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.

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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.

Hotel service bell on a table white glass and simulation hotel background. Concept hotel, travel, room - stock photo

Three innovations to solve hotel staffing shortages

Is the future contactless.

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

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

Outsourcing and remote work could also help resolve the labor shortage

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

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

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

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

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

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

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

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

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

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The COVID-19 travel shock hit tourism-dependent economies hard

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Gian maria milesi-ferretti gian maria milesi-ferretti senior fellow - economic studies , the hutchins center on fiscal and monetary policy.

August 12, 2021

The COVID crisis has led to a collapse in international travel. According to the World Tourism Organization , international tourist arrivals declined globally by 73 percent in 2020, with 1 billion fewer travelers compared to 2019, putting in jeopardy between 100 and 120 million direct tourism jobs. This has led to massive losses in international revenues for tourism-dependent economies: specifically, a collapse in exports of travel services (money spent by nonresident visitors in a country) and a decline in exports of transport services (such as airline revenues from tickets sold to nonresidents).

export of services

This “travel shock” is continuing in 2021, as restrictions to international travel persist—tourist arrivals for January-May 2021 are down a further 65 percent from the same period in 2020, and there is substantial uncertainty on the nature and timing of a tourism recovery.

We study the economic impact of the international travel shock during 2020, particularly the severity of the hit to countries very dependent on tourism. Our main result is that on a cross-country basis, the share of tourism activities in GDP is the single most important predictor of the growth shortfall in 2020 triggered by the COVID-19 crisis (relative to pre-pandemic IMF forecasts), even when compared to measures of the severity of the pandemic. For instance, Grenada and Macao had very few recorded COVID cases in relation to their population size and no COVID-related deaths in 2020—yet their GDP contracted by 13 percent and 56 percent, respectively.

International tourism destinations and tourism sources

Countries that rely heavily on tourism, and in particular international travelers, tend to be small, have GDP per capita in the middle-income and high-income range, and are preponderately net debtors. Many are small island economies—Jamaica and St. Lucia in the Caribbean, Cyprus and Malta in the Mediterranean, the Maldives and Seychelles in the Indian Ocean, or Fiji and Samoa in the Pacific. Prior to the COVID pandemic, median annual net revenues from international tourism (spending by foreign tourists in the country minus tourism spending by domestic residents overseas) in these island economies were about one quarter of GDP, with peaks around 50 percent of GDP, such as Aruba and the Maldives.

But there are larger economies heavily reliant on international tourism. For instance, in Croatia average net international tourism revenues from 2015-2019 exceeded 15 percent of GDP, 8 percent in the Dominican Republic and Thailand, 7 percent in Greece, and 5 percent in Portugal. The most extreme example is Macao, where net revenues from international travel and tourism were around 68 percent of GDP during 2015-19. Even in dollar terms, Macao’s net revenues from tourism were the fourth highest in the world, after the U.S., Spain, and Thailand.

In contrast, for countries that are net importers of travel and tourism services—that is, countries whose residents travel widely abroad relative to foreign travelers visiting the country—the importance of such spending is generally much smaller as a share of GDP. In absolute terms, the largest importer of travel services is China (over $200 billion, or 1.7 percent of GDP on average during 2015-19), followed by Germany and Russia. The GDP impact for these economies of a sharp reduction in tourism outlays overseas is hence relatively contained, but it can have very large implications on the smaller economies their tourists travel to—a prime example being Macao for Chinese travelers.

How did tourism-dependent economies cope with the disappearance of a large share of their international revenues in 2020? They were forced to borrow more from abroad (technically, their current account deficit widened, or their surplus shrank), but also reduced net international spending in other categories. Imports of goods declined (reflecting both a contraction in domestic demand and a decline in tourism inputs such as imported food and energy) and payments to foreign creditors were lower, reflecting the decline in returns for foreign-owned hotel infrastructure.

The growth shock

We then examine whether countries more dependent on tourism suffered a bigger shock to economic activity in 2020 than other countries, measuring this shock as the difference between growth outcomes in 2020 and IMF growth forecasts as of January 2020, just prior to the pandemic. Our measure of the overall importance of tourism is the share of GDP accounted for by tourism-related activity over the 5 years preceding the pandemic, assembled by the World Travel and Tourism Council and disseminated by the World Bank . This measure takes into account the importance of domestic tourism as well as  international tourism.

Among the 40 countries with the largest share of tourism in GDP, the median size of growth shortfall compared to pre-COVID projections was around 11 percent, as against 6 percent for countries less dependent on tourism. For instance, in the tourism-dependent group, Greece, which was expected to grow by 2.3 percent in 2020, shrunk by over 8 percent, while in the other group,  Germany, which was expected to grow by around 1 percent, shrunk by 4.8 percent. The scatter plot of Figure 2 provides more striking visual evidence of a negative correlation (-0.72) between tourism dependence and the growth shock in 2020.

tourism dependence

Of course, many other factors may have affected differences in performance across economies—for instance, the intensity of the pandemic as well as the stringency of the associated lockdowns. We therefore build a simple statistical model that relates the “growth shock” in 2020 to these factors alongside our tourism variable, and also takes into account other potentially relevant country characteristics, such as the level of development, the composition of output, and country size. The message: the dependence on tourism is a key explanatory variable of the growth shock in 2020. For instance, the analysis suggests that going from the share of tourism in GDP of Canada (around 6 percent) to the one of Mexico (around 16 percent) would reduce growth in 2020 by around 2.5 percentage points. If we instead go from the tourism share of Canada to the one of Jamaica (where the share of tourism in GDP approaches one third), growth would be lower by over 6 percentage points.

Measures of the severity of the pandemic, the intensity of lockdowns, the level of development, and the sectoral composition of GDP (value added accounted for by manufacturing and agriculture) also matter, but quantitatively less so than tourism. And results are not driven by very small economies; tourism is still a key explanatory variable of the 2020 growth shock even if we restrict our sample to large economies. Among tourism-dependent economies, we also find evidence that those relying more heavily on international tourism experienced a more severe hit to economic activity when compared to those relying more on domestic tourism.

Given data availability at the time of writing, the evidence we provided is limited to 2020. The outlook for international tourism in 2021, if anything, is worse, though with increasing vaccine coverage the tide could turn next year. The crisis poses particularly daunting challenges to smaller tourist destinations, given limited possibilities for diversification. In many cases, particularly among emerging and developing economies, these challenges are compounded by high starting levels of domestic and external indebtedness, which can limit the space for an aggressive fiscal response. Helping these countries cope with the challenges posed by the pandemic and restoring viable public and external finances will require support from the international community.

Read the full paper here.

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  • Top Solutions to Recover Tourism – UNWTO Healing Solutions for Tourism Challenge

tourism in challenges

In response to the COVID-19 impact on tourism, the World Tourism Organization (UNWTO), with the support of the World Health Organization (WHO), launched the Healing Solutions for Tourism Challeng e to identify the most disruptive startups, entrepreneurs, innovators and existing technologies with ready-to-implement solutions to make travelling possible in one of the categories:

  • Healing for People:  health and sanitary solutions, with projects trying to trace and stop the spread of the virus and infected people and proposing alternative ways for governments to fight the disease
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  • Healing for Destinations: confidence recovery, destination rebranding campaigns, airports safety and crisis communication.

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Throughout the 4-week call, 1183 projects from 110 countries were received and evaluated by a Committee of Experts from the World Tourism Organization (UNWTO), Thee World Health Organization (WHO) and The World Bank. 30 semi finalists and 9 finalists were selected. Solutions mostly use the following technologies to deliver their impact: Virtual and Augmented Reality, Internet of Things, Artificial Intelligence, Big Data and Blockchain

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The "Good Tourism" Blog

For diverse perspectives on sustainable tourism & responsible travel ... because travel & tourism is everyone's business., what are tourism’s biggest challenges & threats over the next five years to 2027.

Tourism's challenges and threats. Cobra image by P Schreiner (CC0) via Pixabay. https://pixabay.com/photos/line-cobra-dangerous-reptile-1974382/

Over the next five years, what is the single biggest chal­lenge or threat facing tour­ism where you work, or that you have iden­ti­fied through your research and study? 

And what are the key strategies that your organ­isa­tion, des­tin­a­tion, or the industry at large should employ to over­come it?

It’s a  “Good Tour­ism” Insight Bites  question.

Your cor­res­pond­ent put the ques­tion to a range of travel & tour­ism stake­hold­ers — “GT” Insight authors, “GT” Part­ners, and their invit­ees — and invited emailed writ­ten responses of no more than 300 words. 

Thanks to the 15 respond­ents who shared their thoughts. Their answers appear in the order received.  Click/touch a name to go to their answer:

  • Greg Bak­un­zi  — Reviv­ing com­munity-led pro­grams in Rwanda
  • Saverio Francesco Ber­to­lu­cci  — Mass travel, under­ca­pa­city, and overtourism
  • Sudip­ta K Sarkar  — The low qual­ity of tour­ism & hos­pit­al­ity employment
  • K Michael Hay­wood  — The ‘great resig­na­tion’ from tour­ism & hos­pit­al­ity jobs
  • Edwin Magio  — Cli­mate change & cli­mate action
  • Wolfgang Georg Arlt  — ‘The cli­mate catastrophe’
  • Jim Butcher  — Trans­port­a­tion & energy
  • Cato Hol­ter­man  — Tour­ism is ‘highly sens­it­ive to cli­mate change’
  • Yesaya San­dang  — Rein­vent­ing tour­ism for ‘eco­lo­gic­al integ­rity’ in Indonesia
  • Peace Mutoni  — Slower growth, new mar­kets for Rwanda
  • Sham­iso Nyajeka  — Poor gov­ernance in Afric­an tour­ism development
  • Richard A Shep­ard  — COVID, war, infla­tion … What now for the Black Sea?
  • Issoufou Adamou Has­sane  — Social and eco­nom­ic sta­bil­ity in Niger
  • Trav­is Clark  — Suc­cess is a threat to Khao Sok, Thailand
  • Jona­thon Day  —  ‘ Cross­ing the chasm’: Main­stream­ing sus­tain­ab­il­ity in tourism

What do you think?

Pre­vi­ous “GT” Insight Bites:

  • ‘Tour­ism is built on the back­bone of white suprem­acy’. What do you think?
  • Really, what’s the dif­fer­ence? ‘Sus­tain­able tour­ism’ vs ‘regen­er­at­ive tourism’
  • Want a career in tour­ism? Import­ant things you should know
  • Diverse per­spect­ives on travel & tour­ism and a fairer world
  • Diverse per­spect­ives on eco­nom­ic degrowth and tourism
  • Diverse per­spect­ives on vis­it­or dispersion

Reviving community-led programs in Rwanda

Greg bakunzi , founder,  red rocks initiative for sustainable development  &  red rocks rwanda.

Red Rocks Ini­ti­at­ive for Sus­tain­able Devel­op­ment works hand in hand with its sis­ter social enter­prise Red Rocks Eco-tours Rwanda with a man­date to link tour­ism, con­ser­va­tion, and sus­tain­able devel­op­ment in our community

Greg Bakunzi

As we look for­ward to the next years — con­tinu­ing to mit­ig­ate the neg­at­ive effects of the COVID-19 pan­dem­ic on our vil­lage as a travel des­tin­a­tion — we are heav­ily chal­lenged with a need to revive our com­munity-led programs.

These pro­grams were the sole income-gen­er­at­ing activ­it­ies for our loc­al people pri­or to the pandemic.

We are com­mit­ted to help­ing our com­munity bounce back through a relief and response campaign. 

The concept is based on the belief that we shall only be able to pion­eer growth after the pan­dem­ic by put­ting people first; giv­ing them pro­grams and pro­jects that offer skills train­ing and job sup­port, while meet­ing the needs of dif­fer­ent groups of com­munity members.

Red Rocks Rwanda

As we work with like-minded indi­vidu­als to rebuild our soci­ety, we use approaches such as work­shops and sens­it­isa­tion cam­paigns to equip loc­al people with the know­ledge and oppor­tun­it­ies that will allow gradu­al social and eco­nom­ic growth with­in the community.

We are optim­ist­ic that, by join­ing efforts with oth­er com­munity part­ners, we can return to nor­mal lives as a tour­ism destination. 

We believe that we can con­trib­ute to wider soci­et­al recov­ery based on the eco­nom­ic growth, jobs, and oppor­tun­it­ies to trans­form lives that tour­ism offers, while ensur­ing our pro­grams address the need for envir­on­ment­al and socio-cul­tur­al sus­tain­ab­il­ity, con­ser­va­tion, and cli­mate action.

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Mass travel, undercapacity, and overtourism

Saverio francesco bertolucci , administrative assistant,  alcambarcelona , spain.

Due to glob­al­isa­tion and the exper­i­en­tial eco­nomy trend, tour­ism des­tin­a­tions risk suf­fer­ing from under­ca­pa­city issues, lead­ing to overtourism. 

Saverio Francesco Bertolucci sq300

Post-pan­dem­ic data show alarm­ing tour­ism arrivals trends, which do not fol­low the same pace of des­tin­a­tion development. 

In the short-run, many estab­lished and emer­ging des­tin­a­tions will have to face num­bers of tour­ists that they will not be able to sus­tain nor accommodate 

Nowadays, soci­ety expects a lot, and in a short time. Man­age­ment and plan­ning pro­ced­ures are proven not to be as fast as soci­ety wishes and, there­fore, mass travel, under­ca­pa­city, and over­tour­ism are togeth­er going to present the main chal­lenge for the major­ity of grow­ing tour­ism destinations.

The low quality of tourism & hospitality employment

Sudipta k sarkar , senior lecturer in tourism management,  anglia ruskin university , uk.

A per­tin­ent chal­lenge that is rel­at­ively less dis­cussed across tour­ism circles is the qual­ity of tour­ism employment. 

Dr Sudipta K Sarkar

Tour­ism jobs, across all sec­tors, are per­ceived to be ‘low-skilled’, less cre­at­ive, repet­it­ive, and less socio-eco­nom­ic­ally rewarding. 

Tour­ism cor­por­a­tions make profits com­par­able to their coun­ter­parts in oth­er (high-profit) sec­tors like tech or fin­ance, but that does not trans­late into jobs that are as luc­rat­ive or as esteemed as in those sectors. 

The undesirab­il­ity of the jobs avail­able has been one of the main reas­ons for the grave short­age of hos­pit­al­ity staff in the cur­rent post-pan­dem­ic scenario. 

Hos­pit­al­ity jobs are per­ceived to be less ful­filling, with long work­ing hours, lower remu­ner­a­tion, and few­er oppor­tun­it­ies for cre­ativ­ity and growth.

Many who lost hos­pit­al­ity jobs dur­ing the pan­dem­ic have moved to oth­er sec­tors that can offer rel­at­ively more reward­ing careers. 

There­fore, there is an urgent need to trans­form tour­ism employ­ment into a career that is more know­ledge-based, innov­a­tion-ori­ented, and that requires high­er-level skills and con­sid­er­able levels of cre­ativ­ity and crit­ic­al think­ing, res­ult­ing in high­er remuneration. 

This requires tour­ism busi­nesses to devise high­er-qual­ity, high­er-value exper­i­ences and ser­vices that will require know­ledge and cre­ativ­ity to pro­duce and deliver. 

Besides, employ­ee work-life bal­ance, par­tic­u­larly in the hos­pit­al­ity sec­tor, needs to improve. Work-life bal­ance in the hos­pit­al­ity industry falls short of oth­er indus­tries. And the lower salar­ies make things worse. 

Moreover, tour­ism and hos­pit­al­ity is a highly volat­ile industry on the ‘front lines’ of soci­ety’s inter­ac­tions with the wider world. As such it is vul­ner­able to dis­ease, nat­ur­al calam­it­ies, and viol­ence (wheth­er from ter­ror­ism, socio-polit­ic­al unrest, or ran­dom acts) that often leads to job losses. 

There­fore, pro­du­cing high-qual­ity jobs that offer oppor­tun­it­ies for cre­ativ­ity and self-actu­al­isa­tion, high­er remu­ner­a­tion, and bet­ter work-life bal­ance is cru­cial to allure and retain a tal­en­ted workforce. 

The ‘great resignation’ from tourism & hospitality jobs

K michael haywood , professor emeritus,  university of guelph , canada.

Cli­mate crises, without a doubt. Infla­tion­ary pres­sures and the emer­gence of eco­nom­ic woes, well of course. 

K Michael Haywood

But, what hap­pens when most oper­at­ors through­out the world remain unable to attract or keep employees? 

  • Their abil­ity to remain solvent in the imme­di­ate term becomes severely compromised. 
  • Their inab­il­ity to avoid a deteri­or­a­tion in the qual­ity of des­tin­a­tion exper­i­ences threatens integ­rit­ies and identities. 

The ‘great resig­na­tion’ may bewilder, but when employ­ees feel ali­en­ated and dis­en­fran­chised from their jobs, the effects rever­ber­ate and cas­cade through­out communities.

Rec­ti­fic­a­tion begins by dig­ging to under­stand the ori­gins of peoples’ dis­con­tent that is pro­pelling nation­al­ist­ic fer­vor, pop­u­list rhet­or­ic, and intol­er­ance of the ‘oth­er’.

Blame, to a great extent, can be lev­elled at the adversit­ies caused by the fin­an­cial­isa­tion of eco­nom­ies and mar­kets which exerts sig­ni­fic­ant influ­ence over both eco­nom­ic policy and cor­por­ate beha­viour. What bevaviour?

  • Beha­viour that con­tin­ues to pri­or­it­ise short-term gains through demands to main­tain a lim­ited ver­sion of share­hold­er value . 
  • Beha­viour that down­plays desires to cre­ate func­tion­al, emo­tion­al, social, and life affirm­ing value for key stake­hold­ers — employ­ees, vis­it­ors, and cit­izens — includ­ing deliv­ery on ESG require­ments .  
  • Beha­viour that fosters tox­ic organ­isa­tion­al cul­tures, a diminu­tion of trust, dis­in­terest in the eth­ics of care , and a sur­feit of con­trac­tu­al rela­tion­ships that ignore cov­en­antal rela­tion­ships with employees. 

For aeons, tour­ist­ic ser­vice work has had an image problem. 

It’s not that the industry isn’t favoured for its job-cre­at­ing poten­ti­al­ity, but that the mater­i­al bene­fits earned from employ­ment are expec­ted to act as prox­ies for (what few con­sider to be) pur­pose­ful and mean­ing­ful work.

Pur­su­ing and pro­mot­ing the concept of ‘ com­munity shared value ’ as the eth­os of ‘good tour­ism’ may help. But, shared value will remain a non-starter until the ‘great resig­na­tion’ is annulled through the bene­vol­ent actions of cov­en­antal lead­ers .

Climate change & climate action

Edwin magio , teaching & research assistant,  moi university , kenya; commonwealth scholar,  leeds beckett university , uk.

A for­ay into the exist­ing lit­er­at­ure shows that tour­ism faces a num­ber of challenges. 

Edwin Magio

These include, but are not lim­ited to, cli­mate change, over­tour­ism, COVID-19, poach­ing, wild­life loss, safety, and security. 

Argu­ably, the biggest chal­lenge that has become appar­ent in most des­tin­a­tions is cli­mate change. 

Cli­mate change is a major threat to tourism. 

Its impacts — such as erosion, storms, sea level rise, extreme tem­per­at­ures, dis­rup­tion of hab­it­ats, and dam­age to infra­struc­ture — are already being felt in many destinations. 

For example, changes in tem­per­at­ure and rain­fall in the Maa­sai Mara Nation­al Reserve in Kenya are lead­ing to a decrease in wild­life and vegetation.

Now is the time to act.

There is no stable future for the tour­ism industry if the cli­mate crisis and all its dis­rupt­ive con­sequences are not addressed. 

So, if we want to cre­ate more pros­per­ous and sus­tain­able tour­ism, we can­not ignore it.

Organ­isa­tions, des­tin­a­tions, and the whole industry must devel­op meas­ures to reduce green­house gas emis­sions to deal with cli­mate change for the bene­fit of our com­munit­ies and planet. 

There are already numer­ous reports, reg­u­la­tions, policies, legis­la­tion, recom­mend­a­tions, cam­paigns, and case stud­ies on best prac­tices for com­pan­ies and com­munit­ies to achieve the goals of the Par­is agreement. 

How­ever, all of this must be implemented. 

There may not be a bet­ter time to act than now.

‘The climate catastrophe’

Wolfgang georg arlt , ceo,  meaningful tourism center , germany.

There can only be one answer: The cli­mate catastrophe. 

Prof Dr Wolfgang Georg Arlt FRGS FRAS, CEO, Meaningful Tourism Center, Germany

Many play­ers in the industry still dream of going back to the ‘good old times’ before the pan­dem­ic, when actu­ally they were already char­ac­ter­ised by dis­cus­sions about over­tour­ism and unne­ces­sary pollution. 

The cli­mate cata­strophe is chan­ging the para­met­ers for most des­tin­a­tions and ser­vice pro­viders. For example:

  • Many beaches and city centres will become too hot, 
  • Rivers will become unnav­ig­able for cruises dur­ing their high sum­mer sea­sons due to lack of water, and
  • Ski resorts will face rising pro­duc­tion costs and grow­ing res­ist­ance to arti­fi­cial snow … 

… not in 2050, but with­in the next five years. 

The rising cost of mit­ig­at­ing the eco­nom­ic effects of cli­mate change will fur­ther­more res­ult in a decrease in glob­al con­sumer spend­ing power.

A key strategy of the Mean­ing­ful Tour­ism Cen­ter, besides provid­ing train­ing and con­sulta­tion ser­vices, is the estab­lish­ment of a Mean­ing­ful Tour­ism Index. 

The Index will use a six­fold bot­tom line; meas­ur­ing tour­ism by includ­ing all six major des­tin­a­tion stake­hold­ers: Vis­it­ors, the host com­munity, employ­ees, com­pan­ies, gov­ern­ments, and the environment. 

The Index is a major tool for des­tin­a­tions and com­pan­ies to under­stand their pos­i­tion and to identi­fy their strengths and weaknesses. 

Dur­ing the pan­dem­ic, every­body agreed that simply meas­ur­ing arrivals or overnights is not enough; that key per­form­ance indic­at­ors (KPIs) have to be developed that meas­ure the sus­tain­ab­il­ity of tour­ism and its costs and bene­fits for all stakeholders. 

Unfor­tu­nately, this has been all but for­got­ten. The UNWTO, for example, is meas­ur­ing tour­is­m’s post-COV­ID recov­ery by using only arrivals figures.

Transportation & energy

Jim butcher , reader,  canterbury christ church university , uk.

The biggest chal­lenge facing tour­ism is not really about tour­ism. It is the need for sus­tained high levels of invest­ment in infra­struc­ture and technology. 

Jim Butcher

This will involve gov­ern­ments provid­ing the con­di­tions for indi­vidu­als and busi­nesses to thrive: mod­ern air­ports, pub­lic trans­port sys­tems, bet­ter roads, and afford­able and reli­able energy. 

Enhanced mobil­ity bene­fits tour­ism and improves lives and eco­nom­ic pro­ductiv­ity. And invest­ment in pub­lic trans­port makes cit­ies live­able, ‘vis­it­able’, and attract­ive for investment. 

Yet the trans­port infra­struc­ture in many places is crumbling. 

Energy infra­struc­ture is also key. 

Rather than ‘net zero’ per se , our emphas­is should be on the pro­vi­sion of cheap­er, lower-emis­sion, and low-pol­lu­tion energy for all; to fuel devel­op­ment, espe­cially in poorer countries. 

We — the tour­ism industry included — cur­rently find ourselves held back by the fail­ure to invest in nuc­le­ar and renew­ables over decades. 

To address this chal­lenge we need demo­crat­ic, inter­ven­tion­ist states able to provide the invest­ment and future ori­ent­a­tion that indi­vidu­al firms on their own can’t. 

We also need to chal­lenge the declin­ism that tends to cari­ca­ture devel­op­ment as an envir­on­ment­al threat or cul­tur­al imposition.

In the uni­ver­sit­ies we’ve had the ‘cul­tur­al turn’, ‘mor­al turn’, and ‘loc­al turn’. I pro­pose a ‘future turn’; an ori­ent­a­tion towards what could be rather than what is . 

That sounds uto­pi­an, but I’d argue there is a dis­junc­ture between the great tech­no­lo­gic­al and social poten­tial for human advance­ment through sus­tained invest­ment, and the pess­im­ist­ic and inward-look­ing emphas­is all too often apparent. 

We have the poten­tial for new energy and mobil­ity revolu­tions. We have the pro­spect of hydro­gen- and bat­tery-powered air­craft, cheap light tram net­works, new-gen­er­a­tion nuc­le­ar, more effi­cient renew­ables, and improved bat­tery capacity. 

It is import­ant for tour­ism, and much else, that high­er and sus­tained invest­ment in tech­no­logy and infra­struc­ture is prioritised. 

Tourism is ‘highly sensitive to climate change’

Cato holterman, intern, khiri travel , thailand.

Tour­ism is an eco­nom­ic sec­tor that is highly sens­it­ive to cli­mate change. Where I am now based, in South­east Asia, cli­mate change will be the biggest threat and chal­lenge to the tour­ism industry over the next five years. 

Cato Holterman

Nat­ur­al dis­asters caused by cli­mate change, such as heat waves, floods, storms, and hur­ricanes, are increas­ing, which leads to a decrease in the allure of a des­tin­a­tion. Tour­ists may choose oth­er hol­i­day des­tin­a­tions that are not yet as sig­ni­fic­antly affected. 

The cli­mate change phe­nomen­on can­not eas­ily be con­trolled, but we can adopt adapt­a­tion and mit­ig­a­tion strategies to main­tain long-term tour­ism activity.

Tour­ism des­tin­a­tions exposed to extreme weath­er and nat­ur­al dis­asters have to be able to with­stand impacts on infra­struc­ture and dis­rup­tions to com­mer­cial activ­ity. Fur­ther­more they will require emer­gency pre­pared­ness meas­ures to ensure vis­it­ors and hosts remain safe. 

Inev­it­ably, adapt­a­tion, pre­pared­ness, main­ten­ance, and insur­ance costs will increase, which will reduce the prof­it­ab­il­ity and viab­il­ity of those destinations.

Tour­ism, on the oth­er hand, is not only a vic­tim. Tour­ism activ­it­ies also emit green­house gases, which is one of the causes of glob­al warming.

Khiri Travel - khiri.com

Strategies that tour­ism com­pan­ies and des­tin­a­tions can employ to mit­ig­ate their impact involve redu­cing their energy and fuel use, includ­ing chan­ging their modes of transportation. 

As a com­pany, Khiri Travel offers ‘slow travel’ tours; itin­er­ar­ies that are a min­im­um of 15 days that trans­port guests by boat, train, or car. Fur­ther­more, the accom­mod­a­tion we provide our guests is selec­ted based on social, cul­tur­al, and envir­on­ment­al factors. 

Khiri’s guests stay longer in one place to exper­i­ence more. At the same time they reduce the car­bon foot­print of their travels.

Reinventing tourism for ‘ecological integrity’ in Indonesia

Yesaya sandang , lecturer, universitas kristen satya wacana , indonesia.

In my view, in the next five years, tour­ism in Indone­sia will have to rein­vent itself for the sake of eco­lo­gic­al integrity. 

Yesaya Sandang

Through­out years of enga­ging with tour­ism stake­hold­ers and research­ing the nex­us of tour­ism and human rights, I have real­ised that the sense of crisis is yet to be intensified. 

Des­pite all the par­lance of sus­tain­able tour­ism devel­op­ment used by gov­ern­ment and industry, I have found that exist­ing reg­u­la­tions and prac­tice in the field dis­play the gap between talk­ing about sus­tain­able tour­ism and doing sus­tain­able tourism. 

This cor­res­ponds with evid­ence from des­tin­a­tions such as Bali, Labuan Bajo, Malang, and Yogyakarta, where unchecked tour­ism infra­struc­ture devel­op­ment comes at the expense of loc­al com­munit­ies’ access to water, and oth­er envir­on­ment­al problems. 

At the same time, stud­ies have shown that the increase in Indonesia’s domest­ic and for­eign tour­ism has raised con­cerns about income inequal­ity and live­li­hood sus­tain­ab­il­ity for loc­al people. 

A high level of reg­u­la­tion, as well as industry self-reg­u­la­tion, are essen­tial strategies to mit­ig­ate envir­on­ment­al and social costs. 

An assess­ment of the exist­ing con­di­tions and the broad­er impact on the envir­on­ment should be a leg­al require­ment pri­or to tour­ism devel­op­ment; and for tour­ism activ­it­ies at every des­tin­a­tion to be strictly mon­itored and controlled. 

In addi­tion, it is cru­cial to put the com­munity at the heart of des­tin­a­tion man­age­ment. As rights-hold­ers and envir­on­ment­al stew­ards, the vis­cer­al attach­ment loc­al com­munit­ies have to their envir­on­ment can be a driv­ing force to chal­lenge and alter the course of unchecked tour­ism development.

Slower growth, new markets for Rwanda

Peace mutoni, intern, red rocks initiative for sustainable development , rwanda.

Peace Mutoni

As Rwanda went into lock­down, and inter­na­tion­al flights were groun­ded to stop the spread of the deadly coronavir­us, the tour­ism sec­tor became one of the hard­est-hit sectors. 

Tour oper­at­ors, hotel own­ers, and sup­pli­ers of food, trans­port, and souven­irs all exper­i­enced sig­ni­fic­ant losses. 

Due to the impact of COVID-19 on the sec­tor, over the next five years, tour­ism rev­en­ues will be below pre­vi­ously pro­jec­ted levels, and job growth will be slower, oppor­tun­it­ies fewer.

Red Rocks Initiative for Sustainable Development

Fur­ther­more, Rwanda tour­ism will be mar­keted in the East Afric­an Com­munity (EAC) [com­pris­ing Bur­undi, Demo­crat­ic Repub­lic of Congo, Kenya, Rwanda, South Sudan, Tan­zania, and Uganda] and will be added onto oth­er itin­er­ar­ies with good tour­ism turnover, such as Kenya and Tanzania. 

What we plan to do at Red Rocks is to equip our staff with the skills to improve their capa­city, motiv­ate them, and give them access to prac­tic­al tools to help them apply their skills.

Poor governance in African tourism development

Shamiso nyajeka , lecturer, university of zimbabwe , zimbabwe.

While gov­ernance has become a buzzword in the cur­rent sus­tain­ab­il­ity dis­course, it is prob­ably one of Africa’s long-stand­ing challenges. 

Shamiso Nyajeka

Poor gov­ernance has hampered our pro­gress on mul­tiple fronts and tour­ism has not been spared. 

As coun­tries emerge from the dev­ast­at­ing impacts of the COVID-19 pan­dem­ic, tour­ism has been iden­ti­fied as a poten­tial driver of eco­nom­ic recovery. 

With the fast-approach­ing 2030 dead­lines for achiev­ing (i) the uni­ver­sal agenda of the sus­tain­able devel­op­ment goals (SDGs) and (ii) the UNWTO Agenda for Africa 2030 —  tour­ism for inclus­ive growth  — the next five years are cru­cial in restor­ing the gains that were reversed by the pandemic. 

Africa’s poten­tial to attract tour­ists can hardly be doubted giv­en the continent’s abund­ant tour­ism resources. 

Attain­ing sus­tain­ab­il­ity, inclus­ive growth, and resi­li­ence, on the oth­er hand, is no mean feat, espe­cially in the absence of good gov­ernance. Reach­ing these mile­stones largely depends on how des­tin­a­tions and their resources are governed. 

Incon­sist­ent policies, cor­rup­tion, lack of trans­par­ency, polit­ic­al power struggles, and exclu­sion of loc­al com­munit­ies are crit­ic­al threats to tour­ism devel­op­ment in Africa. Without sig­ni­fic­ant improve­ments in gov­ernance, tourism’s envis­aged role in steer­ing the continent’s devel­op­ment will remain a fantasy. 

Look­ing ahead to the next five years, our gov­ern­ments need to ser­i­ously con­sider get­ting back to the basics as far as gov­ernance is con­cerned. We must adopt home-grown solu­tions that have suc­cess­fully sus­tained our tra­di­tion­al soci­et­ies for centuries. 

For us, the Bantu people (mostly occupy­ing south­ern and east­ern Africa), Ubuntu provides an ideal found­a­tion for build­ing good governance. 

Embra­cing the philosophy’s prin­ciples, such as respect, fair­ness, empathy, com­munity, and self­less­ness, can help to restore essen­tial val­ues for pre­serving our humane­ness and repos­i­tion­ing the region on a more sus­tain­able tra­ject­ory of tour­ism development.

COVID, war, inflation … What now for the Black Sea region?

Richard a shepard , trustee & ceo,  sustainable rural development international , uk.

There is no single chal­lenge, but cli­mate change tops the list because it impacts everything else, includ­ing health. 

Richard A Shepard

Although the effects of COVID have declined, the 2022 travel recov­ery remained below pre-COV­ID levels and elev­ated health as a chal­lenge for the sector. 

The Rus­si­an inva­sion of Ukraine severely impacted our own Black Sea travel pro­gram, but it also has a world­wide effect; polit­ic­al instabil­ity, infla­tion, and an eco­nom­ic slowdown. 

Rising energy and fuel prices and infla­tion con­trib­ute to high­er travel prices and each are sig­ni­fic­ant challenges. 

I sug­gest it is nearly impossible to identi­fy chal­lenges bey­ond 2024 if for no oth­er reas­on than we are bad at identi­fy­ing them one year in advance. 

For us, try­ing to think bey­ond 2023 and estab­lish clear plans is dif­fi­cult, at best. 

So, what are our plans? 

Dur­ing the off-sea­son we, togeth­er with our part­ners, will cre­ate more in-depth, exten­ded exper­i­ences groun­ded in our com­mit­ment to sustainability. 

To pre­pare for unfore­seen crises we will cre­ate a robust risk man­age­ment pro­cess to reduce uncer­tain­ties of actions, cat­egor­ising risks — nat­ur­al dis­asters, polit­ic­al issues, ter­ror­ism, health and eco­nom­ic crises — to inform busi­ness planning. 

Coupled with con­tin­ued com­mit­ment to the UN SDGs, we feel that sec­tor threats can be sig­ni­fic­antly mitigated.

Finally, our over­all object­ive is to address the needs of our cus­tom­ers — trav­el­lers and com­munity stake­hold­ers — with an emphas­is on cre­ativ­ity, such as tak­ing vis­it­ors on the trip before they ever get there with more visu­al con­tent to help cap­ture attention.

We will dif­fer­en­ti­ate our form of sus­tain­able tour­ism, explain­ing the bene­fits for our com­munity part­ners to travellers. 

Prac­tic­ally, our book­ing sys­tem pro­cess will be more flexible. 

By keep­ing the interests of both cus­tom­er groups at the fore­front, we hope 2023 will see improve­ments in the qual­ity of the offer and the traveller.

Social and economic stability in Niger

Issoufou adamou hassane , co-founder & president, tourism & local development (told) niger.

The major chal­lenge for tour­ism in Niger over the next five years is the return of secur­ity to the coun­try’s tour­ist destinations.

Issoufou Adamou Hassane

The main cause of the deteri­or­a­tion of the secur­ity situ­ation in Niger stems from the lack of employ­ment oppor­tun­it­ies for women and young people, espe­cially those liv­ing in rur­al areas.

The lack of jobs has made young people easy prey for crim­in­al organ­isa­tions, which rely on them to com­mit the most despic­able acts that tar­nish the image of the coun­try among inter­na­tion­al tour­ist customers.

To meet this chal­lenge, the NGO TOLD intends to imple­ment ini­ti­at­ives to cre­ate jobs and con­trib­ute to social and eco­nom­ic sta­bil­ity in the country’s tour­ist destinations.

Our actions will focus on train­ing loc­al people on the pre­ser­va­tion and enhance­ment of Niger­’s nat­ur­al and cul­tur­al her­it­age, the devel­op­ment of com­munity cul­tur­al events, the eco­nom­ic empower­ment of women in tour­ism, the cre­ation of her­it­age clubs in schools, and the devel­op­ment of youth entre­pren­eur­ship in tour­ism and heritage.

Our vis­ion is to ensure that people are bet­ter edu­cated about their her­it­age in order to act pos­it­ively for its pre­ser­va­tion and promotion. 

Such an approach will cre­ate jobs and wealth for the com­munit­ies, pro­mote the return of secur­ity, and con­trib­ute to the reviv­al of sus­tain­able tour­ism in Niger.

Success is a threat to Khao Sok, Thailand

Travis clark, general manager, anurak community lodge , thailand.

The greatest threat is not if tour­ism will return to pre-COV­ID levels but rather if/when it will des­troy what makes places like Khao Sok, Thai­l­and so special. 

Travis Clark GM Anurak Community Lodge 300 1

Khao Sok boasts one of the old­est and most scen­ic nation­al parks in Thai­l­and; beauty to escape to.

Big cor­por­a­tions have always had Khao Sok in their sights but have held off due to a lack of infra­struc­ture in the area. Giv­en the cur­rent state of tour­ism there is a real con­cern that they may enter the region regardless.

While lar­ger busi­nesses increase tour­ism, which seems like a net pos­it­ive, how­ever real estate devel­op­ment, high­ways, and retail out­lets tend to come with them. 

Each new devel­op­ment encroaches on the nat­ur­al envir­on­ment and the com­munity atmo­sphere that make Khao Sok desirable.

In the 1970s, Patong in Phuket was a trop­ic­al beach para­dise. Fifty years later it is laden with hotels, bars, res­taur­ants, shops, stalls … The beach is an afterthought.

Anurak Community Lodge - anuraklodge.com

Khao Sok has man­aged to con­tain tour­ism to a hand­ful of small busi­nesses with roots in the des­tin­a­tion. Wheth­er Khao Sok is destined to fall into a pit of ‘suc­cess’ only time will tell.

To com­bat over­de­vel­op­ment, hotels like ours are cooper­at­ing to spread aware­ness of how to oper­ate sustainably.

Here at Anurak Lodge we work with glob­al organ­isa­tions like Travel Life to ensure that we meet min­im­um stand­ards, as well as with loc­al author­it­ies and part­ners on devel­op­ing a green zone and set­ting build­ing standards. 

We also pur­sue our own pro­jects. For Rain­forest Rising, for example, we replace invas­ive plants with indi­gen­ous flora.

Over­all, tour­ism is good. It provides jobs and income for people. And we wel­come growth and expan­sion if it is done sustainably.

The people and envir­on­ment that attract tour­ists to Khao Sok need to be looked after. That respons­ib­il­ity starts with us.

‘Crossing the chasm’: Mainstreaming sustainability in tourism

Jonathon day , associate professor | graduate program director,  white lodging — j.w. marriott, jr. school of hospitality and tourism management.

For an idea that has been around for over 50 years, and is appeal­ing to poli­cy­makers, aca­dem­ics, and even busi­nesspeople, sus­tain­ab­il­ity still has a long way to go to become stand­ard oper­at­ing procedure. 

Dr Jonathon Day

The chal­lenge of main­stream­ing sus­tain­ab­il­ity in tour­ism must be the pri­or­ity today; and for the imme­di­ate future. 

Research­ers in the dif­fu­sion of tech­no­lo­gies, policies, and busi­ness activ­it­ies call this “cross­ing the chasm”. This term refers to the great leap required for an idea or tech­no­logy to move bey­ond ‘earli­er adop­ters’ and be embraced by the majority. 

Even as we acknow­ledge there is still work to be done at every level of tour­ism — by des­tin­a­tions, by busi­nesses and enter­prises, and by trav­el­lers — I remain optim­ist­ic that we are fur­ther ahead on the jour­ney than it first appears. A couple of reasons: 

  • Tour­ism is a com­plex sys­tem, and fre­quently mem­bers of the sys­tem are unaware of pro­gress being made by oth­er sys­tem mem­bers. As a res­ult, there is a sense that any­one doing the work of sus­tain­ab­il­ity is an out­lier, for­ging a path that oth­ers have yet to fol­low. The evid­ence is mount­ing that this is no longer true. 
  • Sus­tain­ab­il­ity requires more than com­plet­ing a single task, but atten­tion to a port­fo­lio of activ­it­ies. Some of those activ­it­ies are more typ­ic­ally prac­tised than oth­ers, but the truth is that sus­tain­ab­il­ity prac­tices are more com­mon than they are giv­en cred­it for.

One way we help “cross the chasm” is to show that social and envir­on­ment­al sus­tain­ab­il­ity actions are not niche activ­it­ies but com­mon across the sector. 

Fail­ing to adopt sus­tain­ab­il­ity means that you are the out­lier, not the majority. 

What do you think?  Share your own thoughts in a com­ment below. Or  write a deep­er “GT” Insight .  The “Good Tour­ism” Blog  wel­comes diversity of opin­ion and per­spect­ive about travel & tour­ism, because travel & tour­ism is everyone’s business.

Fea­tured image  (top of post): Tour­is­m’s chal­lenges and threats. Cobra image by P Schrein­er (CC0) via Pixabay .

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Home » Blog » A fast-changing world: The massive challenges facing international tourism

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A fast-changing world: The massive challenges facing international tourism

Covid-19 disrupted most industries, but especially travel and tourism. In 2020, worldwide aviation passenger numbers dropped by 60% compared to the year before. 2021 saw some recovery, although numbers were still about half of 2019’s figures. After 9/11, it took six full years before airline passenger numbers returned to their pre-crisis peak.

The pandemic has changed consumer behaviour in ways which are still playing out. There is the possibility of new variants causing short-notice border restrictions in the future. Aside from Covid, international travel remains hampered by confusion, concern and unpredictability. Here, we look at the giant challenges facing travel and tourism in a fast-changing world.

Inflation and the rising costs of travel

2022 has seen increasing inflation around the world – in the UK, it’s currently 9.1%, which is the highest rate since 1982. Product shortages resulting from supply-chain disruption caused by Covid-19, high consumer demand driven by historically robust job growth, plus rising fuel prices partially caused by the war in Ukraine have created a perfect storm of increasing prices.

From a travel point of view, this means:

  • Airfares are at record highs
  • Lodging prices – for hotels and motels etc – are volatile
  • Car rentals have seen big increases – as of May 2022, prices were around 70% higher than in May 2019

At the same time as rising prices, the economic backdrop – staff shortages and continued supply chain difficulties – means that service-providers often have to offer a reduced service. For example, many hotels are cutting back on amenities including daily housekeeping and room service . The Guardian recently labelled this phenomenon – of businesses simultaneously increasing their prices and reducing their service – as skimpflation .

Brands need to do this to protect their margins. But with a cost of living crisis, the risk is that skimpflation will deter leisure travellers from expensive vacations. There is also the potential for brand damage as well, if consumers don’t feel they have received value for money.

Short staffing affects ability to meet customer expectations

Many travel businesses laid off or lost staff during the pandemic – reportedly, a total of 62 million tourism-related jobs were lost worldwide in 2020. Now that leisure demand is building again, businesses have struggled to hire enough replacements. Short staffing explains the scenes of airport chaos we’ve seen, not just in the UK but around the world (although Europe seems to be the epicentre ). Once staff leave a sector – Deloitte reported 300,000 fewer hotel workers worldwide in October 2021 than two years previously – it can be hard to replace them.

As with rising prices caused by inflation, staff shortages make it harder to meet travellers’ expectations. The chaotic scenes at airports like Heathrow and Gatwick this summer went viral, acting as a possible deterrent for some travellers. Guests may be unwilling to accept a hotel’s housekeeping-by-request service if they are still paying full price.

In the short term, labour shortages are hard to address. Deloitte states that longer term, automation could help with some aspects of hotel services – for example, contactless check-in reducing the need for reception staff – but cleaning rooms and operating restaurants still requires human labour. If staff shortages persist – and there are indications that they may do – hotels may start to experiment with itemised charges for amenities such as housekeeping. As these once-standard parts of the hotel experience become unbundled, they could potentially form part of loyalty programmes.

Corporate travel’s slow return

Before the pandemic, about 20% of travel was work related. Business travellers accounted for about 12% of airline passengers but thanks to business class fares, typically generated twice as much money per person as non-business class passengers. A key question post-pandemic was the rate at which business travel would resume.

Whilst business travel has resumed to some extent, there are headwinds:

  • CEOs and CFOs are likely to continue to scrutinise travel spend and ROI after operating successfully throughout the pandemic with fewer business trips.
  • Businesses are under pressure to reduce their carbon footprint. Less travel means less emissions. Many companies are reviewing their business travel policies to support sustainability goals – this seems likely to result in reduced trip frequency, limits on long-haul travel, and more meetings online.
  • Companies have learned in the last two years which meetings really do require face-to-face interaction, and which can be carried out successfully using video conferencing. Whilst trips to visit prospects and network at conferences will probably endure, it seems likely that routine or internal meetings and training will continue to rely heavily on virtual connection.

That said, the pandemic has contributed to a growing trend of ‘bleisure’ travel. This refers to travellers who mix business trips with leisure. Newly flexible work arrangements, including the opportunity for knowledge workers to work remotely, have created opportunities for extended travel, no longer limited by a Monday to Friday 9-til-5 workweek in the office – which leads us to…

Remote workers have created a new travel niche

The increase in remote working and digital nomads has created a new travel niche. With workers untethered from the office, they now have scope to work from other locations. These travellers have a particular set of attributes or requirements:

  • Above average buying power
  • Greater flexibility on travel dates
  • A need for a quiet, comfortable space to work – perhaps away from crowded tourist areas
  • Fast and reliable Wi-Fi
  • Access to wellness-related amenities, such as gyms or healthy meals on the go
  • The flexibility to reschedule leisure activities to accommodate work

This traveller niche might mean that subscription models – which have historically struggled due to low frequency of travel – may get a second look. For example, the Mandarin Oriental in Washington offers a service called MOBase , aimed squarely at travellers who blur the lines between work and leisure. This is available on a subscription basis, which can be shared within organisations. In the face of reduced corporate travel, higher-spending remote workers and their particular demands could attract more attention in the years ahead.

A trend towards short-term rental accommodation

Before the pandemic, there was a trend toward short-term rental accommodation as an alternative to hotels. The pandemic saw this trend accelerate – with health concerns being a major driver of demand. The greater space and privacy in an Airbnb-style apartment allows for more social distancing. Deloitte estimates that more than four in 10 rental travellers said they had been introduced to the accommodation type for the first time during the pandemic. Three-quarters say they plan to continue choosing rental accommodation even as the pandemic recedes.

The shift towards remote work and the rise of the ‘bleisure’ traveller seem likely to increase rentals’ popularity – as remote workers take longer trips and need space to work. In turn, increased interest in this accommodation type could push hotels to evolve their offerings per the Mandarin Oriental example above – for example, by offering home-like amenities such as kitchenettes, adjoining rooms and study areas.

Consumers are increasingly concerned about sustainability

According to Sustainable Travel International, tourism is responsible for about 8% of the world’s carbon emissions . Businesses are under pressure from both consumers and governments to become more sustainable. The tourism industry faces the challenge of adding decarbonisation to its value proposition. In practice, this means re-examining what travel should look like and how sustainable practices can be incorporated. This will require collaboration across the whole industry.

On a marketing level, as climate change and its effect on natural resources become more salient for travellers, sustainability will become a more dominant theme. Younger consumers in particular want to see businesses stand for something. In practice, this means:

  • Businesses showing what steps they have taken to reduce their carbon footprint
  • Businesses offering customers tools and information about what they can do on an individual level to make their travels more sustainable
  • Countries and destinations playing up themes like conservation in their marketing

For example, Ryanair offers a carbon calculator on its website which allows customers to understand the carbon emissions of each flight, so they can offset if they so choose. Other travel brands taking positive action include:

  • Hilton Hotels has installed energy-efficient lighting in all its buildings and will also be sourcing from local suppliers.
  • Royal Caribbean’s ships have purification systems to remove 98% of sulphur dioxide emissions from their exhausts.
  • British Airways is committed to cutting CO2 emissions in half by 2050 and is building a plant that produces fuel from household waste.
  • Virgin Atlantic is partnering with manufacturers to create a jet fuel that will create 50% less carbon than fossil fuels.

The industry will need to look at the end-to-end travel journey – i.e. all touch points, not just air travel. The hope is that sustainable travel can be achieved without creating additional pain points for travellers.

Disasters – both man-made and natural – are an ever-present threat

As any tourism business knows – especially those with operations in major cities – security risks such as terrorist attacks or political unrest are a grim reality, alongside threats from natural disasters such as pandemics, tsunamis, earthquakes, floods, volcanoes, avalanches and so on. For example, last month TUI cancelled all holidays to Sri Lanka because of the ongoing political unrest and economic instability. This month, Sydney suffered its fourth major flood in two years, with the city receiving in one single weekend more rain than would typically fall in London in a year. The twenty first century is shaping up to be a volatile one.

Oban has a long track record of helping tourism and attraction businesses grow internationally. Previously, we have won Best Digital Marketing Campaign and Best Use of Search Engine Marketing at the UK’s prestigious Travolution Awards. To find out how we can help your travel business, please get in touch .

Oban International is the digital marketing agency specialising in international expansion. Our LIME (Local In-Market Expert) Network provides up to date cultural input and insights from over 80 markets around the world, helping clients realise the best marketing opportunities and avoid the costliest mistakes.

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Five big challenges facing the travel and tourism industry in 2024

Will Chinese tourists look inwards or finally outwards in 2024? Could an unprecedented number of elections globally influence who travels and when? Can Paris make a permanent gain out of the Olympics and will conflict continue to derail some tourism economies?

Amid it all, could Gen Z change the shape of tourism by asserting an environmentally consciousness about travel decisions?As investors and developers piece together the global influences that will shape the hospitality real estate market in 2024, we pick out five defining macro-themes for the year ahead.

Visas: China looks outward and inward

It is nearly a year since China fully reopened its borders to foreign visitors, and almost a year since Beijing withdrew advice warning against overseas travel. Yet travel to and from China has not recovered to pre-pandemic levels, though domestic travel has surged.

“If you use 2019 as a benchmark, travel and tourism contributed 11.6% to the Chinese economy,” says Julia Simpson, president and chief executive of the World Travel & Tourism Council (WTTC).In that year, the travel and tourism industry employed 82 million people in China and was valued at $1.8 trillion, while recent analysis released by WTTC and Oxford Economics shows a dip to a 7.9% contribution in 2023, employing about 74 million people and worth $1.48 trillion.

Yet, with the hold-up of issuing new visas an ongoing issue, inward traffic is becoming a major factor."This data clearly shows the appetite to travel remains incredibly strong. Chinese travellers want to explore the world once again and international travellers are eager to return,” says Simpson.

According to data published in January by travel booking site Trip.com, the top five international destinations for Chinese tourists in 2023 were: Thailand; Japan; South Korea; Singapore and Malaysia.China recently entered into a reciprocal agreement with Thailand for permanent waiver of visa requirements for citizens of the two countries from March 2024 and previously implemented visa-free travel for five European countries (France, Germany, Italy, The Netherlands and Spain) and Malaysia, allowing ordinary passport holders to stay in China for up to 15 days without a visa. China has also streamlined entry regulations for US citizens.

Impact: The great Chinese exodus is yet to materialise and it may be a year when inward and inter-continental travel continues to dominate, boosting the Chinese travel economy.

Elections: The year of the vote

More than two billion people across 50 countries are expected to go the polls this year, accounting for countries that are home to nearly half the world’s population – a scale that has never happened in a single year before.

Among the polls are seven out of the world’s 10 most populous nations: Bangladesh kicked off the election calendar on January 7; plus India, the United States, Indonesia, Pakistan, Russia and Mexico.

While the impact should be contained around the election period, data on previous US elections suggest that the industry can expect a lag around crucial polling.US-based travel agency consortium Virtuoso, which has around 2,300 company partners, sold $30 billion worth of transactions in 2019. Evaluating the impact of the last three American presidential elections on travel bookings, Virtuoso’s VP global public relations Misty Belles found that the company’s usual double-digit growth was curtailed to roughly 3% in election years, with over $4 billion in projected missed revenue for the previous election in 2020.

No matter why travel dips during election cycles, the impact doesn’t end on results day, she says. Lags in spending continue through the ‘lame duck’ period of the outgoing President and the early days of a new administration, regardless of who resides in the White House. After the first 100 days of a new presidential term, travellers typically set their sights on summer vacations.

Impact: With an unprecedented number of people heading to the polls and the likelihood of some tight elections, the effect on travel is unpredictable but could cause an autumn lag in the UK and US.

Sports events: Everything to play for

This summer’s football Euros and impending African Cup of Nations will add to the global sports calendar in 2024 but of course the big one is the Paris Olympics. Hosting major events is expensive but potentially hugely profitable, with an extra three million people expected in Paris, increasing tourism spending by up to €4 billion according to market research provider Euromonitor International. 

Alexander Göransson, senior consultant at Euromonitor International, points out that the Games are expected to attract 15 million spectators, including locals and domestic day trippers.  

Göransson says that experience from previous Games shows that Olympic visitors spend more than regular visitors and that accommodation providers will be the main winners, although high prices may put people off. “There is a lot being written about hoteliers significantly hiking their prices during the Paris Olympics, typically by an order of three relative to August 2023 and summer 2024 before and after the games. This is also in line with some checks on booking platforms for like-for-like hotels. The average rate is currently reported to be €699 during the games versus €169 in August 2023,” Göransson says.

However, he notes that only 1.5 million tickets have been sold to non-French residents, circa 10% of the total.

“In the context of hotels this will be interesting as given the vast majority of visitors will be from France, there will be more daytrips, but more importantly a lot of French visitors will have friends and relatives in Paris who they can stay with, which given the Olympic mark-ups is likely,” he adds. “I would not rule out that there may be some last-minute price cutting. When the games were in London price increases were more modest, where prices less than doubled.”

Impact: Euromonitor International expects a steady increase in inbound visitors to France and its capital city from 2025. 

Conflict: Contained but major regional impacts

The war in Ukraine and the ongoing operations in Gaza by Israel have had little impact on global travel, but have hit the regions and those around them heavily. That is likely to be the ongoing story of 2024.

Following last summer’s strong tourism demand, international tourist arrivals to Europe are only 3.2% below 2019 levels, and nights are down by 1.3% for the January-September period, according to the most recent European Travel Commission (ETC) figures.

However, while Southern European and Mediterranean destinations, notably Serbia (+15%), Montenegro (+14%), Portugal (+11%), Turkey (+8%), Malta, and Greece (both +7%) have benefitted, among Eastern European countries neighbouring Russia and Ukraine, and those that are normally reliant on Russian travellers, have registered the sharpest declines: Estonia (-27%), Latvia (-30%), and Lithuania (-33%).While the number of tourists visiting Israel rose in 2023 compared with 2022, visitor numbers plunged in October after the Hamas attacks and remained low for the rest of the year, the Israeli Tourism Ministry said.

Overall in 2023, 3 million tourists entered Israel, up from 2.7 million in 2022, but December was the worst month with just 52,800 tourists, compared with typically over 300,000 per month. S&P Global Ratings believes Lebanon, Egypt, and Jordan are most exposed, due to their geographic proximity and the potential for some aspects of the conflict to expand across their borders. Last year, tourism contributed 26% of Lebanon's current account receipts. For Jordan and Egypt, the figure was 21% and 12%, and for Israel, 3%.

Impact: While conflicts seem not to have dissuaded travellers generally, those countries heavily impacted already are unlikely to see any change.

Sustainability: Travellers demand eco-options

Nothing new in the rise of sustainability but analyst Mintel believes that in 2024 travel brands can tap into the sustainable accommodation sector by promoting a range of differing cost options.

A number of operators are promoting more sustainable choices for consumers, by unveiling ‘sustainable holiday’ tabs in which travellers can browse through a range of different hotel options, all accredited by the Global Sustainable Tourism Council (GSTC). 

Mintel says that it is imperative for travel brands to step up and take accountability for their environmental impact, particularly as issues surrounding sustainability permeate into every aspect of daily lives.

“Based on the success of the food industry’s nutrition traffic light system, consumers want brands to use a similar system that makes it easy to understand the environmental impact of the products they’re thinking of buying and helps them make more sustainable choices,” says Richard Cope, senior trends consultant, Mintel Consulting.

Travel platform Booking.com also notes that “sweltering conditions” are accelerating a rise in travellers chasing cooler climes to travel to. In a UK survey, 42% reported that climate change will impact the way they plan their holiday in 2024, while 43% said that as temperatures soar close to home, they will use their holiday to cool down elsewhere.

In 2024, in exchange for contributing to conservation efforts, sustainable itineraries will give travellers exclusive access to the places that they are helping preserve, Booking.com speculates, while sustainable travel apps will offer rewards such as experiences with locals in off-the-beaten-path areas or visiting remote locations that tourists otherwise have limited access to.

Impact: From ESG and real estate to the consumer mind-set, sustainability

5 Mega Challenges Facing the Global Travel and Tourism Industry

Travel and tourism industry

The global travel and tourism industry sits smack in the eye of a perfect storm. On the one hand, demand is up. Planes are packed. Our wanderlust is lustier than ever. On the other hand, rising inflation, lagging infrastructure, geopolitical uncertainty, staffing shortages, and COVID’s lingering impact have all converged into the stuff of nightmares — for travelers and the travel industry alike.

As researchers and advisors to global tourism boards and brands across the travel and tourism ecosystem, we are seeing some of these challenges hit certain players harder than others. On the bright side, recovery is on the horizon. But some geographies and industry sectors will face steeper challenges as five major headwinds converge upon them. We’re seeing opportunities for brands to get ahead of the storm and put the wind at their back.

These are the top five challenges facing the travel and tourism industry today, along with our perspective on navigating the way forward.

Travel Insight #1: Inflation means trade-offs and discretionary travel may lose out

Just when tourism was on the rebound, rising inflation came nipping at the heels of a travel boom. Escalent’s forthcoming 2022 Holiday Shopping & Travel Study revealed only 42% of consumers feel confident they’ll achieve their 2022 holiday travel plans (down 24 percentage points from 2021), and 49% of consumers are uncertain their holiday plans will be achieved (up 23 percentage points from 2021).

For the travel and tourism industry, inflation is a huge concern since it drives up product prices and affects consumers’ willingness to spend on discretionary travel. According to Euromonitor, 63% of travel executives said inflation was having a moderate to extensive impact on their businesses. Subsequently, over half of global travel companies acted in kind, by raising all or some of their prices. This was even higher in the Americas, where 59% of the companies raised all or some of their prices. Meanwhile, 44% of businesses accepted that they would suffer from having a lower profit margin by absorbing the inflationary costs rather than passing them on to their consumers to limit impact on their travel plans.

During inflationary times, it is common to see brands cut back on their marketing and advertising spend. While this reduces costs short term, it can be a setback to building long-term brand trust. In times of uncertainty, consumers tend to gravitate towards certainty, something a trusted brand can confer. And a destination is a brand. The more trust you can build amid uncertainty, the better.

Travel Insight #2: The ripple effects of geopolitical disruption

Geopolitical instability is also a key concern for the travel and tourism industry. The outlook for global travel and tourism for inbound spending is expected to be at 45% of 2019 levels, according to Euromonitor’s travel forecast model. The war in Ukraine is estimated to have caused a $7 billion decline in global inbound tourism, while Russian outbound tourism has all but collapsed under economic sanctions, airspace closures and flight bans. The loss of big-spending Russian visitors will impact travel destinations globally, but especially in Europe, the Caribbean and Turkey.

What happens when your high-value source market can’t travel? The ripple effects of geopolitical disruption are felt across regional clusters, forcing travel and tourism entities to rethink their source markets and reset their tourism marketing and targeting strategy.

Travel Insight #3: The travel and tourism infrastructure is in trouble

The pent-up travel demand is causing additional strain on the existing infrastructure, particularly for the airline sector. Problems with safety protocols and compliance with new national and international health standards are predicted to be made worse by capacity constraints when the industry recovers. This is expected to result in (even) longer lines, (more) crowded terminals and operational bottlenecks.

Social distancing measures have been lifted in many countries, including the US. But measures are still in place in many airports around the world, thus reducing airport capacity. Airports that operated close to their saturation capacity before the COVID crisis can expect to reach their maximum saturation capacity at just 60%–75% of their pre-COVID peaks.

According to ACI World, as air transport demand recovers, passenger demand will put more pressure on existing airport infrastructures. This may have socio-economic consequences, if not addressed in time. If long-term capacity constraints are not addressed through capital investments, it is estimated to lead to a reduction of up to 5.1 billion passengers globally, by 2040. For every million passengers that airports cannot accommodate due to airport capacity constraints in 2040, there would be 10,500 fewer jobs and 346 million USD less in GDP contribution from the industry.

Airports are often the “first impression” of a destination. A traveler’s airport experience sets the stage for the rest of the journey. When greeted with chaos and delays, even the most intrepid traveler can sour on the experience. Recently the US has made modest steps towards infrastructure improvement, including the Infrastructure Investment Act passed in November 2021, which includes spending for airports. While its impact will not be immediately felt, many travel associations have applauded the passing of this long overdue legislation.

Travel Insight #4: There’s no quick fix for the staffing shortage

If you’ve stepped foot in an airport this summer, you already know. The travel industry is facing a severe staffing challenge, particularly for customer-facing roles at hotels and airlines. Industry CEOs acknowledge that they are struggling to add staff to meet demand.

Airlines, in particular, are struggling to fill staffing requirements. Boeing’s 2021 Pilot and Technician Outlook voices concern that many airline workers who were furloughed during COVID may have left the industry permanently. The commercial airline industry needs 612,000 new pilots, 626,000 new maintenance technicians and 886,000 new cabin crew members over the next 20 years. Hotels and hospitality are also struggling, making it harder to deliver on guests’ expectations. Many hotels are shifting housekeeping services to a by-request-only model and some are cutting back on food and beverage amenities, including room service and restaurants.

What’s the precautionary tale to take away from this staffing mess? It can take decades to build brand trust, and one canceled flight, one bad stay, to destroy it. How people experience your brand — no matter if it’s in the best of times or the worst of times — stays with them. Travelers expect consistency from major brands. It will take time and investment for many airline and hospitality brands to rebuild trust in the quality and consistency of their brand experience.

Travel Insight #5: COVID is with us for the long haul

COVID travel restrictions are still impacting many elements of world tourism, with countries like China continuing to impose stringent restrictions and quarantines on visitors as well as Chinese outbound travelers.

In Asia Pacific, 83% of travel businesses report that ongoing COVID restrictions continue to have a moderate to extensive impact. This compares with 59% in Western Europe, according to Euromonitor. Although less, compared to 2021 levels, COVID concerns among travelers persist. Ongoing concerns, including new variants, affect the travel decisions of 55% of travelers, according to another recent study. Travelers are planning their trips cautiously, and nearly 70% are avoiding certain destinations, with 56% preferring close destinations and 56% avoiding crowded places.

Just as sanctions have grounded Russian travelers, COVID restrictions are keeping Chinese travelers homebound. Popular destinations for Chinese tourists such as Japan, Thailand, Singapore and Australia continue losing out on billions in tourism revenue. And countries with strict quarantine requirements like Japan continue to struggle. Between June 10 and July 10 this year, Japan hosted only 1,500 international tourists, according to data from Japan’s Immigration Services Agency. That’s down 95% from the same period in 2019. Who wants to spend half their holiday in quarantine? Destinations like Japan have focused on promoting domestic travel, but with COVID with us for the long haul, doubling down on domestic travel marketing and promotions is not a sustainable strategy.

Turn disruption into opportunity with tourism industry research and consulting

Escalent specializes in travel and tourism market research, traveler behavior, tourism investment strategy and consultative support across the travel and tourism ecosystem. Learn more about our Travel & Tourism practice and let us help you ride out the storm and go forth with confidence.

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SOURCES CITED

(forthcoming) Escalent 2022 Holiday Shopping and Travel Study Please contact us if you would like to be notified when the report is available. View press release .

Voice of the Industry: Travel Survey, Facing New Challenges, Euromonitor, May 2022

Travel: Quarterly Statement Q1 2022, Euromonitor, May 2022

Holiday Barometer among Europeans, North Americans, Asians & Oceanians, Ipsos, June 2022

Japan is open to travel. So why aren’t tourists coming back? CNN, July 31, 2022

Deloitte travel outlook, The winding path to recovery 2022

Half of US Hospitality Workers Won’t Return in Job Crunch, Bloomberg, July 2021

Staff Shortages: World Travel & Tourism Council Travel Survey, May 2022

Related Industry: Travel & Tourism

Related Solution: Brand Positioning , Customer Experience Management , Market Assessment

Related Expertise: Secondary Research

Vivek Neb

Vivek leads Escalent’s Travel & Tourism practice where he works with tourism boards, airlines, hotels and hospitality brands across the globe, including in China, Africa, Southeast Asia, and the Middle East. A featured thought leader at global travel and tourism forums such as ITB, TTRA, and PCMA, his expertise spans the Travel & Tourism value chain. Vivek is an experienced business executive with expertise in various business elements including operations, business development and P&L management. A seasoned insights leader, he advises clients on market assessment  and entry strategy, market sizing and growth strategies. An engineer by training, he holds an MBA in Strategy & Marketing from the Indian Institute of Management. Vivek has a keen interest in human psychology and believes that a transparent, win-all proposition is the key to creating a sustainable people-centric business.

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Achieving Sustainable Tourism: These Are the Key Challenges

sustainable tourism challenges

The tourism industry has witnessed a sea of change in the past three years due to the pandemic and travel restrictions. While many of us hoped for a shift toward sustainable tourism on a massive scale, the industry continues to be plagued by problems. What are those challenges? How can destinations and businesses overcome them?

For those who are earnestly looking to start or transition into running a sustainable form of tourism, our panel of sustainable tourism specialists provides an excellent breakdown of the problems  and what can be done to overcome them to achieve sustainability. Below are the answers (highlighted respondents are available as consultants or speakers ).

Some key takeaways of main challenges :

  • Failing to acknowledge that every destination is different, with its own specific circumstances and priorities.
  • Working in silos. Not understanding that sustainability is a collective journey that requires collaboration.  
  • Lack of political will – the switch to sustainability is not easy and even more difficult if local or regional public policy doesn’t support it.
  • Using inadequate measures of success, such as merely the number of arrivals (which can lead to overconsumption).
  • Not involving employees and supply chain adequately.
  • Consequences of the Pandemic, especially the focus on quick earnings over a slow and sustainable tourism.
  • A missing sense of urgency – e.g., while the climate has begun changing considerable, action is slow.
  • No adequate measures in place to manage overcrowding now that tourism will bounce back.
  • Greenwashing – not finding the right balance between touting one’s green credentials and exaggerating claims of sustainability.
  • Lack of awareness – insufficient awareness among the tourism industry of the Sustainable Development Goals.

Brian Mullis, sustainable tourism expert panel member

Brian Mullis

This topic is already well covered. In short, we need more purpose-driven businesses that are directly or indirectly involved in the visitor economy by applying commercial strategies to deliver tangible social and environmental impact. And we need more governments working across ministries and with all of the players in the tourism value chain (e.g., private sector, NGOs, communities, etc.) to unlock systems value.

Fiona Jeffery

It’s a vast subject, that’s often overwhelming with a lack of understood practical steps. Also, no environment is necessarily the same, so you are always trying, shaping and developing relevant and local solutions to ensure the right impacts.

Jonathon Day

Sustainability is a complex activity. It requires keeping many plates spinning at once. It is a commitment to a way of doing business – not just an easy add-on.

Kelly Bricker

  • various demands by tourists (think supply chain)
  • transportation-related issues
  • organizational constraints (chains)
  • human and financial resources
  • growing population and number of travellers, overwhelming some systems

Vicky Smith

  • Egos and associated values
  • The pursuit of profit at the expense of others
  • Want and greed over need
  • A superiority to assume better
  • An unwillingness to listen and learn from others
  • An unwillingness to change because it’s harder work
  • An inability to face harsh truths
  • Self-interest

The human condition takes the path of least resistance (like other animals) and doesn’t want to be made to feel bad. 

Aivar Ruukel

I think the main problem is the same old mindset and way of doing things. It is not helping if you pick new and better tools, but still have old aims, which are most often so simplistic as “more tourists, more turnover, more profit”. The challenge is to give up on the idea of endless growth within a limited planet. All tourism professionals should understand that tourism is not an industry but a living system. When changing the way we see ourselves and our sector, we can change everything else too.

Alexandra Pastollnigg

Black-and-white thinking; focusing on narrow KPIs without an appreciation of sustainability as a holistic concept and 2nd/3rd order consequences; conflicts of interest in senior business and political decision making/system failures; ego.

Ally Dragozet

A lack of local policies supporting sustainability, and the unavailability of sustainable products or services.

Amine Ahlafi

First, the mentality of managers and human resources in charge of the management of tourism activities and who should have updated training in sustainable development and its impact on business and on ecosystems. Secondly, the segmented approach of some decision-makers who have an interest in adopting a global vision and a holistic and sustainable approach.

The main challenges, therefore, remain awareness-raising, training and policies in favour of sustainability.

Anna Spenceley

I think a great deal of the challenges relates to a lack of awareness of what needs to be done to become more sustainable. This is further compounded when there is a need for skills, resources and effort.

A presentation I gave on this topic at a “Sustainable Tourism Training for Tomorrow”’ event, along with other contributions from notable speakers on the same topic, can be found here .

I’ve been privileged to work over the past 20 years with tourism businesses and destinations at the forefront of sustainability (see for example the book co-written with Sue Snyman ‘ Private sector tourism in conservation areas in Africa ‘)

Recognising the information challenges that are faced, I recently published a book that aims to help transfer more knowledge to tourism businesses and destinations, and help improve their successes: the “Handbook for Sustainable Tourism Practitioners: The Essential Toolbox”.

The handbook is divided into four main parts that address different elements of sustainable tourism planning, operation and evaluation. It contains 27 chapters providing insightful detail into key sustainable tourism issues.  The authors share step-by-step approaches to practical problems – such as how to write bankable financial proposals – how to consult with stakeholders – and how to manage visitors.

The book transfers knowledge from the academic realm, and from extensive practitioner experience, into one essential 550-page volume.  It’s available in e-book and hardback here .

Anne de Jong

When they do it because they feel it will make more money or if they feel it’s something they need to do because it’s the right thing. And even though the latter is important, in the end, they do have a business to run. So, they need to find a way where sustainability fits into their business and actually makes them better. Creating a situation where sustainability is fully integrated into the business and not something on the side.

Antonio Abreu

Lack of vision and weak understanding of the role that sustainability should play in the business. Too often see the action without a solid background, which leads to a certain agitation without effective change. We often listen to people saying that they know, do, and they are champions, but, in reality, they have no clue about it.

The tourism sector is very resistant to accepting the need to include other professionals and other skills. This is the case when it comes to environmental issues. Hotel managers, for instance, tend to consider that anyone in the organisation is able to assume professional and technical roles instead of recruiting qualified people. For the restaurant, they want the best chef, but for handling environmental issues, anyone can do it. It is a basic mistake that we see every day everywhere.

Antonis Petropoulos

In terms of businesses, lack of real commitment to sustainable principles (such as the SDGs ) on the part of management and employees along with a lack of training. Destinations will fail to reach sustainability goals if they:

  • lack a critical mass of sustainable tourism businesses
  • if they do not have a competent DMO that can coordinate these businesses and
  • if public tourism policy is only paying lip service to sustainability, permanently fixated on arrival numbers and expenditure per head

Audrey Scott

Sustainability should be thought of as a long journey that will likely last forever. New approaches, technologies and ecological realities are ever-changing. However, many tourism businesses/destinations won’t know where to actually start and they can get overwhelmed by the complexity of criteria/certifications and feel that sustainability is “all or nothing.” Many businesses think that it’s too expensive and still too niche to be profitable.

Beatriz Barreal

At least in Latin America, the main pitfalls are corruption, greenwashing, and short-term vision. The main challenge is in raising the awareness and the lack of action towards the sustainability of this world, which affects all of us, where we live and where we travel to.

Christian Baumgartner

Convincing the decision-makers involved to think regionally instead of operationally, long-term instead of in terms of investment periods, and complex instead of one-dimensional – and then to act accordingly. Not to shift the responsibility and wait for consumers to express the desire for more sustainability.

Christof Burgbacher

Too often it is decided from top to bottom what the sustainable orientation of a company or destination should look like. However, the participation of employees, the local population, guests and other partners is crucial, as they ultimately have to accept and implement the measures. If a participation process is designed correctly, it can also generate many ideas and creative approaches.

Darrell Wade

Self-interest is the primary one. People consider their own needs, but don’t recognise those of others or the impacts of their own actions. By not considering externalities you are inherently creating a short-term business that will not have sustainability in any sense.

Elisa Spampinato

The main pitfalls that can prevent tourism businesses from success are forgetting that sustainability is a collective journey and, therefore, separating the actions of the actors involved.

Another big pitfall is considering the different dimensions of sustainability as disconnected areas that need segmented interventions and focuses.

They should be highlighted and understood as different areas of intervention, however, on the practical level they should be unified, and a specific effort should be made, at the destination level, to create solutions that can include more than one dimension. And above all, the local communities should be active in the process.

Also, I am among those people that think that we cannot work on environmental, social, economic, and cultural dimensions if we do not include an additional one to the equation: the political.

This means that the political institutions should continue the journey towards sustainability beyond the limitation of the mandate and the people that initiate those specific actions. Sustainability should be understood as a collective journey through generations, driven in a consistent way, whose direction should be dictated exclusively by the destination’s circumstances and contextual priorities.

Regarding challenges, there are big economic interests involved in the tourism business and a huge disparity of power in its management. In fact, most of the people that directly feel the impact of tourism has no part or voice in shaping the industry. 

However, there are encouraging examples of innovative government, like the municipality of Barcelona, which show that new solutions to the democratization of the process can be found. 

Seems that local governments are finding new ways to really listen and include the local community voices.

While the technology factor can be an important ally for the urban communities, a way is yet to be found to include the voices of the traditional, indigenous, and ancestral rural communities left out of the loop and mostly left alone to face the consequence of deregulated tourism activities and the effects of the climate change.

Therefore, the main challenges we face are changing the balance of power and opening up spaces to new stakeholders who could greatly contribute to sustainability if only they were given more space in the decision-making process.

Elizabeth Becker

Convincing governments at all levels to enact and enforce rules for sustainable tourism.

Erik van Dijk

Sustainable tourism is not expensive as people think. Bring the right balance between hospitality and sustainability.

Frankie Hobro

In the past, there hasn’t been much encouragement for tourism to be sustainable but fortunately, I think that is changing now with consumer pressure and expectations in an evolving market. And also with the new generation showing genuine concern over their future on our planet and how our everyday actions contribute to it.

I think many businesses are concerned about viability as a sustainable operation can require a lot of short-term investment with little immediate return and some businesses cannot survive long enough to benefit from the long-term gains when faced with non-sustainable competition. A lack of support for ‘green development’ and funding contributes to this problem as the sustainable option often costs more than the quickest and easiest option.

More successful sustainability trailblazers are needed to encourage and support those who want to follow suit, lead by example and show that it is worth taking the risks and that it can succeed.

Gianna Moscardo

Tourism has two features that make sustainability a challenge.

It occurs across so many different sectors and spaces that a lot of tourism is conducted without any one organization in charge of it. Let’s take the example of Stag parties in a European city with young drunk men behaving badly in public spaces and damaging those spaces – who is responsible for them?

  • The places they stay (no because they have no control over the public spaces)
  • The airlines that bring them to the city (again no)
  • The bars that served them (maybe a little bit)
  • The DMO who didn’t encourage them to come and often don’t know there is a problem until it is a major problem
  • The international tour operator who has no connection to the destination but organises the package (maybe morally but legally none at all)

That latter example is the second sustainability challenge – a large chunk of tourism is organized by businesses who have no connection to, or interest (other than financial gain) in the destinations that they send tourists to and make money from. They have no incentives to behave well and bear very little in the way of negative consequences if they behave badly. Not all businesses in this sector behave badly but enough do to create problems.

Glenn Jampol

There is one overriding essential component to “sustainable tourism” and that is financial sustainability. Without a profit, your business cannot survive and therefore the possibility to do good is erased. So, all tourism businesses- whether regenerative or conventional -must first and foremost create viable and researched business platforms and seek to understand who their clients are and who they will be.

New small-scale tourism businesses usually function on a thread of support both financially and experientially and are often family-owned and operated. They frequently have little or no real experience in how to manage and grow a tourism company and usually spend too much time in the tourism world learning curve while sacrificing the opportunity to enjoy the best part of owning one of these businesses: the innovative idea-driven projects that not only help to create a fresh approach but also a niche for new and hopefully loyal clients.

Greg Bakunzi

One of the main challenges is the mindset of the community, where the tourism products are offered, the other one is the tourist visiting the area, without responsible, I mean respecting the culture and the people they are visiting.

James Crockett

Getting caught up in how to look good, virtue signalling and a desire to be seen to do good. The most important stuff happens behind the scenes with no one watching, yes there are some great inclusive components which need a song and dance to promote and spread the word to generate buy-in but it is not the starting point.

Joanna Van Gruisen

Competition and profit lead to overtourism. However sustainable the operation of a tourist company is, its very success can invite others who may not entirely share the same sustainable philosophy. Nothing can kill a destination faster than overtourism. Competition can lead to price wars too which can compromise sustainability. At a village level, this can be avoided by tourism operating with community, not individual, benefits, in a wider context, it is harder to avoid without government intervention and support/regulations.

Jonathan Tourtellot

Regarding destinations: 

Using wrong or incomplete measures of success, such as the number of arrivals; ignoring local opinions and desires (or heeding only local desires); inability to counter the power of large corporations (e.g. cruise lines); short-term government thinking and quick-buck solutions; proclivity of donor agencies to fund infrastructure over human capacity development; siloed thinking at the destination level.

Jorge Moller Rivas

Wrong public policy without involving the community.

Lisa Choegyal

Especially in the extreme economic and social suffering post-COVID in many destinations, when tourism returns it will be tempting to cut corners in the desperation to survive and succumb to market forces. We are already seeing this in unsustainable under-cutting and price slashing, for example. Many operations have been forced to lay off staff without pay, causing enormous hardship and threatening the quality of the product once visitors return. The challenge will be to stick to your sustainable tourism principles.

Mariana Madureira

Pitfall – being shallow, superficial or irrelevant. Eg. a hotel communicating not to wash towels frequently. 

Challenge – go deeper, and think of business as a tool to create value for society. Rethink business model and relation with stakeholders.

Marcus Cotton

Nothing can prevent individual businesses from doing more to be sustainable. Only it takes leadership by owners of the business to motivate and inspire change commitment among employees. Fear of failure is the biggest constraint coupled with the human approach of being comfortable with the status quo. Sustainability is a journey, not a destination (a glib definition!) and that ongoing process can put people off.

Marta Mills

The biggest challenges are:

  • lack of understanding of what sustainable travel means and why it is important
  • lack of awareness
  • the short-sightedness of people who want a quick financial gain
  • lack of political will, but that comes mostly from the lack of awareness and understanding

Megan Epler Wood

This is a very complex question, but I would say this – we need to change governance and decision-making procedures. Our leadership institutions are still mainly driven by growth.

Mike McHugo

Having a united vision and making sure investors (which one may or may not need) have the same vision.

Natalia Naranjo Ramos

Implementing sustainability requires a coordinated approach to face the challenges and the potential negative impacts of tourism activities.

Paul Peeters

The main pitfall is believing in ineffective ‘solutions’ like offsetting emissions, battery aircraft, and bio-fuels, trying to weigh economics and social aspects against existential issues like climate change and biodiversity. The latter is not possible and means that for relatively vague reasons (losing jobs, while there are many ways to generate labour) to lose the earth systems that are essential for the survival of humans.

Challenges are: get away from the over-valuation of distance, international travel, air travel and back to the essence of being from home even if a short distance. Also focusing on policy-making is essential to make all elements of tourism, but particularly flying, zero emissions by 2050. If that is technically unsuccessful, it should be clear that aviation will be reduced to a small sector.

Peter Richards

There are so many.

Internally: Greed, weak understanding of ‘why?’, weak leadership, lack of prioritising and giving time, lack of resourcing (either intentionally or unintentionally) lack of motivating and encouraging staff, lack of good management systems to systematise and scale-up impacts.

Externally: weak government support, corruption undermining competitive environments, weak demand by customers, lack of access to modern technologies at a reasonable price.

Rachel Dodds

There are many:

  • the focus on numbers, rather than yield
  • the fact our political cycles are often 3-5 years but real change takes 10-20
  • that all stakeholders are not equal in terms of power
  • the political will to change is lacking
  • humans have short memories and so make the same mistakes over and over and those that want change are often not in control of the things that need to change

Rebecca Hawkins

Depends on the business/destination. Sometimes belief, passion, and the quest for growth at any cost. Very occasionally it is downright irresponsibility. More often than not it is a combination of conflicting priorities (e.g. between service standards and sustainability criteria), bonkers business models (that separate property ownership from management), perverse incentives (that reward consumption rather than conservation) and a firmly held belief that if the customer wants it we as a service industry have to provide it.

Digital marketing under the social influence has enormous potential to cause overtourism which can not be sustainable anymore. For instance, when destinations are using their unique mountain lake for a destination campaign, “Instagram” travellers perhaps flood the spot. Nature and locals have to pay the price for the mass invasion.

Richard Butler

The fact that the majority of tourists and many operators and governments are not prepared to adapt their behaviour/operation to the extent it would be needed to become truly sustainable.

Richard Hammond

Separating the green from the greenwash.

Shannon Guihan

Understanding. While we carry on debating the best term or definition to use, our industry, which is largely SMEs, must engage in action. However, the concept of ‘sustainability’ is daunting, and so many businesses remain uncertain about where to begin. This, in my opinion, is a massive issue. Those of us engaged must offer our resources and approaches – we must help businesses to determine the scope and supporting tactics, rather than intimidate them from joining the effort.

Shannon Stowell

Right now the economic realities of a recovering world will be a real setback for many. Some headway was being made with single-use plastics for instance and this area seems to be regressing because of COVID.

Also, there is no sense of real urgency for the environment or climate with the general public. Until the public understands and believes the seriousness of the situation, it feels like we’ll spin our wheels in many situations.

Shivya Nath

  • Business models prioritize volume over all else, ignoring planetary boundaries.
  • Sustainability as a niche, rather than a norm.
  • Placing the burden of choosing sustainable travel on the consumer.

Sonja Gottlebe

Economic sustainability is essential to be able to lead activities. The pandemic has shown the limits and fragility of tourism all over the world. The wide supply chain is suffering from this crisis.

In poor countries like Madagascar, it’s impacting the well-being of communities directly, lemurs are hunted for meat, and forests are burnt down for charcoal! Without a vision for the future, without a vaccination plan, the biggest challenge will be for travel. to bounce back!

Willem Niemeijer

Greenwashing, even if it’s done unwittingly, needs to be rooted out. Third-party certification can help avoid this trap that gives the industry a bad name. Developing destinations also need to ensure that foreign investments benefit the local community while protecting the interests of the investor.

Xavier Font

The urgent get in the way of the important. We aim to reap short-term benefits without being aware of the long-term consequences of our actions. And too much selfishness.

More about the sustainable tourism expert panel here – including previous sessions and answers to some of the most pressing issues linked to making tourism more sustainable.

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Challenges Facing Tourism | An Overview

Challenges facing Tourism include taxations, travel promotions, safety, infrastructure, and cross border set of laws among others. The majority of tourism destinations are not ready for visitors. Tourists or travelers might at times implicate travel marketing as overstated. Another main challenge in the tourism industry is the unpredictable rates and cost increase. New challenges seem to take place swiftly affecting the industry as a whole.

What is impending in tourism? What will the tourism sector have in the upcoming years? It is the query that all experts in the travel industry are asking. Let’s consider some of the challenges faced by the travel industry as well as what are the expectations.

Impact of Coronavirus on International Tourism

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Challenges Facing Tourism | Cost of Vacation and Increase in Prices

 An image of percentage prices-Challenges Facing Tourism

The increase in prices is increasing at a frightening rate and hotels have had to increase prices or lower their service quality to stay afloat. Besides, shipping companies have been hard hit. On the other hand, the airline industry is principally susceptible because airlines depend on both the food and fuel industry. In reference to the margin, airlines can do nothing apart from cutting services and increasing prices. The outcome keeps relaxation travelers away from luxurious vacations which additionally hits the entire tourism sector.   Check out how we help hotels achieve their objectives

Challenges Facing Tourism | Tax, And Tourism

The tourism industry is a profoundly taxed segment in a number of countries. A variety of taxes are charged across the whole industry starting with tour operators, transporters, and the airline industry to hotels.  These include service tax, comfort tax, shipping tax, aviation tax, fuel tax, and several taxes on shipping. Besides, these tax rates differ across diverse states in the country. All these taxes are eventually transferred to the tourists in one way or the other hence hindering its growth.

Challenges Facing Tourism | Risk, And Safety Of Tourists

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Already the events of the 21st-century focus concentration on safety risks to tourists linked to terrorism and political groups. Besides, tourism is affected by natural disasters like pandemics, tsunami, earth tremors, floods, volcanoes, and landslides. A crisis can be described as any unforeseen event that influences tourist confidence in a destination while interfering with the capability of normal operation. Check out similar blog posts.

Challenges Facing Tourism | Regulatory And Border Issues

Regulatory issues such as visa processes are perceived as obstructions. Complicated visa procedures block tourists from accessing certain destinations. Numerous projects in the tourism infrastructure division and in the hotel industry are postponed because licenses are not approved on time.

On the other hand, the government must develop proper infrastructure, speedy clearances, and make successful policies to control the tourism sector. This will work towards gaining the self-confidence of overseas tourists.

Technical Drivers of Change

Technology is swiftly penetrating into every aspect of life. Tourism prospects will be determined and assisted by technology. The internet has equalized the playing ground for tourism promotion. Therefore, a good website implies small inaccessible destinations can compete equally with the giants of tourism. The synthesis of information and communication technology will enable tourism ventures to become more resourceful and competent.

Trained Human Resources

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Expert tourism employees can only be realized through high standards of modern tourism instruction and training. Tourism training involves sharing of knowledge, ideas, and techniques that are precise to the field of tourism. Besides, revolves around the core disciplines such as geography, finance, and advertising among others.

The Bottom-Line

The challenges facing tourism as well as the future of the industry are many due to the Covid19 pandemic. The steady surfacing from this interruption offers an extraordinary chance to discover and try out. Key players in the tourism sector should constantly reinvent their expectations in terms of work output. It is high time to exploit new inventions to manage the challenges to keep their businesses afloat.

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4 thoughts on “challenges facing tourism | an overview”.

any other info about tourism challenges, i struggle searching other information specially in tax tourism, technical drivers of chang and other stuff.

Hello, and thanks for your feedback. I will be publishing more on the mentioned sub-topics. Kindly subscribe and follow this blog for prompt notification when I publish. Once again thank you for your time.

You know, contrary to what some might think, the tourism scene isn’t all smooth sailing. But hey, focusing on community bonds and sustainable practices can seriously jazz up our travel experiences. Let’s aim for genuine vibes, preserving cultures, and making a positive impact!

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UN Tourism | Bringing the world closer

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Healing Solutions for Tourism Challenge

UNWTO received over  1,000 applications  from over  100 countries  for the Healing Solutions for Tourism Challenge, launched to identify the most disruptive startups, entrepreneurs and drive solutions to mitigate COVID-19’s impact on tourism. The selected shortlisted  semi- finalists announced below:

Finalists Healing for people:

  • CleanScan /Chameleon  Welcome Back (Canada/USA)
  • Outpost Healthy Destinations (Canada)
  • SeeTrue (Israel)
  • Smart Occupancy (Spain)

Finalists Healing for prosperity:

  • MyStay (Czech Republic)
  • WAAM (Poland)

Finalists Healing for destinations:

  • Airside (United States of America)
  • Beautiful destinations (United States of America)
  • iBonus COVID19 Digital Prevention System (Hong Kong, China)

Regional Runner-ups:

  • Africa: Booklet , Video
  • Americas: Booklet , Video
  • Europe: Booklet, Video
  • Asia & the Pacific : Booklet, Video

Semi - Finalists Healing for People:

  • AirFi Health Declaration - (Singapore)
  • CleanScanLLC/Chameleon Welcome Back. You're in Good Hands - (Canada)
  • CONTROL H&S Health and Safety cloud application - (Spain)
  • Life365 - (United States)
  • Mobiworld - (Spain)
  • OUTPOST Healthcare HealthyDestinations - (Canada)
  • PassCare by InnovHealth Group - (France)
  • SeeTrue Screening ltd. - (Israel)
  • Smart Occupancy - (Spain)
  • Smart Tour   -  project: Smart Tracking - (Brazil)

Healing for Prosperity - Semifinalists:

  • 20 Bananas   (Spain)
  • Homiefoo   (Mexico)
  • Hoomvip & Hotelvip   (Spain)
  • Hotel Data Cloud   (Germany)
  • Hotelmize (Israel)
  • MyStay  (Czech Republic) 
  • Questo (Romania) 
  • STAYmyway  (Spain)
  • WAAM - company, WAAM Gate Med v 1.0 (Poland)

Semi - Finalists Healing for Destinations:

  • Health Security Global  (Australia)
  • JumpStart EU Tourism  (Germany)
  • Destination: Forward  (United States)
  • iBonus COVID19 Digital Prevention System (Hong Kong, China)
  • Beautiful Destinations, Inc. (United States)
  • Travello - Travel Safe Project (Australia)
  • Sojern (United Kingdom)
  • Bespoke (United States)
  • Airside (United States)
  • Niantic Inc. - Pokémon GO City Spotlight Event Series (United States)

Following the success of the competition and continuous developments in new solutions, UNWTO has now opened a space to share startups and companies working for restarting tourism.

See our first newsletter:.

  • Download the Newsletter #1

"I am deeply convinced that there is no other way to deal with global challenges, than with global responses."

António Guterres, UN Secretary-General

This challenge is a global call to reach the most disruptive startups, entrepreneurs and drive solutions to mitigate Covid-19 impacts on tourism through health, economic and destination management solutions. A step forward for Sustainable Development in a crisis situation.

Facts and figures

Tourism , 10 years of continuous growth 2010-2019

The most resilient economic sector

International Tourist Arrivals (1995-2019)

1.5 one billion arrivals reached in 2019 UNWTO (2020)

4% of growth in 2019 UNWTO (2020)

1 in 10 jobs worldwide are in tourism UNWTO (2019)

7% of global exports UNWTO (2019)

The most human and democratic sector is under threat as well as people's economic means. Only a joint effort is able to recover from the Covid-19 pandemic.

Sustainable Development in a crisis situation

A global call to reach the most disruptive startups, entrepreneurs, innovators and existing technologies to mitigate Covid-19 impacts  on tourism through health, economic and destination recovery solutions.

A step forward for Sustainable Development in a crisis situation, providing support to travelers, businesses and authorities.

An initiative to directly contribute to the Sustainable Develelopment Goals

3sdg

Target audience

Startups, entrepreneurs and innovators from all over the world with ready-to-implement solutions to drive the Covid-19 impacts in tourism. Methods, processes, governance structures, social impact initiatives, new technological applications, existing technologies, among other ways of innovation are applicable.

Participants should meet the following criteria:

Being innovative in nature and provide value-added solutions

To have a tested pilot and business plan

To have been accelerated before

To have potential to be applied in many countries

Healing for People

People

Solutions focused on safety measures, sanitizing methods, early detection, among others for tourism and travel-related stakeholders - to be used by: tourists, tourism employees, hospitality operations, travel agencies, tour-operators, transportation, amusement parks, etc.

Healing for Prosperity

Economy

Solutions focused on digital applications for tourism, sharing economy, circular economy, revenue management, demand recovery, investments, among other areas, to be implemented for the whole sector near and long-term future.

Healing for Destinations

Desnination

Solutions focused on recovery techniques for destinations: crisis communication, crisis management, mobility, tourism destinations re-branding, travel confidence recovery, among other related areas.

Selection process

Startups From all over the world

3 Categories For tourism challenges

Top solutions To start delivering

Selection process

Screening applications

Experts Committee Assessment

Top startups release

Benefits for selected finalists

The most viable and ready-to-implement solutions will be awarded as follows:

Digital booklet: To reach 150+ ministers and forward information from the best providers for tourism recovery.

Business presentation: To the world governments with the UNWTO Secretary-General from the IE University Wow Room, the most innovative space to share the solutions.

Connection with the UNWTO Innovation Network: Access to more than 5000 tourism-related startups, 930 corporations, 300 public institutions, 50 education institutions, 30 incubators and 200 investors.

Support Member States and tourism stakeholders in identifying and mitigating global and local risks related to tourism: mitigations strategies, actions and instruments to evaluate risks of global and local importance.

Strengthen the coordination of all tourism stakeholders along the tourism value chain.

Measures to facilitate international travel, by ensuring the safe and efficient movement of travelers: including an exchange of information, development of standards and procedures meant to deter threats, reduce costs and safeguard the movement of travelers.

Promote technology acquisition and facilitate investment.

25 March 2020

Deadline for candidatures

22 April 2020

Announcement of top startups

30 April 2020

Selection of finalists to be awarded benefits

Digital presentation by finalists to member states.

Terms and Conditions - COVID19 Solutions  

"The worldwide Coronavirus pandemic is a challenge we must face together... our response must be calm, consistent and collective. Tourism will once be there to help people and communities recover from this setback."

Zurab Pololikashvili, UNWTO Secretary-General

Tech partner :

IE University

Abbas Africa

Abbas Africa

Major tourism challenges in Africa

10 Major Tourism Challenges in Africa

When it comes to tourism in Africa, we face a myriad of challenges that are as vast and diverse as the continent itself. From the momentous task of overcoming infrastructure limitations to the delicate balance of managing security concerns, the road to a thriving tourism industry can seem like an uphill battle.

But amidst these challenges, lies the potential for growth and development, waiting to be unlocked. In this discussion, we will explore ten major obstacles that Africa faces in its quest to become a prominent tourist destination, and perhaps uncover strategies to navigate these hurdles.

So, join us as we embark on a journey through the challenges and opportunities that lie ahead for African tourism.

Key Takeaways

  • Inadequate infrastructure, including roads, airports, and public transportation, hampers tourism growth in Africa.
  • Political instability and safety concerns deter tourists and hinder the development of the tourism industry.
  • Lack of air connectivity and visa restrictions make it difficult for tourists to visit different countries within Africa.
  • Seasonality and environmental challenges, such as overcrowding during peak season and environmental degradation, impact the sustainability and appeal of African tourism.

1. Infrastructure Limitations

Infrastructure limitations pose significant challenges for tourism in Africa, hindering the growth and development of the industry.

Africa is a continent of immense beauty and rich cultural heritage, but its potential as a tourist destination remains largely untapped due to inadequate infrastructure. The lack of well-maintained roads, airports, and public transportation systems makes it difficult for tourists to navigate the continent and explore its wonders. This not only limits the number of visitors but also hampers their overall experience.

Additionally, the absence of reliable electricity and internet connectivity in many areas further inhibits the growth of tourism. Without proper infrastructure, accommodations, and facilities, tourists may be discouraged from visiting Africa and may choose other destinations instead.

African governments and stakeholders must invest in improving infrastructure to unlock the full potential of tourism and foster economic growth in the region.

2. Political instability

Political instability can have a significant impact on the tourism industry in Africa, affecting visitor numbers and overall economic growth. When a country experiences political instability, it often leads to a decline in tourism due to safety concerns and travel advisories issued by other nations.

Tourists prioritize their safety above all else, and if they perceive a country to be politically unstable, they’re likely to choose alternative destinations. This not only results in a decrease in visitor numbers but also has a ripple effect on the economy.

The tourism industry in Africa plays a crucial role in generating revenue, creating jobs, and supporting local communities. Therefore, political stability is essential for attracting tourists, encouraging investment, and ensuring sustainable economic growth.

3. Security Concerns

As we shift our focus to the subtopic of security concerns, it’s crucial to understand how these issues interconnect with political instability and impact the tourism industry in Africa.

Security concerns pose a significant challenge to the growth and development of tourism in the region. The presence of violence, terrorism, and crime can create a sense of fear among potential tourists, deterring them from visiting African destinations. This fear not only affects the number of tourists but also their length of stay and spending patterns.

Moreover, security concerns can result in the imposition of travel advisories and restrictions by foreign governments, limiting the flow of tourists to Africa.

Addressing security challenges requires a comprehensive approach that involves cooperation between governments, law enforcement agencies, and the tourism industry to ensure the safety and well-being of tourists.

4. Limited Air Connectivity

Limited air connectivity poses a significant hurdle to the growth and accessibility of tourism in Africa. The lack of direct flights and limited routes make it challenging for tourists to visit different countries within the continent. This not only affects the ease of travel but also increases the cost and time involved in planning a trip.

Many potential tourists are deterred by the inconvenience and opt for destinations with better air connectivity. Additionally, limited air connectivity also hampers the development of tourism infrastructure in remote areas, as it’s difficult to attract investments without the promise of regular flights.

According to AeroTrail, air transport volumes within the African continent are considerably lower when compared to the rest of the world. The penetration rate of intra-air-connectivity in Africa stands at only about 14.5%. To overcome this challenge, African governments and airlines need to work together to increase the number of direct flights, expand routes, and improve air connectivity across the continent. This won’t only boost tourism but also promote economic growth and create employment opportunities in Africa.

5. Visa Restrictions

With limited air connectivity being a major challenge for tourism in Africa, another obstacle that hinders the growth and accessibility of the industry is the issue of visa restrictions. These restrictions make it difficult for tourists to visit and explore the continent, limiting the potential for economic growth and cultural exchange.

While some African countries like Rwanda have implemented visa-free or visa-on-arrival policies, many still require visitors to go through a lengthy and expensive process to obtain a visa. This not only discourages potential travelers but also creates a barrier for businesses and investors looking to explore opportunities in the region. The 2022 Africa Visa Openness Index reveals that African citizens still need to obtain visas for 47% of intra-Africa travel, showcasing a positive change from 51% in 2021.

6. Dependence on foreign travelers

Foreign travelers play a crucial role in shaping the tourism industry in Africa, contributing to its economic growth and cultural exchange. Africa’s rich and diverse landscapes, wildlife, and cultural heritage attract millions of tourists each year, bringing in much-needed revenue and creating job opportunities for locals.

However, this dependence on foreign travelers also poses challenges. Fluctuations in international travel patterns, such as political instability or global economic downturns, can significantly impact the tourism industry in Africa. Additionally, relying heavily on foreign tourists can lead to a lack of focus on the domestic market.

The COVID-19 pandemic has highlighted Africa’s reliance on international visitors, particularly in Eastern and Southern African countries, as reported by the International Finance Corporation (IFC). In comparison to North America (83%), Asia-Pacific (74%), and Europe (64%), Africa’s domestic tourism accounted for only 55% of travel and tourism expenditure in 2019 according to the same source. African countries need to strike a balance between attracting foreign visitors and nurturing a strong domestic tourism sector. By investing in infrastructure, promoting local tourism, and creating unique experiences, Africa can reduce its dependence on foreign travelers and ensure sustainable growth for the industry.

7. Lack of skilled labor

The tourism sector in Africa is facing a significant challenge due to the lack of skilled labor. This issue is impacting the industry’s growth and competitiveness, according to a report by the World Bank. Inadequate organization and a lack of profitability in many tourism operations have resulted in a heavy reliance on expatriate staff and insufficient training opportunities. The report emphasizes the importance of joint efforts between the public and private sectors to achieve growth, wealth creation, and shared prosperity in the tourism sector. The International Finance Corporation (IFC) also highlights the need for skilled labor to support the sector’s recovery and long-term growth, particularly in light of the current crisis and Africa’s reliance on foreign travelers. The lack of skilled labor not only affects the quality of services but also hinders the industry’s ability to fully capitalize on its potential for economic growth and job creation.

Therefore, it is crucial to address the skills gap by investing in training and labor development to ensure the sustainable development of the tourism industry in Africa. To address this challenge, African governments, tourism organizations, and educational institutions must collaborate and invest in training programs that equip individuals with the necessary skills and knowledge to thrive in the tourism industry.

8. Marketing Issues

Marketing plays a crucial role in the success of the tourism industry in Africa, as it helps to attract and engage potential visitors from around the world. However, Africa faces several marketing challenges that hinder its full potential.

One of the main issues is the lack of a coordinated marketing strategy. Many African countries operate independently, resulting in fragmented efforts that fail to create a cohesive brand image for the continent.

Additionally, limited marketing budgets and resources pose significant obstacles in reaching and targeting the right audience. The lack of accurate and up-to-date data also hampers effective marketing campaigns.

To overcome these challenges, African countries need to collaborate and develop a unified marketing approach that showcases the diverse and unique attractions the continent has to offer.

9. Seasonality

As we explore the challenges facing tourism in Africa, one significant issue that arises is the impact of seasonality on the industry’s sustainability and growth.

Africa is a continent that experiences diverse climates, resulting in varying tourist demand throughout the year. The peak season, characterized by favorable weather conditions, often leads to overcrowding and increased prices. Conversely, the low season, with its unpredictable weather or extreme temperatures, poses challenges for attracting visitors.

This seasonality creates a significant hurdle for tourism businesses to maintain a steady flow of customers and generate consistent revenue. A study published in the Journal of Travel Research reveals that tourism in Africa experiences significant seasonality, leading to uneven distribution of tourist activity across destinations. This phenomenon often results in overcrowding at certain times and underutilization during others. The International Finance Corporation (IFC) also underscores the importance of tackling seasonality in Africa’s tourism industry to facilitate its recovery and foster sustainable growth in the long run. To address this challenge, stakeholders in the African tourism industry must invest in strategies to promote off-peak travel, such as offering discounted rates or organizing unique events during the low season.

10. Environmental Degradation

Environmental degradation poses a significant threat to the sustainability and future of tourism in Africa. As travelers, we’re drawn to Africa’s breathtaking landscapes, diverse wildlife, and vibrant cultures. However, the rapid pace of development and unsustainable practices are taking a toll on the environment.

Deforestation, pollution, and habitat destruction are just a few examples of the damage being inflicted. These activities not only harm natural ecosystems but also diminish the appeal of Africa as a tourist destination. Visitors are increasingly seeking destinations that prioritize environmental conservation and sustainable practices.

Governments, organizations, and individuals must work together to protect Africa’s natural resources and promote responsible tourism. By doing so, we can ensure that future generations can experience the beauty and wonder of this extraordinary continent.

Are there Strategies to Bridge Infrastructure Gaps in African Tourism Hubs?

Yes, several strategies can be implemented to bridge infrastructure gaps in African tourism hubs. These strategies aim to improve transportation, accommodation, and other tourism-related infrastructure to attract more visitors and enhance the overall tourism experience. Some of these strategies include:

Public-Private Partnerships (PPPs) Infrastructure Investment Regional Integration Sustainable Tourism Infrastructure Capacity Building Technology Adoption Tourism Cluster Development Marketing and Promotion Overall, a combination of these strategies can help bridge infrastructure gaps in African tourism hubs, attracting more visitors, boosting economic growth, and creating sustainable tourism destinations.

As tourists, we often take for granted the infrastructure that supports our travel experiences.

However, in many African tourism hubs, infrastructure gaps present significant challenges. These gaps can impact tourists in various ways, such as limiting access to remote destinations, compromising safety and security, and hindering the overall visitor experience.

In what Ways do Infrastructure Gaps Pose Challenges for Tourists in Africa?

Infrastructure gaps in Africa present several challenges for tourists. Inadequate transportation infrastructure, including poorly maintained roads and limited public transportation options, can result in longer travel times and inconvenience. Limited access to reliable internet and communication networks makes it difficult for tourists to stay connected and plan their itineraries effectively. Inadequate safety measures and limited availability and quality of tourism facilities and services can impact tourists’ safety, satisfaction, and overall experience. Environmental challenges such as inadequate waste management systems can negatively affect the cleanliness and hygiene of tourist destinations. Improving infrastructure development in the tourism sector is crucial to enhancing African destinations’ attractiveness and competitiveness.

Additionally, the lack of high-quality accommodation options, such as 5-star hotels, can deter luxury travelers from choosing some African destinations. Insufficient accommodation options can lead to higher prices and accommodations that may not meet tourists’ expectations.

To bridge these infrastructure gaps, African tourism hubs must invest in urban development projects and improve transportation networks.

Moreover, attracting international hotel chains and fostering the growth of the local hospitality industry can help provide a range of accommodation options for tourists.

How Can Urban Development in Africa Contribute to Resolving the Infrastructure Limitations?

Urban development in Africa holds the key to overcoming the limitations of infrastructure and paving the way for a vibrant and accessible tourism industry.

By investing in the development of cities and towns, African countries can address the infrastructure gaps that pose challenges for tourists. Building better roads, airports, and public transportation systems will improve connectivity and make it easier for tourists to explore different destinations.

Additionally, upgrading utilities such as water and electricity supply will enhance the overall experience for visitors, ensuring that Africa becomes a top tourism destination.

Are there 5-star hotels in Africa?

Yes, there are 5-star hotels in Africa . These luxury accommodations can be found in various African countries, offering high-end amenities and services. Some renowned 5-star hotels in Africa include Constance Belle Mare Plage in Mauritius; The Palace of the Lost City in Sun City, South Africa; The Oyster Box in Durban, South Africa; The Royal Livingstone Hotel in Livingstone, Zambia; and Lagos Continental Hotel, Nigeria. These hotels provide a high level of luxury and comfort for guests visiting various destinations across the continent.

In conclusion, Africa faces numerous challenges in its tourism industry. From infrastructure limitations to political instability and security concerns, these obstacles hinder the growth and development of the sector.

However, by implementing strategic measures like bridging infrastructure gaps and improving air connectivity, Africa can unlock its vast potential as a top tourist destination.

With a concerted effort, the continent can overcome these hurdles and pave the way for a thriving and sustainable tourism industry, becoming a beacon of adventure and discovery for travelers worldwide.

Post-pandemic boom as international tourists now spending the most since COVID

A photo of a Noosa beach in the Sunshine Coast

Australia is proving a winner with international travellers, with new data showing they are staying longer and often spending more than before the pandemic.

Tourism Research Australia has found the amount of money being spent by overseas travellers per night is slightly higher than pre-COVID in South Australia, Queensland, New South Wales and Western Australia.

New Zealand, China, the United Kingdom, Japan and the United States are the ones with the most citizens seeking an Australian holiday.

a shadowy image taken looking towards the sunrise at a lookout looking over brisbane city

Queensland has grown into a favoured stop for visitors, with Brisbane and the Sunshine Coast recording the highest overnight spending rates ever.

Travellers spent $3.2 billion in Brisbane and $371.1 million on the Sunshine Coast.

Meanwhile foreign travellers to the Whitsundays, Southern Great Barrier Reef, Fraser Coast and Outback Queensland had tourists spending rates above 2019, before coronavirus arrived in Australia.

' They stay longer and spend more'

Peter Lynch, who operates whale watching tour company Blue Dolphin Marine at Queensland's Hervey Bay, said it was great to see international tourism coming back.

"We're seeing quite a few more North Americans coming through now," he said.

"And when we come into our witching season, it's the northern hemisphere summer, so lots of Europeans.

"The Hervey Bay and Queensland market does very well with tourists from the UK, Germany, Holland, France and Italy. 

"We are definitely seeing an increase across all the tours in the region."

tourist voxie - ABC Wide Bay Lucy Loram

Tourism Minister Michael Healy said Queensland was the "top performer" for international visitor spending.

"Our international tourists, they stay longer and they spend more -- and they're the ones we really want ot focus on.

"We want to make sure that we're getting them here."

He said an increase in arrivals from South Korea and Canada had boosted numbers, but conceded "we are yet to see a full return of visitors from China, Hong Kong and Taiwan, a challenge shared across Australia".

Victoria, Tasmania and the ACT all had more visitors spending more money compared to late last year, but fell short of the 2019 levels.

The Northern Territory was the only part of the country where spending went down since the previous survey.

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How global tourism can become more sustainable, inclusive and resilient

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A sanitary mask lies on the ground at Frankfurt Airport Image:  Reuters/Ralph Orlowski

.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} Ahmed Al-Khateeb

tourism in challenges

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Stay up to date:, the great reset.

  • Tourism rose to the forefront of the global agenda in 2020, due to the devastating impact of COVID-19
  • Recovery will be driven by technology and innovation – specifically seamless travel solutions, but it will be long, uneven and slow
  • Success hinges on international coordination and collaboration across the public and private sectors

Tourism was one of the sectors hit hardest by the global pandemic. 2020 was the worst year on record for international travel due to the global pandemic, with countries taking decisive action to protect their citizens, closing borders and halting international travel.

The result was a 74% decline in international visitor arrivals, equivalent to over $1 trillion revenue losses , and an estimated 62 million fewer jobs . The impact on international air travel has been even more severe with a 90% drop on 2019 , resulting in a potential $1.8 trillion loss. And while the economic impact is dire in itself, nearly 2.9 million lives have been lost in the pandemic.

The path to recovery will be long and slow

Countries now face the challenge of reopening borders to resume travel and commerce, while protecting their populations’ health. At its peak, the World Tourism Organization (UNWTO) reported in April 2020 that every country on earth had implemented some travel restriction , signalling the magnitude of the operation to restart travel.

Have you read?

Tourism industry experts fear long road to recovery, how we can prioritize sustainability in rebuilding tourism, covid-19 could set the global tourism industry back 20 years.

Consequently, the path to recovery will be long and slow. The resurgence of cases following the discovery of new variants towards the end of last year delivered another disappointing blow to the travel industry. Any pickup over the summer months was quashed following a second wave of lockdowns and border closures . Coupled with mixed progress in the roll-out of vaccination programs, I predict that we will not see a significant rebound in international travel until the middle of this year at best.

Others echo my fears. The International Air Transport Association (IATA) forecasts a 50.4% improvement on 2020 air travel demand, which would bring the industry to 50.6% of 2019 levels . However, a more pessimistic outlook based on the persistence of travel restrictions suggests that demand may only pick up by 13% this year, leaving the industry at 38% of 2019 levels. McKinsey & Company similarly predict that tourism expenditure may not return to pre-COVID-19 levels until 2024 .

How to enhance sustainability, inclusivity and resilience

Given its economic might – employing 330 million people, contributing 10% to global GDP before the pandemic, and predicted to create 100 million new jobs – restoring the travel and tourism sector to a position of strength is the utmost priority.

The Great Reset provides an opportunity to rethink how tourism is delivered and to enhance sustainability, inclusivity and resilience. We must also address the challenges – from climate change and “ overtourism ” to capacity constraints – that we faced before the pandemic, while embracing traveller preferences, as we rebuild.

A 2018 study found that global tourism accounted for 8% of global greenhouse gas emissions from 2009 to 2013 ; four times higher than previous estimates. Even more worryingly, this puts progress towards the Paris Agreement at risk – recovery efforts must centre around environmental sustainability.

Furthermore, according to a study on managing overcrowding, the top 20 most popular global destinations were predicted to add more international arrivals than the rest of the world combined by 2020 . While COVID-19 will have disrupted this trend, it is well known that consumers want to travel again, and we must address the issues associated with overcrowding, especially in nascent destinations, like Saudi Arabia.

The Great Reset is a chance to make sure that as we rebuild, we do it better.

There is no consensus about when the tourist industry will recover from the pandemic

Seamless solutions lie at the heart of travel recovery

Tourism has the potential to be an engine of economic recovery provided we work collaboratively to adopt a common approach to a safe and secure reopening process – and conversations on this are already underway.

Through the G20, which Saudi Arabia hosted in 2020, our discussions focused on how to leverage technology and innovation in response to the crisis, as well as how to restore traveller confidence and improve the passenger experience in the future .

At the global level, across the public and private sectors, the World Economic Forum is working with the Commons Project on the CommonPass framework , which will allow individuals to access lab results and vaccination records, and consent to having that information used to validate their COVID status. IATA is trialling the Travel Pass with airlines and governments , which seeks to be a global and standardized solution to validate and authenticate all country regulations regarding COVID-19 travel requirements.

The provision of solutions that minimize person-to-person contact responds to consumer wants, with IATA finding that 85% of travellers would feel safer with touchless processing . Furthermore, 44% said they would share personal data to enable this, up from 30% months prior , showing a growing trend for contactless travel processes.

Such solutions will be critical in coordinating the opening of international borders in a way that is safe, seamless and secure, while giving tourists the confidence to travel again.

Collaboration at the international level is critical

The availability of vaccines will make this easier, and we have commenced our vaccination programme in Saudi Arabia . But we need to ensure processes and protocols are aligned globally, and that we support countries with limited access to vaccinations to eliminate the threat of another resurgence. It is only when businesses and travellers have confidence in the systems that the sector will flourish again.

In an era of unprecedented data and ubiquitous intelligence, it is essential that organizations reimagine how they manage personal data and digital identities. By empowering individuals and offering them ways to control their own data, user-centric digital identities enable trusted physical and digital interactions – from government services or e-payments to health credentials, safe mobility or employment.

tourism in challenges

The World Economic Forum curates the Platform for Good Digital Identity to advance global digital identity activities that are collaborative and put the user interest at the center.

The Forum convenes public-private digital identity collaborations from travel, health, financial services in a global action and learning network – to understand common challenges and capture solutions useful to support current and future coalitions. Additionally, industry-specific models such as Known Traveller Digital Identity or decentralized identity models show that digital identity solutions respecting the individual are possible.

The approach taken by Saudi Arabia and its partners to establish consensus and build collaborative relationships internationally and between the public and private sectors, should serve as a model to be replicated so that we can maximize the tourism sector’s contribution to the global economic recovery, while ensuring that it becomes a driver of prosperity and social progress again.

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World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

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Nashville tourism leaders unveil bold plan to manage rapid growth with safety

tourism in challenges

  • Colin Reed of Ryman Hospitality Properties and Deana Ivey of the Nashville Convention and Visitors Corp. co-chaired the strategic planning group.
  • The plan focuses on Nashville's reputation, public safety and the financial impact of the tourism industry.
  • The city's tourism industry is expected to continue to grow quickly over the next decade.

Nashville needs to undergo big changes to get its house ready for more visitors over the next decade and to maintain Music City's ascent, according to a sweeping new long-term strategy from its chief tourism executives.

"The Music City Strategic Plan," released to The Tennessean Thursday morning, calls on Metro Nashville to increase policing, asks bar owners to deter raucous behavior and challenges hospitality industry leaders to show support for improvements, among other recommendations.

"We have a great destination, but we also need to take care of it," said Deana Ivey, the president and CEO of the Nashville Convention and Visitors Corp. "And we want to make sure that growth continues. The plan is our roadmap to tell us what we need to take care of."

The report says Nashville's reputation is threatened by "alcohol overconsumption, drug use and brawling," among other concerns.

Facing the challenges of ever-growing Music City tourism

It outlines eight objectives to push back on the problems and create several advisory groups and marketing campaigns to move the recommendations forward.

Learn more: Best travel insurance

Ivey co-chaired the report's strategic-planning groups with Colin Reed, executive chairman of Ryman Hospitality Properties, operator of some of Nashville's most famous brands including Opryland. Dozens of downtown business leaders took a hard look at the city to help develop the plan — from Garth Brooks' honky-tonk partner Max Goldberg and Metro Planning Director Lucy Kempf, to Titans President Burke Nihill and Fifth Third Bank executive Kevin Lavender.

"I think it tells a really powerful story about where we are as a city, how fragile and important this music-based entertainment is, and how the global growth is taking place as these artists are connecting with consumers all across the planet," Reed said. "And how this will stimulate future growth in this wonderful town."

The group has been meeting since late 2022 to address the biggest challenges facing Nashville's tourism industry. Their plan comes the same week as the Davidson County Medical Examiner's office released Riley Strain's autopsy report , revealing the 22-year-old visiting college student's excessive alcohol intoxication contributed to his accidental drowning after he left friends on Lower Broadway on March 8.

The tourism report found that: "A thriving hub in the heart of Nashville, the Downtown Tourism District has faced considerable challenges recently. Current issues on Broadway, such as overconsumption, overcrowding, and noise pollution, damage Nashville’s reputation as a warm, welcoming city."

It calls for more Metro Nashville police officers, added family-friendly attractions and, among other things, creates a Music City Local Host Committee of hospitality CEOs to attract big events, advise government leaders and raise private funds for events at the new Nissan Stadium.

The strategic plan is backed by some of the most influential voices in Nashville's hospitality industry. In the working group were leaders representing organizations like the Nashville Downtown Partnership, the Nashville International Airport, the Country Music Association and Vanderbilt University Medical Center.

Uniting state, local politicians around tourism growth

Tensions reached a fever pitch last year between Nashville's Democratic-leaning political leaders and Tennessee's Republican elected officials.

After Metro Nashville Council members rejected a bid for the 2024 Republican National Convention in 2022, state leaders lashed out against what they said was bad local fiscal management. Last year, state officials attempted to take over the Metro Nashville Airport Authority Board of Commissioners and sought to cut the number of Metro Council members from 40 to 20 .

Reed said the simmering tension is bad for tourism.

"We’re going to be sitting down with state leadership to present the impact of our industry. I’m hopeful we can have a calming effect," Reed said. "It’s about the education of these folks so they truly understand the power of this industry and where it is going."

Ivey said improving the experience for tourists downtown and maintaining Nashville's positive reputation is a top priority.

"If we don’t take care of our business and keep the city safe and clean, all that can go away," Ivey said. "It can go away quickly and the spigot could be turned off. That would be a real problem for this city."

They proposed new marketing campaigns highlighting the positive while also encouraging hospitality leaders to do more to curb the problems.

The city saw a record 16.8 million visitors in 2023 , and direct visitor spending amounted to $10.56 billion, up 6% from the year prior. The hospitality industry employs more than 70,000 people locally.

That's a dramatically different picture than just a decade ago.

"We’ve evolved," Reed said. "The things we are thinking about today as an industry are very different from the things we thought about a decade ago."

Moderate projections show that, within a decade, the number of tourists visiting Nashville could swell to more than 20 million people a year. Those tourists would leave behind hundreds of millions of dollars in tax revenues for Davidson County and the state of Tennessee, according to the report. Annual direct visitor spending could reach as high as $20 billion in 2034 if the growth of tourism keeps its current historic pace.

Growth in the hotel industry has also soared, resulting in increased revenue from the city's lodging taxes. The most aggressive revenue growth has come from the hotel occupancy tax, which has soared more than 262% over the past decade.

Hotel room supply has grown 59% since 2013, and more than 13,000 hotel rooms are currently in various stages of development , in addition to the approximately 40,000 that already exist.

Beyond downtown: Spreading the wealth with new housing, transit

While downtown's Lower Broadway is the most concentrated tourism hub, Nashville's distinct neighborhoods are increasingly on the list for visitors.

Neighborhoods like East Nashville, Germantown and the Gulch are especially popular for repeat visitors, and areas outside of downtown are noticed for their culturally diverse businesses and attractions.

That's why the strategic plan recommends the expansion of family-friendly attractions and increased support for Nashville's racially and ethnically diverse business owners.

"I think people misunderstand, or they assume, that the only tourism that is here are the people who are drinking on Broadway," Ivey said. "They don’t realize that there are visitors throughout all the neighborhoods."

Attracting a growing number of international tourists is a key priority as well. The report recommends additional global marketing focused on "ensuring an authentic and welcoming Nashville experience."

Reed said when it comes to supporting city-led efforts to expand access to public transportation and affordable housing , some of the dozens of hospitality leaders who contributed to the plan should be willing to throw support to the work.

"I’m very hopeful that these people will be supporting initiatives from elected officials," Reed said.

The report itself stresses the importance of robust attainable housing near the downtown core for the city's hospitality workers and creative community who work near downtown every day.

"We are pleased to hear that Mayor O’Connell will be proposing a transit initiative in 2024 and the industry will look forward to doing its part to advocate for greater investment in affordable public (transportation) for the benefit of our workforce and our visitors," the report says.

Reducing crime and improving the city's reputation

While overall crime only rose 1% from 2019 to 2022, violent crime jumped from 21% to 25% — mostly in areas frequented by tourists, the report states.

"We must combat a mentality that 'tourism at all costs' is healthy for our city’s growth and progress," says the report.

Solutions proposed are more security cameras, better street lighting, stricter rules for vendors and training for hospitality workers to help sexual assault victims and to intervene in dangerous situations , among others.

And it argues police staffing and pay, which starts at $45,000, should be increased.

"MNPD currently is roughly 200 officers short of budgeted officer staffing levels, the minimum headcount necessary for effective performance," the report states. "MNPD is struggling to attract, recruit, and retain police officers. This pay scale is problematic in a city experiencing significant cost of living increases. According to one analysis performed in 2022, the average compensation for the MNPD ranks ninth among police departments in Tennessee."

While downtown Nashville's problematic reputation is based in some fact, the area gets a bad rap considering its outsized economic contribution to the county, the report says.

"Hospitality is the second largest industry in Nashville and Tennessee, directly employing more than 70,000 residents," states the report. "Music City’s reputation, major events and new state-of-the-art hospitality assets are sources of pride and enjoyment for Nashvillians."

The report recommends a "communications campaign" focused on the hospitality industry's large economic impact and highlighting its community assets like restaurants, sports arenas and concert venues.

"Despite these benefits, in recent years, many residents have blamed the tourism industry solely for the angst many feel due to the city’s recent growth challenges," it states.

Japan’s tourism is a victim of its own success

Faced with the arrival of 33 million travelers taking advantage of the weak yen, the country is taking measures to curb visitor numbers.

Turismo en Japón

In a far cry from the isolationist Samurai era, the Land of the Rising Sun has become a victim of its own success when it comes to receiving visitors. A destination that was once considered off the map for the majority of tourists due to its remoteness and the language barrier, Japan has managed to multiply its tourist figures in 2023, making a quantum leap from three to 25 million tourists compared to 2022, according to data from the Japan National Tourism Organization (JNTO). And this tourist tsunami is expected to become even more overwhelming in 2024: the country has already welcomed around 12 million visitors and expects this figure to reach 33 million by December, surpassing 2019′s record of 32 million.

Admiring views of Mount Fuji through the mist or taking a selfie in Kyoto’s geisha district are among the country’s top tourist attractions. Now, however, if visitors try to take the iconic roadside photo of the mountain, their view will be obscured by 1.8-meter fencing that was recently installed by the Ministry of Transportation and Tourism to prevent the flood of visitors to the mountain village of Kawaguchi from collapsing the road. Now, if they want to climb the mountain, they have to pay a tax of 2,000 yen (€11.78 or $12.64).

The sudden uptick in tourist numbers is undoubtedly a consequence of the strategy announced by Japanese Prime Minister Fumio Kishida to push tourist numbers to 60 million annual visitors by 2030. Although more than half the arrivals to Japan have been from other Asian countries, the most considerable increase has been from Mexico, up 104% from before the pandemic, followed by U.S. travelers (47.3%) and Middle Eastern visitors (44.6%), according to the JNTO. The influx of tourists, bolstered by an attractive dollar-yen exchange rate, contributed 5.3 trillion yen (€31.4 billion or $33.7 billion) to the Japanese economy in 2023. In May, the yen hit its lowest level since 1990, at 160 to the dollar, following the Bank of Japan’s historic reversal of its negative interest rate policy in March.

Tourists in front of the Kiyomizudera shrine in Kyoto, Japan, known for its geisha. The authorities have started to restrict access to this area.

Despite the success of the Prime Minister’s tourist strategy, local areas, burdened by labor shortages, have begun to experience the hidden cost of mass tourism. More than half of Japanese companies say they do not have enough employees, according to a recent survey by Teikoku Databank, a credit research firm. The lack of staff has led to a record number of corporate bankruptcies: 1,016 bankruptcies were recorded in May, with the service and transportation sectors among the hardest hit.

New measures

Famous for its omotenashi or hospitality culture, Japan has had to take sweeping measures, targeting tourism everywhere from Tokyo to the most remote islands. In Shibuya, for example, the capital’s trending district, the authorities have curbed nightlife due to noise and bad behavior. Japan’s islands have also begun to feel the aftershocks of this tourist boom . The surge of foreigners to some remote islands in the Okinawa region has prompted several local governments to impose an entry tax on travelers. Miyajima Island, off the coast of Japan, began to charge 100 yen (€0.59 or $0.63) to foreigners arriving by boat to visit Itsukushima Shrine last October. This may seem negligible, but the local government expects to earn 250 million yen (€1.4 million or $1.5 million) from the fee this year, according to the Japanese media.

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tourism in challenges

Visa Constraints, Border Bottlenecks Major Bane Against Tourism In Africa – Senchi Executive Director

LAGOS – The continuous strict visa regime in Africa and the myriads of challenges at the land borders, especially within the West African region are two crisis dwindling tourism potential on the continent.

Mr. Nana Kwame Yeboah-Afari, the Executive Director at the Royal Senchi Resort, Akosombo, Ghana stated this on Thursday in an interview with journalists in Ghana.

According to Yeboah-Afari, the various policies by African governments were not encouraging for tourism, stressing that until some of these policies are changed, Africa would continue to witness the current drought in tourism.

Besides, Yeboah -Afari, called for collaboration, rather than competition among the West African states.

Recall that Alhaji Aliko Dangote, the Africa’s richest billionaire, had last month decried difficulties faced by investors travelling on the African continent.

He did say that he needed different 35 visas on his Nigerian passport, stressing that this alone was affecting the economic development of Africa.

Yeboah -Afari, however, said that Dangote was not alone in this challenge, maintaining that as a businessman, he equally faces such crises in Africa, especially within West Africa.

He said: “The recent complaints by Mr. Aliko Dangote on the challenge flying around Africa – the fact remains that he is not alone in this challenge. Visa issues on the continent are a major constraint and the crisis at the borders also call for concerns. This is not good enough for Africa if we want to promote tourism.

“I have had a lot of experiences going through various borders like Togo, Cote D’Ivoire and others. What I can say is that it is not pleasant. If you have money to throw around, you go through the borders easily, but for day-to-day people, it’s very difficult to navigate this.

“It is always good to see collaboration within Africans and I say this with a lot of passion because too often, we see a lot of competition among us when we should have collaborated and make our products bigger and it would be enough for everybody. It is in our collective interest to put together our resources to be able to host large meetings.”

He, however, said that hoteliers in Ghana and other West African countries are meeting to ensure some of the policy regimes are relaxed to encourage more tourists within the continent.

He enjoined West African governments to emulate their Southern African counterparts by collaborating with one and others.

Besides, speaking on the Royal Senchi Resort, Yeboah -Afari, declared that it was highly cost effective to keep the 35 acres facilities going.

According to him, some of the agricultural produce and dairy products for the resort are sourced in other African countries and Europe, which makes it more expensive to run.

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Maldives Navigates Between India and China Amid Tourism and Economic Challenges

The maldives is strategically balancing its relations between india and china, following president muizzu's recent visits to both nations. a senior minister's remarks highlight india's vital role in tourism, while ongoing talks with china focus on trade and economic cooperation despite significant debt concerns..

Maldives Navigates Between India and China Amid Tourism and Economic Challenges

In a bid to balance its strategic interests, the Maldives is meticulously navigating its relations between India and China. A visit by a senior Maldivian minister to China emphasized President Mohamed Muizzu's recent diplomatic engagements with New Delhi, underscoring India's crucial role in bolstering the Maldives' tourism-centric economy.

Minister of Economic Development and Trade, Mohamed Saeed, reiterated the significant relationship with India during an interview at the 15th World Economic Forum in Dalian. "India remains our closest neighbor," Saeed affirmed, highlighting substantial Indian investments, especially in the tourism sector.

Meanwhile, metrics from the Maldivian Ministry of Tourism reveal a notable drop in Indian tourist arrivals, signaling a shift in tourism dynamics. Concurrently, talks with China are being expedited to implement the Free Trade Agreement, despite looming foreign debt concerns. Observers warn Maldives could face a financial crisis akin to Sri Lanka without debt restructuring.

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The Supreme Court on Wednesday rejected a challenge against the Biden administration accusing it of improperly colluding with Big Tech companies to censor social media posts deemed “misinformation” about the COVID-19 pandemic and other topics.

In a 6-3 decision, the justices held that the plaintiffs, led by the attorneys general of Louisiana and Missouri, lacked standing to bring the case. Justice Samuel Alito dissented, warning in a blistering opinion that America “may come to regret” the majority ruling, and was joined by Clarence Thomas and Neil Gorsuch. dissented.

The plaintiffs had sought an injunction to restrict the administration’s ability to “coerce” social media companies like Facebook and X to take down certain posts, arguing the Biden administration used its vast regulatory authority to trample on the First Amendment when it requested the removal of material about COVID-19 vaccines and other topics. 

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The Biden administration countered that it was merely exercising the federal government’s own free speech rights in advising about a public health emergency. 

“To establish standing, the plaintiffs must demonstrate a substantial risk that, in the near future, they will suffer an injury that is traceable to a Government defendant and redressable by the injunction they seek,” Justice Amy Coney Barrett wrote in the majority opinion. “No plaintiff has carried that burden.”

“The plaintiffs assert injuries based on the restrictions that countless other social-media users have experienced. This theory is startlingly broad, as it would grant all social-media users the right to sue over someone else’s censorship—at least so long as they claim an interest in that person’s speech,” Barrett later added.

She conceded that “the record reflects that the Government defendants played a role in at least some” of the moderation choices, but contended that the “platforms had independent incentives” as well.

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During  oral arguments back in March , the Supreme Court signaled wariness about siding with the plaintiffs, who included five social media users.

Barrett and her fellow conservatives Brett Kavanaugh and John Roberts, along with their liberal counterparts, had fretted over the scope of the relief sought and were concerned it could set a precedent restricting government officials from private sector collaboration on critical public safety matters. 

Alito disagreed, calling the actions of administration officials “blatantly unconstitutional” in his 34-page dissent.

The Supreme Court from left, Justices Sonia Sotomayor, Amy Coney Barrett, Clarence Thomas and Neil Gorsuch, Chief Justice John Roberts, and Justices Brett Kavanaugh, Samuel Alito, Ketanji Brown Jackson and Elena Kagan.

“Purely private entities like newspapers are not subject to the First Amendment … But government officials may not coerce private entities to suppress speech,” he wrote. “The record before us is vast.”

“What the Court seems to want are a series of ironclad links — from a particular coercive communication to a particular change in Facebook’s rules or practice and then to a particular adverse action,” Alito added. “No such chain was required.”

“Internet platforms have a powerful incentive to please important federal officials, and the record in this case shows that high-ranking officials skillfully exploited Facebook’s vulnerability,” the justice stressed. “…Their communications with Facebook were virtual demands. And Facebook’s quavering responses to those demands show that it felt a strong need to yield.”

A lower court had issued a preliminary injunction last summer barring multiple White House officials from corresponding with companies like Google, Facebook and X about content moderation amid the case. The New Orleans-based 5th Circuit Court of Appeals partially upheld that injuction, while narrowing the application to a smaller group of officials. 

However, the Supreme Court  paused  the injunction last year pending its decision.

The case evaluated a practice known as “jawboning” in which the government encourages private sector actors to carry out certain actions, with the specter of undefined consequences if there is no compliance. 

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