tourism visitor economy

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

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

Related topics

Recommended.

• Hotel industry worldwide
• Travel agency industry
• Sustainable tourism worldwide
• Travel and tourism in the U.S.
• Travel and tourism in Europe

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 Market size of museums, historical sites, zoos, and parks worldwide 2022-2027
• 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

Market size of museums, historical sites, zoos, and parks worldwide 2022-2027

Size of the museums, historical sites, zoos, and parks market worldwide in 2022, with a forecast for 2023 and 2027 (in billion U.S. dollars)

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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Economic Impact Research

• In 2023, the Travel & Tourism sector contributed 9.1% to the global GDP; an increase of 23.2% from 2022 and only 4.1% below the 2019 level.
• In 2023, there were 27 million new jobs, representing a 9.1% increase compared to 2022, and only 1.4% below the 2019 level.
• Domestic visitor spending rose by 18.1% in 2023, surpassing the 2019 level.
• International visitor spending registered a 33.1% jump in 2023 but remained 14.4% below the 2019 total.

Click here for links to the different economy/country and regional reports

Why conduct research?

From the outset, our Members realised that hard economic facts were needed to help governments and policymakers truly understand the potential of Travel & Tourism. Measuring the size and growth of Travel & Tourism and its contribution to society, therefore, plays a vital part in underpinning WTTC’s work.

What research does WTTC carry out?

Each year, WTTC and Oxford Economics produce reports covering the economic contribution of our sector in 185 countries, for 26 economic and geographic regions, and for more than 70 cities. We also benchmark Travel & Tourism against other economic sectors and analyse the impact of government policies affecting the sector such as jobs and visa facilitation.

Visit our Research Hub via the button below to find all our Economic Impact Reports, as well as other reports on Travel and Tourism. 

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Travel and Tourism

Travel and tourism satellite account for 2017-2021.

The travel and tourism industry—as measured by the real output of goods and services sold directly to visitors—increased 64.4 percent in 2021 after decreasing 50.7 percent in 2020, according to the most recent statistics from BEA’s Travel and Tourism Satellite Account.

Data & Articles

• U.S. Travel and Tourism Satellite Account for 2017–2021 By Sarah Osborne - Survey of Current Business February 2023
• "U.S. Travel and Tourism Satellite Account for 2015–2019" By Sarah Osborne - Survey of Current Business December 2020
• "U.S. Travel and Tourism Satellite Account for 2015-2017" By Sarah Osborne and Seth Markowitz - Survey of Current Business June 2018
• Tourism Satellite Accounts 1998-2019
• Tourism Satellite Accounts Data Sheets A complete set of detailed annual statistics for 2017-2021 is coming soon -->
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Documentation

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Previously Published Estimates

• Data Archive This page provides access to an archive of estimates previously published by the Bureau of Economic Analysis. Please note that this archive is provided for research only. The estimates contained in this archive include revisions to prior estimates and may not reflect the most recent revision for a particular period.
• News Release Archive

What is Travel and Tourism?

Measures how much tourists spend and the prices they pay for lodging, airfare, souvenirs, and other travel-related items. These statistics also provide a snapshot of employment in the travel and tourism industries.

What’s a Satellite Account?

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• Oxford Economics

Understand the full economic value of visitors to your destination, including impacts on jobs, wages, GDP, and taxes.

Tourism Economics has worked with hundreds of national, state, and city tourism offices to provide a foundational analysis of the importance of the visitor economy.The economic importance of tourism to a destination is commonly under-appreciated and extends well beyond core hospitality and transportation sectors

Tourism Economics offers a solution to destination marketing organizations (DMOs) and to industry associations that marries rigorous methodology and compelling communication to raise the profile of tourism as an economic engine.

Our approach combines visitor survey and industry data to provide maximum credibility and to ensure no component of tourism activity is overlooked.

Tourism Economics' impact models also capture the critical secondary benefits to the tourism supply chain and the economic gains through the local spending of tourism wages.

This provides a comprehensive view of tourism-generated sales, production, employment, wages, and taxes. But the best research is only as good as its communication. Our clients enjoy a presentation style of clear and compelling narrative, charts, tables, and maps. In this way, the message of tourism's importance is clearly conveyed and our clients' objectives are realized.

Our staff has completed nearly one hundred tourism economic impact studies for cities, states, regions, and countries across the world. We have also assessed the impacts of particular sectors such as aviation, film, and cruising.

Our team possesses particular experience developing Tourism Satellite Accounts (TSAs) as ratified by the UN as the global standard for measuring the economic value of tourism. Our staff has implemented Tourism Satellite Account research for over two-dozen clients over the past decade, significantly raising the profile and understanding of tourism's role in the economy.

UN Tourism | Bringing the world closer

Tourism statistics database.

• 145 Key Tourism Statistics
• Economic Contribution and the SDGs

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Economic Contribution and SDG

As UN custodian, the UNWTO Department of Statistics compiles data on the Sustainable Development Goals indicators 8.9.1 and 12.b.1, included in the Global Indicator Framework . Data collection started in 2019 and provides data from 2008 onwards, the latest update took place on 29 August 2023.   

Tourism direct GDP as a proportion of total GDP (indicator 8.9.1) 

Indicator 8.9.1 on Tourism Direct GDP helps to monitor Target 8.9 which calls on countries “to promote sustainable tourism” under Goal 8 on decent Work and Economic Growth.

* Source : Data compiled from countries by UNWTO through annual statistical questionnaires. ** The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the UNWTO.

Implementation of standards accounting tools to monitor the economic and environmental aspects of tourism sustainability (indicator 12.b.1)

Indicator 12.b.1 shows the preparedness of countries to “develop and implement tools to monitor sustainable development impacts for sustainable tourism” called for in target 12.b under Goal 12 on Sustainable Consumption and Production. More specifically, it tracks the implementation of the most relevant Tourism Satellite Account (TSA) and System of Environmental Economic Accounting (SEEA) tables.

In the past, the UNWTO has conducted studies on the implementation of the TSA:RMF 2008, the latest being available here .

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!).

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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What next for travel and tourism? Here's what the experts say

In many countries, more than 80% of travel and tourism spending actually comes from the domestic market. Image:  Unsplash/Surface

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Stay up to date:.

• In 2020 alone, the travel and tourism sector lost $4.5 trillion and 62 million jobs globally.
• But as the world recovers from the impacts of the COVID-19 pandemic, travel and tourism can bounce back as an inclusive, sustainable, and resilient sector.
• Two experts highlight some of the key transformations in the sector going forward during the World Economic Forum's Our World in Transformation series.

The Travel & Tourism sector was one of the hardest hit by the COVID-19 pandemic, leaving not only companies but also tourism-driven economies severely affected by shutdowns, travel restrictions and the disappearance of international travel.

In 2020 alone, the sector lost $4.5 trillion and 62 million jobs, impacting the living standards and well-being of communities across the globe. Moreover, the halt in international travel gave both leisure and business travellers the chance to consider the impact of their choices on the climate and environment.

Amid shifting demand dynamics and future opportunities and risks, a more inclusive, sustainable and resilient travel and tourism sector can be - and needs to be - built.

The World Economic Forum's Travel & Tourism Development Index 2021 finds that embedding inclusivity, sustainability and resilience into the travel and tourism sector as it recovers, will ensure it can continue to be a driver of global connectivity, peace and economic and social progress.

We spoke to Sandra Carvao , Chief of Market Intelligence and Competitiveness at the United Nations World Tourism Organization (UNWTO), and Liz Ortiguera , CEO of the Pacific Asia Travel Association in Thailand (PATA), and asked them to highlight some of the key areas of risk and opportunity in the sector during an episode of the World Economic Forum's Our World in Transformation series.

Have you read?

Travel & tourism development index 2021: rebuilding for a sustainable and resilient future, towards resilience and sustainability: travel and tourism development recovery, how can we really achieve sustainability in the travel sector, what are some of the top global trends you're witnessing currently in the travel and tourism sector.

Liz Ortiguera: Given the extended lockdown that we had on travel with the pandemic, vacation for friends and relatives (VFR) is now a high priority for people who haven’t been in touch for a long time thanks to the pandemic. So, people are reconnecting. And that kind of links to the second trend, which is multi-purpose or blended travel. Never before, particularly now that we can connect digitally through Zoom, has the ability to work from anywhere enabled travellers to cover multiple purposes, like visits with friends and multiple business trips. So, we'll find that the duration of travel and the length of stay is longer. And third is the continued high focus on safety and wellness which is top of mind for travellers due to the pandemic. All travel is wellness-related now.

Sandra Carvao: I think there is a bigger concern with sustainability, which is very welcome in our industry. Consumers, particularly the younger generation, are much more aware of the impact they have, not only on the environment but also socially and on the communities they live in. We've also seen an increase in expenditure per trip, so I think people are very eager to go outside, and they're staying longer. And on the other side, I think there are some challenges: we’re seeing a rise in late bookings because restrictions can change at short notice and that’s having an impact on the decisions of travellers. This is putting pressure on the industry in terms of planning and anticipating fluctuations in demand.

Social media surveys have shown that travellers who have immersive experiences are more likely to post about them, which is good for the industry.

What is community-based tourism and why is it important?

Sandra Carvao: One of the positive impacts of the pandemic is that people are looking for local experiences and are spending more time with communities. So, the concept of community-based tourism is obviously one that puts the community at the core of every development, ensuring that it's engaged and empowered and that it benefits. At the UNWTO, we worked with the G20 and the Saudi presidency back in 2020 and produced a framework for tourism development in communities, which states that communities need to be part of the planning and management of tourism activities. We need to go beyond traditional definitions of community to a point where the industry leans on partnerships between the public and private sectors and communities.

Liz Ortiguera: In July 2022, PATA is hosting a destination-marketing forum and one of the key themes is community-based tourism. The purpose is really to put the community and authenticity-in-culture activities at the heart of the travel experience. There are benefits for all stakeholders. One is that travellers can have an authentic experience. They're not in overcrowded, touristic locations and they experience something new and unique within the community. These experiences are designed in partnership with communities who get the benefit of financial inclusion, and if activities are designed properly, the reinforcement of their cultural heritage. Governments also engage in economic development more broadly across countries. Another interesting trend is creative tourism, which means you create an experience for tourists to participate in, like a dance lesson, or a cooking lesson. Social media surveys have shown that travellers who have these kinds of immersive experiences are more likely to post about them online and that's good for the industry.

It is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.

How is technology and innovation helping to leverage cultural resources?

Sandra Carvao: One interesting trend we’re seeing is that more and more people are booking trips directly, so communities need to be supported to digitize their systems. Education and upskilling of communities are important so that they can leverage digital platforms to market themselves. From the tourists’ perspective, it is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.

Liz Ortiguera: People have been living virtually for more than two years. Amazing innovations have emerged, such as virtual reality and augmented reality, and all kinds of applications and tools. But the important thing is the experience. The destination. Real-world experiences need to remain front and centre. Technology tools should be viewed as enablers and not the core experience. And when it comes to staff, technology can really democratize education. There’s an opportunity to mobilize a mobile-first approach for those who are on the frontlines, or out in the field, and can’t easily access computers, but need to get real-time information.

How is the sector dealing with labour shortages and re-employment of the workforce?

Liz Ortiguera: Labour shortages are much more dynamic in North America and in Europe. But it’s having a knock-on effect on Asia. If, for example, their air carriers are limited by staff and they have to cancel flights, which we're very much seeing out of Europe, seating capacity then becomes a limiting factor in the recovery of Asia Pacific. That's the main constraint right now. And compounding that is the rising price of fuel. But people in the Asia Pacific are keen to get reemployed.

Sandra Carvao: Labour shortages are a priority for the sector in countries around the world. Many workers left the sector during the pandemic and the uncertainty that surrounded the measures taken to contain it left many people unsure of whether the sector would recover. It is time to address things like conditions, scheduling, and work/life balance, all things which have been top of mind for workers during the pandemic. As the sector recovers, we need time to bring new hires on board and to train them to take over where those who switched jobs left off.

Are we seeing a growing trend towards domestic tourism?

Sandra Carvao: We’re talking about 9 billion people travelling within their own countries. And in many countries, for example in Germany, more than 80% of the tourism spending actually comes from the domestic market, similarly in countries like Spain and even smaller economies. Whenever it's possible to travel again, domestic markets tend to be more resilient. They kick off first mostly due to perceptions of safety and security issues. As the world economy recovers from the pandemic, there is a good opportunity for nations to rethink their strategy, look at the domestic market in a different way, and leverage different products for domestic tourists.

When it comes to sustainable tourism, how quickly could we mainstream eco-friendly modes of transportation?

Sandra Carvao: Transport is one of the key contributors to energy impacts and tourism. But it's also important that we look at the whole value chain. The UNWTO together with the One Planet Sustainable Tourism Programme just launched the Glasgow Declaration, which includes green commitments from destinations and companies. We’re seeing a strong movement in the airline industry to reduce emissions. But I think, obviously, technological developments will be very important. But it's also very important to look at market shifts. And we can't forget small islands and developing states that rely on long-haul air travel. It’s important to make sure that we invest in making the problem much less impactful.

Liz Ortiguera: 'Travel and tourism' is such a broad encompassing term that it’s not fair to call it an industry: it is actually a sector of many industries. The pandemic taught us how broad the impact of the sector is in terms of sustainability. There's a big movement in terms of destination resilience, which is the foundation for achieving sustainability in the journey to net-zero. We now have standards to mitigate that impact including meetings-and-events (MIE) standards and standards for tour operators. There are multiple areas within our industry where progress is being made. And I'm really encouraged by the fact that there is such a focus not just within the sector but also among consumers.

This interview was first done at the World Economic Forum's studios in Geneva as part of 'Our World in Transformation' - a live interactive event series for our digital members. To watch all the episodes and join future sessions, please subscribe here .

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• How Culture and Heritage Tourism Boosts More Than A Visitor Economy

by Carolyn Childs 37 Comments

Culture and heritage tourism plays a critical role in building the visitor economy and goes even beyond that. A recent survey showed that over 50% of respondents polled agreed that history and culture are strong influences on their choice of holiday destination. 

Culture and heritage tourism is a fast-growing and high-yielding sector

Statistics also indicate that culture and heritage tourism continues to grow rapidly, especially in OECD and APEC regions. We estimate the direct global value of culture and heritage tourism to be well over $1billion dollars, with that of the Asia Pacific region being approximately $327 million.

It is already directly responsible for more than 50 million jobs in APEC countries. And what’s more, the indirect benefits of culture and heritage tourism are thought to be of the order of $1 billion and account for further 75 million jobs across the region. 

There is no denying the fact that culture and heritage tourism tends to attract high-yield tourists. While global figures can be hard to obtain, all available statistics on tourism in various individual markets like the UK, New Zealand, Australia, India , etc. reveal a consistent pattern.

Culture and heritage tourists often stay longer and spend a lot more money in general than other tourists do. In fact, one study showed that a culture and heritage tourist spent as much as 38% higher per day and they stayed 22% longer overall compared to other kinds of travellers.

Taj Mahal, Indian Symbol

Although the statistical evidence doesn’t show consistency regarding repeat visitors, tourism data on United States’ Culture and Heritage visitors indicates that the level of repeat visitation amongst this group of travellers is higher than that of traditional tourists. 

It builds engagement

Culture and heritage tourists usually visit cultural heritage attractions such as historic buildings and other historic attractions; archaeological sites; state, local, or national parks; art galleries or museums; concerts, plays, or musicals; ethnic or ecological heritage sites; and such attractions. These travellers say that these trips are more memorable than conventional holiday trips since they allow them to learn something new.  This focus on learning skills and gain enrichment has been identified by Trendwatching as a core global trend in travel (and links to broader macro trends in consumer needs).

The benefits of culture and heritage tourism are amplified through the economy, so their impact is much wider than just the direct spending levels. As Simon Thurley of English Heritage has shown in his Heritage Cycle, heritage tourism has benefits that extend beyond the solely economic. 

What are the benefits of heritage tourism?

Generally, the benefits of heritage tourism can be categorized into three groups: economic, social, and environmental. As they tend to be the highest focus for destinations and policymakers we have focused on the economic benefits first

Economic Benefits of Cultural and Heritage Tourism

• Injects new money into the economy, boosting businesses and tax revenues 
• Creates new jobs, businesses, events, and attractions, thus helping diversify the local economy 
• Supports small businesses and enables them to expand 
• Promotes the active preservation and protection of important local resources 
• Builds vital relationships among and within local communities
• Helps encourage the development and maintenance of new/existing community amenities 

Social Benefits of Cultural and Heritage Tourism 

• Helps build social capital

• Promotes positive behaviour 
• Helps improve the community’s image and pride
• Promotes community beautification
• Builds opportunities for healthy and useful community relationships and partnerships
• Provides research, education, and work-placement opportunities for students
• Creates enjoyable opportunities for both local residents and visitors attracted to the cultural arts, history, and preservation
• Boosts local investment in heritage resources and amenities that support tourism services 

There is even evidence that helping to maintain buildings of character culture and heritage tourism can also contribute to the innovation and business diversification of precincts.  Small businesses based in amazing buildings are typically innovators and provide a core for other larger businesses.

Environmental Benefits of Cultural and Heritage Tourism 

• Helps encourage a culture of preservation
• Boost awareness of the tourist site, attraction, or area’s significance
• Helps encourage local residents and visitors to be mindful of their impact on the natural and built environment 

 Although there is a risk that this type of tourism can lead to a place being ‘loved to death (think the Taj Mahal or the Sistine Chapel ), properly handled it can provide a reason to invest in things like sewage and water resources in areas. 

So that is why we think Cultural and Heritage Tourism is vital to the visitor economy – and destinations should seek to maximise the opportunities it brings. In future articles, we will be delving more deeply into practical opportunities on how to do that. (If you are an MTR member then you can also access more detailed content via the Members Only HomePage .)

Looking for more Culture and Heritage tourism information? You can check out our blog about defining cultural and heritage tourism and cultural tourism opportunities .

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About Carolyn Childs

Carolyn has spent more than 25 years’ helping businesses achieve their goals by using research and other evidence to guide strategy and planning – mainly in the aviation, travel and tourism fields. She has worked in more than 35 countries on every inhabited continent and brings a detailed understanding of customers and how to connect with them. As well as running her own businesses, she has worked for organisations such as the International Air Transport Association, TNS (the world’s largest custom research company) and the Travel Research Centre.

November 28, 2023 at 7:58 am

Your blog, ‘How Culture and Heritage Tourism Boosts More Than A Visitor Economy,’ brilliantly unveils the multifaceted impact of cultural and heritage tourism. The depth of your analysis and compelling narrative style make this a must-read. It’s a commendable exploration of the broader positive influence that goes beyond economic aspects, showcasing the richness and importance of cultural exploration. Excellent work!

December 22, 2023 at 11:14 am

Thanks Kenny!

June 12, 2023 at 12:00 pm

What are the pros of heritage tourism?

June 12, 2023 at 12:40 pm

We try to outline these in the article but this type of tourism helps us preserve our vital cultural assets, gives communities pride and helps build economic opportunity. You can also find out more at the website of the World Tourism Association for Culture and Heritage and at that of ICOMOS .

Of course you have to do it right! This starts by the community understanding what they have, then deciding what they want to share finally finding visitors who want that.

One challenge is the concept of heritage has some negative connotations in that it can seem ‘fusty’ but by showcasing culture and immersion it becomes incredibly engaging. In our work with SHP we are working to overcome this.

Travellers say that they want to get under the skin of a destination – culture and heritage tourism does just that.

November 23, 2022 at 8:58 am

Hello. Thank you for the great blog today. Have a nice day 강남호빠

June 12, 2023 at 12:45 pm

Glad you liked it…

December 30, 2021 at 1:52 am

Thank you for this interesting piece. Can you clarify time frame for stats like this: “We estimate the direct global value of culture and heritage tourism to be well over $1billion dollars, with that of the Asia Pacific region being approximately $327 million.” Is this an annual figure? I am citing your work and want to be sure I am doing so accurately.

October 4, 2022 at 1:57 pm

Dolly it is an annual number. I think this number is now well exceeded though as this has been a huge growth area

October 12, 2021 at 7:49 pm

I would like to know on how can we able to preserve our cultural heritage so as we can ensure imcrease of coming tourists especially to the developing countries, since it has mostly be an obstacle to those nations.

November 29, 2021 at 2:38 pm

I think there is a need to engage your local community and to demonstrate the benefits to them, including opportunities for employment. Community is important as we also need to make sure that the way we promote it benefits the community.

One simple framewok I have seen in Canada is

1) work out what you have. What do you have to share. This doesn’t have to be buildings, intangible culture like cuisine and arts are important to. Audit what you have, collect your stories 2) Agree what you want to share. Agree what you want to share with visitors 3) work out what visitors want. Identify what demand there is for what you have to offer, what customers are interested? then find out about how they book and plan travel (lots of resources in our blog on this) then create a destination management plan (guidance on what to use can be found at https://www.austrade.gov.au/ArticleDocuments/5499/DM_Guide.pdf.aspx ) This will help you work out how and what to do

March 2, 2023 at 12:10 am

we are having different activities that we can do as our culture-heritage but due to financial constrain we get it difficult tp practices such kind of activities to promote our culture and also to act as tourism attraction for other continent .

June 12, 2023 at 12:34 pm

Not all culture and heritage activities have to cost a lot. Community-based tourism generally starts small scale and is built by the community asking what it can do rather. This could be simply opportunities for visitors to meet members of the local community or come for a meal at their homes. Talking to visitors already coming (if any) is a good place to start.

May 6, 2021 at 12:16 pm

Hi that is a question how heritage attractions make global marketing in order to attract more foreign tourists and enhance their popularities all over the world. Is it possible for the heritage attraction make efforts oversea? like participating in exhibition.

June 15, 2021 at 2:00 pm

Hi Cindy we definitely think attractions can promote overseas, but it depends on the attraction and whether it is likely to appeal to individual visitors. Our advice on promotion for an attraction is normally to do so in partnership with their host destination

October 27, 2021 at 6:15 pm

Hie We appreciate what you are doing. We are also trying to come up with a plan to establish a Cultural Heritage and Adventure tourism resort in our rural area in Hwedza. If you are ininterested in helping us please be intouch and will post to pictures of the magnificent sites we wish to show the world. Thank you in advance.

Best Regards Tsungai Maphosa

November 29, 2021 at 2:39 pm

Tsungai … will be in touch soon

April 9, 2021 at 7:55 pm

In which year you published it? I need it for my research paper

August 19, 2021 at 3:59 pm

April 2015… we review it each year and it still holds true and is our most read post!

January 25, 2021 at 5:39 pm

I have a question in what way how leisure helps the tourism industry?

I’m not sure I understand your question. Can you explain a bit more

December 4, 2020 at 5:15 am

I have a question, How to use tourism culture element to attract tourists ?

April 22, 2021 at 11:01 am

It was updated in 2020 but initially published on Apri 18, 2015. We revisit it reqgularly and it still holds true

September 14, 2020 at 8:57 pm

Culture or heritage consumption requires understanding how tourist’ emotions and reasons interacting in experiencing these products to ensure long-term sustainability?

October 12, 2020 at 10:33 am

It does indeed. It also means encouraging the right tourists.

September 13, 2020 at 12:52 am

I have a question explain the economic benefits, social benefits and environmental benefits of heritage tourism. Specify specific examples /situation

October 12, 2020 at 10:31 am

This could honestly be a whole text book Natalia! The three are highly linked as in what brings money in gets valued and what is valued is protected. It is called the heritage cycle. The UK Lottery fund has a report on the value of conserving and adapting heritage buildings that shows they bring in GDP.

August 17, 2020 at 11:50 pm

What are the possible objects of cultural interest that may entice or impact tourist arrivals?

October 12, 2020 at 10:29 am

Krister… the process is a three step one. Identify what you have, Agree with the community what can be shared, identify if there are enough visitors who might be interested and who they are? There isn’t a one size fits all on this.

February 4, 2020 at 11:34 pm

In your own words what are the advantages of heritage tourism and what are the disadvantages or challenges of heritage tourism?

March 3, 2020 at 5:57 pm

Mark Great question. I don’t see any disadvantages if it is managed well. The challenges come when it isn’t developed with local buy on, people fail to plan for tourism and culture together and where you don’t let the story lead. The advantages are almost too numerous to mention: social capital, civic pride, economic benefit, a clear case for protecting assets.

January 19, 2020 at 11:22 am

I have a question how does cultural heritage promotes tourism?

January 24, 2020 at 11:12 am

Cultural heritage provides a compelling reason to visit. As more people have the ability to travel we see that the desire to understand other cultures grows. Cultural heritage often includes compelling human stories and provokes a sense of wonder. Who hasn’t stood in front of the pyramids and ‘gone wow!’?

There is strong supporting evidence. Research on the impact of gaining World Heritage status indicates that it boosts visitation. It’s a way of curating the ‘best of’ that anyone can understand.

July 4, 2019 at 12:37 am

Now, that’s a great question. All places are heritage destinations since all of them have their histories. However, some places are more historically significant than others. In that sense, all travel can be classified as heritage travel.

Attractions can be either heritage attractions or otherwise. In other words, non-heritage attractions like scenery, national parks, nightclubs, safaris, adventure are also reasons why people travel. In this case, heritage has no place.

I would like to ask one question of my own: How important do you think it is for travelers going to heritage destinations, to be acquainted with the history of the place?

September 11, 2019 at 2:18 pm

I am not sure we could police that. Maybe more like encourage it but great interpretation on site can do the same job

December 6, 2018 at 4:47 am

I have a great question if you can answer the question by my email address Does tourism exist without heritage or attraction? if you say yes how? if you say no how?

September 11, 2019 at 2:21 pm

It depends what you mean by an attraction … many holidays are about relaxation. They may include sightseeing, but the classic ‘fly and flop’ holiday is still tourism. We now know that even this type of holiday can help with mental and physical health

September 21, 2019 at 5:40 pm

YES you are absolutely right that tourism has a lot of advantage for health. Tourism is one which bring happiness in our life and enjoy Full moments. even through it we feel something fresh and new observation.

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Visitor Economy Study

Destination Toronto partnered with the Toronto Regional Board of Trade on a landmark study about the impact visitors have on Toronto. Understanding visitor impact is key to unlocking the critical role they play in our economy. Toronto’s visitors fuel what’s called the visitor economy –a term much broader than tourism. And the visitor economy matters. When more visitors come to Toronto, visitor spending increases –fueling local businesses and the entire supply chain affected by the goods and services they provide. It creates jobs, generates tax revenue and drives growth in the overall economy for the city, the region and the province.

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10 Economic impacts of tourism + explanations + examples

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There are many economic impacts of tourism, and it is important that we understand what they are and how we can maximise the positive economic impacts of tourism and minimise the negative economic impacts of tourism.

Many argue that the tourism industry is the largest industry in the world. While its actual value is difficult to accurately determine, the economic potential of the tourism industry is indisputable. In fact, it is because of the positive economic impacts that most destinations embark on their tourism journey.

There is, however, more than meets the eye in most cases. The positive economic impacts of tourism are often not as significant as anticipated. Furthermore, tourism activity tends to bring with it unwanted and often unexpected negative economic impacts of tourism.

In this article I will discuss the importance of understanding the economic impacts of tourism and what the economic impacts of tourism might be. A range of positive and negative impacts are discussed and case studies are provided.

At the end of the post I have provided some additional reading on the economic impacts of tourism for tourism stakeholders , students and those who are interested in learning more.

 Foreign exchange earnings

Contribution to government revenues, employment generation, contribution to local economies, development of the private sector, infrastructure cost, increase in prices, economic dependence of the local community on tourism, foreign ownership and management, economic impacts of tourism: conclusion, further reading on the economic impacts of tourism, the economic impacts of tourism: why governments invest.

Tourism brings with it huge economic potential for a destination that wishes to develop their tourism industry. Employment, currency exchange, imports and taxes are just a few of the ways that tourism can bring money into a destination.

In recent years, tourism numbers have increased globally at exponential rates, as shown in the World Tourism Organisation data below.

There are a number of reasons for this growth including improvements in technology, increases in disposable income, the growth of budget airlines and consumer desires to travel further, to new destinations and more often.

Here are a few facts about the economic importance of the tourism industry globally:

• The tourism economy represents 5 percent of world GDP
• Tourism contributes to 6-7 percent of total employment
• International tourism ranks fourth (after fuels, chemicals and automotive products) in global exports
• The tourism industry is valued at US$1trillion a year
• Tourism accounts for 30 percent of the world’s exports of commercial services
• Tourism accounts for 6 percent of total exports
• 1.4billion international tourists were recorded in 2018 (UNWTO)
• In over 150 countries, tourism is one of five top export earners
• Tourism is the main source of foreign exchange for one-third of developing countries and one-half of less economically developed countries (LEDCs)

There is a wealth of data about the economic value of tourism worldwide, with lots of handy graphs and charts in the United Nations Economic Impact Report .

In short, tourism is an example of an economic policy pursued by governments because:

•      it brings in foreign exchange
•      it generates employment
•      it creates economic activity

Building and developing a tourism industry, however, involves a lot of initial and ongoing expenditure. The airport may need expanding. The beaches need to be regularly cleaned. New roads may need to be built. All of this takes money, which is usually a financial outlay required by the Government.

For governments, decisions have to be made regarding their expenditure. They must ask questions such as:

How much money should be spent on the provision of social services such as health, education, housing?

How much should be spent on building new tourism facilities or maintaining existing ones?

If financial investment and resources are provided for tourism, the issue of opportunity costs arises.

By opportunity costs, I mean that by spending money on tourism, money will not be spent somewhere else. Think of it like this- we all have a specified amount of money and when it runs out, it runs out. If we decide to buy the new shoes instead of going out for dinner than we might look great, but have nowhere to go…!

In tourism, this means that the money and resources that are used for one purpose may not then be available to be used for other purposes. Some destinations have been known to spend more money on tourism than on providing education or healthcare for the people who live there, for example.

This can be said for other stakeholders of the tourism industry too.

There are a number of independent, franchised or multinational investors who play an important role in the industry. They may own hotels, roads or land amongst other aspects that are important players in the overall success of the tourism industry. Many businesses and individuals will take out loans to help fund their initial ventures.

So investing in tourism is big business, that much is clear. What what are the positive and negative impacts of this?

Positive economic impacts of tourism

So what are the positive economic impacts of tourism? As I explained, most destinations choose to invest their time and money into tourism because of the positive economic impacts that they hope to achieve. There are a range of possible positive economic impacts. I will explain the most common economic benefits of tourism below.

One of the biggest benefits of tourism is the ability to make money through foreign exchange earnings.

Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy. How a destination manages their finances differs around the world; some destinations may spend this money on growing their tourism industry further, some may spend this money on public services such as education or healthcare and some destinations suffer extreme corruption so nobody really knows where the money ends up!

Some currencies are worth more than others and so some countries will target tourists from particular areas. I remember when I visited Goa and somebody helped to carry my luggage at the airport. I wanted to give them a small tip and handed them some Rupees only to be told that the young man would prefer a British Pound!

Currencies that are strong are generally the most desirable currencies. This typically includes the British Pound, American, Australian and Singapore Dollar and the Euro .

Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.

Tourism can help to raise money that it then invested elsewhere by the Government. There are two main ways that this money is accumulated.

Direct contributions are generated by taxes on incomes from tourism employment and tourism businesses and things such as departure taxes.

Taxes differ considerably between destinations. I will never forget the first time that I was asked to pay a departure tax (I had never heard of it before then), because I was on my way home from a six month backpacking trip and I was almost out of money!

Japan is known for its high departure taxes. Here is a video by a travel blogger explaining how it works.

According to the World Tourism Organisation, the direct contribution of Travel & Tourism to GDP in 2018 was $2,750.7billion (3.2% of GDP). This is forecast to rise by 3.6% to $2,849.2billion in 2019.

Indirect contributions come from goods and services supplied to tourists which are not directly related to the tourism industry.

Take food, for example. A tourist may buy food at a local supermarket. The supermarket is not directly associated with tourism, but if it wasn’t for tourism its revenues wouldn’t be as high because the tourists would not shop there.

There is also the income that is generated through induced contributions . This accounts for money spent by the people who are employed in the tourism industry. This might include costs for housing, food, clothing and leisure Activities amongst others. This will all contribute to an increase in economic activity in the area where tourism is being developed.

The rapid expansion of international tourism has led to significant employment creation. From hotel managers to theme park operatives to cleaners, tourism creates many employment opportunities. Tourism supports some 7% of the world’s workers.

There are two types of employment in the tourism industry: direct and indirect.

Direct employment includes jobs that are immediately associated with the tourism industry. This might include hotel staff, restaurant staff or taxi drivers, to name a few.

Indirect employment includes jobs which are not technically based in the tourism industry, but are related to the tourism industry. Take a fisherman, for example. He does not have any contact of dealings with tourists. BUT he does sell his fish to the hotel which serves tourists. So he is indirectly employed by the tourism industry, because without the tourists he would not be supplying the fish to the hotel.

It is because of these indirect relationships, that it is very difficult to accurately measure the economic value of tourism.

It is also difficult to say how many people are employed, directly and indirectly, within the tourism industry.

Furthermore, many informal employments may not be officially accounted for. Think tut tut driver in Cambodia or street seller in The Gambia – these people are not likely to be registered by the state and therefore their earnings are not declared.

It is for this reason that some suggest that the actual economic benefits of tourism may be as high as double that of the recorded figures!

All of the money raised, whether through formal or informal means, has the potential to contribute to the local economy.

If sustainable tourism is demonstrated, money will be directed to areas that will benefit the local community most.

There may be pro-poor tourism initiatives (tourism which is intended to help the poor) or volunteer tourism projects.

The government may reinvest money towards public services and money earned by tourism employees will be spent in the local community. This is known as the multiplier effect.

The multiplier effect relates to spending in one place creating economic benefits elsewhere. Tourism can do wonders for a destination in areas that may seem to be completely unrelated to tourism, but which are actually connected somewhere in the economic system.

Let me give you an example.

A tourist buys an omelet and a glass of orange juice for their breakfast in the restaurant of their hotel. This simple transaction actually has a significant multiplier effect. Below I have listed just a few of the effects of the tourist buying this breakfast.

The waiter is paid a salary- he spends his salary on schooling for his kids- the school has more money to spend on equipment- the standard of education at the school increases- the kids graduate with better qualifications- as adults, they secure better paying jobs- they can then spend more money in the local community…

The restaurant purchases eggs from a local farmer- the farmer uses that money to buy some more chickens- the chicken breeder uses that money to improve the standards of their cages, meaning that the chickens are healthier, live longer and lay more eggs- they can now sell the chickens for a higher price- the increased money made means that they can hire an extra employee- the employee spends his income in the local community…

The restaurant purchase the oranges from a local supplier- the supplier uses this money to pay the lorry driver who transports the oranges- the lorry driver pays road tax- the Government uses said road tax income to fix pot holes in the road- the improved roads make journeys quicker for the local community…

So as you can see, that breakfast that the tourist probably gave not another thought to after taking his last mouthful of egg, actually had the potential to have a significant economic impact on the local community!

The private sector has continuously developed within the tourism industry and owning a business within the private sector can be extremely profitable; making this a positive economic impact of tourism.

Whilst many businesses that you will come across are multinational, internationally-owned organisations (which contribute towards economic leakage ).

Many are also owned by the local community. This is the case even more so in recent years due to the rise in the popularity of the sharing economy and the likes of Airbnb and Uber, which encourage the growth of businesses within the local community.

Every destination is different with regards to how they manage the development of the private sector in tourism.

Some destinations do not allow multinational organisations for fear that they will steal business and thus profits away from local people. I have seen this myself in Italy when I was in search of a Starbucks mug for my collection , only to find that Italy has not allowed the company to open up any shops in their country because they are very proud of their individually-owned coffee shops.

Negative economic impacts of tourism

Unfortunately, the tourism industry doesn’t always smell of roses and there are also several negative economic impacts of tourism.

There are many hidden costs to tourism, which can have unfavourable economic effects on the host community.

Whilst such negative impacts are well documented in the tourism literature, many tourists are unaware of the negative effects that their actions may cause. Likewise, many destinations who are inexperienced or uneducated in tourism and economics may not be aware of the problems that can occur if tourism is not management properly.

Below, I will outline the most prominent negative economic impacts of tourism.

Economic leakage in tourism is one of the major negative economic impacts of tourism. This is when money spent does not remain in the country but ends up elsewhere; therefore limiting the economic benefits of tourism to the host destination.

The biggest culprits of economic leakage are multinational and internationally-owned corporations, all-inclusive holidays and enclave tourism.

I have written a detailed post on the concept of economic leakage in tourism, you can take a look here- Economic leakage in tourism explained .

Another one of the negative economic impacts of tourism is the cost of infrastructure. Tourism development can cost the local government and local taxpayers a great deal of money.

Tourism may require the government to improve the airport, roads and other infrastructure, which are costly. The development of the third runway at London Heathrow, for example, is estimated to cost £18.6billion!

Money spent in these areas may reduce government money needed in other critical areas such as education and health, as I outlined previously in my discussion on opportunity costs.

One of the most obvious economic impacts of tourism is that the very presence of tourism increases prices in the local area.

Have you ever tried to buy a can of Coke in the supermarket in your hotel? Or the bar on the beachfront? Walk five minutes down the road and try buying that same can in a local shop- I promise you, in the majority of cases you will see a BIG difference In cost! (For more travel hacks like this subscribe to my newsletter – I send out lots of tips, tricks and coupons!)

Increasing demand for basic services and goods from tourists will often cause price hikes that negatively impact local residents whose income does not increase proportionately.

Tourism development and the related rise in real estate demand may dramatically increase building costs and land values. This often means that local people will be forced to move away from the area that tourism is located, known as gentrification.

Taking measures to ensure that tourism is managed sustainably can help to mitigate this negative economic impact of tourism. Techniques such as employing only local people, limiting the number of all-inclusive hotels and encouraging the purchasing of local products and services can all help.

Another one of the major economic impacts of tourism is dependency. Many countries run the risk of becoming too dependant on tourism. The country sees $ signs and places all of its efforts in tourism. Whilst this can work out well, it is also risky business!

If for some reason tourism begins to lack in a destination, then it is important that the destination has alternative methods of making money. If they don’t, then they run the risk of being in severe financial difficulty if there is a decline in their tourism industry.

In The Gambia, for instance, 30% of the workforce depends directly or indirectly on tourism. In small island developing states, percentages can range from 83% in the Maldives to 21% in the Seychelles and 34% in Jamaica.

There are a number of reasons that tourism could decline in a destination.

The Gambia has experienced this just recently when they had a double hit on their tourism industry. The first hit was due to political instability in the country, which has put many tourists off visiting, and the second was when airline Monarch went bust, as they had a large market share in flights to The Gambia.

Other issues that could result in a decline in tourism includes economic recession, natural disasters and changing tourism patterns. Over-reliance on tourism carries risks to tourism-dependent economies, which can have devastating consequences.

The last of the negative economic impacts of tourism that I will discuss is that of foreign ownership and management.

As enterprise in the developed world becomes increasingly expensive, many businesses choose to go abroad. Whilst this may save the business money, it is usually not so beneficial for the economy of the host destination.

Foreign companies often bring with them their own staff, thus limiting the economic impact of increased employment. They will usually also export a large proportion of their income to the country where they are based. You can read more on this in my post on economic leakage in tourism .

As I have demonstrated in this post, tourism is a significant economic driver the world over. However, not all economic impacts of tourism are positive. In order to ensure that the economic impacts of tourism are maximised, careful management of the tourism industry is required.

If you enjoyed this article on the economic impacts of tourism I am sure that you will love these too-

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Visitor Economy Facts and Figures

Main content

The Visitor Economy Facts and Figures (VEFF) is a monthly report which brings together data relevant to the visitor economy from a range of different sources. The report provides a quick and easy reference for the major factors affecting Australia’s visitor economy.

Open the Visitor Economy Facts and Figures data in full-screen mode .

Data results

The main data in this report are:

• monthly, quarterly and annual data on the number of domestic and international visitors. It also captures their reasons for travel and their total spend in Australia
• total value of the visitor economy by its components
• trends and source countries of international visitors and students
• supply metrics such as tourism jobs and aviation data. 

Data sources

Data is sourced from:

• Tourism Research Australia (Austrade)
• Australian Bureau of Statistics (ABS)
• Department of Education
• Bureau of Infrastructure and Transport Research Economics (BITRE)
• Department of Home Affairs.

Please note:

• The VEFF data is updated on the same day that Tourism Research Australia’s monthly National Visitor Survey and International Visitor Survey are released
• View this page on a desktop device for the best result

Contact TRA

mail   tourism.research@tra.gov.au

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Government of Canada releases new Federal Tourism Growth Strategy

From: Innovation, Science and Economic Development Canada

News release

New strategy will foster growth and competitiveness of the tourism industry

July 4, 2023 – Niagara, Ontario

Tourism powers the Canadian economy, creating good jobs in every region of the country, from rural and remote communities to the largest cities. Tourism is also highly inclusive. Compared to other sectors, it employs a higher proportion of women, youth and newcomers. Canada has something for everyone: breathtaking outdoor adventures, vibrant cities, unique Indigenous tourism experiences and so much more. With the renewed demand for travel, there is now a once-in-a-generation opportunity for Canada’s visitor economy to push past reviving all the way to thriving and successfully compete on the global stage. The Government of Canada is focused on seizing this opportunity to help the tourism industry reach new heights for generations to come.  

Today, the Honourable Randy Boissonnault, Minister of Tourism and Associate Minister of Finance, unveiled the new Federal Tourism Growth Strategy , entitled Canada 365: Welcoming the world. Every day. He was accompanied by Vance Badawey, Parliamentary Secretary to the Minister of Indigenous Services and Member of Parliament for Niagara Centre; Chris Bittle, Parliamentary Secretary to the Minister of Canadian Heritage and Member of Parliament for St. Catharines; Marsha Walden, President and CEO of Destination Canada; Beth Potter, President and CEO of the Tourism Industry Association of Canada; Keith Henry, President and CEO of the Indigenous Tourism Association of Canada; and Susie Grynol, President and CEO of the Hotel Association of Canada.

The new strategy will unleash the full potential of Canadian tourism and cement Canada as a top global destination through the following five priorities:

• Investing in Canada’s tourism assets
• Embracing recreation and the great outdoors
• Partnering to grow Indigenous tourism
• Attracting more international events
• Improving coordination through a federal ministerial council

The strategy is informed by months of consultations with, among others, tourism businesses, industry associations, other orders of government, Indigenous partners and destination marketing organizations. Their valuable insight into the challenges and opportunities of the Canadian tourism sector have shaped the strategy and helped set the stage for the long-term growth of Canada’s visitor economy. 

“Now is the time to come together and combine forces—across all orders of government and throughout the industry—to power the economic engine that is tourism. With the new Federal Tourism Growth Strategy, we will build on our strengths and propel the sector to new heights. Canada has what the world wants, and we look forward to welcoming visitors, 365 days a year.”  – The Honourable Randy Boissonnault, Minister of Tourism and Associate Minister of Finance

“We are Niagara—tourism is in our blood. We understand the importance of this industry to the people of Niagara and to the employees, business owners and organizations that thrive because of our region’s natural gifts and its existence as a major North American destination for travellers from around the world. This new Federal Tourism Growth Strategy will help drive the success of our tourism sector and ensure it continues to contribute to the economic prosperity of Niagara for decades to come.” – Vance Badawey, Parliamentary Secretary to the Minister of Indigenous Services and Member of Parliament for Niagara Centre

“Every year, our tourism sector brings people from around the world to our country and specifically to our region. We have a lot to offer, whether you have been to Canada a dozen times or are planning your first trip. This strategy demonstrates the strength of our sector and lays the foundation for its future success. With this Federal Tourism Growth Strategy, Niagara will continue to be ready to welcome the world, each and every day.” – Chris Bittle, Parliamentary Secretary to the Minister of Canadian Heritage and Member of Parliament for St. Catharines

“Today’s announcement caps more than a year of dialogue with key stakeholders on all facets of the tourism sector across this great country. TIAC welcomes the new Federal Tourism Growth Strategy and applauds the government’s recognition that tourism is a key driver of Canada’s economy, creating close to two million jobs in large and small communities and being highly inclusive. We embrace the opportunity to continue working, hand-in-hand, with the Minister of Tourism, other Cabinet ministers and federal officials on the strategic path toward full industry recovery, growth and sustainability.” – Beth Potter, President and CEO, Tourism Industry Association of Canada

“Indigenous tourism has enormous potential and is reconciliation in action. Today ITAC is delighted to see Indigenous tourism be a key pillar of the Federal Tourism Growth Strategy, and we support the growth of Indigenous tourism through coordinated investments from the Government of Canada that will help make Canada the global leader in Indigenous tourism by 2030.” – Keith Henry, President and CEO, Indigenous Tourism Association of Canada

“The Hotel Association of Canada enthusiastically welcomes today’s announcement. Investing in Canada’s assets and attracting more international events will support the hospitality industry, which will in turn sustain a thriving visitor economy.” – Susie Grynol, President and CEO, Hotel Association of Canada

“We welcome the launch of the new Federal Tourism Growth Strategy, which will help lay the foundations for our sector’s future growth, investment and competitiveness. Along with our industry partners from coast to coast to coast, we have worked together to make united recommendations on this strategy, and we look forward to working closely with the Minister as together we transform tourism to be more competitive, successful, and resilient.” – Marsha Walden, President and CEO, Destination Canada 

“As a key component of our country’s tourism product, the restaurant industry is very pleased to see the launch of a new tourism strategy for Canada.  Our industry is still in recovery mode following the pandemic, and this strategy will bring more visitors to our great country and in turn to our restaurants. We thank Minister Boissonnault for driving this strategy to completion.” – Kelly Higginson, President and CEO, Restaurants Canada.

Quick facts

Tourism is a key contributor to Canada’s economy. In 2022, the sector supported approximately 623,375 direct jobs and 1.9 million total jobs.

In 2022, tourism contributed nearly $38 billion to Canada’s GDP, generated close to $94 billion in revenue for businesses, and accounted for almost 13% of service exports.

In 2022, there were 218,041 businesses in the tourism sector.

In 2022, non-resident tourism spending rose by almost 321% compared to the previous year, recovering to over 70% of the 2019 peak of $28.6 billion.

 Destination Canada forecasts that tourism spending will fully recover by 2024 and international visitation will fully recover by 2026.

In 2022, youth made up about one third (33.2%) of tourism workers, compared to the total economy average of 13.3%.

In 2022, immigrants made up 29.2% of the tourism labour force, slightly higher than the total economy average of 27.6%.

Associated links

• The new Federal Tourism Growth Strategy
• The Canadian tourism sector

Farrah-Lilia Kerkadi Press Secretary Office of the Minister of Tourism and Associate Minister of Finance 343-553-6203 [email protected]

Media Relations Innovation, Science and Economic Development Canada [email protected]

Stay connected

Find more services and information at Canada.ca/ISED .

Follow Innovation, Science and Economic Development Canada on LinkedIn .

Follow @cdntourism on social media: Twitter , Instagram .

Follow Canada Business on social media: Twitter , Facebook , Instagram .

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