Topping the list was the U.S., with tourism contributing over $1.8 trillion to its economy, or 8.6% of its GDP in 2019. Top countries by tourism expenditure worldwide 2021 | Statista "It is crucial for the success of the global T&T sector that the challenges related to vaccine distribution and roll- out are addressed in an equitable and inclusive fashion. These travel bubbles allow citizens from each country to travel within a given zone. An introduction to tourismconcessioning:14characteristics of successful programs. Brazil ($56.3 billion) Top Five Countries Most Reliant on Tourism (GDP) 1. Trends such as sustainability and the pandemic have forced the tourism industry to adapt. It has also reduced government tax revenues and constrained the availability of resources for destination management and site conservation. Combined with the fact that natural resources are not its greatest strength or dependency, the region and its tourism sector may be the better positioned to deal with future ecological risks. As the global travel and tourism industry stalls, the spillover effects to global employment are wide-reaching. This sector contributed to about 10% of global jobs in 2019,13 employs almost twice as many women as other sectors, has a large share of youth employment and is a major source of jobs for minorities, migrants, informal workers and low-skilled workers.14 Moreover, SMEs account for more than 80% of T&T businesses.15 Unsurprisingly, research has shown that T&T growth can support social progress and create opportunities and well-being for communities.16 Consequently, investing in T&T could not only mitigate the impact of the pandemic but also improve socioeconomic progress and resilience. In the coming years it will therefore be crucial for T&T stakeholders to devise strategies that make the sector more inclusive, sustainable and resilient. Rebuilding tourism for the future: COVID-19 policy responses and - OECD Such systems allow T&T operators to benefit from factors such as a larger and more diverse consumer base and common market rules. Among the largest differentiators between index leaders and laggards are: the distribution and promotion of natural, cultural and non-leisure assets and activities; the availability of quality transport and tourist service infrastructure; the degree of international openness; and favourable factors such as (increasingly important) ICT readiness and health and hygiene. For instance, hotels have faced shortages of items ranging from slippers for clients to kitchen equipment.23, The recent outbreak of war in Ukraine and resulting sanctions and travel restrictions related to Russia have added further pressure on the recovery. Out of the 30 economies that rank in the top quartile for natural resources, 17 score below the global average for environmental sustainability and eight rank in the bottom 25. A WTTC report focusing on the United States, the United Kingdom, France, Spain, Italy and Portugal estimates that the T&T sectors in these countries experienced staff shortfalls ranging from 9% to 18% in 2021.22 The interconnected nature of the T&T supply chain and ecosystem has also created challenges. 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. Without a steady influx of tourism revenue, many countries could face severe economic damage. Figure 10: T&T Demand Pressure and Impact pillar component scores, 17 (best). Reduced visa requirements fuel international tourism and additional air service agreements open up markets to more airlines, routes, competition and, ultimately, better service (see Figure 7). Air route capacity and airport connectivity plummeted, especially in more mature and high-income economies. "In addition to labour shortages and capacity constraints, the sector has also been exposed to broader global disruptions that are complicating recovery. Impact of the Pandemic on Tourism - IMF F&D Which Countries are Most Dependent on the Travel Industry? - HowMuch In summary, the relatively close distribution of T&T Demand Pressure and Impact pillar scores among economies of different incomes and tourist arrival levels highlights the fact that challenges such as overcrowding have less to do with visitor numbers and more to do with local conditions and policies. Travel and tourism contributes to 51% of the total employment of the country. High-income economies and countries in the Europe and Eurasia (Europe) and Asia-Pacific (APAC) regions tend to lead the overall index in results. The 2021 TTDI results show that, across the board, socioeconomic resilience has tended to improve due to the expansion of social protection coverage and spending in line with global efforts to mitigate the impact of COVID-19. More T&T services are being accessed by digital systems through online travel agencies (OTAs) and sharing economy platforms, direct online bookings, digital payment systems and mobile devices, and thus consumers tend to expect the greater convenience, increased options, reduced person- to-person contact and seamless experience that these systems provide. The UNWTO Tourism Data Dashboard | Tourism Data Overall, the above adaptations to shifting demand and COVID-19 conditions help highlight how flexible T&T business and destinations can be in times of crisis. Airlines around the world have had to reroute operations, increasing travel times and costs. Meanwhile, the still fragile recovery in international tourism demand could be tempered by increased hesitancy among travellers when it comes to visiting Europe.24 Many T&T economies in Europe, Eurasia and beyond may also be hard hit due to reduced demand from Russia and Ukraine. Globally, the number of active digital labour platforms, which include ride-hailing taxi and delivery services, has grown from fewer than 200 in 2010 to at least 777 at the start of 2021. The second most improved pillar is Natural Resources (+2.5% average score increase). A recent report by the Asia Development Bank (ADB) and UNWTO outlines how the T&T sector can use big data and digitalization for better and more sustainable tourism management and recovery. The Forum also hosts the Global Future Council on Sustainable Tourism,57 a community of experts from academia, business, civil society and governments who are developing a set of principles for sustainable destinations to guide decision-making on rebuilding the sector in the wake of the pandemic. Given the current challenges, shifting demand dynamics and future opportunities and risks, it is vital that T&T development strategies are employed to rebuild the sector in a more inclusive, sustainable and resilient manner. For example, scores for deforestation continued to worsen. Meanwhile, access to clean water and sanitation facilities helps prevent diseases or their spread. Over the course of the pandemic, the T&T sector has received substantial support in the form of debt financing, tax policies, assistance with business costs, public-sector investment, employment support, incentivization of tourism demand and easing of regulations.47 In the future, continued investment in human capital and the creation of more favourable labour, business and socioeconomic conditions will be vital components in making the sector more inclusive, addressing ongoing challenges such as labour shortages and driving T&T growth and resilience. While further effort is required, public- private cooperation can provide a useful avenue to address this challenge.". The use of big data and various digital platforms and technology can also help seamless travel and act as health and security tools by enabling safety protocols, biosecurity technologies and digital health certificates, thereby boosting traveller confidence. 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. Australia and New Zealand have a similar arrangement on the horizon. Figure 6: Composition of top quartile, by income group. Visualizing the Countries Most Reliant on Tourism United States ($488 billion) 2. The role of tourism in China's economic system and growth. A social For example, as of 13 May 2022, jet fuel prices were more than double what they were a year ago,26 and if they remain high, airline yields and ticket prices will likely rise.27 Recent UNWTO analysis cites how conflict-induced uncertainty, higher energy and food prices and inflation, in general, are putting pressure on consumer purchasing power and tempering global economic growth, potentially affecting T&T sector performance. The tourism sector is an important foreign exchange earner and provides opportunities for developing countries to create productive and inclusive jobs, grow innovative firms, finance the conservation of natural and cultural assets, and increase economic empowerment, especially for women and youth, who comprise the majority of the tourism sector's workforce. The average number of per capita short-term rental units dropped by about one-fifth between mid-2019 and 2021 across economies ranked in the index.19 While not reflected in the TTDI results, STR data indicates that, over a similar timespan, the number of hotel rooms did not recover to pre-pandemic levels in many countries.20 In line with these trends, both T&T capital investment and government T&T expenditures also fell. The TTCR 2019 discussed how long-term T&T growth was starting to put pressure on local infrastructure and housing, as well as degrading cultural and natural assets that attract visitors and fuelling uneven distribution of T&T benefits. Schlegeis Stausee, Austria. Figure 9: Share of regional economies scoring above average for natural resources and environmental sustainability. Reddit Email Mapped: Top Countries by Tourist Spending Many people spend their days looking forward to their next getaway. 1. Among tourism-dependent Caribbean nations, the decline will also reach 12 percent. Planning of ecological agricultural tourist attractions based on the Furthermore, digitalization enables T&T businesses to gather consumer insights and preferences, optimize operations, cut transaction costs and automate processes.63 Online platforms also enable T&T service providers, including SMEs, to reach beyond their local markets and connect with broader domestic and international markets. Factors such as accessible and quality education and staff training, supportive hiring and firing practices, programmes to source skilled labour, flexible working arrangements and efforts to improve labour productivity can help equip T&T companies with a workforce that can improve operating efficiency, provide quality services, maintain flexibility in the face of evolving business needs and challenges and take advantage of the growing role of ICT tools. These reports, in conjunction with Oxford Economics, are a vital tool in helping us to equip public and private sector bodies with hard evidence of the . In advanced economies, in particular, rising demand, earlier layoffs that disproportionality hit T&T, and competition for talent with other sectors have resulted in widespread labour shortages. Comparing Population Pyramids Around the World. In general, pillar results indicate that T&T Demand Pressure and Impact challenges affect economies of all levels of development. Meanwhile, the contribution of travel and tourism to Chinas economy has more than doubled over the last decade, approaching $1.6 trillion. While the pandemic has certainly disproportionately affected SMEs, entrepreneurs or more vulnerable populations, strengthening such mechanisms, especially in the T&T sector, could have compound benefits for the sector and economies as a whole. Spain ($68.8 billion) 10. Chart: U.S. Home Price Growth Over 50 Years. A recent UNWTO and One Planet report reiterated the importance of a healthy environment for T&T competitiveness and development and recommended several actions to help the T&T sector produce a greener recovery. Many regions and countries seek to develop their tourism industry as a strategy for economic growth. The economies and public sector finances of cities like Venice and Florence were . Figure 3 can help us understand which economies are likely to be best positioned from a T&T recovery and resiliency point of view, and which may need to prioritize greater investment in T&T enabling factors. However, it is important to note that these new market opportunities are primarily for the high-end travel market and are not likely to replace the overall loss in business travel. Naturalist local guide with group of tourist in Cuyabeno Wildlife Reserve Ecuador. However, the report also highlights the various barriers to greater use of big data and digitalization within the T&T sector. The above subsections of the key findings section explored how governments and destinations can institute policies to develop domestic and other forms of tourism. In particular, the Clean Skies for Tomorrow Coalition56 is working with stakeholders in the aviation ecosystem, including buyers of corporate travel, to accelerate the production and use of sustainable aviation fuels, all while better distributing the green premium for these fuels. In general, the ability of an economy to support its population through social protections such as unemployment and maternity benefits, keep youth employed or in training, effectively uphold workers rights and support a diverse and inclusive workforce may potentially help strengthen employee productivity, expand the labour pool and make it more resilient to risks such as pandemics.51 This is particularly true for the T&T sector because it provides income for a large number of youth, women, informal workers, the self-employed and small enterprises, who do not always have access to social or worker protections. The tourism sector provides opportunities for developing countries to create productive and inclusive jobs, grow innovative firms, finance the conservation of natural and cultural assets, and increase economic empowerment, especially for women, who comprise the majority of the tourism sectors workforce. 29 The World Travel and Tourism Council (WTTC) data shows that, on average for the 117 economies covered by the index, domestic spending's share of T&T . The 2021 TTDI results partially reflect some efforts by policy-makers to support their economies, with the average Business Environment score climbing 1.7% since 2019. While these challenges may be difficult, the flexibility and adaptation the T&T sector has shown in the past few years also indicates that sector stakeholders are more than capable of rising to the occasion. 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 This is especially true for developing economies that have innate natural and cultural assets around which to mobilize investment.18 The next section detailing key findings will use the TTDI results to discuss the T&T challenges and opportunities created over the past few years, as well as examining how various drivers of T&T development can be employed to bolster T&T recovery and build a more inclusive, sustainable and resilient T&T sector, thereby unleashing its potential for economic and social progress. In the future, efforts will need to be made to devise common frameworks for defining and measuring T&T sustainability, including the creation of commonly accepted environment, social and governance metrics. We face big challenges to help the worlds poorest people and ensure that everyone sees benefits from economic growth. OECD Ocean Ocean economy and developing countries More than three billion people rely on the ocean for their livelihoods, the vast majority in developing countries. On the other hand, the ICT Readiness pillar is the most improved (+3.0%) since 2019 largely due to continued improvement in low- and middle-income economies. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution. The 30 countries that rely most on tourism in the world - Globetrender The COVID-19 travel shock hit tourism-dependent economies hard - Brookings Lastly, T&T operators have also had to introduce more flexible booking and cancellation policies in order to address uncertainty about travel regulations and the pandemic, in addition to increased consumer desire to make last-minute changes or to add leisure stays to their business trips.36. Given the recent decline in international route capacity and travel demand, prioritizing visa and air service agreement liberalization will be important with those economies most dependent on tourism exports and lacking large domestic markets standing to benefit the most.