tourism based economy countries

Tourism is one of the primary drivers of economic growth and job creation in emerging economies throughout the world. It has also reduced government tax revenues and constrained the availability of resources for destination management and site conservation. For instance, the World Bank forecasts that emerging markets and developing economies (EMDEs) will not return to pre-pandemic economic output trends until after 2023, with more than 80% of tourism-reliant EMDEs still below their 2019 economic output at the end of 2021.11 Recent concerns about the slowdown in globalization and trade due to the impact of the pandemic and geopolitical tensions12 further enforce how important T&T is for global connectivity. Before the COVID-19 pandemic, tourism was the worlds largest service sectorproviding one in ten jobs worldwide, almost seven percent of all international trade and25 percent of the worlds service exportsa critical foreign exchange generator. More T&T services are being accessed by digital systems through online travel agencies (OTAs) and sharing economy platforms, direct online bookings, digital payment systems and mobile devices, and thus consumers tend to expect the greater convenience, increased options, reduced person- to-person contact and seamless experience that these systems provide. 10 Economic impacts of tourism + explanations + examples Caribbean economies most dependent on tourism 2021 | Statista China ($224 billion) 3. Economic Impact Research - World Travel and Tourism Council Moreover, for many emerging economies, T&T is a major source of export revenue, foreign exchange earnings and investment. This necessitates the active participation and coordination of sector and non-sector business, employers and employees, government agencies ranging from tourism and health ministries to local authorities, environmental and conservation groups, and international organizations. Unsurprisingly, many of the countries suffering the most economic damage are island nations. 1. In general, the ability of an economy to support its population through social protections such as unemployment and maternity benefits, keep youth employed or in training, effectively uphold workers rights and support a diverse and inclusive workforce may potentially help strengthen employee productivity, expand the labour pool and make it more resilient to risks such as pandemics.51 This is particularly true for the T&T sector because it provides income for a large number of youth, women, informal workers, the self-employed and small enterprises, who do not always have access to social or worker protections. Schlegeis Stausee, Austria. The COVID-19 pandemic and its impact have underscored the T&T sectors vital role in global connectivity and development. Italy ($76.3 billion) 9. As a result, the global physical oil market is astronomical in size and has a significant economic and geopolitical influence, with a few countries dominating global oil production. How Old Are the Worlds Nuclear Reactors? As UN custodian, the UNWTO Department of Statistics compiles data on the Sustainable Development Goals indicators 8.9.1 and 12.b.1, included in the Global Indicator Framework. All statistical tables available are displayed and can be accessed individually . Aruba. Get the latest and most up-to-date tourism statistics for all the countries and regions around the world. This included biodiversity protection actions such as putting tourism at the forefront of conservation efforts and ensuring that the value tourism provides for conservation efforts via monitoring mechanisms and investing in nature-based solutions is captured. Tourism direct GDP as a proportion of total GDP (indicator 8.9.1) Indicator 8.9.1 on Tourism Direct GDP helps to monitor Target 8.9 which calls on countries "to promote sustainable tourism" under Goal 8 on decent Work and Economic Growth. For one, proper care must be paid to developing transport, tourism, health and ICT infrastructure in rural, nature and secondary destinations. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. Growing Wildlife-Based Tourism Sustainably: A New Report and Q&A When the dust finally settles, could global tourism face a reckoning? Visualizing the Countries Most Reliant on Tourism So remember on your vacation to this sin city, you're gambling for a good cause! Travel and tourism contributes to 51% of the total employment of the country. Indicator 12.b.1 shows the preparedness of countries to develop and implement tools to monitor sustainable development impacts for sustainable tourism called for in target 12.b under Goal 12 on Sustainable Consumption and Production. Photo: hecke61/Shutterstock. For example, the World Economic Forums Global New Mobility Coalition (GNMC) is a multistakeholder community for accelerating the shift to a Shared, Electric and Autonomous Mobility (SEAM) system. A growing body of research supports the hypothesis of tourism-led growth. Todays infographic uses data from the World Travel & Tourism Council, and it highlights the countries that depend the most on the travel and tourism industry according to employmentquantifying the scale that the industry contributes to the health of the global economy. That figure dwarfs the combined size of the 10 largest metal markets: The combined market size of the top 10 metal markets amounts to $967 billion, less than half that of the oil market. Combined with related efforts such as the Free Movement Protocol and Single African Air Transport Market (SAATM), the sub-Saharan Africa region has the potential to unlock its untapped T&T potential and grow its underdeveloped intra- regional T&T market and air route capacity.39, Figure 7: Correlation between air service agreement liberalization and air transport infrastructure, 2019, Of course, the pandemic, along with the recent rise in geopolitical tensions, also highlights just how important health and security conditions are to protecting the openness on which T&T relies and to restoring consumer confidence in travel. The tourism economy represents 5 percent of world GDP Tourism contributes to 6-7 percent of total employment International tourism ranks fourth (after fuels, chemicals and automotive products) in global exports The tourism industry is valued at US$1trillion a year Tourism accounts for 30 percent of the world's exports of commercial services Destinations that rely heavily on international, business and events tourism are particularly struggling, with many coastal, regional and rural areas faring better than cities. Several key findings have been identified in the Travel & Tourism Development Index (TTDI) 2021 results and research. A WTTC report focusing on the United States, the United Kingdom, France, Spain, Italy and Portugal estimates that the T&T sectors in these countries experienced staff shortfalls ranging from 9% to 18% in 2021.22 The interconnected nature of the T&T supply chain and ecosystem has also created challenges. As already alluded to in the global context section above, the T&T sectors significant contribution to global economic and social development makes its recovery and long-term growth paramount. This also reflects the massive scale of global oil consumption annually, with the resource having a ubiquitous presence in our daily lives. Figure 3 can help us understand which economies are likely to be best positioned from a T&T recovery and resiliency point of view, and which may need to prioritize greater investment in T&T enabling factors. On the other hand, efforts to preserve the environment and T&T-generating natural assets got a boost from continued expansion in the share of protected territories and the number of environmental treaties signed. Planning of ecological agricultural tourist attractions based on the 1. Tourism Statistics | World Tourism Organization We-Fi WeTourWomenin Tourism Enterprise Surveys (2019), Global data and statistics, research and publications, and topics in poverty and development, The World Banks digital platform for live-streaming, Environmental and Social Policies for Projects, International Development Association (IDA), 25 percent of the worlds service exports, Blue Tourism in Islands and Small Tourism-Dependent Coastal States : Tools and Recovery Strategies, Resilient Tourism: Competitiveness in the Face of Disasters, Tourism and the Sharing Economy: Policy and Potential of Sustainable Peer-to-Peer Accommodation, Supporting Sustainable Livelihoods through Wildlife Tourism, The Voice of Travelers: Leveraging User-Generated Content for Tourism Development, Women and Tourism: Designing for Inclusion, Twenty Reasons Sustainable Tourism Counts for Development. On the other hand, less-developed economies and those ranking lower on the TTDI tend to bring in fewer tourists, but still score below average for perception of tourism dispersion and town- and city-centre accessibility and crowding, an issue that may be partially explained by these economies typically below-average scores for transport infrastructure. Economies with sophisticated healthcare systems are better equipped to mitigate the impact of pandemics on T&T and the wider economy by protecting their populations, including the T&T workforce and visitors, thus reducing the need for travel and lockdown restrictions. 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 . Without a steady influx of tourism revenue, many countries could face severe economic damage. Africa's unique history and natural wonders are gaining attention amid the . The pandemic has also highlighted how important an economys socioeconomic resilience is for the T&T sector. Figure 4 shows in more detail what gaps remain to achieving improved T&T performance and development for various countries. Tourism Dependence: Some CCB economies are among the most tourism-dependent in the world. Data collection started in 2019 and provides data from 2008 onwards, the latest update took place on 15 March 2023. To help bolster economic activity, China and South Korea have eased restrictions by establishing a travel corridor. For starters, as travel restrictions are removed, ensuring that T&T markets are open to visitors and investors will become vital. Within urban centres, improved road and public transport infrastructure and access to efficient, accessible, safe and affordable transport options can reduce the chances of overcrowding and lead to both greater liveability for residents and a better visitor experience (see Figure 11). While the oil market towers over metal markets, its important to recognize that this doesnt downplay the importance of these commodities. Macau is a city and a special administrative region of the People's Republic of China - its economy is largely based on casino gaming and tourism. Tourism GDP and Employment Domestic Tourism Go to Dashboard International Tourism and COVID-19 1 billion fewer international tourist arrivals in 2021 Loss of US$ 1.0 trillion in total export revenues from international tourism in 2021 International tourist arrivals increased 102% in 2022 over 2021, but remained 37% below 2019 Go to Dashboard A recent report by the Asia Development Bank (ADB) and UNWTO outlines how the T&T sector can use big data and digitalization for better and more sustainable tourism management and recovery. Meanwhile, the contribution of travel and tourism to Chinas economy has more than doubled over the last decade, approaching $1.6 trillion. Alongside our Insights reports, WTTC produces reports on the economic and employment impact of Travel & Tourism for 185 countries/economies and 26 geographic or economic regions in the world. It also involves creating better health and hygiene conditions, ensuring natural resources are protected and that the workforce on which the sector depends has access to training and social protection. For one thing, many countries have provided various incentives to boost domestic tourism. More specifically, the mechanisms through which tourism can accomplish this include cultural and information exchange, encouragement of tolerance, better government functioning, human capital development, and local and cross-border economic gain that can reduce the risks to peace.46 It is now more important than ever to leverage the T&T sectors potential for peace through sustainable development. Economic growth and market segment choice in tourism-based economies The 2021 TTDI results indicate the extent of environmental sustainability threats and challenges. The impact of the COVID-19 pandemic has been devastating for tourism service providers, with a loss of 20 percent of all tourism jobs (62 million), and US$1.3 trillion in export revenue, leading to a reduction of 50 percent of itscontribution to GDPin 2020 alone. Overall, the above adaptations to shifting demand and COVID-19 conditions help highlight how flexible T&T business and destinations can be in times of crisis. On the other hand, the Non-Leisure Resources pillar had one of the greatest declines in average performance (-1.9%) as business travel declined. Africa's tourism: A global destination for investment and Trends such as sustainability and the pandemic have forced the tourism industry to adapt. COVID-19: Tourism-Based Shock Scenarios for Caribbean Countries On the other hand, the ICT Readiness pillar is the most improved (+3.0%) since 2019 largely due to continued improvement in low- and middle-income economies. Creating a better T&T economy is not just about improving infrastructure or offering favourable pricing. 15 Countries That Rely On Tourism - TripHobo Tourism and Competitiveness - World Bank Group Key Takeaways Gross domestic product (GDP) is the total value of finished goods and services produced within a country's borders during a specified period. The nation with the second highest share of. NBT's singular potential to create jobs and growth, while . "In 2020, 10.9 million Americans said they were digital nomads, a 49% increase from 2019. ** The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the UNWTO. China was the country worldwide with the highest outbound tourism expenditure in 2021. In particular, it is important that the historical trend of ever greater international openness in T&T continues. 5 Altmetric Metrics Abstract Background The Blue Economy is a recent field of study that encompasses economic activities that depend on the sea, often associated with other economic sectors, including tourism, maritime transport, energy and fishing. Commonly raised issues include less favourable working conditions, deficient social protection and employment benefits and a lack of access to fundamental rights of freedom of association and collective bargaining.67 The growth in popularity of digital platforms offering short-term rentals has also led to concerns about residents access to housing at destinations where housing capacity is increasingly taken up by the T&T sector.68 The concentration of market share in the hands of digital platforms may also lead to imbalances in the bargaining and pricing power of the various stakeholders, including workers and SMEs.69. The above-mentioned introduction of travel bans, flight-route adjustments, increasing fuel and food prices and potentially hindered international travel demand caused by the war in Ukraine have also shown the degree to which international T&T can be affected by geopolitical tension and conflict. The oil market is bigger than the 10 largest metal markets combined, with production value exceeding $2 trillion annually. Air route capacity and airport connectivity plummeted, especially in more mature and high-income economies. Introduction. Chart: Automakers Adoption of Fuel-Saving Technologies. The second most improved pillar is Natural Resources (+2.5% average score increase). The key findings of the index show the following: 1. The use of big data and various digital platforms and technology can also help seamless travel and act as health and security tools by enabling safety protocols, biosecurity technologies and digital health certificates, thereby boosting traveller confidence. Note: This analysis focuses on raw and physical materials, excluding derivative markets and alloy materials like steel. While rising interest rates and debt levels represent a growing obstacle, government responses to the pandemic demonstrated their capacity to provide more comprehensive socioeconomic support, and the benefits of doing so, albeit during an unprecedented situation. For instance, the UNWTO has set out strategies and measures that can combat challenges such as these in cities. Unsurprisingly, this region has often claimed headlines for tourism overcrowding. Macau The small country of Macau has a per capita tourism income of $16,797. Given SEAMs clear potential to create more sustainable destinations, a case can be made for T&T sector involvement this area.62. The tourism sector is an important foreign exchange earner and provides opportunities for developing countries to create productive and inclusive jobs, grow innovative firms, finance the conservation of natural and cultural assets, and increase economic empowerment, especially for women and youth, who comprise the majority of the tourism sector's workforce. As the world shifts towards a more sustainable future and away from fossil fuels, itll be interesting to see how the markets for oil and other commodities evolve. While these challenges may be difficult, the flexibility and adaptation the T&T sector has shown in the past few years also indicates that sector stakeholders are more than capable of rising to the occasion. In addition, as already mentioned, creating a more highly skilled labour force will be an essential element and challenge in maximizing the use of ICT tools in T&T. Of course, COVID-19 will have a lasting impact on employment and global economic activity with inconceivable outcomes. As such, average scores fell in the Air Transport Infrastructure (-9.4%), Prioritization of Travel and Tourism (-6.7%) and Tourist Service Infrastructure (-1.5%) pillars. This is illustrated by comparing the TTDI scores to economic dependence on T&T. It can support poverty alleviation, economic growth, and biodiversity conservation and contribute to key global agreements and frameworks, including the 2030 Agenda for Sustainable Development. The tourism sector provides opportunities for developing countries to create productive and inclusive jobs, grow innovative firms, finance the conservation of natural and cultural assets, and increase economic empowerment, especially for women, who comprise the majority of the tourism sectors workforce. A recent UNWTO and One Planet report reiterated the importance of a healthy environment for T&T competitiveness and development and recommended several actions to help the T&T sector produce a greener recovery. But do you know exactly how much these vacation plans contribute economically to your chosen destination? Environmental issues differ in these regions, but some examples include elevated climate-related risk (as measured by the Global Climate Risk Index), air and sea pollution, deforestation, poor wastewater treatment and inadequate preservation policies. Tourism in the Post-Pandemic World - IMF Figure 6: Composition of top quartile, by income group. In particular, economies in the bottom-right quadrant would gain the most by investing in the drivers of T&T development because they are more dependent on the sector for economic development. That year, China's outbound tourism spending . This analysis focuses on raw and physical materials, excluding derivative markets and alloy materials like steel. Life Cycle Emissions: EVs vs. List of Countries by Tourism Income - AtlasBig.com Some of these include the promotion of attractions and events that disperse visitors so they are not concentrated only in certain areas, time-based dynamic pricing, the creation of pedestrian-only zones, defining the carrying capacity of city areas, focusing on lower-impact visitor segments, ensuring local communities benefit from tourism, engaging with local stakeholders and monitoring the impact of tourism, including through the use of big data.61, T&T stakeholders can also play a more active role in broader sustainable mobility efforts and trends that can help to reduce the sectors environmental impact, manage demand and make destinations more attractive for visitors and residents. Comparing Population Pyramids Around the World. Figure 9: Share of regional economies scoring above average for natural resources and environmental sustainability. As countries slowly reopen, other travel bubbles are beginning to make headway. Such investment will help their economic recovery by enabling stronger tourism growth as well as supporting their overall economies to be more robust and resilient. The growing role of digitalization and, in particular, digital platforms, within the T&T space can also create other labour and socioeconomic challenges. It is also important to note that T&T is vital not only to overall economic performance but also to the livelihood of some of the populations and businesses most vulnerable to, and hardest hit by, the pandemic. Construction of an eco-agricultural tourism attractions management system based on the concept of circular economy. For instance, the rise in nature travel had already led to more overcrowding at many national parks, with many US national parks monthly visitation number hitting all-time highs, leading to issue such as littering, wildlife disruption and traffic jams.59 Visitors also show signs of wanting to reduce their footprint and improve the social impact on the destinations they visit, with just over half of global travellers in a recent survey indicating that they would be willing to switch their original destination for a lesser-known one if it led to a reduced footprint and greater community impact.60. While further effort is required, public-private cooperation can provide a useful avenue to address this challenge. High-income economies and countries in the Europe and Eurasia (Europe) and Asia-Pacific (APAC) regions tend to lead the overall index in results. Furthermore, digitalization enables T&T businesses to gather consumer insights and preferences, optimize operations, cut transaction costs and automate processes.63 Online platforms also enable T&T service providers, including SMEs, to reach beyond their local markets and connect with broader domestic and international markets. These reports, in conjunction with Oxford Economics, are a vital tool in helping us to equip public and private sector bodies with hard evidence of the . Visualized: The 100 Largest U.S. Banks by Consolidated Assets, Visualizing Every Company on the S&P 500 Index, Ranked: The Most Innovative Companies in 2023, Ranked: Americas Largest Semiconductor Companies, Visualizing the Top U.S. States for AI Jobs, Ranked: The Worlds Top 25 Websites in 2023, Ranked: The Most Affordable U.S. Cities for Home Buyers, Charted: Public Trust in the Federal Reserve, Charting the Rise of Americas Debt Ceiling, Ranked: The Worlds Top 50 Endowment Funds, Comparing the Speed of Interest Rate Hikes (1988-2023), Ranked: The Best U.S. States for Retirement. The decline in sector capacity has also been compounded by the fact that most businesses are SMEs and do not have the means to survive prolonged drops in demand or restrictions on person-to-person contact. Jenny Southan reports Real GDP among African countries dependent on tourism will shrink by 12 percent. The October World Economic Outlook projected the global economy would contract by 4.4 percent in 2020. Chart: U.S. Home Price Growth Over 50 Years. The sector can also be a force for biodiversity conservation, heritage protection, and climate-friendly livelihoods, making up a key pillar of the blue/green economy. Tourism Statistics. In the coming years, the success of T&T businesses and destinations will be increasingly tied to their ability to manage and operate under ever greater ecological and environmental threats. Figure 9 provides a regional view of the challenge. From a destination point of view, many governments have also adapted to changing conditions to take advantage of shifting demand dynamics. On the other hand, economies in the Europe and Eurasia region are world leaders in environmental sustainability, accounting for more than half of countries in the TTDI that score above average for this pillar. This can help funnel tourism and its benefits to more communities, make them more attractive destinations and increase their capacity to absorb more visitors. In the coming years it will therefore be crucial for T&T stakeholders to devise strategies that make the sector more inclusive, sustainable and resilient. "In addition to labour shortages and capacity constraints, the sector has also been exposed to broader global disruptions that are complicating recovery. The average number of per capita short-term rental units dropped by about one-fifth between mid-2019 and 2021 across economies ranked in the index.19 While not reflected in the TTDI results, STR data indicates that, over a similar timespan, the number of hotel rooms did not recover to pre-pandemic levels in many countries.20 In line with these trends, both T&T capital investment and government T&T expenditures also fell. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution. Traditional Samburu women in Kenya. The benefits of tourism for rural community development Over the course of the pandemic, more businesses have gone virtual, and an increasing share of the labour force is becoming independent. While this sector is recovering, it has rebounded at a slower rate than leisure, with factors such as workplace flexibility and the availability of virtual alternatives for in-person meetings tempering demand and potentially leading to some permanent loss in corporate travel. Mexico ($79.7 billion) 8. Our solutions are integrated across the following areas: The successful design and implementation of reforms in the tourism space requires the combined effort of diverse line ministries and agencies, and an understanding of the impact of digital technologies in the industry. Nonetheless, less developed economies still score well below the TTDI average for most indicators for both pillars. Challenges of the Blue Economy: evidence and research trends