tourism industry in investment

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.

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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Should we be promoting tourism sector investment?

Kusi hornberger, hermione nevill.

When most people think of tourism, they think about a vacation to a new destination, an island retreat, a beautiful vineyard, or a hike in the mountains. They rarely think of tourism as a source of inclusive poverty reduction in the developing world. 

Nkwichi Lodge in Mozambique is a good example. Investments to the projects created 75 jobs for locals supporting over 1,000 community members. It also established a community trust that built five local schools, a maternity clinic and a maize mill that provided nutrition and education to more than 350 farmers and their families. This is having a transformative impact on poverty reduction and improvements in the quality of life of some of the worlds poorest.  

The potential of the tourism sector

The tourism sector is one of the priority sectors of the Investment Climate Advisory Services for investment generation and regulatory simplification. We and institutions like UNCTAD , as well as the World Economic Forum strongly believe this sector can boost competitiveness , expand economic opportunity and provide a pathway to prosperity in client countries. Unsurprisingly, developing economies like Haiti, Mozambique , the Solomon Islands, Yemen and Zambia recently prioritized tourism as a key target to produce economic growth.

But what makes the tourism sector so attractive?

While the answer is not 100 percent clear, it is clear that the tourism sector is growing and in particular in developing in transition countries. Its total contribution to global GDP has grown by 21 percent in the last decade to$5,992 billion in 2011 (Figure 1). 

Source: World Travel and Tourism Council (WTTC) 2011  

The tourism sector has strong links to economic growth.

Economic (GDP) growth is of principal concern for all countries, particularly those engaged in poverty reduction as a means to spread wealth across the population. Empirical studies in countries as diverse as Barbados, Croatia, India, Taiwan and Turkey have shown a causal relationship between tourism development and economic growth. A cross country study by the IMF showed that an increase of one standard deviation in the share of tourism in exports leads to about 0.5 percentage point in additional annual growth, everything else being constant. Thus many governments (particularly low income economies) should view investing in its tourism industry as a means to stimulate growth over the long term and enabling the poor to share in economic gains.

Tourism investments can benefit local people

Tourism is one of the only industries in the world where the ‘good’ or ‘service’ is consumed at the site of production. For this reason, local people are both at an advantage to reap the benefits associated with the sector, but also at risk from exclusion or even the negative impacts it can bring. A well planned, regulated and responsible tourism can be an excellent mechanism of channeling resources from rich to poor - even at the large scale. Commercial tourism activities provide an opportunity for local people to participate in direct employment, in providing goods and services to tourism businesses through the supply chain, but also in direct interaction with the tourist (for example: crafts, excursions, food and beverage). The generation of earnings amongst those local people directly involved with the industry in turn stimulates indirect spend (of wages) in the local economy.

Tourism provides opportunities for economic diversification and skills upgrading

Developing countries can leverage tourism to support local companies and entrepreneurs in developing new products and exports. The tourism sector provides a means by which local entrepreneurs can experiment with new products and test them on international markets in their home country before exporting. International tourists typically create demand for products and services which may not have already existed in the local market and also demand certain quality standards. Whilst these can be a challenge to meet in the short-term, tourism creates the market and the incentive to drive the process – leading to growth and improvement over time.

Sustainably protecting environmental and cultural assets

Many developing countries have rich natural or cultural heritage assets such as national parks, coral reefs, rare species, ancient cities or monuments that are under threat. Often, states do not have the financial resources to allocate to the preservation of these areas and more creative ways of funding their protection must be sought. The revenue generated from tourism is one such solution – provided it is regulated and managed in a responsible manner.

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5 Ways To Invest In Travel And Tourism

Most consumers are familiar with the travel and tourism industry from using its services for some needed rest and relaxation during family and related vacations . However, these same activities can be invested in, with many publicly-traded firms offering travel activities for the end benefit of growing the capital of their underlying shareholders . Listed below are five areas of the travel and tourism market that could prove lucrative from an investing standpoint. It could also help committed travelers better understand the landscape and hunt down some travel deals.

Online Travel Providers

As with many industries, revenue continues to shift to the internet when it comes to providing travel and tourism services. Stock brokers have been replaced in large part with online trading platforms, while traditional travel agents have had to compete with online websites that allow consumers to shop for low prices and convenient schedules.

Leading online travel providers include publicly-traded players such as Orbitz, Priceline and Expedia. In particular, Booking Holding's Priceline has been highly successful in driving traffic to its website to book flights and bid for cheap, last minute travel deals.  

The cruise line industry has been in existence for more than a century, but still is not that widespread as a travel choice for many consumers. Carnival, the largest cruise line operator in the world, has estimated that only 3.9% of the population in North America has ever been on a cruise.   The percentages are even lower in many other areas of the world.

Capacity is also growing nicely; Carnival estimates the entire industry will see average annual capacity growth of roughly 6.8% through 2023.  

The hotel industry is dominated by a couple of leading international players. This includes publicly-traded firms Marriott and Starwood Hotels, as well as privately owned Hilton. These companies announced their merger in 2015.   They have largely blanketed their home United States market and are growing internationally. The chains have also pursued the managing of properties for hotel owners, as well as timeshares where they sell the rights for consumers to use their properties for a week, or more, during each calendar year.

Mega Resorts

Large resort operators combine the development of hotels with other entertainment and related amenities. Publicly-traded operators in this space include Ryman Hospitality Group, which owns the Opryland resort in Nashville and other properties in Texas, Florida and Maryland. It specializes in massive resorts that allow big travel groups to host conventions and other giant gatherings.  

Vail Resorts owns some of the best-known ski resorts in Colorado and surrounding areas. This includes Vail Mountain, Breckenridge and Beaver Creek Resort.     Of course, Walt Disney specializes in kid-friendly theme parks, hotels and entertainment complexes, such as Disney World in Florida and Disneyland in California.

Las Vegas-style gambling is growing rapidly across Asia. Macao has grown into the largest gambling market in the world and has seen the building of massive casino resorts from Las Vegas-based firms such as Wynn Resorts and Las Vegas Sands. Both are publicly traded companies. This growth is expanding to other parts of Asia, including Singapore, and potentially Vietnam and Japan.  

The Bottom Line

 These are just some of the many opportunities to invest in the travel and tourism industries across the world. Overseas growth, especially in emerging market economies , should continue to outpace that in more developed markets in North America and Europe. However, as with the online travel space, there will always be pockets that are picking up market share in every part of the world.

Booking Holdings. " Schedule 10-K 2019 ," Page 44.

Carnival Corporation. " Schedule 10-K 2019 ," Page 7.

Carnival Corporation. " Schedule 10-K 2019 ," Page 8.

Marriott. " Starwood Acquisition & Historical Information ."

Ryman Hospitality Group. " About Us ."

Vail Resorts. " Vail Resorts Reports Fiscal 2020 Third Quarter Results ."

Vail Resorts. " Who We Are ."

University of Nevada Las Vegas Gaming Research & Review Journal Volume 16 Issue 1. " The Boomerang Effect ," Pages 88-89.

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The fDi Tourism Investment Report 2023 PDF

September 14, 2023 fDi Intelligence

Investment in the global tourism cluster has started to bounce back from the lows it touched during the pandemic off the back of the steady recovery of international tourist arrivals, according to a newly released report jointly produced by fDi Intelligence and the World Tourism Organization (UNWTO).

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Travel, Tourism & Hospitality

Global tourism industry - statistics & facts

What are the leading global tourism destinations, digitalization of the global tourism industry, how important is sustainable tourism, key insights.

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Total contribution of travel and tourism to GDP worldwide 2019-2034

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Leading global travel markets by travel and tourism contribution to GDP 2019-2022

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• Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2034
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Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

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Number of hotel rooms in the construction pipeline worldwide as of the first quarter of 2024

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Countries with the highest number of hotel construction projects in the pipeline worldwide as of the first quarter of 2024

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• Basic Statistic Selected countries with the most Michelin-starred restaurants worldwide 2023

Leading museums by highest attendance worldwide 2019-2022

Most visited museums worldwide from 2019 to 2022 (in millions)

Most visited amusement and theme parks worldwide 2019-2022

Leading amusement and theme parks worldwide from 2019 to 2022, by attendance (in millions)

Monuments on the UNESCO world heritage list 2023, by type

Number of monuments on the UNESCO world heritage list as of September 2023, by type

Selected countries with the most Michelin-starred restaurants worldwide 2023

Number of Michelin-starred restaurants in selected countries and territories worldwide as of July 2023

Online travel market

• Premium Statistic Online travel market size worldwide 2017-2028
• Premium Statistic Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
• Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
• Basic Statistic Market cap of leading online travel companies worldwide 2023
• Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
• Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Online travel market size worldwide 2017-2028

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023

Estimated desktop vs. mobile revenue of leading online travel agencies (OTAs) worldwide in 2023 (in billion U.S. dollars)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Estimated EV/Revenue ratio in the online travel market 2024, by segment

Estimated enterprise value to revenue (EV/Revenue) ratio in the online travel market worldwide as of April 2024, by segment

Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Estimated enterprise value to EBITDA (EV/EBITDA) ratio in the online travel market worldwide as of April 2024, by segment

Selected trends

• Premium Statistic Global travelers who believe in the importance of green travel 2023
• Premium Statistic Sustainable initiatives travelers would adopt worldwide 2022, by region
• Premium Statistic Airbnb revenue worldwide 2017-2023
• Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023
• Premium Statistic Technologies global hotels plan to implement in the next three years 2022
• Premium Statistic Hotel technologies global consumers think would improve their future stay 2022

Global travelers who believe in the importance of green travel 2023

Share of travelers that believe sustainable travel is important worldwide in 2023

Sustainable initiatives travelers would adopt worldwide 2022, by region

Main sustainable initiatives travelers are willing to adopt worldwide in 2022, by region

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Airbnb nights and experiences booked worldwide 2017-2023

Nights and experiences booked with Airbnb from 2017 to 2023 (in millions)

Technologies global hotels plan to implement in the next three years 2022

Technologies hotels are most likely to implement in the next three years worldwide as of 2022

Hotel technologies global consumers think would improve their future stay 2022

Must-have hotel technologies to create a more amazing stay in the future among travelers worldwide as of 2022

• Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
• Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
• Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
• Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Travel and tourism revenue worldwide 2019-2028, by segment

Revenue of the global travel and tourism market from 2019 to 2028, by segment (in billion U.S. dollars)

Distribution of sales channels in the travel and tourism market worldwide 2018-2028

Revenue share of sales channels of the travel and tourism market worldwide from 2018 to 2028

Inbound tourism visitor growth worldwide 2020-2025, by region

Inbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Outbound tourism visitor growth worldwide 2020-2025, by region

Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

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Investment in tourism infrastructure includes investment in components such as transport and communications infrastructure, the hotel and restaurant industry, and recreation facilities... Investment in tourism infrastructure development to make destinations and services increasingly attractive is considered a key measure in developing a country’s tourist destinations. It has a strong and positive impact on visitor attraction. 

1. Introduction

2. the role of transport infrastructure and communications infrastructure, 3. the role of the hotel and restaurant industry, 4. the role of recreation facilities, 5. the influence of uncertain factors.

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• Boers, Bas, and Stuart Cottrell. 2007. Sustainable tourism infrastructure planning: A GIS-supported approach. Tourism Geographies 9: 1–21.
• Dujmovic, Mauro, and Aljoša Vitasovic. 2014. Tourism product and destination positioning. Mediterranean Journal of Social Sciences 5: 570–79.
• Matias, Alvaro, Peter Nijkamp, and Paulo Neto. 2007. Advances in Modern Tourism Research: Economic Perspectives. Heidelberg: Physica-Verlag.
• Tribe, John. 2004. Knowing about tourism: Epistemological issues. In Qualitative Research in Tourism, 1st ed. Oxfordshire: Routledge, ISBN 9780203642986.
• Naudé, Willem A., and Andrea Saayman. 2005. Determinants of tourist arrivals in Africa: A panel data regression analysis. Tourism Economics 11: 365–91.
• Seetanah, Boopen, Thanika Devi Juwaheer, Matthew John Lamport, Sawkut Rojid, Raja Vinesh Sannassee, and Ushad Subadar Agathee. 2011. Does infrastructure matter in Tourism Development? University of Mauritius Research Journal 17: 89–108.
• Mamirkulova, Gulnara, Jianing Mi, Jaffar Abbas, Shahid Mahmood, Riaqa Mubeen, and Arash Ziapour. 2020. New Silk Road Infrastructure Opportunities in Developing Tourism Environment for Residents Better Quality of Life. Global Ecology and Conservation 20: e01194.
• Prideaux, Bruce. 2000. The role of the transport system in destination development. Tourism Management 21: 53–63.
• Jovanović, Sonja, and Ivana Ilić. 2016. Infrastructure as important determinant of tourism development in the countries of Southeast Europe. Ecoforum Journal 5: 288–94.
• Yu, Min. 2016. Research on the impact of infrastructure construction on tourism industry: Evidence from the “Wuhan-Guangzhou high speed rail”. Open Journal of Social Sciences 4: 126–31.
• Suleiman, Najat Nassor, and Masoud Mohamed Albiman. 2014. Dynamic relationship between tourism, trade, infrastructure and economic growth: Empirical evidence from Malaysia. Journal of African Studies and Development 6: 49–55.
• Mandić, Ante, Željko Mrnjavac, and Lana Kordić. 2018. Tourism infrastructure, recreational facilities and tourism development. Tourism and Hospitality Management 24: 41–62.
• Khadaroo, Ahmad Jameel, and Boopen Seetanah. 2007a. Research Note: Does Transport Infrastructure Matter in Overall Tourism Development? Evidence from a Sample of Island Economies. Tourism Economics 13: 675–87.
• Khadaroo, Ahmad Jameel, and Boopen Seetanah. 2007b. Transport infrastructure and tourism development. Annals of Tourism Research 34: 1021–32.
• Khadaroo, Jameel, and Boopen Seetanah. 2008. The role of transport infrastructure in international tourism development: A gravity model approach. Tourism Management 29: 831–40.
• Seetanah, Boopen, and Jameel Khadaroo. 2009. An Analysis of the Relationship between Transport Capital and Tourism Development in a Dynamic Framework. Tourism Economics 15: 785–802.
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• Lim, Christine, Liang Zhu, and Tay TR Koo. 2019. Urban redevelopment and tourism growth: Relationship between tourism infrastructure and international visitor flows. International Journal of Tourism Research 21: 187–96.
• Selvanathan, Saroja, E. Antony Selvanathan, and Brinda Viswanathan. 2012. Causality Between Foreign Direct Investment and Tourism: Empirical Evidence from India. Tourism Analysis 17: 91–98.
• Khoshnevis Yazidi, Soheila, Khadijeh Homa Salehi, and Mahshid Soheilzad. 2015. The relationship between tourism, foreign direct investment and economic growth: Evidence from Iran. Current Issues in Tourism 20: 15–26.
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• Ghaderi, Zahed, Pezhman Hatamifar, and Jalayer Khalilzadeh. 2018. Analysis of tourist satisfaction in tourism supply chain management. An International Journal of Tourism and Hospitality Research 29: 433–44.
• Tang, Rui. 2020. Does trade facilitation promote the efficiency of inbound tourism?—The empirical test based on Japan. International Journal of Tourism Research 23: 39–55.
• Tourism and Transport Forum. 2012. Tourism Infrastructure Policy and Priorities. Available online: http://www.ttf.org.au/ (accessed on 20 July 2020).
• UNWTO. 2007. A Practical Guide to Tourism Destination Management. Available online: https://www.e-unwto.org/doi/book/10.18111/9789284412433 (accessed on 20 July 2020).
• Sharpley, Richard. 2009. Tourism Development and the Environment: Beyond Sustainability? Earthscan. Available online: http://www.istta.ir/upload/file/sustainableTourismBook2.pdf (accessed on 20 July 2020).
• Jafari, Jafar, and Honggen Xiao. 2016. Encyclopaedia of Tourism. New York: Springer.
• Vanegas Sr, Manuel, and Robertico R. Croes. 2000. Evaluation of demand: US tourist to Aruba. Annals of Tourism Research 27: 946–63.
• Lin, Vera Shanshan, Anyu Liu, and Haiyan Song. 2015. Modelling and Forecasting Chinese Outbound Tourism: An Econometric Approach. Journal of Travel & Tourism Marketing 32: 34–49.
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Deal on intellectual property education and research for filipino and korean students, says ipophl, boi greenlights ₱125-m investment of steel frame modules producer in ph, senior citizens group supports meralco’s franchise renewal, jica, hankyu railway celebrate japan’s railway investment in ph.

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By Marinel E. Peroy 

Bouncing back from the brunt of the pandemic , the Philippines welcomes the upward trajectory it experiences as the fastest-growing economy in Southeast Asia. Brandishing the GDP growth of 5.6% last year and bullish outlook of 6.2% projected growth in 2024, these indications Spearheaded by the Philippine Hotel Owners Association, Inc. (PHOA), the 1st Philippine Tourism and Hotel Investment Summit hosted an event discussing trends, opportunities, challenges, and strategies for 2024 in both sectors. 

In cooperation with Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the event was held at the New World Hotel Makati which gathered various experts, industry leaders, and investors from government, private, and other stakeholders last June 21. 

According to UN Tourism, the country holds a strong position as a premier destination of tourism investments with its positive economic growth and stability, growing investment destination, government initiatives and incentives, and attracting significant foreign direct investment in the tourism sector. 

Moreover, the presentation of Peter Janech, Coordinator of Innovation, Education, and Investments of United Nations Tourism — Insights into the Global & Regional Tourism Investments — believes that the Philippines has its competitive advantage in safety, price competitiveness, and environmental sustainability on the Travel and Tourism Development Index – Asia and the Pacific (World Economic Forum 2024), respectively. 

The Philippines’ commitment to developments in sustainable tourism development, hotel, and hospitality infrastructure, and post-pandemic strategies for the hospitality sector are some of the efforts that make the country a ‘leading and resilient destination’ for international tourists and investors. According to the UN Tourism data, there were 5 million international tourist arrivals to the Philippines in 2023. The country also met a completion of 3,900 new hotel rooms in 2023, a record-high for the industry. 

Meanwhile, the Department of Tourism shared that ₱509 billion in total tourism investment in 2023, with a growth rate of 11.7% to the entire Philippine economy from the previous year.

To make the Philippines a tourism powerhouse in Asia, a national tourism development plan 2023-2028 was established with the following objectives: a) improve tourism infrastructure and accessibility; b) cohesive and comprehensive digitalization and connectivity; c) enhancement of overall tourist experience; d) equalization of tourism product development and promotion; e) diversification of portfolio through multidimensional tourism; f) maximization of domestic and international tourism; and g) strengthening tourism governance through close collaborations with national and local stakeholders. 

Aside from revitalizing tourist arrivals to make the country a tourism investment destination, the hotel industry is expected to fully recover by 2025, as stated in the forecast of real estate brokerage company, Leechiu Property Consultants, Inc. (LPC) with PHOA. It is interesting to note that based on the information provided by the Philippine Investment Outlook Survey (PIOS) report from March to April 2024, there is a robust responders’ confidence of 89% for a positive outlook in the hospitality industry over the medium term. The report also revealed that the Highest Investment Interest in the following locations in the Philippines: Bohol, Metro Manila, Cebu City, Siargao, and El Nido. For the investors, their top three (3) key priorities in post-pandemic financial strategy are cash flow management, stakeholder relationships, and sustainability. 

In conclusion, the report emphasized the crucial collaboration between the government and the private sector to sustain the momentum of mutually beneficial relationships and ensure success in the industry’s ever-changing demands.

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It’s been a record-setting year for global travel – here’s how we make tourism inclusive and sustainable

Inclusive and sustainable travel and tourism includes supporting micro-, small- and medium-sized businesses. Image:  Unsplash/Michael Barón

.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);} Nicola Villa

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• The global travel sector is experiencing a robust recovery, with tourists increasingly spending more on travel.
• Despite the overall positive outlook, some destinations struggle with operational challenges, including workforce issues and resource management amid rising tourist numbers and environmental concerns.
• The travel and tourism sector’s potential for advancing socio-economic prosperity is particularly impactful through the support of micro-, small-, and medium-sized enterprises.

The global travel sector forecast is in and it's sunny skies ahead. Through March 2024, consumer spending on travel remains strong, and passenger traffic has soared. Empowered by a strong labour market worldwide, tourists will be on the roads, air and seas once again, with more of people’s budgets on travel.

The latest report from the Mastercard Economics Institute, Travel Trends 2024: Breaking Boundaries , reveals that 2024 has already witnessed multiple record-setting days as consumer spending on leisure travel remains strong. The data shows that post-pandemic travellers continue to seek unique experiences rooted in local cultures while increasingly prioritizing spending on memorable events across sports, music and festivals.

The Mastercard Economics Institute’s analysis reveals that travellers also seek opportunities to extend their stays, prioritizing leisure for longer. For the first 12 months between March 2019 and February 2020, a trip’s average length of stay was about four days. As of March 2024, the average length of a leisure trip has edged closer to five days, which translates into an economic boost for the destinations and communities hosting them.

Have you read?

These are the top 10 countries for travel and tourism, what is travel and tourism’s role in future global prosperity, travel & tourism development index 2024, tackling tourism’s challenges.

Yet, while the overall outlook for travellers looks bright, that’s not the case for all destinations. Some tourism hotspots and lesser-known locales are facing growing challenges around operating conditions. The World Economic Forum’s Travel & Tourism Development Index (TTDI) 2024 highlights the ongoing constraints facing the global travel and tourism sector – including the lack of investment in skilled and resilient workforces and issues around resource management – cultural and natural – as destinations grapple with higher tourist visitor numbers and rising environmental concerns.

The report offers travel and tourism decision-makers recommendations around how the sector can take a more active role in tackling social challenges across socio-economic prosperity, peace and cultural exchange. As the industry accounts for approximately one-tenth of global gross domestic product and employment , the public and private sectors must work together to ensure future tourism development is, first and foremost, inclusive and sustainable.

Supporting the backbone of travel and tourism

As the TTDI 2024 notes, one area where the sector’s potential in advancing socio-economic prosperity can be particularly impactful is in the economic empowerment of micro-, small- and medium-sized enterprises (MSMEs). According to the World Travel & Tourism Council, more than 80% of travel and tourism businesses fall under this category.

Policies and investments promoting the adoption of digital solutions and enhancing digital skills development while improving access to credit can provide a major boost to tourism-focused MSMEs.

In Costa Rica, the Instituto Costariccense de Turismo, a member of Mastercard’s Tourism Innovation Hub , is championing such an approach to ensure increased tourist traffic results in better opportunities for MSMEs. Last year, the institute launched Tico Treasures , a platform facilitating tourist connections with Costa Rica’s Crafts with Identity programme, a group of 17 artisan collectives across the country. The platform allows visitors to discover local Costa Rican products, learn about artisan communities and then purchase and ship the goods back to their home country – all through one experience.

The programme is an example of public-private collaboration, including backing from Correos de Costa Rica, Banco de Costa Rica and the Instituto Costariccense de Turismo. Its objectives are multifold: delivering more authentic experiences for tourists, expanding citizens’ access to the digital economy and contributing to MSME resilience.

Protecting future environments

There are also novel approaches to solving destinations’ sustainability challenges underway. A key role of the Travel Foundation , a global non-government organization, is to facilitate innovative public-private collaborations in tourism that accelerate and scale sustainable solutions. One notable example is in Scotland, where the national tourism organization VisitScotland is partnering with the Travel Corporation, a global tour operator, to help decarbonize the destination supply chain. Both organizations are pooling their insights, data and expertise to support local businesses, develop new ideas for reducing carbon footprints and identify barriers to a green transition.

The learnings from this and other projects led by the Travel Foundation will be shared to influence future policy, investment and product development decisions at national and global levels. By combining public sector resources and capabilities with private sector technological expertise, travel and tourism decision-makers can enact policies and programmes that balance tourism growth with environmental protection, providing a nuanced approach that works for unique destinations.

It’s an important time for the sector – to leverage travel and tourism’s robust recovery and advance socio-economic prosperity, fuelling a more inclusive future for our treasured destinations. By accelerating collaboration between governments, destination management organizations and technology companies, we can ensure destinations, the communities that power them and the environments they inhabit are at the heart of all future tourism development.

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Tourism & Hospitality

India ranks 6th according to wttc in terms of travel & tourism total contribution to gdp in 2022  .

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Quick links, unlock the marvels of incredible india, powerhouse of tourism and hospitality.

Tourism and Hospitality, as one of India's largest service industries, plays an extraordinary role in driving the nation's growth and prosperity. 

The Tourism and Hospitality sector is an integral part of the Make in India initiative, serving as a vital economic catalyst that fuels job creation and rapid development. 

It acts as a stimulant for the growth of multi-use infrastructure, including world-class hotels, resorts, exquisite restaurants, efficient transportation networks (aviation, roads, shipping, and railways), and state-of-the-art healthcare facilities. 

India proudly boasts a tapestry of geographical diversity, encompassing awe-inspiring world heritage sites and niche tourism offerings such as captivating cruise tourism, exhilarating adventure tourism, renowned medical tourism, and mesmerizing eco-tourism. These unique offerings have resulted in an exponential increase in tourist arrivals, opening up vast employment opportunities. 

The recently announced 2023 Union Budget has firmly placed tourism as a key sector in the spotlight. The Ministry of Tourism, in its mission mode, is dedicated to promoting the industry through active participation from all States, the convergence of Government Programs, and the establishment of impactful Public-Private Partnerships. This visionary approach will facilitate comprehensive development in at least 50 selected destinations through a challenge mode process. 

Recognizing the importance of diversity and gender empowerment, the tourism industry stands as a leading employer of women. The government proactively collaborates with industry stakeholders to create a conducive work environment that fosters equal opportunities and celebrates the contributions of female employees. 

The Ministry of Tourism has also designated the Year 2023 as the 'Visit India' year, an invitation to the world to witness the splendor and magnificence that our nation has to offer. 

Embracing a progressive outlook, India welcomes 100% Foreign Direct Investment (FDI) in the tourism industry under the automatic route.  

Additionally, 100% FDI is permitted for tourism construction projects, including the development of exquisite hotels, resorts, and unparalleled recreational facilities. 

For comprehensive details, please refer to the FDI Policy, which highlights the investment opportunities and guidelines in the tourism sector. 

India's tourism industry stands as a beacon of boundless possibilities, with its rich heritage, cultural tapestry, and captivating destinations. We invite you to embark on an extraordinary journey of investment and partnership, where your vision aligns with the immense potential India holds

Foreign Tourist Arrivals (Jan-Dec 2023)

Domestic Tourist Visits to all States/UTs (2022)

Annual Growth Rate of FTAs in India (2022)

Foreign exchange earnings (FEE) from tourism (Jan-Dec 2023)

Share of India in International Tourism Receipts (ITRs) in World

6th in terms of Travel & Tourism total contribution to GDP, WTTC (2021)

2nd in terms of Travel & Tourism Employment, WTTC (2021)

39 th  on the World Economic Forum Travel & Tourism Development Index (2024)

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Government of India envisions $56 Bn forex, creating around 140 Mn jobs in tourism by 2030 through inclusive growth and  particularly focusing on cruise tourism, ecotourism and adventure tourism.   

The Indian Tourism sector ranks among the fastest-growing economic sectors in the country. The industry significantly impacts employment and drives regional development, while also creating a multiplier effect on the performance of related industries.

By 2028, India's tourism and hospitality industry is projected to generate revenue of over $59 Bn. Additionally, Foreign Tourist Arrivals (FTAs) are anticipated to reach 30.5 Mn by 2028.

In light of India's G20 Presidency and the India@75 Azadi ka Amrit Mahotsav celebrations, the Ministry of Tourism has designated 2023 as the 'Visit India Year' to promote inbound travel.

The Honorable Prime Minister has envisioned a mission mode approach to develop tourism during Amrit Kaal, with a strategic roadmap for the next 25 years. The objective is to position India as the foremost travel destination globally by the time we celebrate India@100 in 2047, creating unparalleled appeal for visitors from around the world. 

Ministry of Tourism is planning to organize a Global Tourism Investors Summit along with Central Ministries and State/UT Governments to showcase opportunities for investment and trade. The event will allow global investors to explore Indian Tourism products and services.

Union Budget 2023 Highlights:

• 50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism
• Sector-specific skilling and entrepreneurship development to be dovetailed to achieve the objectives of the ‘Dekho Apna Desh’ initiative
• Tourism infrastructure and amenities to be facilitated in border villages through the Vibrant Villages Programme
• Unity Malls to be set up in State Capitals or prominent tourist centres

GROWTH DRIVERS

Infrastructure development.

More than half of the Ministry of Tourism’s budget is channelised for funding the development of destinations, circuits, mega projects as well as rural tourism infrastructure projects.

Hotels & Accommodation

Revenue is projected at $7.66 Bn in 2023. CAGR of 8.29% between 2023-27. 61.3 Mn potential customers by 2027

Adventure Tourism

India has 70% of the Himalayas, a 7,000+ Km of coastline, ranks 10th in total area under forest cover, and is one of the three countries in the world with both hot and cold deserts.

Medical tourism

Medical tourism and wellness retreats attract 21% of international travelers, leveraging world-class healthcare facilities and traditional healing practices.

Cruise Tourism

Cruise passenger traffic expected to increase from 0.4 Mn to 4 Mn by 2032. Increase in economic potential from $110 Mn to $5.5 Bn.

Eco-Tourism

Expected to grow at 15.7% between 2019-27 & reach $4.55 Bn. India offers unique destinations, exploration of wildlife, and pristine undisturbed natural areas.

Meetings, Incentives, Conferences, and Exhibitions

The Indian MICE market has less than 1% share currently, but with initiatives such as ‘Meet in India’, National Advisory Council for Mice, India Mice Board, MICE Tourism is projected to double in next 5 years.

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The tourism sector has 1,300+ DPIIT recognized startups.

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Gis - based map displaying available infrastructure for setting up business operations in the state., investment opportunities in tourism & hospitality.

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Monthly Tourism Statistics April 2023

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Massive Investment Opportunities for both Start-ups and Conglomerates in the Tourism Industry

Ministry of Tourism organizes G20 Tourism Expo in Jaipur

Green Tourism: G20

Sagarmala Program Boosting Tourism Economy in Karnataka and Tamil Nadu

Shri G. Kishan Reddy launches ‘Best Tourism Village Competition Portal’, Global Tourism Investor Summit 2023…

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50 destinations will be selected and developed as a complete package of tourism

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Year End Review: Ministry of Tourism

India Tourism Statistics 2022

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Frequently Asked Questions

The Ministry of Tourism is set to host the First Global Tourism Investors Summit in 2023 in collaboration with Central Ministries and State/UT Governments. 

This mega event aims to highlight investment and trade opportunities while providing a platform for international investors to discover India's diverse tourism products and services.  

Was it helpful?

Recognising the potential of rural tourism in the country, the Ministry of Tourism has identified Rural Circuit as one of the fifteen thematic circuits for development under the Swadesh Darshan Scheme and is aimed at leveraging tourism as a force multiple for revitalizing the rural economy and for giving both domestic and international tourists a glimpse of rural aspect of the country.

Further, Ministry of Tourism has formulated a Draft 'National Strategy and Roadmap for Development of Rural Tourism in India - An initiative towards Atmanirbhar Bharat', which, inter alia, focuses on generating income and jobs in rural areas and empower local communities, youth and women, fulfilling the vision of Aatmanirbhar Bharat.

The GOI has identified 78 lighthouses in the country as centres of tourism, which are in the first phase under Public Private Partnership (PPP). The identified lighthouses are in Gujarat, Maharashtra, Goa, Karnataka, Kerala, Lakshadweep, Tamil Nadu, Puducherry, Andhra Pradesh, Odisha, West Bengal and Andaman and Nicobar Islands. The GOI has kick started the ‘lighthouse tourism’ project by inviting initial qualification bids to develop eight lighthouses in the first phase, at a cost of INR 128 crore, under the public-private-partnership model for 7 lighthouses.

The goal of the revamped Swadesh Darshan 2.0 Scheme is to develop sustainable and responsible tourism destinations in the country. The scheme is aimed at 360-degree holistic development with a focus on increasing self-employment, youth skilling, private sector investments, and preserving local cultures.

The strategic objectives of the Scheme are: (i) To enhance the contribution of tourism to the local economies (ii) To create jobs including self-employment for local communities (iii) To enhance the skills of local youth in tourism and hospitality (iv) To increase private sector investment in tourism and hospitality (v) To preserve and enhance the local cultural and natural resources  

Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) scheme focuses on developing and identifying pilgrimage sites across India for enriching the religious tourism experience. It aims to integrate pilgrimage destinations in a prioritised, planned and sustainable manner to provide a complete religious tourism experience. As on date, total number of destinations/sites identified for development under the scheme at present are 68 in 30 states/UTs.

Market Research

Annual report 2022-23 | ministry of tourism, india tourism statistics at a glance 2022, union budget 2023-24: analysis report, economic survey 2022-23, global innovation index 2022, government ministry/department.

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Mp hanley announces an investment supporting the diversification and growth of yukon's tourism industry.

CanNor's investment of nearly $800,000 will support seven tourism projects in the Yukon to build new programs, expand infrastructure, improve accessibility, and invest in green energy solutions

WHITEHORSE, YT , June 26, 2024 /CNW/ - Tourism is a major contributor to the Yukon's economy. Businesses and organizations that provide unique experiences play a key role in getting locals involved and encouraging people from across the country and the world to visit the Territory. Increased visitation strengthens the local economy and benefits other businesses and attractions in the region.

Today, Dr. Brendan Hanley , Member of Parliament for the Yukon , on behalf of the Honourable Dan Vandal, Minister of Northern Affairs, PrairiesCan and CanNor, announced that the Government of Canada is investing nearly $800,000 in strengthening the Yukon's tourism sector. This funding will assist seven businesses and organizations to offer new programs, experiences and services; expand their ability to accommodate overnight guests; improve accessibility; and transition to clean energy.

Through investments like these, the Government of Canada is supporting the expansion and diversification of businesses and organizations that provide accommodation and experiences in the North, further strengthening the Yukon's tourism sector.

"Unique experiences are a staple of the Yukon's tourism industry. Our government is supporting the Yukon's tourism sector to expand visitor experiences and amenities year round. These projects improve regional tourism assets, support active tourism, and give visitors and locals another reason to spend more time in the Yukon , benefitting other businesses and attractions."

-  The Honourable Dan Vandal, Minister of Northern Affairs, PrairiesCan and CanNor

" Nunavut , the Northwest Territories and the Yukon provide the opportunity to see something truly distinct. With its expansive wilderness, unique wildlife and rich cultures and traditions, Northern Canada has it all for lovers of the great outdoors from around the globe. Through the Tourism Growth Program, the Government of Canada is supporting these local businesses and organizations to expand and grow. Development of the tourism sector has enormous potential and is key to building prosperous Indigenous and northern communities."

-  The Honourable Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec

"The Yukon offers unforgettable tourism experiences. The Yukon's tourism sector drives economic growth while celebrating the territory's vibrant cultures and natural wonders. Our government supports projects that strengthen and diversify the Yukon's tourism sector, encouraging both locals and visitors to tour and experience the territory's many world-class attractions throughout the year."

-  Dr. Brendan Hanley , Member of Parliament for the Yukon   

"We appreciate this investment by CanNor to build new programs and experiences for our visitors. Recently, we hosted a picnic on the Woodchuck , a historic British Yukon Navigation river boat, to showcase the Yukon's river history. This type of event to share and celebrate our history in new and vibrant ways would be impossible without the support of CanNor."

-  Patricia Cunning , Executive Director, MacBride Museum

"We would like to send a huge thank you to CanNor and the Yukon Government for their continued support for small businesses in the North. Here, we are reminded of the power of community and collaboration. Much gratitude for standing by our small Indigenous-owned business as we embark on new projects and keep things exciting North of 60. Keep your eyes peeled for the Cardinal Camp at the Nomad Ranch."

-  Candace Dow , Owner, Northern Nomad Outdoors and Yoga

"For the past 35 years the Dalton Trail Lodge burned about 50,000 liters of diesel each year. Thanks to the generous help of CanNor we finally ordered a solar power system this spring, and it should be running by February 2025 . It will save more than 40,000 liters of diesel annually and Dalton Trail Lodge will be a much quieter place with a lot smaller carbon footprint."

-  Hardy Ruf , Owner, Dalton Trail Lodge

"We are incredibly grateful for the support from CanNor, which has enabled us to expand our facilities at Cabins Over Crag Lake. We can now accommodate up to 40 guests in our new bunkhouses, provide homemade wood-fired pizza and sourdough bread, and host cold plunge sauna experiences—all with stunning views. We're especially thrilled to welcome 40 breaking and hip-hop dancers to Cypher for Change this August. We are committed to working hard to continue building our business and serving Yukoners and visitors from beyond."

-  Andrea Simpson-Fowler , Owner, Cabins Over Crag Lake

"We are extremely grateful for CanNor's support in funding our project to bring eco-friendly prefabricated bunkhouses to Carmacks . This initiative not only addresses the urgent need for short-term accommodations in our region but also aligns with our commitment to sustainable and environmentally conscious development. The addition of these rental structures will enhance our capacity to attract and accommodate tourists, contributing to the growth and vitality of our community. We look forward to the positive impact this project will have on Carmacks and the broader region."

-  Ron Gartshore , CEO, Carmacks Development Corporation

"The fat bikes were an immediate hit with our visitors! They are a novel and distinctly northern way of getting outside to explore. And they work year around, not just when there's snow on the ground. There aren't too many places where you can rent a fat bike to see a moose, go get a coffee and then go soak in the hot springs—all in one trip."

-  Jake Paleczny , Executive Director,   Yukon Wildlife Preserve

Quick facts

The funding announced today is provided through the Canadian Northern Economic Development Agency's regular suite of economic development programs, including the Inclusive Diversification and Economic Advancement in the North (IDEANorth) Program and the Tourism Growth Program (TGP).

IDEANorth makes foundational investments in economic infrastructure, sector development and capacity building to help position Northerners in the territories to take advantage of Canada's innovation economy.

The TGP supports Indigenous and non-Indigenous communities, small- and medium-sized businesses and not-for-profit organizations in growing and developing local tourism products and experiences. The TGP also contributes to the Federal Tourism Growth Strategy, which charts a course for long-term growth, investment, and stability in Canada's tourism sector, from coast-to-coast-to-coast.

CanNor's economic development programming supports projects that promote sustainable community economic development, enhance business development and growth, and facilitate innovation.

Associated Links

Backgrounder

Canadian Northern Economic Development Agency

Inclusive Diversification and Economic Advancement in the North (IDEANorth)

Tourism Growth Program

Federal Tourism Growth Strategy

Government of Yukon , Economic Development Fund

Stay connected

Follow CanNor on  X (Twitter ),  Facebook  and  LinkedIn .

SOURCE Canadian Northern Economic Development Agency (CanNor)

View original content: http://www.newswire.ca/en/releases/archive/June2024/26/c4391.html

Spiritual Tourism in India Gives Boost to These 7 Emerging Cities

Bulbul Dhawan , Skift

June 24th, 2024 at 7:47 AM EDT

Hotel companies are betting big on the smaller towns in India. With spiritual tourism accounting for 60% of the domestic tourism, the segment is likely to drive the growth in the Indian hospitality industry for the next few years.

Bulbul Dhawan

Spiritual tourism will help develop more tourism-related infrastructure in emerging cities in India, according to a report by real estate services firm Colliers.

In its latest report, Colliers identified 7 emerging cities, all religious hubs, where hospitality is set to drive real estate growth: Amritsar in Punjab; Ayodhya and Varanasi in Uttar Pradesh; Dwarka in Gujarat; Puri in Odisha; Shirdi in Maharashtra; and Tirupati in Andhra Pradesh. 

The report highlighted that spiritual tourism is set to be a major growth driver for the development of several temple towns in India, thanks to government policy support and infrastructure developments.

The improvements in infrastructure, such as upgraded roads, flagship trains, and new airports, are expected to attract real estate investors to these spiritual destinations.

Smaller towns are emerging as dynamic contributors to India’s economy, driven by improved infrastructure, affordable real estate, skilled talent, and government initiatives, said Colliers India CEO Badal Yagnik. “Significant momentum is expected across residential, commercial, retail, hospitality, and industrial segments,” he said.

How Religious Travel Powers India’s Tourism

In the 2022-2023 financial year, the travel and tourism industry contributed about $199 billion to India’s GDP. The Colliers report revealed that spiritual tourism holds a 30% market share in the country’s travel and tourism sector and accounts for 60% of the domestic tourism market.

Data from India’s Ministry of Tourism showed that in 2022, over 1.4 billion tourists visited religious sites across the country. These places of religious tourism generated INR 1,340 billion (over $16 billion) during the year.

Destinations like Ayodhya and Varanasi in Uttar Pradesh have seen significant upgrades to better accommodate tourists. In a recent interview with Skift , Preeti Srivastava, the tourism deputy director in Uttar Pradesh, mentioned that the state’s tourism industry has been transformed following the inauguration of the Kashi-Vishwanath corridor for visitor management in Varanasi in December 2021.

Spiritual Tourism and Hospitality Development

Spiritual destinations in India have been witnessing significant investment by hotel companies. Some of these cities include:

• Ayodhya is looking at an annual footfall of 23 million, and a report by brokerage firm Jeffries estimates that it could attract over 50 million tourists annually. Due to its recent development, the land value appreciation in 2024 as compared to 2019 is expected to be over 100%. However, it has a low hospitality sector presence currently, as most projects are under development. 
• In January, Radisson Hotel Group opened Park Inn by Radisson in Ayodhya, with another project under development. Indian Hotels Company (IHCL) also signed two hotels in the city under the Ginger and Vivanta brands last year, while a third one under the IHCL SeleQtions brand was signed this year. Lemon Tree Hotels is planning a 200-key hotel in Ayodhya, while a hotel under Wyndham’s Ramada Encore brand has been signed. 
• According to the Colliers report, Amritsar has been witnessing an annual footfall of 30 million. This has resulted in the city having a high presence of branded hotels in the city. 
• Last year, Marriott opened a Le Meridien hotel in Amritsar, while in December.
• IHG Hotels announced the signing of a new voco hotel in the city.
• Home to the holiest temple in Sikh faith — Golden Temple — the city also marked the entry of the Trademark Collection by Wyndham brand in India earlier this year.
• Accor is also set to open a Grand Mercure-branded property in the city. 
• Varanasi, post its upgrade, has had a significant increase in tourists. According to Srivastava, after the inauguration of the Kashi-Vishwanath corridor, a total of more than 130 million tourists visited the pilgrim city in 2022 and 2023.
• Last month, IHCL signed its fourth hotel in city under its budget brand Ginger.
• Wyndham Hotels opened a Ramada Plaza in the city last year,
• Hilton Opened DoubleTree by Hilton in Varanasi in September 2023. 

Government Boost to Spiritual Tourism

The report said that the focus by the government on spiritual tourism is boosting this segment. “Given the latent potential, the segment’s market size grew from $44 billion in 2020 to about $60 billion in 2023,” it said, adding that the segment is expected to grow 9-10% annually to reach $130 billion by 2032. 

Recent government schemes including Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (Prashad) and Swadesh Darshan 2.0 – to develop sustainable destinations – has led to an increase in tourist-friendly pilgrimage destinations. 

“Various government initiatives in recent years have also uplifted the infrastructure and real estate market of select spiritually inclined tourist destinations,” the report said. 

The government has replicated the upgradation of Varanasi in Ujjain, Madhya Pradesh for the Mahakaleshwar Temple, and is now looking to uplift Mathura . This has led to a more systematic tourist flow in these destinations, creating the potential for better tourist management. Madhya Pradesh tourism is considering implementing a tourist registration system to tackle overcrowding and overtourism. 

There has also been a boost in aviation sector for spiritual tourism destinations as the number of airports have doubled over the past 10 years. Airports have come up in smaller cities such as Shirdi in Maharashtra and Kushinagar in Bihar for devotees.

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Tags: hospitality , hospitality news , hotel investments , ihg , india , india travel , Indian Hotels Company , investments , radisson hotel group , real estate , religious travel , tourism , Travel Trends , wyndham

Photo credit: Spiritual tourism holds a 30% market share in the travel and tourism sector in the country. Press Information Bureau

UN Tourism | Bringing the world closer

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Tourism Investments Trends and Challenges during COVID-19

Webinar, 16th March 2021

Registration

The COVID-19 pandemic has hit hard investments in the tourism sector. Announced foreign investment in the tourism sector fell from $48.5bn in 2019 to $12.6bn in 2020 according to fDi intelligence from the Financial Times . This represents foreign direct investment (FDI) into tourism plummeted by 73.2% in the first half of 2020 compared with the same period of 2019. The drop in the tourism sector is among the highest, especially when comparing with the Global FDI that collapsed by 42% in 2020 according to UNCTAD. As a result, the sector has lost around $910bn to $1.2trn in export revenues in 2020 compared with 2019 which suggests around 100–120 million direct tourism jobs at risk as the global FDI remains weak in 2021, experiencing a further decline of 5–10%.

In this context, the World Tourism Organization (UNWTO) has prioritized Investments as one of our key areas as we move forward towards the economic recovery . We believe that sustainable investments and its cross-sectorial impact has a multiplier power to strengthen strategic large regional projects, but also the promotion of investments that stimulates entrepreneurship and innovation of micro, small and medium-sized enterprises (MSMEs), which along with tech startups are an important driver of innovation and jobs creation.

For this purpose, we joined forces with the fDi Intelligence from the Financial Times one of our key collaborators to provide you practical digital tools to improve your competitiveness in regards the attraction and promotion of foreign direct investment (FDI) to your region and country as we recover from the COVID-19 pandemic.

Purpose Webinar

This webinar series will focus on “Tourism Investments Trends and Challenges post COVID-19” with the purpose to provide a relevant data insights and practical strategies concerned with the use of digital platforms to attract and promote investments for a faster recovery of the tourism sector.

The UNWTO webinars will invite government officials related with attraction and promotion of investments, IPA managers, traditional, non-traditional investors with a forward-looking vision to attract more FDI for tourism development.

UNWTO Investments will be delivering the SAME webinar via Zoom on the following dates, depending the region:

Natalia Bayona leads the innovation, digital transformation and investments strategy of the World Tourism Organization (UNWTO), the United Nations specialized agency for the promotion of responsible, sustainable and accessible tourism worldwide.

With a diverse background on politics, destination management and business, she has become the first innovation director at UNWTO and has introduced entrepreneurship as key factor for tourism and development. Her work consists on identifying the most disruptive startups and investment projects and matching them with Member States and leading corporations. As an advocate of youth and technology, she seeks to make entrepreneurs grow for a promising future in all regions.

For 2 and a half years, Natalia has developed 7 UNWTO Startup Competitions and 4 Innovation Challenges, including the Healing Solutions for Tourism edition, with outcomes such as more than 45 million Euros in support for entrepreneurs and pilots for safe travel. Moreover, she has designed the Tourism Tech Adventures innovation forums and co-created the UNWTO Tourism Online Academy for advancing skill development in the sector in collaboration with the most pretigious universities. She has also opened the Multilateral Investment Cooperation area for tourism and is currently working on high-impact projects to #RestartTourism.

Natalia graduated in Government and International Relations from Universidad Externado de Colombia and holds an Executive MBA from the IE Business School. Nowadays, she is part of the World Economic Forum network as a European Digital Leader and is an Eisenhower Fellow as the first Colombian on the Women Leadership Program for creating the first Tourism for Tomorrow Alliance Fund: a high-level network focused on joining public-private efforts for high-impact investments in digital education and innovation for tourism’s sustainable development and post Covid-19 recovery.

In 2017, she served as the Vice President of International Development for the Spain Startup - South Summit and organized the first South Summit Pacific Alliance, connecting the main stakeholders of the entrepreneurship ecosystem of Colombia, Chile, Mexico and Peru.

Having worked in ProColombia for ten years, she has lived in six countries where has developed strategies to boost exports, foreign investment and tourism for Colombia. Her career started in 2006 as part of the team that created the first international tourism campaign for Colombia: “Colombia, the risk is wanting to stay”, which sought to change the image of the country abroad. The successful execution of this campaign in more than 15 countries was possible thanks to her work.

Juan C. Barrios is the fDi Intelligence representative for Latin America, the Caribbean, Spain and Portugal. With a Bachelor’s degree in Business Administration at Universidad Centroamericana UCA, Nicaragua and an MBA at Universitat de Valencia, Spain.

He has been working with universities, research institutions and multinationals in Europe and the LAC region for more than eight years.

Currently Juan provides guidance, insights and training to IPAs and EDOs on topics related to investment attraction and promotions through data tools and digital platforms such as fDi Markets (leading FDI monitor) and fDi Benchmark (competitive analysis between locations) and GIS Planning, all services of the Financial Times.

Juan is actively supporting activities and events related to economic development, country and city branding and competitiveness for economic development organizations and governments.

Welcome address

Natalia Bayona, Director Innovation, Education and Investments at UNWTO

Presentation Keynote: Tourism Investments Trends and Challenges

Guiding questions:

• What are the trends and guidelines for Tourism Foreign Direct Investment?
• What themes will define the tourism investment recovery post COVID-19 ?

Presentation Keynote by fDi Intelligence on Digital Platforms for Tourism FDI

Sarah Russis, Head of Global Sales at fDi Intelligence, Financial Times

• What are the best practices and digitals platforms available to enhance tourism investments recovery ?
• How could governments use technology to promote Tourism Foreign Direct Investment during pandemic travel restrictions ?

Q&A and Closing remarks

Frequently Asked Questions

What is this program about.

The World Tourism Organization (UNWTO)has prioritized Investments as one of our key areas as we move forward towards the economic recovery. For this purpose, we joined forces with the fDi Intelligence from the Financial Times one of our key collaborators to provide you limited access to world class digital investment platforms to improve your competitiveness regarding the attraction and promotion of foreign direct investment (FDI) to your region and country as we recover from the COVID-19 pandemic.

What are the digital services with limited access offered?

The access will depend on the needs and goals of each Member States. However, for this call and considering previous assessments, we suggest two main platforms:

• P1: FDI market Intelligence (benchmark platform) This tool is one of the most comprehensive online databases of crossborder greenfield investments available, covering several countries and the tourism sector worldwide. It provides access to real-time monitoring of investment projects, capital investment and job creation. It also tracks and profile companies investing overseas, as well as conduct in-depth analysis to uncover trends. You can find more information here.
• P2: Zoom Tours (Virtual Tours) This is a new cloud-based software that allows to create themed virtual tours to focus attention on a territory's most important features. This tool is also a smart marketing for virtual tours to showcase economic development to tourism projects. The ZoomTour is a relevant tool to create compelling online promotions for all the important features a community has to offer during the travel restrictions.
• You can find more information here

Who is the best target audience for this program?

The best target audience for this program are people directly involve with tourism investment attraction, and promotion. People who oversee the strategies or investment plans for a given territory or geography, and need quality information to improve the competitiveness in their region.

What are the different characteristics between Tier1, Tier2 and Tier3 services?

The Tiers classifications depends on several factors such as: International Tourist arrivals, Contribution of Tourism to GDP, Tourism FDI Greenfield Investments, among others. Nevertheless, we suggest the follow classification for the territories to be promoted e.g. countries, cities, areas.

• Tier 1: More than 30M population and/or high tourism investment readiness score
• Tier 2: Between 5M and 30M population and/or medium tourism investment readiness score
• Tier 3: Under 5M population and/or medium tourism investment readiness score

In case Member States are given limited access, what would be the cost implications to consider for gaining full access in the future?

For the sake of clarity, the UNWTO is not able to provide any cost or commercial information about a third party. Furthermore, there is not an obligation to purchase any product or service under this program.

Any further commercial conversation regarding costs or financial implications should be requested to the Financial Times directly since they are providing the limited access to its planforms.

Are there any obligations of the participating Member States as well as other target participants, such as: submitting of regular reports, joining of regular meetings, etc.?

This program does not require to make any additional commitments.

Would any additional services be provided to participating Member States? E.g. any regular reports, meetings, or networking opportunities, media coverage provided by the Financial Time, etc?

This program does not provide any additional services. Any other specific needs or requirements should be requested to UNWTO investment services which will asset the needs to provide technical assistance. For more information, please contact to Mr. Miguel Angel Figueroa .

Whether the participating Member States would be required to upload relevant regulations/ incentives on attracting foreign direct investment (or any other information) at the platform for foreign investors' / other participating Member States' review on a regular basis?

Would the services include free access to foreign direct investments benchmark and reports, opportunity mapping for investors, destination/market intelligence and data promotion and positioning, tailor training, related content, webinar by un tourism and amadeus: travel insights 2024..., 69th meeting of un tourism regional commission for the ..., 68th meeting of the unwto regional commission for the a..., workshop on tourism statistics with a focus on the caribbean.

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CanNor investment of nearly $800,000 supports seven tourism projects in the Yukon

From: Canadian Northern Economic Development Agency

Backgrounder

Today, Dr Brendan Hanley, Member of Parliament for the Yukon, on behalf of the Honourable Dan Vandal, Minister of Northern Affairs, PrairiesCan and CanNor, announced that the Government of Canada is investing nearly $800,000 in strengthening the Yukon tourism sector.

Today, Dr Brendan Hanley, Member of Parliament for the Yukon, on behalf of the Honourable Dan Vandal, Minister of Northern Affairs, PrairiesCan and CanNor, announced that the Government of Canada is investing nearly $800,000 in strengthening the Yukon tourism sector. This funding will support seven businesses and organizations to offer new programs, experiences and services; expand their ability to accommodate overnight guests; improve accessibility; and transition to green energy.

MacBride Museum – Building Audiences CanNor is providing up to $250,000 toward a three-year project in which MacBride Museum will develop and deliver a series of programs and events to build new audiences and offer new products and experiences to visitors throughout the year. MacBride Museum, located in Whitehorse, is a non-profit organization started in 1950 to illustrate, share and protect Yukon’s objects, photographs and stories.

Grayling Camp Enterprises – Off-Grid Solar Power System CanNor is providing up to $192,500 toward a two-year $550,000 project for Grayling Camp Enterprises to purchase and install an off-grid solar power system at the Dalton Trail Lodge. The lodge, located in Kluane National Park, has been in operation since 1987 and primarily caters to international tourists. This off-grid solar power system will allow Grayling Camp Enterprises to drastically reduce its dependency on fossil fuels and position itself more strongly as an ecotourism provider.

Northern Nomad Outdoors & Yoga – Cardinal Camp Wellness on the Land CanNor is providing up to $99,999 toward a three-year $214,499 project for Northern Nomad Outdoors & Yoga (NNOY) to develop its tourism infrastructure and land-based experiences in Mendenhall, Yukon. Incorporated in 2007, NNOY is an Indigenous, woman-owned eco-tourism business that specializes in sustainable tourism and outdoor adventures.

Klondike Visitors Association – Accessible Dawson Pilot Project CanNor is providing up to $99,999 toward a two-year $153,799 pilot project for the Klondike Visitors Association (KVA) to develop and implement short- and medium-term solutions to make Dawson more accessible for people with mobility needs, visual or hearing requirements, or diverse cognitive or sensory abilities. This pilot project will provide a model to implement further accessibility upgrades in the community.

Cabins Over Crag Lake – Tourism Experience Development CanNor is providing up to $99,000 toward a two-year $201,948 project that will increase Cabins Over Crag Lake’s overnight accommodation capacity, create an event and arts programming space, and improve its campground facilities. Cabins Over Crag Lake is an accommodation and event space located 15 minutes outside of Carcross.

Carmacks Development Corporation – Yukon Bunkies Eco-Conscious Lodging CanNor is providing up to $28,424 toward a $35,000 project for the Carmacks Development Corporation to purchase and ship two eco-friendly prefabricated bunkhouses. These bunkhouses will provide short-term accommodation in the region while appealing to environmentally conscious travellers. As a result of this project, Carmacks will have two new rental structures to address the shortage of short-term accommodations. This will increase the region’s attractiveness as a tourism destination and its capacity to host more tourists during peak seasons.

Yukon Wildlife Preserve – Winter Tourism Expansion CanNor has provided up to $21,087 toward a one-year $37,656 project for the Yukon Wildlife Preserve, a non-profit society, to expand its visitor services by purchasing 11 fat bikes and associated equipment to start a rental program and purchasing an insulated wall tent, so visitors can rest and stay warm while touring the 350-acre preserve. The Yukon Wildlife Preserve Operating Society was established in 2004 to care for and rehabilitate Yukon’s injured and orphaned wildlife. Visitors can tour the preserve to see the animals in their natural habitats and learn about the species.

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

• 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.

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TIEZA sees changes to CREATE encouraging tourism investment

THE TOURISM INDUSTRY is expected to attract increased investments once the amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act are passed, an industry regulator said.

On the sidelines of the Philippine Tourism and Hotel Investment Summit on Friday, Tourism Infrastructure and Enterprise Zone Authority (TIEZA) Chief Operating Officer Mark T. Lapid said investors “will benefit because that will level the playing field. Meaning, what you can get in the Philippine Economic Zone Authority (PEZA), you can also get in the Board of Investments (BoI) and in TIEZA,” Mr. Lapid said in a mix of English and Filipino.

“But the only thing that you cannot get from the other investment promotion agencies and you can get from us is the infrastructure support,” he said. “So yes, this will make the sector more attractive to investors.”

In March, the House of Representatives approved on final reading the CREATE to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, which seeks to cut the corporate income tax to 20% from 25% The bill has been passed on to the Senate.

During the summit, the Philippine Hotel Owners Association, Inc. (PHOA) and Leechiu Property Consultants released the Philippine Hotel Investment Outlook Survey, which in part laid down government support recommendations that it hopes will attract more investment.

In particular, PHOA and Leechiu called for additional tax incentives and the extension of   current incentives to help offset setbacks during the pandemic and help proponents recover at least half of their construction and land acquisition costs.

Francis Nathaniel C. Gotianun, chairman of the organizing committee of the summit, said: “We are   trying to get a reinvestment allowance … since hotels require a lot of capital investment on an ongoing basis, we were hoping that we could get a 50% rebate on our renovation costs because we continuously renovate hotels,” Mr. Gotianun told BusinessWorld .

Another recommendation in the report is increased incentives for sustainability initiatives, which PHOA and Leechiu said will help “inspire both hospitality establishments and the public to integrate environmental stewardship into their operations.”

According to Mr. Gotianun, the government can help the industry by providing funding access for sustainability initiatives.

“It can be in the form of a subsidy or reimbursement for investment in sustainability. It would be good if there was some sort of financing facility, rebate, or tax break as a result of the investment,” he said.

“The idea is that if we can get some tax shielding as a result of that investment, it will encourage people to invest again. Obviously, the more government support we can get, the more we’d be happy to invest,” he added.

Meanwhile, Mr. Lapid said TIEZA is offering 10 assets for joint ventures or for public-private partnerships.

“These are open for investment, so the private sector can come in or form a joint venture, and then from our part, we would be responsible for the property and the land cost,” he said.

The projects include the development of a critical tourism infrastructure project in Boracay Island, the rehabilitation and redevelopment of the Balicasag Island Dive Resort, the development of an integrated tourism complex in Ilocos Norte, and the development of an integrated drive complex in Moalboal in Cebu Province. — Justine Irish D. Tabile

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