factors of international tourism

This is how the COVID-19 crisis has affected international tourism

International tourist arrivals increased by 58 percent in the three months ended September 30 compared to the same period of 2020 but remained 64 percent below 2019 levels. Image:  Unsplash/ Iwan Shimko

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Stay up to date:.

• International tourist arrivals increased by 58 percent in the three months ended September 30.
• Compared to the same period of 2020 these numbers remained 64 percent below 2019 levels.
• While the latest rebound is certainly encouraging, the recovery of the global tourism sector has been going slower than many had anticipated last year.

Amid fears that the newly discovered COVID-19 variant named Omicron could disrupt global travel once again, the World Tourism Organization (UNWTO) published its latest update on the state of international tourism on Sunday. According to the latest World Tourism Barometer, global travel activity rebounded sharply in the third quarter of 2021, while remaining far below pre-pandemic levels.

International tourist arrivals increased by 58 percent in the three months ended September 30 compared to the same period of 2020 but remained 64 percent below 2019 levels. Looking at the first nine months of 2021, the situation looks even bleaker with international arrivals down 20 percent even compared to 2020 and 76 percent below pre-Covid levels. Looking ahead, UNWTO Secretary-General Zurab Pololikashvili said that “we cannot let our guard down and need to continue our efforts to ensure equal access to vaccinations, coordinate travel procedures, make use of digital vaccination certificates to facilitate mobility and continue to support the sector.”

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While the latest rebound is certainly encouraging, the recovery of the global tourism sector has been going slower than many had anticipated last year. According to its latest forecast, the UNWTO expects international tourist arrivals to remain 70 to 75 percent below 2019 levels this year. That translates to roughly $1 trillion in foregone export revenues, which amounted to $1.7 trillion in 2019 and are expected to reach $700 to $800 billion this year. Even this forecast could prove too optimistic, however, if the Omicron variant turns out to be as dangerous as initially feared.

As other sectors proceed to decarbonize, the aviation sector could account for a much higher share of global greenhouse gas emissions by mid-century than its 2%-3% share today.

Sustainable aviation fuels (SAF) can reduce the life-cycle carbon footprint of aviation fuel by up to 80%, but they currently make up less than 0.1% of total aviation fuel consumption. Enabling a shift from fossil fuels to SAFs will require a significant increase in production, which is a costly investment.

The Forum’s Clean Skies for Tomorrow (CST) Coalition is a global initiative driving the transition to sustainable aviation fuels as part of the aviation industry’s ambitious efforts to achieve carbon-neutral flying.

The coalition brings together government leaders, climate experts and CEOs from aviation, energy, finance and other sectors who agree on the urgent need to help the aviation industry reach net-zero carbon emissions by 2050.

The coalition aims to advance the commercial scale of viable production of sustainable low-carbon aviation fuels (bio and synthetic) for broad adoption in the industry by 2030. Initiatives include a mechanism for aggregating demand for carbon-neutral flying, a co-investment vehicle and geographically specific value-chain industry blueprints.

Learn more about the Clean Skies for Tomorrow Coalition's impact and contact us to find out how you can get involved.

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What is international tourism and why is it important?

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The International tourism industry is stronger than ever before. Destinations around the world have developed their economies around international tourism and they are thriving (minus the ongoing Coronavirus pandemic, but I am confident that tourism will return so I am going to put that to one side for now). But what does it all mean?

In this article I am going to introduce you to the exciting world of international tourism- the industry that I have lived and breathed for so many years. The industry that I love. So here goes…

What is international tourism?

International tourism definitions, foreign exchange earnings, contribution to government revenues, employment generation, contribution to local economies, overall economy boost, preserving local culture, strengthening communities, provision of social services, commercialisation of culture and art, revitalisation of culture and art, preservation of heritage, empowering communities, protecting nature, international tourism statistics, international tourism: conclusion, further reading.

Tourism is the generic term used to cover both demand and supply that has been adopted in a variety of forms and used throughout the world.

International tourism essentially refers to the activities undertaken by visitors, also known as the visitor economy. The tourism industry encompasses all activity that takes place within the visitor economy.

This includes activities that are directly related to the tourist, such as staying in a hotel, ordering a meal or visiting a tourist attraction. It also includes indirect activities, such as the transport company which delivers the food to the restaurant in which the tourist eats or the laundry company that has a contract with the hotel for cleaning bed sheets.

It is largely due to the indirect contributions to tourism, that defining and measuring the tourism industry is so difficult!

Tourism is a phenomenon with no universally accepted definition, owing to the complexity and individualism of the travellers themselves and the activities that they choose to undertake.

The most widely utilised definition of tourism, proposed by the World Trade Organisation (WTO) and United States (UN) Nations Statistics Division (1994), prescribes that in order to qualify as a tourist one must travel and remain in a place outside of their usual residential environment for not more than one consecutive year for leisure, business or other purposes.

Matheison and Wall (1982) on the other hand, do not impose a timeframe, simply stating that one must travel to a destination temporarily.

Leiper (1979) believed that defining tourism is more complex than this, proposing that there are three approaches that can be taken. The economic stance focuses on tourism as a business, the technical stance focusses on the tourist in order to provide a common basis by which to collect data and the holistic stance attempts to include the entire essence of the subject.

The Cambridge Dictionary define tourism quite simply as; ‘the business of providing services such as transport, places to stay or entertainment for people who are on holiday’.

As there is no universal definition for the term ‘international tourism’, for the purposes of this article I will define it as follows:

‘International tourism is the act of travelling to another country other than where you live for no more than one year for purposes of leisure or business’.

Why is international tourism important?

International tourism is hugely important. There are a number of key reasons for this that I will outline below.

Value to the economy

International tourism can help economies to bring in money in a number of different ways. Below I have provided some examples of the positive economic impacts of tourism .

The importance of international tourism is demonstrated 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. 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.

The importance of international tourism is also demonstrated through the money that is raised and contributed to government revenues. 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. 

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. 

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 importance of international tourism can be demonstrated through employment generation.

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.

It is because of these indirect relationships, that it is very difficult to accurately measure the precise economic value of tourism, and some suggest that the actual economic benefits of tourism may be as high as double that of the recorded figures!

The importance of international tourism can be further seen through the contributions to local economies.

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. 

International tourism boosts the economy exponentially.

This is partly because of the aforementioned jobs that tourism creates, but also because of the temporary addition to the consumer population that occurs when someone travels to a new place.

Just think: when you travel, you’re spending money. You’re paying to stay in a hotel or hostel in a certain area – then you’re eating in local restaurants, using local public transport, buying souvenirs and ice cream and new flip flops. As a tourist, you are contributing to the global economy every time you book and take a trip.

For some towns, cities and even whole countries, the importance of international tourism is greater than for others. In some cases, it is the main source of income.

For example, according to the World Travel and Tourism Council, tourism accounts for almost 40% of the Maldives’ total GDP. In comparison, it’s less than 4% in the UK and even lower in the US! In the Seychelles the number is just over 26% while in the British Virgin Islands it is over 35% – so tourism is vastly important in these nations.

Other posts that you might be interested in: – What is tourism? A definition of tourism – The history of tourism – The structure of the tourism industry – Stakeholders in tourism – Inbound tourism explained: What, why and where – What is ABTA and how does it work? – Outbound tourism | Understanding the basics

Value to society

The importance of international tourism is not only recognised through economic factors, but there are also many positive social impacts of tourism that play an important part. Below I will outline some of the social gains from tourism.

It is the local culture that the tourists are often coming to visit and this is another way to demonstrate the importance of international tourism.

Tourists visit Beijing to learn more about the Chinese Dynasties. Tourists visit Thailand to taste authentic Thai food. Tourists travel to Brazil to go to the Rio Carnival, to mention a few…

Many destinations will make a conserved effort to preserve and protect the local culture. This often contributes to the conservation and  sustainable management  of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts. 

The importance of international tourism can also be demonstrated through the strengthening of communities.

Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest.

The jobs created by international tourism can also be a great boost for the local community. Aside from the  economic impacts  created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. 

Local people can also increase their influence on tourism development, as well as improve their job and earnings prospects, through tourism-related professional training and development of business and organisational skills.

The importance of international tourism is shown through the provision of social services in the host community.

The international tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. This often means that many developments in an area as a result of tourism will be available for use by the locals also. 

Local people often gained new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism. 

International tourism can see rise to many commercial business, which can be a positive social impact of tourism. This helps to enhance the community spirit as people tend to have more disposable income as a result. 

These businesses may also promote the local cultures and arts. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. This can help to promote/ preserve local traditions.

Some destinations will encourage local cultures and arts to be revitalised. This may be in the form of museum exhibitions, in the way that restaurants and shops are decorated and in the entertainment on offer, for example. 

This may help promote traditions that may have become distant. 

Another reason for the importance of international tourism is the preservation of heritage. Many tourists will visit the destination especially to see its local heritage. It is for this reason that many destinations will make every effort to preserve its heritage. 

This could include putting restrictions in place or limiting tourist numbers, if necessary. This is often an example of careful  tourism planning  and sustainable tourism management. 

International tourism can, if managed well, empower communities. While it is important to consider the authenticity in tourism and take some things with a pinch of salt, know that tourism can empower communities.

Small villages in far off lands are able to profit from selling their handmade goods. This, in turn, puts food on the table. This leads to healthier families and more productivity and a happier population .

Value to the environment

Whilst most media coverage involving international tourism and the environment tends to be negative, there are some positives that can come from it: demonstrating the importance of tourism once again.

Some people think that international tourism is what kills nature. And while this could so easily be true, it is important to note that the tourism industry is and always has been a big voice when it comes to conservation and the protection of animals and nature. Tourism organisations and travel operators often run (and donate to) fundraisers. 

As well as this, visitors to certain areas can take part in activities that aim to sustain the local scenery. It’s something a bit different, too! You and your family can go on a beach clean up walk in Spain or do something similar in the UAE . There are a lot of ways in which tourism actually helps the environment, rather than hindering it!

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 statistics providing by the UN and Statistica:

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 .

International tourism is arguably the largest industry in the world. There are many benefits of international tourism to local economies as well as society and the environment. The many components of tourism that make up the industry are integral to livelihoods the world over.

• An Introduction to Tourism : a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
• The Business of Tourism Management : an introduction to key aspects of tourism, and to the practice of managing a tourism business.
• Tourism Management: An Introduction : gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.

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The influence of sociopolitical, natural, and cultural factors on international tourism growth: a cross-country panel analysis

• Published: 22 February 2016
• Volume 19 , pages 825–838, ( 2017 )

Cite this article

• Omkar Joshi 1 ,
• Neelam C. Poudyal 2 &
• Lincoln R. Larson 3  

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This study employed a cross-country panel data model to investigate the relative contributions of sociopolitical, natural and cultural characteristics and national tourism policies to international tourism growth. International tourism receipt data were adjusted for country-specific inflation and then analyzed in relation to standardized measures of the World Economic Forum’s “pillars of tourism competitiveness.” Results indicated that international tourism receipts are more responsive to policies and regulations favoring tourism, abundance of natural resources, richness in cultural heritage, and health and hygiene than they are to infrastructure, safety, price competitiveness, and other variables. Findings highlight key factors associated with international tourism receipts and provide a general framework that could inform policies and management strategies designed to promote sustainable international tourism development.

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Department of Natural Resource Ecology and Management, Oklahoma State University, 008C Agriculture Hall, Stillwater, OK, 74078, USA

Omkar Joshi

Department of Forestry, Wildlife and Fisheries, University of Tennessee, 274 Ellington Plant Sciences Bldg, Knoxville, TN, 37996, USA

Neelam C. Poudyal

Department of Parks, Recreation, and Tourism Management, Clemson University, 298 Lehotsky Hall, Clemson, SC, 29634-0735, USA

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Joshi, O., Poudyal, N.C. & Larson, L.R. The influence of sociopolitical, natural, and cultural factors on international tourism growth: a cross-country panel analysis. Environ Dev Sustain 19 , 825–838 (2017). https://doi.org/10.1007/s10668-016-9767-x

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Received : 04 August 2015

Accepted : 09 February 2016

Published : 22 February 2016

Issue Date : June 2017

DOI : https://doi.org/10.1007/s10668-016-9767-x

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Tourism ‘intrinsically susceptible’ to climate shocks, political unrest, pandemic threat

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The President of the UN General Assembly on Tuesday highlighted the urgent need to boost sustainable and resilient tourism practices to protect the environment while continuing to benefit local economies.

Addressing a high-level meeting on tourism as part of the General Assembly’s first ever Sustainability Week , Dennis Francis said it was a vital driver of economic growth and empowerment .

In 2023, the sector contributed three per cent to the global gross domestic product (GDP), amounting to $3.3 trillion, and employed one in every ten people worldwide. For countries in special situations, like small island nations, tourism accounted for nearly 35 per cent of all export earnings and up to 80 per cent of national exports .

“Despite the spectacular benefits reaped across its vast supply chains – tourism is also intrinsically susceptible to a host of disruptive forces – such as climate change, pandemics, acts of terrorism, and domestic political instability,” Mr. Francis said.

Sustainable

He expressed concerns about the sector’s environmental and carbon footprint, saying sustainability must be paramount.

“We need a global tourism sector that is sustainable – one with deep local value chains that expand demand for locally made products and services in ways that also directly and positively benefit local communities,” he urged.

Moreover, he emphasized that the sector should also leverage digital technology to foster innovation and expand opportunities for jobs and economic growth, especially for women, youth, and indigenous and local communities.

“We also need a global tourism sector that is resilient,” said Mr. Francis, stressing the need to minimize its vulnerabilities and bolstering its ability to withstand external shocks.

This includes designing infrastructures that can withstand environmental disasters, fostering innovations that enhance economic and social resilience, and diversifying tourism activities to reduce recovery time after disruptive events.

Symbol of hope

Zurab Pololikashvili, head of the UN World Tourism Organization ( UNWTO ), also spoke at the General Assembly, noting that despite today’s pressing challenges, tourism offered a glimmer of hope.

Reflecting on the sector’s recovery from the COVID-19 pandemic – its most significant crisis in history – he observed that in 2023, international arrivals rebounded to almost 90 per cent of pre-pandemic levels , with full recovery expected by the end of 2024.

This recovery must serve as a catalyst for bold action and transformative change, he said, emphasizing, “tourism can – and must – be a part of this plan for a better future for all.”

Sustainability Week

The high-level event on tourism followed Monday’s deliberations on debt sustainability , where speakers outlined the crippling impact of debt on developing economies, and called for urgent reform of the global financial system.

Upcoming highlights of the week include dedicated discussions on sustainable transport, infrastructure and energy.

• General Assembly
• 2030 Agenda for Sustainable Development

Medical Tourism in Malaysia: Tail Winds Driving Growth

Medical tourism is a big business, and Malaysia wants to make it even bigger. Long known as a hospitable and quality destination for medical and wellness treatment, Malaysia mainly competes with Singapore, Thailand and India for the $9 billion spent each year in the region by international travelers seeking medical care.

Key Factors Driving Medical Tourism:

• Promotions/Awareness
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In a recent article A&M's Manas Tamotia , Ram Panda and Sheair Chua provide a comprehensive look at the factors influencing this burgeoning market and the multi-faceted efforts by The Malaysia Healthcare Travel Council to capitalize on Malaysia’s many assets. Read the full article to explore insights on competition within the Southeast Asian medical tourism market and other key factors that drive tourists to a particular destination.

Read the Full Article Here

Manas Tamotia

Sheair Chua

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UN Tourism | Bringing the world closer

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International Tourism and Covid-19

A compilation of data on country, regional and global level on the impact of COVID-19 on tourism, alongside an impact assessment on the economic impact of COVID-19 crisis on tourism.

UNWTO and COVID-19

As the world is facing an unprecedented global health, social and economic emergency with the COVID-19 pandemic, travel and tourism is among the most affected sectors with airplanes on the ground, hotels closed and travel restrictions put in place in virtually all countries around the world.

Therefore, the World Tourism Organization  (UNWTO) has launched a new dashboard on COVID-19 and tourism which shows data on the impact of COVID-19 on the tourism sector across the world, by regions and by destinations.  

The dashboard includes data on:

• International tourist arrivals
• International tourism receipts
• Tourism as share of GDP
• Tourism as share in total exports
• International tourism as share of total tourism (including domestic)
• Impact assessment of COVID-crisis on tourism
• Impact assessment of previous crises on tourism

The UNWTO COVID-19 and Tourism dashboard is available for free and is updated monthly.