024, by segment

Estimated enterprise value to revenue (EV/Revenue) ratio in the online travel market worldwide as of April 2024, by segment

Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Estimated enterprise value to EBITDA (EV/EBITDA) ratio in the online travel market worldwide as of April 2024, by segment

Selected trends

• Premium Statistic Global travelers who believe in the importance of green travel 2023
• Premium Statistic Sustainable initiatives travelers would adopt worldwide 2022, by region
• Premium Statistic Airbnb revenue worldwide 2017-2023
• Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023
• Premium Statistic Technologies global hotels plan to implement in the next three years 2022
• Premium Statistic Hotel technologies global consumers think would improve their future stay 2022

Global travelers who believe in the importance of green travel 2023

Share of travelers that believe sustainable travel is important worldwide in 2023

Sustainable initiatives travelers would adopt worldwide 2022, by region

Main sustainable initiatives travelers are willing to adopt worldwide in 2022, by region

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Airbnb nights and experiences booked worldwide 2017-2023

Nights and experiences booked with Airbnb from 2017 to 2023 (in millions)

Technologies global hotels plan to implement in the next three years 2022

Technologies hotels are most likely to implement in the next three years worldwide as of 2022

Hotel technologies global consumers think would improve their future stay 2022

Must-have hotel technologies to create a more amazing stay in the future among travelers worldwide as of 2022

• Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
• Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
• Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
• Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Travel and tourism revenue worldwide 2019-2028, by segment

Revenue of the global travel and tourism market from 2019 to 2028, by segment (in billion U.S. dollars)

Distribution of sales channels in the travel and tourism market worldwide 2018-2028

Revenue share of sales channels of the travel and tourism market worldwide from 2018 to 2028

Inbound tourism visitor growth worldwide 2020-2025, by region

Inbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Outbound tourism visitor growth worldwide 2020-2025, by region

Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

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Sustainable tourism

Related sdgs, promote sustained, inclusive and sustainable ....

Description

Publications.

Tourism is one of the world's fastest growing industries and an important source of foreign exchange and employment, while being closely linked to the social, economic, and environmental well-being of many countries, especially developing countries. Maritime or ocean-related tourism, as well as coastal tourism, are for example vital sectors of the economy in small island developing States (SIDS) and coastal least developed countries (LDCs) (see also: The Potential of the Blue Economy report as well as the Community of Ocean Action on sustainable blue economy).

The World Tourism Organization defines sustainable tourism as “tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities".

Based on General assembly resolution 70/193, 2017 was declared as the  International Year of Sustainable Tourism for Development.

In the 2030 Agenda for Sustainable Development SDG target 8.9, aims to “by 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products”. The importance of sustainable tourism is also highlighted in SDG target 12.b. which aims to “develop and implement tools to monitor sustainable development impacts for sustainable tourism that creates jobs and promotes local culture and products”.

Tourism is also identified as one of the tools to “by 2030, increase the economic benefits to Small Island developing States and least developed countries” as comprised in SDG target 14.7.

In the Rio+20 outcome document The Future We want, sustainable tourism is defined by paragraph 130 as a significant contributor “to the three dimensions of sustainable development” thanks to its close linkages to other sectors and its ability to create decent jobs and generate trade opportunities. Therefore, Member States recognize “the need to support sustainable tourism activities and relevant capacity-building that promote environmental awareness, conserve and protect the environment, respect wildlife, flora, biodiversity, ecosystems and cultural diversity, and improve the welfare and livelihoods of local communities by supporting their local economies and the human and natural environment as a whole. ” In paragraph 130, Member States also “call for enhanced support for sustainable tourism activities and relevant capacity-building in developing countries in order to contribute to the achievement of sustainable development”.

In paragraph 131, Member States “encourage the promotion of investment in sustainable tourism, including eco-tourism and cultural tourism, which may include creating small- and medium-sized enterprises and facilitating access to finance, including through microcredit initiatives for the poor, indigenous peoples and local communities in areas with high eco-tourism potential”. In this regard, Member States also “underline the importance of establishing, where necessary, appropriate guidelines and regulations in accordance with national priorities and legislation for promoting and supporting sustainable tourism”.

In 2002, the World Summit on Sustainable Development in Johannesburg called for the promotion of sustainable tourism development, including non-consumptive and eco-tourism, in Chapter IV, paragraph 43 of the Johannesburg Plan of Implementation.

At the Johannesburg Summit, the launch of the “Sustainable Tourism – Eliminating Poverty (ST-EP) initiative was announced. The initiative was inaugurated by the World Tourism Organization, in collaboration with UNCTAD, in order to develop sustainable tourism as a force for poverty alleviation.

The UN Commission on Sustainable Development (CSD) last reviewed the issue of sustainable tourism in 2001, when it was acting as the Preparatory Committee for the Johannesburg Summit.

The importance of sustainable tourism was also mentioned in Agenda 21.

For more information and documents on this topic,  please visit this link

UNWTO Annual Report 2016

In December 2015, the United Nations General Assembly declared 2017 as the International Year of Sustainable Tourism for Development. This is a unique opportunity to devote a year to activities that promote the transformational power of tourism to help us reach a better future. This important cele...

UNWTO Annual Report 2015

2015 was a landmark year for the global community. In September, the 70th Session of the United Nations General Assembly adopted the Sustainable Development Goals (SDGs), a universal agenda for planet and people. Among the 17 SDGs and 169 associated targets, tourism is explicitly featured in Goa...

Emerging Issues for Small Island Developing States

The 2012 UNEP Foresight Process on Emerging Global Environmental Issues primarily identified emerging environmental issues and possible solutions on a global scale and perspective. In 2013, UNEP carried out a similar exercise to identify priority emerging environmental issues that are of concern to ...

Transforming our World: The 2030 Agenda for Sustainable Development

This Agenda is a plan of action for people, planet and prosperity. It also seeks to strengthen universal peace in larger freedom, We recognize that eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for su...

Status and Trends of Caribbean Coral Reefs: 1970-2012

Previous Caribbean assessments lumped data together into a single database regardless of geographic location, reef environment, depth, oceanographic conditions, etc. Data from shallow lagoons and back reef environments were combined with data from deep fore-reef environments and atolls. Geographic c...

15 Years of the UNWTO World Tourism Network on Child Protection: A Compilation of Good Practices

Although it is widely recognized that tourism is not the cause of child exploitation, it can aggravate the problem when parts of its infrastructure, such as transport networks and accommodation facilities, are exploited by child abusers for nefarious ends. Additionally, many other factors that contr...

Towards Measuring the Economic Value of Wildlife Watching Tourism in Africa

Set against the backdrop of the ongoing poaching crisis driven by a dramatic increase in the illicit trade in wildlife products, this briefing paper intends to support the ongoing efforts of African governments and the broader international community in the fight against poaching. Specifically, this...

Natural Resources Forum: Special Issue Tourism

The journal considers papers on all topics relevant to sustainable development. In addition, it dedicates series, issues and special sections to specific themes that are relevant to the current discussions of the United Nations Commission on Sustainable Development (CSD)....

Thailand: Supporting Sustainable Development in Thailand: A Geographic Clusters Approach

Market forces and government policies, including the Tenth National Development Plan (2007-2012), are moving Thailand toward a more geographically specialized economy. There is a growing consensus that Thailand’s comparative and competitive advantages lie in amenity services that have high reliance...

Natural Resources Forum, a United Nations Sustainable Development Journal (NRF)

  Natural Resources Forum, a United Nations Sustainable Development Journal, seeks to address gaps in current knowledge and stimulate relevant policy discussions, leading to the implementation of the sustainable development agenda and the achievement of the Sustainable...

Road Map on Building a Green Economy for Sustainable Development in Carriacou and Petite Martinique, Grenada

This publication is the product of an international study led by the Division for Sustainable Development (DSD) of the United Nations Department of Economic and Social Affairs (UNDESA) in cooperation with the Ministry of Carriacou and Petite Martinique Affairs and the Ministry of Environment, Foreig...

UN Ocean Conference 2025

Our Ocean, Our Future, Our Responsibility “The ocean is fundamental to life on our planet and to our future. The ocean is an important source of the planet’s biodiversity and plays a vital role in the climate system and water cycle. The ocean provides a range of ecosystem services, supplies us with

UN Ocean Conference 2022

The UN Ocean Conference 2022, co-hosted by the Governments of Kenya and Portugal, came at a critical time as the world was strengthening its efforts to mobilize, create and drive solutions to realize the 17 Sustainable Development Goals by 2030.

58th Session of the Commission for Social Development – CSocD58

22nd general assembly of the united nations world tourism organization, world tourism day 2017 official celebration.

This year’s World Tourism Day, held on 27 September, will be focused on Sustainable Tourism – a Tool for Development. Celebrated in line with the 2017 International Year of Sustainable Tourism for Development, the Day will be dedicated to exploring the contribution of tourism to the Sustainable Deve

World Tourism Day 2016 Official Celebration

Accessible Tourism for all is about the creation of environments that can cater for the needs of all of us, whether we are traveling or staying at home. May that be due to a disability, even temporary, families with small children, or the ageing population, at some point in our lives, sooner or late

4th Global Summit on City Tourism

The World Tourism Organisation (UNWTO) and the Regional Council for Tourism of Marrakesh with support of the Government of Morroco are organizing the 4th Global Summit on City Tourism in Marrakesh, Morroco (9-10 December 2015). International experts in city tourism, representatives of city DMOs, of

2nd Euro-Asian Mountain Resorts Conference

The World Tourism Organisation (UNWTO) and Ulsan Metropolitan City with support of the Government of the Republic of Korea are organizing the 2nd Euro-Asian Mountain Resorts Conference, in Ulsan, Republic of Korea (14 - 16 October 2015). Under the title “Paving the Way for a Bright Future for Mounta

21st General Assembly of the United Nations World Tourism Organization

Unwto regional conference enhancing brand africa - fostering tourism development.

Tourism is one of the Africa’s most promising sectors in terms of development, and represents a major opportunity to foster inclusive development, increase the region’s participation in the global economy and generate revenues for investment in other activities, including environmental preservation.

• January 2017 International Year of Tourism In the context of the universal 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs), the International Year aims to support a change in policies, business practices and consumer behavior towards a more sustainable tourism sector that can contribute to the SDGs.
• January 2015 Targets 8.9, 12 b,14.7 The 2030 Agenda for Sustainable Development commits Member States, through Sustainable Development Goal Target 8.9 to “devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products”. The importance of sustainable tourism, as a driver for jobs creation and the promotion of local culture and products, is also highlighted in Sustainable Development Goal target 12.b. Tourism is also identified as one of the tools to “increase [by 2030] the economic benefits to Small Island developing States and least developed countries”, through Sustainable Development Goals Target 14.7.
• January 2012 Future We Want (Para 130-131) Sustainable tourism is defined as a significant contributor “to the three dimensions of sustainable development” thanks to its close linkages to other sectors and its ability to create decent jobs and generate trade opportunities. Therefore, Member States recognize “the need to support sustainable tourism activities and relevant capacity-building that promote environmental awareness, conserve and protect the environment, respect wildlife, flora, biodiversity, ecosystems and cultural diversity, and improve the welfare and livelihoods of local communities” as well as to “encourage the promotion of investment in sustainable tourism, including eco-tourism and cultural tourism, which may include creating small and medium sized enterprises and facilitating access to finance, including through microcredit initiatives for the poor, indigenous peoples and local communities in areas with high eco-tourism potential”.
• January 2009 Roadmap for Recovery UNWTO announced in March 2009 the elaboration of a Roadmap for Recovery to be finalized by UNWTO’s General Assembly, based on seven action points. The Roadmap includes a set of 15 recommendations based on three interlocking action areas: resilience, stimulus, green economy aimed at supporting the tourism sector and the global economy.
• January 2008 Global Sustainable Tourism Criteria The Global Sustainable Tourism Criteria represent the minimum requirements any tourism business should observe in order to ensure preservation and respect of the natural and cultural resources and make sure at the same time that tourism potential as tool for poverty alleviation is enforced. The Criteria are 41 and distributed into four different categories: 1) sustainability management, 2) social and economic 3) cultural 4) environmental.
• January 2003 1st Int. Conf. on Climate Change and Tourism The conference was organized in order to gather tourism authorities, organizations, businesses and scientists to discuss on the impact that climate change can have on the tourist sector. The event took place from 9 till 11 April 2003 in Djerba, Tunisia.
• January 2003 WTO becomes a UN specialized body By Resolution 453 (XV), the Assembly agreed on the transformation of the WTO into a United Nations specialized body. Such transformation was later ratified by the United Nations General Assembly with the adoption of Resolution A/RES/58/232.
• January 2002 World Ecotourism Summit Held in May 2002, in Quebec City, Canada, the Summit represented the most important event in the framework of the International Year of Ecosystem. The Summit identified as main themes: ecotourism policy and planning, regulation of ecotourism, product development, marketing and promotion of ecotourism and monitoring costs and benefits of ecotourism.
• January 1985 Tourism Bill of Rights and Tourist Code At the World Tourism Organization Sixth Assembly held in Sofia in 1985, the Tourism Bill of Rights and Tourist Code were adopted, setting out the rights and duties of tourists and host populations and formulating policies and action for implementation by states and the tourist industry.
• January 1982 Acapulco Document Adopted in 1982, the Acapulco Document acknowledges the new dimension and role of tourism as a positive instrument towards the improvement of the quality of life for all peoples, as well as a significant force for peace and international understanding. The Acapulco Document also urges Member States to elaborate their policies, plans and programmes on tourism, in accordance with their national priorities and within the framework of the programme of work of the World Tourism Organization.

The future of tourism: Bridging the labor gap, enhancing customer experience

As travel resumes and builds momentum, it’s becoming clear that tourism is resilient—there is an enduring desire to travel. Against all odds, international tourism rebounded in 2022: visitor numbers to Europe and the Middle East climbed to around 80 percent of 2019 levels, and the Americas recovered about 65 percent of prepandemic visitors 1 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. —a number made more significant because it was reached without travelers from China, which had the world’s largest outbound travel market before the pandemic. 2 “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Recovery and growth are likely to continue. According to estimates from the World Tourism Organization (UNWTO) for 2023, international tourist arrivals could reach 80 to 95 percent of prepandemic levels depending on the extent of the economic slowdown, travel recovery in Asia–Pacific, and geopolitical tensions, among other factors. 3 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. Similarly, the World Travel & Tourism Council (WTTC) forecasts that by the end of 2023, nearly half of the 185 countries in which the organization conducts research will have either recovered to prepandemic levels or be within 95 percent of full recovery. 4 “Global travel and tourism catapults into 2023 says WTTC,” World Travel & Tourism Council (WTTC), April 26, 2023.

Longer-term forecasts also point to optimism for the decade ahead. Travel and tourism GDP is predicted to grow, on average, at 5.8 percent a year between 2022 and 2032, outpacing the growth of the overall economy at an expected 2.7 percent a year. 5 Travel & Tourism economic impact 2022 , WTTC, August 2022.

So, is it all systems go for travel and tourism? Not really. The industry continues to face a prolonged and widespread labor shortage. After losing 62 million travel and tourism jobs in 2020, labor supply and demand remain out of balance. 6 “WTTC research reveals Travel & Tourism’s slow recovery is hitting jobs and growth worldwide,” World Travel & Tourism Council, October 6, 2021. Today, in the European Union, 11 percent of tourism jobs are likely to go unfilled; in the United States, that figure is 7 percent. 7 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022.

There has been an exodus of tourism staff, particularly from customer-facing roles, to other sectors, and there is no sign that the industry will be able to bring all these people back. 8 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022. Hotels, restaurants, cruises, airports, and airlines face staff shortages that can translate into operational, reputational, and financial difficulties. If unaddressed, these shortages may constrain the industry’s growth trajectory.

The current labor shortage may have its roots in factors related to the nature of work in the industry. Chronic workplace challenges, coupled with the effects of COVID-19, have culminated in an industry struggling to rebuild its workforce. Generally, tourism-related jobs are largely informal, partly due to high seasonality and weak regulation. And conditions such as excessively long working hours, low wages, a high turnover rate, and a lack of social protection tend to be most pronounced in an informal economy. Additionally, shift work, night work, and temporary or part-time employment are common in tourism.

The industry may need to revisit some fundamentals to build a far more sustainable future: either make the industry more attractive to talent (and put conditions in place to retain staff for longer periods) or improve products, services, and processes so that they complement existing staffing needs or solve existing pain points.

One solution could be to build a workforce with the mix of digital and interpersonal skills needed to keep up with travelers’ fast-changing requirements. The industry could make the most of available technology to provide customers with a digitally enhanced experience, resolve staff shortages, and improve working conditions.

Would you like to learn more about our Travel, Logistics & Infrastructure Practice ?

Complementing concierges with chatbots.

The pace of technological change has redefined customer expectations. Technology-driven services are often at customers’ fingertips, with no queues or waiting times. By contrast, the airport and airline disruption widely reported in the press over the summer of 2022 points to customers not receiving this same level of digital innovation when traveling.

Imagine the following travel experience: it’s 2035 and you start your long-awaited honeymoon to a tropical island. A virtual tour operator and a destination travel specialist booked your trip for you; you connected via videoconference to make your plans. Your itinerary was chosen with the support of generative AI , which analyzed your preferences, recommended personalized travel packages, and made real-time adjustments based on your feedback.

Before leaving home, you check in online and QR code your luggage. You travel to the airport by self-driving cab. After dropping off your luggage at the self-service counter, you pass through security and the biometric check. You access the premier lounge with the QR code on the airline’s loyalty card and help yourself to a glass of wine and a sandwich. After your flight, a prebooked, self-driving cab takes you to the resort. No need to check in—that was completed online ahead of time (including picking your room and making sure that the hotel’s virtual concierge arranged for red roses and a bottle of champagne to be delivered).

While your luggage is brought to the room by a baggage robot, your personal digital concierge presents the honeymoon itinerary with all the requested bookings. For the romantic dinner on the first night, you order your food via the restaurant app on the table and settle the bill likewise. So far, you’ve had very little human interaction. But at dinner, the sommelier chats with you in person about the wine. The next day, your sightseeing is made easier by the hotel app and digital guide—and you don’t get lost! With the aid of holographic technology, the virtual tour guide brings historical figures to life and takes your sightseeing experience to a whole new level. Then, as arranged, a local citizen meets you and takes you to their home to enjoy a local family dinner. The trip is seamless, there are no holdups or snags.

This scenario features less human interaction than a traditional trip—but it flows smoothly due to the underlying technology. The human interactions that do take place are authentic, meaningful, and add a special touch to the experience. This may be a far-fetched example, but the essence of the scenario is clear: use technology to ease typical travel pain points such as queues, misunderstandings, or misinformation, and elevate the quality of human interaction.

Travel with less human interaction may be considered a disruptive idea, as many travelers rely on and enjoy the human connection, the “service with a smile.” This will always be the case, but perhaps the time is right to think about bringing a digital experience into the mix. The industry may not need to depend exclusively on human beings to serve its customers. Perhaps the future of travel is physical, but digitally enhanced (and with a smile!).

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Digital solutions are on the rise and can help bridge the labor gap

Digital innovation is improving customer experience across multiple industries. Car-sharing apps have overcome service-counter waiting times and endless paperwork that travelers traditionally had to cope with when renting a car. The same applies to time-consuming hotel check-in, check-out, and payment processes that can annoy weary customers. These pain points can be removed. For instance, in China, the Huazhu Hotels Group installed self-check-in kiosks that enable guests to check in or out in under 30 seconds. 9 “Huazhu Group targets lifestyle market opportunities,” ChinaTravelNews, May 27, 2021.

Technology meets hospitality

In 2019, Alibaba opened its FlyZoo Hotel in Huangzhou, described as a “290-room ultra-modern boutique, where technology meets hospitality.” 1 “Chinese e-commerce giant Alibaba has a hotel run almost entirely by robots that can serve food and fetch toiletries—take a look inside,” Business Insider, October 21, 2019; “FlyZoo Hotel: The hotel of the future or just more technology hype?,” Hotel Technology News, March 2019. The hotel was the first of its kind that instead of relying on traditional check-in and key card processes, allowed guests to manage reservations and make payments entirely from a mobile app, to check-in using self-service kiosks, and enter their rooms using facial-recognition technology.

The hotel is run almost entirely by robots that serve food and fetch toiletries and other sundries as needed. Each guest room has a voice-activated smart assistant to help guests with a variety of tasks, from adjusting the temperature, lights, curtains, and the TV to playing music and answering simple questions about the hotel and surroundings.

The hotel was developed by the company’s online travel platform, Fliggy, in tandem with Alibaba’s AI Labs and Alibaba Cloud technology with the goal of “leveraging cutting-edge tech to help transform the hospitality industry, one that keeps the sector current with the digital era we’re living in,” according to the company.

Adoption of some digitally enhanced services was accelerated during the pandemic in the quest for safer, contactless solutions. During the Winter Olympics in Beijing, a restaurant designed to keep physical contact to a minimum used a track system on the ceiling to deliver meals directly from the kitchen to the table. 10 “This Beijing Winter Games restaurant uses ceiling-based tracks,” Trendhunter, January 26, 2022. Customers around the world have become familiar with restaurants using apps to display menus, take orders, and accept payment, as well as hotels using robots to deliver luggage and room service (see sidebar “Technology meets hospitality”). Similarly, theme parks, cinemas, stadiums, and concert halls are deploying digital solutions such as facial recognition to optimize entrance control. Shanghai Disneyland, for example, offers annual pass holders the option to choose facial recognition to facilitate park entry. 11 “Facial recognition park entry,” Shanghai Disney Resort website.

Automation and digitization can also free up staff from attending to repetitive functions that could be handled more efficiently via an app and instead reserve the human touch for roles where staff can add the most value. For instance, technology can help customer-facing staff to provide a more personalized service. By accessing data analytics, frontline staff can have guests’ details and preferences at their fingertips. A trainee can become an experienced concierge in a short time, with the help of technology.

Apps and in-room tech: Unused market potential

According to Skift Research calculations, total revenue generated by guest apps and in-room technology in 2019 was approximately $293 million, including proprietary apps by hotel brands as well as third-party vendors. 1 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. The relatively low market penetration rate of this kind of tech points to around $2.4 billion in untapped revenue potential (exhibit).

Even though guest-facing technology is available—the kind that can facilitate contactless interactions and offer travelers convenience and personalized service—the industry is only beginning to explore its potential. A report by Skift Research shows that the hotel industry, in particular, has not tapped into tech’s potential. Only 11 percent of hotels and 25 percent of hotel rooms worldwide are supported by a hotel app or use in-room technology, and only 3 percent of hotels offer keyless entry. 12 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. Of the five types of technology examined (guest apps and in-room tech; virtual concierge; guest messaging and chatbots; digital check-in and kiosks; and keyless entry), all have relatively low market-penetration rates (see sidebar “Apps and in-room tech: Unused market potential”).

While apps, digitization, and new technology may be the answer to offering better customer experience, there is also the possibility that tourism may face competition from technological advances, particularly virtual experiences. Museums, attractions, and historical sites can be made interactive and, in some cases, more lifelike, through AR/VR technology that can enhance the physical travel experience by reconstructing historical places or events.

Up until now, tourism, arguably, was one of a few sectors that could not easily be replaced by tech. It was not possible to replicate the physical experience of traveling to another place. With the emerging metaverse , this might change. Travelers could potentially enjoy an event or experience from their sofa without any logistical snags, and without the commitment to traveling to another country for any length of time. For example, Google offers virtual tours of the Pyramids of Meroë in Sudan via an immersive online experience available in a range of languages. 13 Mariam Khaled Dabboussi, “Step into the Meroë pyramids with Google,” Google, May 17, 2022. And a crypto banking group, The BCB Group, has created a metaverse city that includes representations of some of the most visited destinations in the world, such as the Great Wall of China and the Statue of Liberty. According to BCB, the total cost of flights, transfers, and entry for all these landmarks would come to $7,600—while a virtual trip would cost just over $2. 14 “What impact can the Metaverse have on the travel industry?,” Middle East Economy, July 29, 2022.

The metaverse holds potential for business travel, too—the meeting, incentives, conferences, and exhibitions (MICE) sector in particular. Participants could take part in activities in the same immersive space while connecting from anywhere, dramatically reducing travel, venue, catering, and other costs. 15 “ Tourism in the metaverse: Can travel go virtual? ,” McKinsey, May 4, 2023.

The allure and convenience of such digital experiences make offering seamless, customer-centric travel and tourism in the real world all the more pressing.

Three innovations to solve hotel staffing shortages

Is the future contactless.

Given the advances in technology, and the many digital innovations and applications that already exist, there is potential for businesses across the travel and tourism spectrum to cope with labor shortages while improving customer experience. Process automation and digitization can also add to process efficiency. Taken together, a combination of outsourcing, remote work, and digital solutions can help to retain existing staff and reduce dependency on roles that employers are struggling to fill (exhibit).

Depending on the customer service approach and direct contact need, we estimate that the travel and tourism industry would be able to cope with a structural labor shortage of around 10 to 15 percent in the long run by operating more flexibly and increasing digital and automated efficiency—while offering the remaining staff an improved total work package.

Outsourcing and remote work could also help resolve the labor shortage

While COVID-19 pushed organizations in a wide variety of sectors to embrace remote work, there are many hospitality roles that rely on direct physical services that cannot be performed remotely, such as laundry, cleaning, maintenance, and facility management. If faced with staff shortages, these roles could be outsourced to third-party professional service providers, and existing staff could be reskilled to take up new positions.

In McKinsey’s experience, the total service cost of this type of work in a typical hotel can make up 10 percent of total operating costs. Most often, these roles are not guest facing. A professional and digital-based solution might become an integrated part of a third-party service for hotels looking to outsource this type of work.

One of the lessons learned in the aftermath of COVID-19 is that many tourism employees moved to similar positions in other sectors because they were disillusioned by working conditions in the industry . Specialist multisector companies have been able to shuffle their staff away from tourism to other sectors that offer steady employment or more regular working hours compared with the long hours and seasonal nature of work in tourism.

The remaining travel and tourism staff may be looking for more flexibility or the option to work from home. This can be an effective solution for retaining employees. For example, a travel agent with specific destination expertise could work from home or be consulted on an needs basis.

In instances where remote work or outsourcing is not viable, there are other solutions that the hospitality industry can explore to improve operational effectiveness as well as employee satisfaction. A more agile staffing model  can better match available labor with peaks and troughs in daily, or even hourly, demand. This could involve combining similar roles or cross-training staff so that they can switch roles. Redesigned roles could potentially improve employee satisfaction by empowering staff to explore new career paths within the hotel’s operations. Combined roles build skills across disciplines—for example, supporting a housekeeper to train and become proficient in other maintenance areas, or a front-desk associate to build managerial skills.

Where management or ownership is shared across properties, roles could be staffed to cover a network of sites, rather than individual hotels. By applying a combination of these approaches, hotels could reduce the number of staff hours needed to keep operations running at the same standard. 16 “ Three innovations to solve hotel staffing shortages ,” McKinsey, April 3, 2023.

Taken together, operational adjustments combined with greater use of technology could provide the tourism industry with a way of overcoming staffing challenges and giving customers the seamless digitally enhanced experiences they expect in other aspects of daily life.

In an industry facing a labor shortage, there are opportunities for tech innovations that can help travel and tourism businesses do more with less, while ensuring that remaining staff are engaged and motivated to stay in the industry. For travelers, this could mean fewer friendly faces, but more meaningful experiences and interactions.

Urs Binggeli is a senior expert in McKinsey’s Zurich office, Zi Chen is a capabilities and insights specialist in the Shanghai office, Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, and Jackey Yu is a partner in the Hong Kong office.

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The tourism sector provides opportunities for developing countries to create productive and inclusive jobs, grow innovative firms, finance the conservation of natural and cultural assets, and increase economic empowerment, especially for women, who comprise the majority of the tourism sector’s workforce. Before the COVID-19 pandemic, tourism was the world’s largest service sector—providing one in ten jobs worldwide,  almost seven percent of all international trade and  25 percent of the world’s service exports —a critical foreign exchange generator.  In 2019 the sector was valued at more than US$9 trillion and accounted for 10.4 percent of global GDP.

Tourism offers opportunities for economic diversification and market-creation. When effectively managed, its deep local value chains can expand demand for existing and new products and services that directly and positively impact the poor and rural/isolated communities. The sector can also be a force for biodiversity conservation, heritage protection, and climate-friendly livelihoods, making up a key pillar of the blue/green economy. This potential is also associated with social and environmental risks, which need to be managed and mitigated to maximize the sector’s net-positive benefits.

The impact of the COVID-19 pandemic has been devastating for tourism service providers, with a loss of 20 percent of all tourism jobs (62 million), and US$1.3 trillion in export revenue, leading to a reduction of 50 percent of its  contribution to GDP  in 2020 alone. The collapse of demand has severely impacted the livelihoods of tourism-dependent communities, small businesses and women-run enterprises. It has also reduced government tax revenues and constrained the availability of resources for destination management and site conservation.

Naturalist local guide with group of tourist in Cuyabeno Wildlife Reserve Ecuador. Photo: Ammit Jack/Shutterstock

Tourism and Competitiveness Strategic Pillars

Our solutions are integrated across the following areas:

• Competitive and Productive Tourism Markets. We work with government and private sector stakeholders to foster competitive tourism markets that create productive jobs, improve visitor expenditure and impact, and are supportive of high-growth, innovative firms. To do so we offer guidance on firm and destination level recovery, policy and regulatory reforms, demand diversification, investment promotion and market access. 
• Blue, Green and Resilient Tourism Economies. We support economic diversification to sustain natural capital and tourism assets, prepare for external and climate-related shocks, and be sustainably managed through strong policy, coordination, and governance improvements. To do so we offer support to align the tourism enabling and policy environment towards sustainability, while improving tourism destination and site planning, development, and management. We work with governments to enhance the sector’s resilience and to foster the development of innovative sustainable financing instruments.
• Inclusive Value Chains. We work with client governments and intermediaries to support Small and Medium sized Enterprises (SMEs), and strengthen value chains that provide equitable livelihoods for communities, women, youth, minorities, and local businesses. 

The successful design and implementation of reforms in the tourism space requires the combined effort of diverse line ministries and agencies, and an understanding of the impact of digital technologies in the industry. Accordingly, our teams support cross-cutting issues of tourism governance and coordination, digital innovation and the use and application of data throughout the three focus areas of work.

Tourism and Competitiveness Theory of Change 

Examples of our projects:

• In Indonesia , a US$955m loan is supporting the Government’s Integrated Infrastructure Development for National Tourism Strategic Areas Project. This project is designed to improve the quality of, and access to, tourism-relevant basic infrastructure and services, strengthen local economy linkages to tourism, and attract private investment in selected tourism destinations. In its initial phases, the project has supported detailed market and demand analyses needed to justify significant public investment, mobilized integrated tourism destination masterplans for each new destination and established essential coordination mechanisms at the national level and at all seventeen of the Project’s participating districts and cities.
• In Madagascar , a series of projects totaling US$450m in lending and IFC Technical Assistance have contributed to the sustainable growth of the tourism sector by enhancing access to enabling infrastructure and services in target regions. Activities under the project focused on providing support to SMEs, capacity building to institutions, and promoting investment and enabling environment reforms. They resulted in the creation of more than 10,000 jobs and the registration of more than 30,000 businesses. As a result of COVID-19, the project provided emergency support both to government institutions (i.e., Ministry of Tourism) and other organizations such as the National Tourism Promotion Board to plan, strategize and implement initiatives to address effects of the pandemic and support the sector’s gradual relaunch, as well as to directly support tourism companies and workers groups most affected by the crisis. 
• In Sierra Leone , an Economic Diversification Project has a strong focus on sustainable tourism development.  The project is contributing significantly to the COVID-19 recovery, with its focus on the creation of six new tourism destinations, attracting new private investment, and building the capacity of government ministries to successfully manage and market their tourism assets.  This project aims to contribute to the development of more circular economy tourism business models, and support the growth of women- run tourism businesses.  
• Through the Rebuilding Tourism Competitiveness: Tourism Response, Recovery and Resilience to the COVID-19 Crisis initiative and the Tourism for Development Learning Series , we held webinars, published insights and guidance notes as well as formed new partnerships with Organization of Eastern Caribbean States, United Nations Environment Program, United Nations World Tourism Organization, and World Travel and Tourism Council to exchange knowledge on managing tourism throughout the pandemic, planning for recovery and building back better. The initiative’s key Policy Note has been downloaded more than 20,000 times and has been used to inform recovery initiatives in over 30 countries across 6 regions.
• The Global Aviation Dashboard  is a platform that visualizes real-time changes in global flight movements, allowing users to generate 2D & 3D visualizations, charts, graphs, and tables; and ranking animations for: flight volume, seat volume, and available seat kilometers.  Data is available for domestic, intra-regional, and inter-regional routes across all regions, countries, airports, and airlines on a daily, weekly, or monthly basis from January 2020 until today. The dashboard has been used to track the status and recovery of global travel and inform policy and operational actions.

Traditional Samburu women in Kenya. Photo: hecke61/Shutterstock.

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• Destination Management Handbook: A Guide to the Planning and Implementation of Destination Management  (2023)
• Blue Tourism in Islands and Small Tourism-Dependent Coastal States : Tools and Recovery Strategies (2022)
• Resilient Tourism: Competitiveness in the Face of Disasters  (2020)
• Tourism and the Sharing Economy: Policy and Potential of Sustainable Peer-to-Peer Accommodation  (2018)
• Supporting Sustainable Livelihoods through Wildlife Tourism  (2018)
• The Voice of Travelers: Leveraging User-Generated Content for Tourism Development  (2018)
• Women and Tourism: Designing for Inclusion  (2017)
• Twenty Reasons Sustainable Tourism Counts for Development  (2017)
• An introduction to tourism concessioning:14 characteristics of successful programs.  The World Bank, 2016)
• Getting financed: 9 tips for community joint ventures in tourism . World Wildlife Fund (WWF) and World Bank, (2015)
• Global investment promotion best practices: Winning tourism investment” Investment Climate  (2013)

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• COVID-19 and Tourism in South Asia: Opportunities for Sustainable Regional Outcomes  (2020)
• Demand Analysis for Tourism in African Local Communities  (2018)
• Tourism in Africa: Harnessing Tourism for Growth and Improved Livelihoods . Africa Development Forum (2014)

COVID-19 Response

• Expecting the Unexpected : Tools and Policy Considerations to Support the Recovery and Resilience of the Tourism Sector (2022)
• Rebuilding Tourism Competitiveness. Tourism response, recovery and resilience to the COVID-19 crisis  (2020)
• COVID-19 and Tourism in South Asia Opportunities for Sustainable Regional Outcomes  (2020)  
• WBG support for tourism clients and destinations during the COVID-19 crisis  (2020)
• Tourism for Development: Tourism Diagnostic Toolkit  (2019)
• Tourism Theory of Change  (2018)

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• COVID Impact Mitigation Survey Results  (South Africa) (2020)
• COVID Preparedness for Reopening Survey Results  (South Africa) (2020)
• COVID Study  (Fiji) (2020) with   IFC

Featured Blogs

• Louise Twining-Ward and Alba Suris , Bridging the Tourism Data Divide: New Tools for Policymaking
• Fiona Stewart, Samantha Power & Shaun Mann ,  Harnessing the power of capital markets to conserve and restore global biodiversity through “Natural Asset Companies”   | October 12 th  2021
• Mari Elka Pangestu ,  Tourism in the post-COVID world: Three steps to build better forward  | April 30 th  2021
• Hartwig Schafer ,  Regional collaboration can help South Asian nations rebuild and strengthen tourism industry  | July 23 rd  2020
• Caroline Freund ,  We can’t travel, but we can take measures to preserve jobs in the tourism industry  | March 20 th  2020

Featured Webinars

• Destination Management for Resilient Growth . This webinar looks at emerging destinations at the local level to examine the opportunities, examples, and best tools available. Destination Management Handbook
• Launch of the Future of Pacific Tourism. This webinar goes through the results of the new Future of Pacific Tourism report. It was launched by FCI Regional and Global Managers with Discussants from the Asian Development Bank and Intrepid Group.
• Circular Economy and Tourism . This webinar discusses how new and circular business models are needed to change the way tourism operates and enable businesses and destinations to be sustainable.
• Closing the Gap: Gender in Projects and Analytics .  The purpose of this webinar is to raise awareness on integrating gender considerations into projects and provide guidelines for future project design in various sectoral areas.
• WTO Tourism Resilience: Building forward Better. High-level panelists from Sri Lanka, Costa Rica, Jordan and Kenya discuss how donors, governments and the private sector can work together most effectively to rebuild the tourism industry and improve its resilience for the future.
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"People want to travel": 4 sector leaders say that tourism will change and grow

The global travel and tourism industry's post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. Image:  Unsplash/Anete Lūsiņa

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Shinya katanozaka, gilda perez-alvarado, stephen kaufer.

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• In 2020 alone, the travel and tourism industry lost $4.5 trillion in GDP and 62 million jobs - the road to recovery remains long.
• The World Economic Forum’s latest Travel & Tourism Development Index gives expert insights on how the sector will recover and grow.
• We asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

The global travel and tourism sector’s post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. The difference in international tourist arrivals in January 2021 and a similar period in January 2022 was as much as the growth in all of 2021. However, with $4.5 trillion in GDP and 62 million jobs lost in 2020 alone, the road to recovery remains long.

A few factors will greatly determine how the sector performs. These include travel restrictions, vaccination rates and health security, changing market dynamics and consumer preferences, and the ability of businesses and destinations to adapt. At the same time, the sector will need to prepare for future shocks.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

The World Economic Forum's latest Travel & Tourism Development Index highlights many of these aspects, including the opportunity and need to rebuild the travel and tourism sector for the better by making it more inclusive, sustainable, and resilient. This will unleash its potential to drive future economic and social progress.

Within this context, we asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

Have you read?

Are you a 'bleisure' traveller, what is a ‘vaccine passport’ and will you need one the next time you travel, a travel boom is looming. but is the industry ready, how to follow davos 2022, “the way we live and work has changed because of the pandemic and the way we travel has changed as well”.

Tony Capuano, CEO, Marriott International

Despite the challenges created by the COVID-19 pandemic, the future looks bright for travel and tourism. Across the globe, people are already getting back on the road. Demand for travel is incredibly resilient and as vaccination rates have risen and restrictions eased, travel has rebounded quickly, often led by leisure.

The way many of us live and work has changed because of the pandemic and the way we travel has changed as well. New categories of travel have emerged. The rise of “bleisure” travel is one example – combining elements of business and leisure travel into a single trip. Newly flexible work arrangements, including the opportunity for many knowledge workers to work remotely, have created opportunities for extended travel, not limited by a Monday to Friday “9 to 5” workweek in the office.

To capitalize on this renewed and growing demand for new travel experiences, industry must join governments and policymakers to ensure that the right conditions are in place to welcome travellers as they prepare to get back on the road again, particularly those who cross international borders. Thus far, much of the recovery has been led by domestic and leisure travel. The incremental recovery of business and international travel, however, will be significant for the broader industry and the millions who make their livelihoods through travel and tourism.

Looking ahead to future challenges to the sector, be they public health conditions, international crises, or climate impacts, global coordination will be the essential component in tackling difficult circumstances head-on. International agreement on common – or at least compatible – standards and decision-making frameworks around global travel is key. Leveraging existing organizations and processes to achieve consensus as challenges emerge will help reduce risk and improve collaboration while keeping borders open.

“The travel and tourism sector will not be able to survive unless it adapts to the virtual market and sustainability conscience travellers”

Shinya Katanozaka, Representative Director, Chairman, ANA Holdings Inc.

At a time when people’s movements are still being restricted by the pandemic, there is a strong, renewed sense that people want to travel and that they want to go places for business and leisure.

In that respect, the biggest change has been in the very concept of “travel.”

A prime example is the rapid expansion of the market for “virtual travel.” This trend has been accelerated not only by advances in digital technologies, but also by the protracted pandemic. The travel and tourism sector will not be able to survive unless it adapts to this new market.

However, this is not as simple as a shift from “real” to “virtual.” Virtual experiences will flow back into a rediscovery of the value of real experiences. And beyond that, to a hunger for real experiences with clearer and more diverse purposes. The hope is that this meeting of virtual and actual will bring balance and synergy the industry.

The pandemic has also seen the emergence of the “sustainability-conscious” traveller, which means that the aviation industry and others are now facing the challenge of adding decarbonization to their value proposition. This trend will force a re-examination of what travel itself should look like and how sustainable practices can be incorporated and communicated. Addressing this challenge will also require stronger collaboration across the entire industry. We believe that this will play an important role in the industry’s revitalization as it recovers from the pandemic.

How is the World Economic Forum promoting sustainable and inclusive mobility systems?

The World Economic Forum’s Platform for Shaping the Future of Mobility works across four industries: aerospace and drones; automotive and new mobility; aviation travel and tourism; and supply chain and transport. It aims to ensure that the future of mobility is safe, clean, and inclusive.

• Through the Clean Skies for Tomorrow Coalition , more than 100 companies are working together to power global aviation with 10% sustainable aviation fuel by 2030.
• In collaboration with UNICEF, the Forum developed a charter with leading shipping, airlines and logistics to support COVAX in delivering more than 1 billion COVID-19 vaccines to vulnerable communities worldwide.
• The Road Freight Zero Project and P4G-Getting to Zero Coalition have led to outcomes demonstrating the rationale, costs and opportunities for accelerating the transition to zero emission freight.
• The Medicine from the Sky initiative is using drones to deliver vaccines and medicine to remote areas in India, completing over 300 successful trials.
• The Forum’s Target True Zero initiative is working to accelerate the deployment and scaling of zero emission aviation, leveraging electric and hydrogen flight technologies.
• In collaboration with the City of Los Angeles, Federal Aviation Administration, and NASA, the Forum developed the Principles of the Urban Sky to help adopt Urban Air Mobility in cities worldwide.
• The Forum led the development of the Space Sustainability Rating to incentivize and promote a more safe and sustainable approach to space mission management and debris mitigation in orbit.
• The Circular Cars Initiative is informing the automotive circularity policy agenda, following the endorsement from European Commission and Zero Emission Vehicle Transition Council countries, and is now invited to support China’s policy roadmap.
• The Moving India network is working with policymakers to advance electric vehicle manufacturing policies, ignite adoption of zero emission road freight vehicles, and finance the transition.
• The Urban Mobility Scorecards initiative – led by the Forum’s Global New Mobility Coalition – is bringing together mobility operators and cities to benchmark the transition to sustainable urban mobility systems.

Contact us for more information on how to get involved.

“The tourism industry must advocate for better protection of small businesses”

Gilda Perez-Alvarado, Global CEO, JLL Hotels & Hospitality

In the next few years, I think sustainability practices will become more prevalent as travellers become both more aware and interested in what countries, destinations and regions are doing in the sustainability space. Both core environmental pieces, such as water and air, and a general approach to sustainability are going to be important.

Additionally, I think conservation becomes more important in terms of how destinations and countries explain what they are doing, as the importance of climate change and natural resources are going to be critical and become top of mind for travellers.

The second part to this is we may see more interest in outdoor events going forward because it creates that sort of natural social distancing, if you will, or that natural safety piece. Doing outdoor activities such as outdoor dining, hiking and festivals may be a more appealing alternative to overcrowded events and spaces.

A lot of lessons were learned over the last few years, but one of the biggest ones was the importance of small business. As an industry, we must protect small business better. We need to have programmes outlined that successfully help small businesses get through challenging times.

Unfortunately, during the pandemic, many small businesses shut down and may never return. Small businesses are important to the travel and tourism sector because they bring uniqueness to destinations. People don’t travel to visit the same places they could visit at home; they prefer unique experiences that are only offered by specific businesses. If you were to remove all the small businesses from a destination, it would be a very different experience.

“Data shows that the majority of travellers want to explore destinations in a more immersive and experiential way”

Steve Kaufer, Co-Founder & CEO, Tripadvisor

We’re on the verge of a travel renaissance. The pandemic might have interrupted the global travel experience, but people are slowly coming out of the bubble. Businesses need to acknowledge the continued desire to feel safe when travelling. A Tripadvisor survey revealed that three-quarters (76%) of travellers will still make destination choices based on low COVID-19 infection rates.

As such, efforts to showcase how businesses care for travellers - be it by deep cleaning their properties or making items like hand sanitizer readily available - need to be ingrained within tourism operations moving forward.

But travel will also evolve in other ways, and as an industry, we need to be prepared to think digitally, and reimagine our use of physical space.

Hotels will become dynamic meeting places for teams to bond in our new hybrid work style. Lodgings near major corporate headquarters will benefit from an influx of bookings from employees convening for longer periods. They will also make way for the “bleisure” traveller who mixes business trips with leisure. Hotels in unique locales will become feasible workspaces. Employers should prepare for their workers to tag on a few extra days to get some rest and relaxation after on-location company gatherings.

Beyond the pandemic, travellers will also want to explore the world differently, see new places and do new things. Our data reveals that the majority want to explore destinations in a more immersive and experiential way, and to feel more connected to the history and culture. While seeing the top of the Empire State building has been a typical excursion for tourists in New York city, visitors will become more drawn to intimate activities like taking a cooking class in Brooklyn with a family of pizza makers who go back generations. This will undoubtedly be a significant area of growth in the travel and tourism industry.

Governments would be smart to plan as well, and to consider an international playbook that helps prepare us for the next public health crisis, inclusive of universal vaccine passports and policies that get us through borders faster.

Understanding these key trends - the ongoing need to feel safe and the growing desire to travel differently - and planning for the next crisis will be essential for governments, destinations, and tourism businesses to succeed in the efforts to keep the world travelling.

The 3 types of travel and tourism organisations

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There are many different types of travel and tourism organisations. From tour operators to airlines, to tourist boards and conservation activists, each organisation is different. However, most travel and tourism organisations can be grouped into one of three categories: private, public or voluntary. In this article I will explain what’s meant by each type of thew types of travel and tourism organisations.

Types of travel and tourism organisations

What is a private travel and tourism organisation, aims of private travel and tourism organisations, tour operators, travel agents, transport organisations and hubs, visitor attractions, accommodation providers, what is a public travel and tourism organisation, aims of public travel and tourism organisations, tourist information centres, tourist boards, local transport organisations, regulatory bodies, government bodies, what is a voluntary travel and tourism organisation, aims of voluntary travelled tourism organisations, pressure groups, types of travel and tourism organisations: to conclude, further reading.

Travel and tourism is big business and there are many different types of travel and tourism organisations. Many argue that the tourism industry is the biggest industry in the world, employing more people than any other industry! There are many different components of tourism , meaning that there are a wide range of organisations that are involved in the operational logistics of tourism management.

The types of travel and tourism organisations can be broadly separated into one of three categories: private, public and voluntary. Below, I will explain what is meant by each type of organisation.

Private travel and tourism organisations

The first, and most common, types of travel and tourism organisations are privately owned. The majority of the travel and tourism industry is made up of private travel and tourism organisations. This includes many of the well-known companies that most of us are familiar with.

A private organisation is one that is owned by an individual person, a group of people or company.

Sometimes private organisations are public limited companies (PLCs). This means that the company is owned by many people who buy shares in the organisation. These shares are sold on the stock market. The price of shares goes up and down depending on the market value of the company.

Private travel and tourism organisations come in all shapes and sizes. Some are small companies, often known as small to medium-sized enterprises (SMEs). Others are large companies, multinational companies and conglomerates.

Staff who work for a private travel and tourism organisation are generally paid a salary. Although travel and tourism salaries are often quite low, especially in developing countries!

These types of travel and tourism organisations have several aims. First and foremost, most private organisations aim to make a profit. Their most dominant motive is making money.

Many private travel and tourism organisations will also aim to increase their market share. This means that the company wants more customers than its competitors.

Private companies will often aim to grow their business and increase their turnover each year. In other words, they want to make more and more money every year.

Increasing revenue can be difficult and complicated. The infographic below gives you some idea of the aspects that need to be considered by a travel and tourism organisation when planning for growth and development.

Image is an important part of being a successful travel and tourism business. Private organisations will often try to portray a good image and/or improve their image. They can do this through taking on social projects , demonstrating a commitment to environmental conservation or through charitable acts.

This is often referred to as corporate social responsibility.

Another way that private travel and tourism organisations can make more money and increase their profit is to diversify the range of products and services that they offer. In other words, the more different products/services that they sell, the more customers that they can potentially attract.

Examples of private travel and tourism organisations

There are many different private types of travel and tourism organisations. In fact, most organisations in the travel and tourism industry are privately owned! Below are some examples:

A tour operator is an organisations who puts together, or builds, a holiday.

There are many tour operators all over the world in all shapes and sizes. You may be familiar with some of the larger brands, such as TUI and Hays Travel.

A travel agent is the person who sells you a holiday. They can also sell individual travel products, such as flights or ancillaries (e.g. insurance, car hire, attraction tickets). There are several different types of travel agents .

Examples of travel agents that you may be familiar with include Cooperative Travel, Crystal Corporate and Virgin Holidays.

Transport is a key component of tourism and there are different methods of transport depending on the holiday.

A hub is a connecting point, where passengers may change transport options. For examples major airports bus station or a railway station.

Examples of major transport operators that you may be familiar with includes British Airways, Virgin Trains and Mega Bus.

Examples of major hubs include London Heathrow Airport, London Waterloo train station and London Victoria bus station.

Do you enjoy learning about travel and tourism? Follow my stories on Instagram for more on tourism theory and everyday travelling fun!

Many, but not all, visitor attractions are private travel and tourism organisations.

The types of visitor attractions vary widely, from theme parks to botanic gardens to historical buildings.

Examples of private visitor attractions that you may have heard of includes Disney Land, Paris, the Pyramids of Giza in Egypt and the Brighton Sea Life Centre.

Most accommodatio providers are privately owned.

There are many different types of accommodations ranging from bed and breakfast to caravans to hotels.

Accommodation providers that you may be familiar with include Hilton Hotel, Travel Lodge and Airbnb. Airbnb is a major player in the tourism industry in recent years- you can learn all about this business (and get a discount off of your first booking!) in this article- what is Airbnb?

Public travel and tourism organisations

Public travel and tourism organisations make up an important part of the travel and tourism industry . Public organisations provide many of the essentials fundamentals that enable the tourism industry to function. These types of travel and tourism organisations are less common than private organisations, but are an important part of the travel and tourism industry.

These types of travel and tourism organisations is an organisation that is owned or funded by the government.

Public organisations can be local organisations, i.e. smaller companies theatre based in specific local areas. Public organisations can also be national organisations, i.e. they operate on a country-wide level.

Public travel and tourism organisations will likely have paid staff as well as volunteers, who are unpaid.

The main aim of these types of travel and tourism organisations is to provide services to the public.

Public organisations are allocated funding by the government. The amount of funding that is allocated to a particular area depends on a number of factors, including a needs assessment and the government budget.

Each year the government will decide where and how to allocate money that is raised largely through taxes. You can learn more about how this is done in the short video clip below.

Public organisations should ensure that the best level of service is maintained. However, public organisations often have limited funds compared to private organisations. Therefore service levels are often lower in public organisations theatre directly comparable with private organisations (i.e. they are the same type of business operating in a similar way).

Unlike private organisations, public travel and tourism organisations are not profit-driven. Whilst many organisations do need to make money to survive, their main focus is not profit, but instead is the level of service. This means that prices can be kept lower for consumers.

Privatisation in travel and tourism Privatisation is a controversial topic within the tourism industry and beyond. Privatisation is the process of selling public organisations to private companies. By selling public organisations, the government can raise money and focus their efforts in alternate areas. However, this means that the government no longer have control over aspects such as pricing and service quality. There are many examples of privatisation in the travel and tourism industry. In the UK, British Airways was improved considerably when privatised- under government control the airline was about to fold. On the other hand, since much of British Rail has been sold to private companies prices have risen significantly and there is a lot of dissatisfaction amongst consumers with regards to service levels.

When public organisations make profit, the intention is that this money is reinvested. The money may be reinvested directly into the same business. Alternatively, the money may be allocated elsewhere within the annual government budget.

Examples of public travel and tourism organisations

Public organisations are some of the most important types of travel and tourism organisations. They are often the backbone of the rest of the industry, without which it could not operate. Below are some examples of public travel and tourism organisations.

A tourist information centre (TCI) is an organisation that provides information to tourists.

Tourist information centres will often be located in tourist areas such as towns and cities and coastal destinations. They are also typically found at airports or major transport hubs.

Tourist information centres often provide free information such as maps, apps, brochures and leaflets about tourism in the area.

A tourist board is an organisation whose responsibility is to provide information about and promote a particular tourist area.

Tourist boards can be regional or national. Their job is to encourage tourism in the are within which they are based.

Tourist boards that you may have heard of in the UK include Visit Britain (the national tourist board), Visit Cornwall and Visit Oxford (regional tourist boards).

There are some visitor attractions theatre publicly owned.

In the UK, we have many museums and exhibitions theatre public organisations. The government subsidises entrance costs at some of the public tourist attractions.

By keeping a tourist attractions as a public organisation it enables protection and preservation of the area and of the attraction itself.It also enables sustainable tourism management by assessing capacity levels and visitor numbers.

Public tourist attractions that you may have heard of include the Natural History Museum in London, the Eiffel Tower in Paris and the Great Wall of China .

Many transport providers are publicly owned.

Buses, trains and airports are often public organisations. Although, as I previously stated, sometimes these are privatised.

By keeping public transport publicly owned it generally enables prices to stay lower, although the service may be inferior to private transport companies, who may choose to investor money into their products and services in anticipation of greater financial outcomes.

A regulatory body is an organisation with the purpose of regulating. These organisations will monitor and assess, imposing requirements and rules as needed. Regulatory bodies set standards and enforce compliance.

Regulatory bodies in the UK include the Bank of England and the Financial Policy Committee.

A government body is a group of people who are given the responsibility of exercising governance. These people are responsible for making decisions and agreeing law.

Government bodies are typically separated into sectors of the economy. Examples include the Department of Agriculture and the Department for Education.

Voluntary travel and tourism organisations

The voluntary sector plays an important role in our society. There are many different types of voluntary organisations, some of which can be defined as tourism-based organisations . Lets learn a little bit more about these types of travel and tourism organisations.

A voluntary travel and tourism organisation is a company that is not profit making. For these types of travel and tourism organisations, any profit that is received is directed back into the business, not into the hands of CEOs or shareholders, as would be the case with a private travel and tourism organisation.

Voluntary travel and tourism organisations are often funded through charitable donations or government grants. Sometimes they operate aspart of a legacy.

Some voluntary organisations charge entrance fees to help with maintenance and running costs of the business.

Voluntary travel and tourism organisations will often rely on unpaid volunteers to operate. There will also usually be some paid staff, although salaries in the charitable sector are typically quite low.

For these types of travel and tourism organisations, the aim of a voluntary travel and tourism organisation is to preserve or protect particular areas of society or natural environments.

This can include environmental protection and conservation, such as a turtle breeding programme in Costa Rica or a volunteer tourism project operating in the Amazon rainforest.

Voluntary travel and tourism organisations may focus on the conservation of buildings, particularly if they are of historical or cultural value . They may also work with tourism stakeholders on landscape designs and features, often to ensure that any new development is in keeping with or does not negatively inflict on the current landscape.

Many voluntary travel and tourism organisations will work to lobby or campaign on particular issues. This will likely include cultural preservation, environmental protection and economic distribution. If there is a proposed development thatchy do not approve of, the voluntary organisation will often campaign against it.

Many voluntary travel and tourism organisations will centre around the concepts of conservation and sustainability.

Examples of voluntary travel and tourism organisations

There are many voluntary travel and tourism organisations around the world. Some examples of these types of travel and tourism organisations include:

Some visitor attractions are non-profit, voluntary travel and tourism organisations. Sometimes these are natural attractions and sometimes these are man-made attractions.

Examples include many National Trust organisations and conservation-based projects, such as elephant rescue programmes in Thailand or maorinebiology research programmes in the Great Barrier Reef, Australia .

Some transport is operated on a voluntary basis. This will often be associated with other charitable projects or as an incentive to encourage visitors to visit particular area.

There are a number of charities that are associated with the travel and tourism industry.

Organisations such as World Wildlife Fund and the International Animal Welfare Charity are directly linked with a number of tourism-based projects and initiatives.

A pressure group is an organisation which campaigns for change.

There are a number of pressure groups that are not tourism-based, but that are related to tourism management, such as Animal Aid and Friends of the Earth.

There are also pressure groups that are solely tourism focussed, such as the Aviation Environment Federation or Tourism Concern (note- Tourism Concern has recently ceased operations).

As you can see, there are many different types of travel and tourism organisations. These range from large to small and from profit-making to non-for-profit. There are three main types of travelled tourism organisations, which are private, public and voluntary.

If you enjoyed this article on the types of travel and tourism organisations, I am sure that you will love these too-

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Tourism Industry Statistics Showing COVID-19’s Impact – 2023 Numbers

Global Impact in 2020

United states tourism, lodging and hotel sector, beverage and food, attractions and tour, business travel, international tourism prospect in 2023.

Tourism has been an essential revenue-generating sector, providing over 320 million jobs globally. According to statistics, the Tourism industry employs many women, representing 54% of the workforce. But the industry was greatly affected by the Covid-19 pandemic.

Countries dependent on tourism felt the impact longer than other nations with diverse sources of revenue. In countries like Barbados, the pandemic halted the sector, significantly affecting the country’s income. This article provides adequate information on the impact of Covid- 19 on the tourism industry.

Let’s take a look.

The pandemic affected the tourism industry negatively, and the unemployment rate increased.

1. Globally, the travel and tourism industry generated $396.37 billion in revenue in 2020. This was a 42.1% decline in growth from 2019. 2. In 2020, there was a decline in the patronage of tourist accommodations in the European Union by 51%.

3. In 2019, 243 million Europeans made at least one tourism trip , but this reduced by 21% to 193 million in the preceding year.

4. The travel and tourism industry lost a minimum of $1.2 trillion of gross domestic product globally after 4 months of being shut down during the pandemic.

5. UNCTAD estimated that for every $1 million lost in international revenue , there is a reduction by a minimum of $2 million in a country’s national income.

6. Travel and tourism are responsible for 1 in 10 jobs. This implies 330 million jobs and a contribution of 10.3% to the global gross domestic product.

7. International tourism had a projection to decrease in 2020 by 60 to 80 percent. Tourism revenue generation will likely not return to how it was before the pandemic until 2024. This puts 120 million jobs in the sector at risk.

8. Tourists in 2020 took about 1 billion international trips globally. This is 30% less than the estimated 1.46% of trips for the year due to travel restrictions during the Covid-19 pandemic.

9. Women make up 54% of the tourism workforce.

10. Tourism represents over 20% of the gross domestic product for some countries.

11. In 2019, tourism made up 7% of global trade .

12. The travel and tourism industry provides 15.8 million American Jobs . The tourism and travel sector gives jobs to one in every 10 Americans.

13. There was an increase of 3.5% in the unemployment rate due to Covid-19. Retrenchment of employees caused the United States unemployment rate to increase from 3.5% to 7.1% in barely two months during the pandemic.

14. The United States was projected to lose revenue above every other country.

15. The US lost more than other countries in dollars , twice China, which stands in second place.

16. Tourism represents 21% of Hawaii’s economy. Visitors in 2012 spent over $14 billion in Hawaii. This industry fell by 95% during the Covid-19 pandemic as residents of states were mandated to stay home.

17. In the first quarter of 2020, Florida experienced a decline in tourism activities by 10.7%. This decline in Florida’s tourism sector caused a loss of $ 67 billion in its economy.

18. Hotels in Austin had a 3% booking in April 2020. Hotels in Austin-Texas experienced a significant reduction in the number of rooms booked from 10,777 in 2019 to 342 in 2020.

19. There was a reduction in US spending on tourism by 31%. Due to the pandemic, the United States experienced a 31% reduction in travel expenses. This means a decline in travel expenses to $355 billion in 2020.

20. 217 countries imposed travel restrictions to limit the spread of the coronavirus. Lockdown measures were imposed by many governments when the pandemic was at its peak.

21. The travel and tourism industry had the most significant casualty. The pandemic greatly affected the travel and tourism industry.

22. Passenger airlines revenue declined by 55% from 2019 . According to the International Air transport association, the tourism industry fell by $314 billion.

23. 97 countries representing 45% of destinations , implemented partial or total border closure.

24. 39 countries representing 18% of destinations, implemented border closure to specific goals .

25. 65 countries representing 30% of destinations, suspended flights partially or totally.

26. 16 countries representing 7% of destinations, required visitors to follow quarantine measures .

27. R eport from Flightrader reveals a decline in the average number of commercial flights . In January and February 2020, commercial flights were reduced by over 100,000. The sector experienced a further reduction to 78,500 in March and 29,400 flights in April.

28. Passenger revenue was projected to decline by $314 billion in 2020. According to the air travel report, 2020 experienced a 55% reduction in revenue generation from its 2019 record.

29. International flights were reduced by 80%. On May 4, 2020, there was a reduction of 80% in the number of international flights. The majority of airlines closed operations due to borders closure.

30. In June 2020, International Air Transport Association reported a loss of $84.3 billion globally by airlines. Income in the aviation sector was projected to be negative throughout 2021 as countries are recuperating and slowly lifting barrier bans.

31. International Air Transport Association predicts a 50% increase in the price of plane tickets . The cost of plane tickets with social distancing measures was expected to increase by 50% globally.

32. Airline ticket fares rose by 13.75% and 10.9% yearly. At the height of the Covid -19 pandemic , the price of airline tickets of a company increased by 13.7% and 10.9% between April 13 and May 4.

33. Hotels in the United States have lost over $46 billion in room revenue . Hotel experts state a loss of $400 million daily due to low patronage of hotel rooms.

34. AHLA speculates room occupancy to be below 20%. For most hotel business owners , an occupancy rate of 35% and below means closing up business.

35. According to McKinsey analysis, the pandemic is most likely to cause a shift to digital bookings. Travelers will be more flexible on booking options and likely make last-minute changes . For instance, in China, over 90% of trip bookings were made within seven days of the trip.

36. Revenue per available room was projected to fall by 20% in 2023. In the worst-case situation, RevPAR is estimated at 20% in 2023.

37. Luxury room Revenue per available room is the slowest to return . The RevPAR of the luxury room is the slowest to return as it involves higher semi-fixed costs and variable costs.

38. 51% of Americans are likely to frequent a hotel. According to the Ipsos survey, 51% of Americans will likely keep a lodge in the same hotel. The hospitality sector has been experiencing an improvement in the rate at which customers frequent their service.

39. Airbnb has been experiencing some challenges. 64% indicated concerns and were unsure of undergoing their intended booking due to the pandemic.

40. 47% of hosts felt unsafe renting out lodges to guests.

41. 70% of guests had concerns about staying at Airbnb .

42. 44% of hosts predicted a reduction in revenue from June to August.

43. Daily rates decline to $90.

44. $236 million was reportedly lost by Hyatt in the second quarter; this indicates a 376% reduction in income from 2019.

45. Full-service restaurants in the United States saw a decline in reservations in March by 41% across the country during the pandemic. Open table reservations crash to 41% across the US as coronavirus spreads.

46. Working hours in local restaurants dropped by 40%. There was a decline in the number of working hours on March 17 by 40% in local restaurants and bars and an overall reduction of hourly workers by 45%.

47. O ut of 3 restaurants lose their jobs. National Restaurant Association reports that the pandemic has incredibly hit workers. 

48. 91% of the hourly workforce was laid off. James beard foundation discovered that 91% of the hourly workforce in restaurants was laid off, with 70% of salaried employees due to Covid-19.

49. Dining industry to lose$240 billion in 2020. National Restaurant Association forecasted the dining industry to lose $240 billion at the end of 2020.

50. The restaurant’s biggest challenge was reopening. According to a James Beard Foundation survey conducted during the epidemic, 41% of restaurants had gradual consumer returns, 35% needed money for vendors, and 16% needed new personnel.

51. 33% of consumers increase takeout. The rate of takeout by consumers reached 33% after the pandemic.

52. 90% of cultural institutions closed business doors. Due to the pandemic, about 90% of cultural institutions shut their doors, and about 13% may never resume activity.

53. Metropolitan Opera lost $60 million. The New York giant had to cancel its season show at the end of March, thereby incurring an estimated loss of $60 million in revenue.

54. Safari experienced a decline in bookings by 75%. The pandemic greatly impacted the revenue of Africa’s US$12.4 billion safari industry. Due to the restriction policy, it experienced a 75% decline in bookings.

55. 80% of ships had cases of covid-19 on board. The CDC issued a standing order that ships within the United States jurisdiction should not set sail between March and October.

56. Master cards experienced a 45% reduction in travel-related transactions. The credit company had a 45% decline in its usage for travel-related transactions.

57. 77% of the America Society of Travel Advisors (ASTA) predicted no business activity for six months. Members of ASTA forecasted nonexistent business for about 6 months due to the pandemic.

58. Watt Disney lost about $5 billion. During April, May, and June, the theme parks of Watt Disney Co were closed, causing a loss of revenue.

59. Global business travel was predicted to lose $810.7 billion in revenue in 2020. According to estimates, the pandemic will hit worldwide sales by $810.7 billion, with China’s travel spending predicting a $404.21 billion drop.

60. The US travel economy lost $250 billion. Due to the pandemic, the United States lost $250 billion at the beginning of March.

61. 5 to 10 business travels lost due to remote work tools. Experts predicted increased loss of business travel due to a shift to virtual meetings.

62. 89% reduction in business travel occurred due to the pandemic. The decline in business travel was far more significant than during the great recession and 9/11 losses. Half of all businesses canceled travel arrangements due to the pandemic.

63. Tourism travel to reach 80% to 95% of pre-pandemic. According to UNWTO research, the travel industry may return to 80 to 95 percent of pre-pandemic levels by 2023, with the Middle East and Europe expected to play critical roles in the recovery.

The third-largest export industry in the world economy is tourism. Some nations’ gross domestic product is 20% of it . Millions of individuals in developed and developing economies are employed in this sector. The tourist sector employs one person for every ten employees. However, one of the Covid-19 epidemic areas was most badly damaged, hurting opportunities, public services, and lifestyles in various countries.

How many travelers were there in 2020?

Worldwide, 1 billion foreign travels were done in 2020. This was down from the estimated 1.46 billion trips for the year by 30%.

What proportion of tourists decreased in 2020?

International tourism suffered significant losses due to the pandemic. Revenue dropped from 20% to 70% from 2019 to 2018.

What are the key challenges facing the travel and tourism sector?

The issues are Infrastructure, taxation, safety, and tourism promotion.

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Susan Laborde researches the latest technology trends in an ever-changing tech landscape to provide comparisons, guides, and reviews that are easy to understand for readers. When taking a break from being a tech word wizard, she plays games with her baby.

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France’s Outbound Tourism Industry: Projected Growth at 4.3% CAGR Through 2034 and its Direct Contribution to GDP

The outbound tourism industry size in  France has the potential to grow significantly, attaining USD 37 million in 2024. From 2024 to 2034, the demand for outbound tourism is predicted to flourish at a CAGR of 4.4%. The outbound tourism sales revenue in France is expected to hit a valuation of USD 56.8 million by 2034.

The volume of outbound tourism in France has increased substantially. Prominent and magnificent tourist attractions are a major factor supporting the outbound tourism industry’s growth. An array of alluring cultural settings and travel destinations strengthens the finest nations in the center of Western Europe, like Germany, Spain, Italy, and others.

Long beaches and most ski slopes worldwide are key factors encouraging tourism. European nations boast a plethora of notable tourist destinations, ranging from the Alhambra and Generalife Gardens to cutting-edge museums like SAMMLUNG BOROS in Berlin and theme parks like PortAventura in Spain.

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French citizens favor other European countries for outbound tourism activities because of these intriguing tourist destinations in different countries. The renowned tourist destinations around Europe aid France’s outbound tourism business.

Due to these factors, the outbound tourism sector in France witnessed a demand of US$ 30.2 million in 2019. The outbound tourism industry in France exhibited a 4.0% CAGR from 2019 to 2023, and sales reached US$35.3 million in 2023.

Certain countries or regions inhibit travelers from visiting others due to political unrest and security issues. Events like natural catastrophes, civil instability, or terrorist attacks negatively affect the outbound tourism industry in France. Technological developments like teleconferencing and virtual reality offer substitutes for more conventional travel experiences, decreasing the demand for French outbound travel.

“Growing disposable incomes, changing traveler preferences, and favorable government policies stimulate France’s outbound tourism industry expansion. The increasing demand for experiential travel and the move toward sustainable tourism represent significant trends,” says an FMI analyst.

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Key Takeaways 

• The April to June segment in the peak season category is set to acquire a share of 38% in 2024.
• In the age group category, the 26–35-year segment is expected to possess a share of 34.1% in 2024.
• From 2024 to 2034, the female segment is set to lead the market in terms of gender.
• Based on purpose, the vacation segment is envisioned to increase rapidly during the projected period.
• From 2024 to 2034, the package travel segment is anticipated to command France’s outbound tourism sector in terms of the tour category.
• Spain and Italy are predicted to be the most popular travel destinations, with consumers favoring these countries the most.

Competitive Landscape

Outbound tourism vendors operating in France strive to develop their customer base and increase their share through strategic alliances and diverse marketing approaches. Leading outbound tourism providers in France are putting much effort into innovating their offerings and giving their customers the finest possible experience.

Notable Developments

• Through a new international sports sponsorship plan, TUI, beginning with the ‘TUI Palma Marathon Mallorca,’ enhances its brand. TUI’s dedication to destination tourism is reflected in its sponsorship, which uses its extensive global reach and array of sports offers in hotels and clubs globally.
• Leading event and ticketing provider CTS Eventim is growing its investment in France Billet by acquiring 17% of its shares from Fnac Darty, bringing its total ownership to 65%. Assuming the competition authority approves, this action enhances Eventim’s standing in the French outbound travel sector. Fnac Darty has maintained a 35% ownership to continue supporting France Billet’s ticketing services.

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Key Players

• France Billet
• Odalys Evasion
• Global Business Travel France
• Travel Lab SAS
• Oui.sncf SAS
• Pv-Cp Distribution
• Vacances Heliade

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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Microsoft strengthens Thailand’s tourism sector through “AI Skills for the AI-enabled Tourism Industry” program

May 31, 2024

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Team of experts deliver AI skills training for entrepreneurs in U Thong District, Suphan Buri Province

Suphan Buri, May 31, 2024 – Microsoft Thailand helped enhance the capabilities of local community enterprises and entrepreneurs through AI skills training designed to drive the tourism industry under the “ AI Skills for the AI-enabled Tourism Industry ” program. This initiative is part of the ongoing efforts under the Memorandum of Understanding with the Thai government and a range of plans and partnerships previously announced during the recent visit of Microsoft Chairman and CEO Satya Nadella to Thailand for the Microsoft Build: AI Day event.  

The tourism industry remains a crucial driver of Thailand’s economic growth. This year, the Tourism Authority of Thailand (TAT) has set its sights on achieving 3 trillion baht in tourism revenue, while data on Thailand’s GDP growth in the first quarter of the year shows that the tourism industry helped drive 11.8% growth in hospitality and food-related services as well as 9.4% in transportation and logistics. In response, Microsoft Thailand is focusing the first phase of its AI skilling plans on the tourism industry through the “AI Skills for the AI-enabled Tourism Industry” program, whose main goal is to improve essential skills and introduce ways to apply AI innovations such as Copilot and other technologies from Microsoft to support more efficient and productive work among tourism business operators – ultimately strengthening the tourism industry and accelerating its sustainable growth.  

Supahrat Juramongkol, Microsoft Philanthropies Lead for ASEAN , said, “Microsoft believes in the power of technology to drive transformation and create opportunities for everyone through the AI skilling initiatives in the ASEAN region. For Thailand, the ‘AI Skills for the AI-enabled Tourism Industry’ program aims to unlock new possibilities for service and tourism businesses – starting with pilot activities in the ancient city of U Thong, where we have empowered businesses to overcome existing limitations and create better experiences for both Thai and international visitors. This includes leveraging AI tools to develop promotional materials that attract tourists, assisting in communication with international tourists, providing a creative spark for new ideas and experiences, or tailoring content to attract a more diverse range of potential visitors.”

For the first course of this project, Microsoft has partnered with the Kenan Foundation Asia and the Designated Areas for Sustainable Tourism Administration (DASTA) to impart digital and AI skills to entrepreneurs in U Thong Subdistrict, U Thong District, Suphan Buri Province and support the growth of one of Thai tourism’s secondary cities. Content from the training will also be disseminated and expanded through Microsoft’s network of skill development partners across Thailand – including the Digital Economy Promotion Agency, Ministry of Digital Economy and Society, Digital Skills Development Institute, Department of Skill Development, Office of Small and Medium Enterprises Promotion, Office of the Vocational Education Commission,  Designated Areas For Sustainable Tourism Administration, Tourism Authority of Thailand, Professional Qualification Institute, United Nations Development Programme, and Marketing Association of Thailand. The goal is to provide comprehensive learning opportunities that help enhance the skills of 70,000 next-generation entrepreneurs operating in the tourism business of secondary cities across all five regions of Thailand.  

Somjin Chankrabi, Manager of the Designated Area for Sustainable Tourism Administration (DASTA) in the ancient city of U Thong , added: “DASTA has been developing the ancient city of U Thong as a designated area for sustainable tourism since 2012, focusing on sustainable tourism development with the vision of creating a creative city for historical, cultural, and traditional lifestyle tourism. We are delighted that local entrepreneurs are receiving support from Microsoft to apply AI and other advanced technologies to benefit the tourism industry. We hope that the creativity of community enterprises and entrepreneurs can combine with the potential of AI to elevate U Thong’s prominence, creating opportunities for growth, employment, and income generation for the community as well as contributing to the country’s economic value.”  

The program’s AI skills development course covers the basics of AI usage through Microsoft Copilot , image and content generation with AI tools such as Microsoft Designer and the video editing app Clipchamp, as well as creating websites and marketing documents with Sway . The course also provides guidance on applying these technologies across various situations and roles, ranging from business owners to frontline employees.  

For more information and latest updates on the “AI Skills for the AI-enabled Tourism Industry” program, visit  aka.ms/AIskills4Tourism . Additionally, course content can be accessed through Microsoft’s skilling partners across Thailand, including:  

• Digital Skills Development Academy (DiSDA), Department of Skill Development, Ministry of Labor  
• Digital Economy Promotion Agency (DEPA), Ministry of Digital Economy and Society  
• Office of Small and Medium Enterprises Promotion (OSMEP)  
• Thailand Professional Qualification Institute (Public Organization)  
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How Tripesa is Revolutionizing the African Tourism Sector

Tripesa is paving the way for a thriving, sustainable, and inclusive tourism industry that benefits all stakeholders..

• Tripesa is empowering MSMEs in the tourism and hospitality sector through innovative solutions and dedicated support.
• Tripesa developed the Ukarimu curriculum, offering training to numerous tourism MSMEs in Uganda.
• Tripesa is spearheading a project for YUTO to develop 50 new tourism products, focusing on urban tourism and upselling in popular destinations like Kigezi and the Rwenzori region.
• By harnessing the power of tourism as a force for positive change, Tripesa is actively working towards a more vibrant, sustainable, and inclusive tourism industry in Africa.

Tourism holds immense potential to drive economic growth and transformation in Africa. As a key economic driver for many African countries, tourism contributes significantly to GDP, job creation, and investment while fostering social benefits such as peace, development, women empowerment, youth, and rural communities.

Despite these advantages, Africa’s tourism sector faces challenges like narrow product diversity, limited market access, overreliance on international markets, and skills gaps.

Tripesa is empowering Micro, Small, and Medium Enterprises (MSMEs) in the tourism and hospitality sector through innovative solutions and dedicated support. The platform recognizes the transformative power of tourism in Africa and collaborates with governments and development partners to address the sector’s challenges.

Their interventions focus on four key areas:

• Diversifying tourism products

Tripesa works to expand the range of tourism offerings in Africa, enhancing the appeal and competitiveness of the region. By introducing new and unique products, Tripesa helps MSMEs attract diverse tourist demographics and reduce reliance on traditional tourism activities. This approach enriches the tourist experience and promotes sustainable tourism practices that benefit local communities and ecosystems.

2. Enhancing market access

Tripesa provides MSMEs access to global, regional, and local sales, marketing, and distribution channels. By leveraging digital platforms, Tripesa enables African tourism products to reach a broader audience, increasing visibility and attracting more visitors. This enhanced market access helps businesses grow and thrive, contributing to the region’s overall economic development.

3. Reducing reliance on intermediaries

Tripesa aims to decrease dependence on global middlemen, empowering local businesses to engage with customers directly. By facilitating direct interactions between MSMEs and tourists, Tripesa ensures that more revenue stays within local economies, promoting sustainable growth and development. This direct engagement also allows businesses to tailor their offerings to meet customer needs more effectively, enhancing the overall tourist experience.

4. Building skills

Through initiatives focused on product development, digital marketing, and customer relationship management, Tripesa equips tourism operators with the skills needed to thrive in the industry. Tripesa helps MSMEs improve their service quality, innovate their products, and effectively manage their businesses by providing training and resources.

Impactful initiatives by Tripesa

Tripesa’s commitment to empowering MSMEs in the tourism and hospitality sector is evident through their impactful initiatives:

• In collaboration with the Eye Opener Initiative, Tripesa developed the Ukarimu curriculum, offering training to numerous tourism MSMEs in Uganda. For instance, Mabamba Tours saw a significant revenue increase from less than USD$300 (approx. UGX1.2 million) to over USD$5,000 (approx. UGX19 million) per month after leveraging Tripesa’s support to innovate products and access new markets.

This transformation underscores the potential of targeted training and support to drive substantial business growth.

• Working with the Stanbic Incubator and e360, Tripesa conducted tourism skills development activities for over 100 MSMEs across Uganda. Companies like Isi to She Tours benefited from product diversification and market access through Tripesa’s no-code tools.

This initiative highlights the importance of skills development and technological empowerment in fostering business success.

• Tripesa is spearheading a project for the Young Uganda Tour Operators (YUTO) to develop 50 new tourism products, focusing on urban tourism and upselling in popular destinations like Kigezi and the Rwenzori region. Entrepreneurs managing these products receive essential business training, while 100 YUTO members gain access to no-code websites, a YUTO marketplace, and a proximity sales tool on the Tripesa platform.

This project exemplifies Tripesa’s holistic approach to empowering MSMEs by providing product development support and market access tools.

Empowering Africa’s tourism sector with Tripesa

Through these initiatives and more, Tripesa is dedicated to unlocking the full potential of Africa’s tourism sector. By harnessing the power of tourism as a force for positive change, Tripesa is actively working towards a more vibrant, sustainable, and inclusive tourism industry in Africa.

Their recent acceptance into the NVIDIA Inception Program further strengthens their commitment, which will enable them to incorporate artificial intelligence (AI) into their platform.

This integration will enhance customer satisfaction and optimize operations, driving revenue growth and improving the overall tourist experience. Through it all, Tripesa is paving the way for a thriving, sustainable, and inclusive tourism industry that benefits all stakeholders.

ALSO READ: TRIPESA, BUGANDA KINGDOM PARTNER TO DIGITIZE TOURISM EXPERIENCE

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