why is tourism the fastest growing industry

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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"People want to travel": 4 sector leaders say that tourism will change and grow

The global travel and tourism industry's post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. Image:  Unsplash/Anete Lūsiņa

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Shinya katanozaka, gilda perez-alvarado, stephen kaufer.

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• In 2020 alone, the travel and tourism industry lost $4.5 trillion in GDP and 62 million jobs - the road to recovery remains long.
• The World Economic Forum’s latest Travel & Tourism Development Index gives expert insights on how the sector will recover and grow.
• We asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

The global travel and tourism sector’s post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. The difference in international tourist arrivals in January 2021 and a similar period in January 2022 was as much as the growth in all of 2021. However, with $4.5 trillion in GDP and 62 million jobs lost in 2020 alone, the road to recovery remains long.

A few factors will greatly determine how the sector performs. These include travel restrictions, vaccination rates and health security, changing market dynamics and consumer preferences, and the ability of businesses and destinations to adapt. At the same time, the sector will need to prepare for future shocks.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

The World Economic Forum's latest Travel & Tourism Development Index highlights many of these aspects, including the opportunity and need to rebuild the travel and tourism sector for the better by making it more inclusive, sustainable, and resilient. This will unleash its potential to drive future economic and social progress.

Within this context, we asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

Have you read?

Are you a 'bleisure' traveller, what is a ‘vaccine passport’ and will you need one the next time you travel, a travel boom is looming. but is the industry ready, how to follow davos 2022, “the way we live and work has changed because of the pandemic and the way we travel has changed as well”.

Tony Capuano, CEO, Marriott International

Despite the challenges created by the COVID-19 pandemic, the future looks bright for travel and tourism. Across the globe, people are already getting back on the road. Demand for travel is incredibly resilient and as vaccination rates have risen and restrictions eased, travel has rebounded quickly, often led by leisure.

The way many of us live and work has changed because of the pandemic and the way we travel has changed as well. New categories of travel have emerged. The rise of “bleisure” travel is one example – combining elements of business and leisure travel into a single trip. Newly flexible work arrangements, including the opportunity for many knowledge workers to work remotely, have created opportunities for extended travel, not limited by a Monday to Friday “9 to 5” workweek in the office.

To capitalize on this renewed and growing demand for new travel experiences, industry must join governments and policymakers to ensure that the right conditions are in place to welcome travellers as they prepare to get back on the road again, particularly those who cross international borders. Thus far, much of the recovery has been led by domestic and leisure travel. The incremental recovery of business and international travel, however, will be significant for the broader industry and the millions who make their livelihoods through travel and tourism.

Looking ahead to future challenges to the sector, be they public health conditions, international crises, or climate impacts, global coordination will be the essential component in tackling difficult circumstances head-on. International agreement on common – or at least compatible – standards and decision-making frameworks around global travel is key. Leveraging existing organizations and processes to achieve consensus as challenges emerge will help reduce risk and improve collaboration while keeping borders open.

“The travel and tourism sector will not be able to survive unless it adapts to the virtual market and sustainability conscience travellers”

Shinya Katanozaka, Representative Director, Chairman, ANA Holdings Inc.

At a time when people’s movements are still being restricted by the pandemic, there is a strong, renewed sense that people want to travel and that they want to go places for business and leisure.

In that respect, the biggest change has been in the very concept of “travel.”

A prime example is the rapid expansion of the market for “virtual travel.” This trend has been accelerated not only by advances in digital technologies, but also by the protracted pandemic. The travel and tourism sector will not be able to survive unless it adapts to this new market.

However, this is not as simple as a shift from “real” to “virtual.” Virtual experiences will flow back into a rediscovery of the value of real experiences. And beyond that, to a hunger for real experiences with clearer and more diverse purposes. The hope is that this meeting of virtual and actual will bring balance and synergy the industry.

The pandemic has also seen the emergence of the “sustainability-conscious” traveller, which means that the aviation industry and others are now facing the challenge of adding decarbonization to their value proposition. This trend will force a re-examination of what travel itself should look like and how sustainable practices can be incorporated and communicated. Addressing this challenge will also require stronger collaboration across the entire industry. We believe that this will play an important role in the industry’s revitalization as it recovers from the pandemic.

How is the World Economic Forum promoting sustainable and inclusive mobility systems?

The World Economic Forum’s Platform for Shaping the Future of Mobility works across four industries: aerospace and drones; automotive and new mobility; aviation travel and tourism; and supply chain and transport. It aims to ensure that the future of mobility is safe, clean, and inclusive.

• Through the Clean Skies for Tomorrow Coalition , more than 100 companies are working together to power global aviation with 10% sustainable aviation fuel by 2030.
• In collaboration with UNICEF, the Forum developed a charter with leading shipping, airlines and logistics to support COVAX in delivering more than 1 billion COVID-19 vaccines to vulnerable communities worldwide.
• The Road Freight Zero Project and P4G-Getting to Zero Coalition have led to outcomes demonstrating the rationale, costs and opportunities for accelerating the transition to zero emission freight.
• The Medicine from the Sky initiative is using drones to deliver vaccines and medicine to remote areas in India, completing over 300 successful trials.
• The Forum’s Target True Zero initiative is working to accelerate the deployment and scaling of zero emission aviation, leveraging electric and hydrogen flight technologies.
• In collaboration with the City of Los Angeles, Federal Aviation Administration, and NASA, the Forum developed the Principles of the Urban Sky to help adopt Urban Air Mobility in cities worldwide.
• The Forum led the development of the Space Sustainability Rating to incentivize and promote a more safe and sustainable approach to space mission management and debris mitigation in orbit.
• The Circular Cars Initiative is informing the automotive circularity policy agenda, following the endorsement from European Commission and Zero Emission Vehicle Transition Council countries, and is now invited to support China’s policy roadmap.
• The Moving India network is working with policymakers to advance electric vehicle manufacturing policies, ignite adoption of zero emission road freight vehicles, and finance the transition.
• The Urban Mobility Scorecards initiative – led by the Forum’s Global New Mobility Coalition – is bringing together mobility operators and cities to benchmark the transition to sustainable urban mobility systems.

Contact us for more information on how to get involved.

“The tourism industry must advocate for better protection of small businesses”

Gilda Perez-Alvarado, Global CEO, JLL Hotels & Hospitality

In the next few years, I think sustainability practices will become more prevalent as travellers become both more aware and interested in what countries, destinations and regions are doing in the sustainability space. Both core environmental pieces, such as water and air, and a general approach to sustainability are going to be important.

Additionally, I think conservation becomes more important in terms of how destinations and countries explain what they are doing, as the importance of climate change and natural resources are going to be critical and become top of mind for travellers.

The second part to this is we may see more interest in outdoor events going forward because it creates that sort of natural social distancing, if you will, or that natural safety piece. Doing outdoor activities such as outdoor dining, hiking and festivals may be a more appealing alternative to overcrowded events and spaces.

A lot of lessons were learned over the last few years, but one of the biggest ones was the importance of small business. As an industry, we must protect small business better. We need to have programmes outlined that successfully help small businesses get through challenging times.

Unfortunately, during the pandemic, many small businesses shut down and may never return. Small businesses are important to the travel and tourism sector because they bring uniqueness to destinations. People don’t travel to visit the same places they could visit at home; they prefer unique experiences that are only offered by specific businesses. If you were to remove all the small businesses from a destination, it would be a very different experience.

“Data shows that the majority of travellers want to explore destinations in a more immersive and experiential way”

Steve Kaufer, Co-Founder & CEO, Tripadvisor

We’re on the verge of a travel renaissance. The pandemic might have interrupted the global travel experience, but people are slowly coming out of the bubble. Businesses need to acknowledge the continued desire to feel safe when travelling. A Tripadvisor survey revealed that three-quarters (76%) of travellers will still make destination choices based on low COVID-19 infection rates.

As such, efforts to showcase how businesses care for travellers - be it by deep cleaning their properties or making items like hand sanitizer readily available - need to be ingrained within tourism operations moving forward.

But travel will also evolve in other ways, and as an industry, we need to be prepared to think digitally, and reimagine our use of physical space.

Hotels will become dynamic meeting places for teams to bond in our new hybrid work style. Lodgings near major corporate headquarters will benefit from an influx of bookings from employees convening for longer periods. They will also make way for the “bleisure” traveller who mixes business trips with leisure. Hotels in unique locales will become feasible workspaces. Employers should prepare for their workers to tag on a few extra days to get some rest and relaxation after on-location company gatherings.

Beyond the pandemic, travellers will also want to explore the world differently, see new places and do new things. Our data reveals that the majority want to explore destinations in a more immersive and experiential way, and to feel more connected to the history and culture. While seeing the top of the Empire State building has been a typical excursion for tourists in New York city, visitors will become more drawn to intimate activities like taking a cooking class in Brooklyn with a family of pizza makers who go back generations. This will undoubtedly be a significant area of growth in the travel and tourism industry.

Governments would be smart to plan as well, and to consider an international playbook that helps prepare us for the next public health crisis, inclusive of universal vaccine passports and policies that get us through borders faster.

Understanding these key trends - the ongoing need to feel safe and the growing desire to travel differently - and planning for the next crisis will be essential for governments, destinations, and tourism businesses to succeed in the efforts to keep the world travelling.

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.

Detailed statistics

Total contribution of travel and tourism to GDP worldwide 2019-2033

Number of international tourist arrivals worldwide 1950-2023

Global leisure travel spend 2019-2022

Editor’s Picks Current statistics on this topic

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

Travel and tourism employment worldwide 2019-2033

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• Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2033
• Basic Statistic Travel and tourism: share of global GDP 2019-2033
• Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
• Basic Statistic Global leisure travel spend 2019-2022
• Premium Statistic Global business travel spending 2001-2022
• Premium Statistic Number of international tourist arrivals worldwide 1950-2023
• Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
• Basic Statistic Travel and tourism employment worldwide 2019-2033

Total contribution of travel and tourism to gross domestic product (GDP) worldwide in 2019 and 2022, with a forecast for 2023 and 2033 (in trillion U.S. dollars)

Travel and tourism: share of global GDP 2019-2033

Share of travel and tourism's total contribution to GDP worldwide in 2019 and 2022, with a forecast for 2023 and 2033

Total contribution of travel and tourism to GDP in leading travel markets worldwide in 2019 and 2022 (in billion U.S. dollars)

Leisure tourism spending worldwide from 2019 to 2022 (in billion U.S. dollars)

Global business travel spending 2001-2022

Expenditure of business tourists worldwide from 2001 to 2022 (in billion U.S. dollars)

Number of international tourist arrivals worldwide from 1950 to 2023 (in millions)

Number of international tourist arrivals worldwide 2005-2023, by region

Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

Number of travel and tourism jobs worldwide from 2019 to 2022, with a forecast for 2023 and 2033 (in millions)

• Premium Statistic Global hotel and resort industry market size worldwide 2013-2023
• Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
• Basic Statistic Leading hotel companies worldwide 2023, by number of properties
• Premium Statistic Hotel openings worldwide 2021-2024
• Premium Statistic Hotel room openings worldwide 2021-2024
• Premium Statistic Countries with the most hotel construction projects in the pipeline worldwide 2022

Global hotel and resort industry market size worldwide 2013-2023

Market size of the hotel and resort industry worldwide from 2013 to 2022, with a forecast for 2023 (in trillion U.S. dollars)

Most valuable hotel brands worldwide 2023, by brand value

Leading hotel brands based on brand value worldwide in 2023 (in billion U.S. dollars)

Leading hotel companies worldwide 2023, by number of properties

Leading hotel companies worldwide as of June 2023, by number of properties

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Number of hotels opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

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Number of hotel rooms opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

Countries with the most hotel construction projects in the pipeline worldwide 2022

Countries with the highest number of hotel construction projects in the pipeline worldwide as of Q4 2022

• Premium Statistic Airports with the most international air passenger traffic worldwide 2022
• Premium Statistic Market value of selected airlines worldwide 2023
• Premium Statistic Global passenger rail users forecast 2017-2027
• Premium Statistic Daily ridership of bus rapid transit systems worldwide by region 2023
• Premium Statistic Number of users of car rentals worldwide 2019-2028
• Premium Statistic Number of users in selected countries in the Car Rentals market in 2023
• Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Airports with the most international air passenger traffic worldwide 2022

Leading airports for international air passenger traffic in 2022 (in million international passengers)

Market value of selected airlines worldwide 2023

Market value of selected airlines worldwide as of May 2023 (in billion U.S. dollars)

Global passenger rail users forecast 2017-2027

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Carbon footprint of international tourism transport worldwide 2005-2030, by type

Transport-related emissions from international tourist arrivals worldwide in 2005 and 2016, with a forecast for 2030, by mode of transport (in million metric tons of carbon dioxide)

Attractions

• Premium Statistic Leading museums by highest attendance worldwide 2019-2022
• Basic Statistic Most visited amusement and theme parks worldwide 2019-2022
• Basic Statistic Monuments on the UNESCO world heritage list 2023, by type
• 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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Sustainable tourism

Related sdgs, promote sustained, inclusive and sustainable ....

Description

Publications.

Tourism is one of the world's fastest growing industries and an important source of foreign exchange and employment, while being closely linked to the social, economic, and environmental well-being of many countries, especially developing countries. Maritime or ocean-related tourism, as well as coastal tourism, are for example vital sectors of the economy in small island developing States (SIDS) and coastal least developed countries (LDCs) (see also: The Potential of the Blue Economy report as well as the Community of Ocean Action on sustainable blue economy).

The World Tourism Organization defines sustainable tourism as “tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities".

Based on General assembly resolution 70/193, 2017 was declared as the  International Year of Sustainable Tourism for Development.

In the 2030 Agenda for Sustainable Development SDG target 8.9, aims to “by 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products”. The importance of sustainable tourism is also highlighted in SDG target 12.b. which aims to “develop and implement tools to monitor sustainable development impacts for sustainable tourism that creates jobs and promotes local culture and products”.

Tourism is also identified as one of the tools to “by 2030, increase the economic benefits to Small Island developing States and least developed countries” as comprised in SDG target 14.7.

In the Rio+20 outcome document The Future We want, sustainable tourism is defined by paragraph 130 as a significant contributor “to the three dimensions of sustainable development” thanks to its close linkages to other sectors and its ability to create decent jobs and generate trade opportunities. Therefore, Member States recognize “the need to support sustainable tourism activities and relevant capacity-building that promote environmental awareness, conserve and protect the environment, respect wildlife, flora, biodiversity, ecosystems and cultural diversity, and improve the welfare and livelihoods of local communities by supporting their local economies and the human and natural environment as a whole. ” In paragraph 130, Member States also “call for enhanced support for sustainable tourism activities and relevant capacity-building in developing countries in order to contribute to the achievement of sustainable development”.

In paragraph 131, Member States “encourage the promotion of investment in sustainable tourism, including eco-tourism and cultural tourism, which may include creating small- and medium-sized enterprises and facilitating access to finance, including through microcredit initiatives for the poor, indigenous peoples and local communities in areas with high eco-tourism potential”. In this regard, Member States also “underline the importance of establishing, where necessary, appropriate guidelines and regulations in accordance with national priorities and legislation for promoting and supporting sustainable tourism”.

In 2002, the World Summit on Sustainable Development in Johannesburg called for the promotion of sustainable tourism development, including non-consumptive and eco-tourism, in Chapter IV, paragraph 43 of the Johannesburg Plan of Implementation.

At the Johannesburg Summit, the launch of the “Sustainable Tourism – Eliminating Poverty (ST-EP) initiative was announced. The initiative was inaugurated by the World Tourism Organization, in collaboration with UNCTAD, in order to develop sustainable tourism as a force for poverty alleviation.

The UN Commission on Sustainable Development (CSD) last reviewed the issue of sustainable tourism in 2001, when it was acting as the Preparatory Committee for the Johannesburg Summit.

The importance of sustainable tourism was also mentioned in Agenda 21.

For more information and documents on this topic,  please visit this link

UNWTO Annual Report 2015

2015 was a landmark year for the global community. In September, the 70th Session of the United Nations General Assembly adopted the Sustainable Development Goals (SDGs), a universal agenda for planet and people. Among the 17 SDGs and 169 associated targets, tourism is explicitly featured in Goa...

UNWTO Annual Report 2016

In December 2015, the United Nations General Assembly declared 2017 as the International Year of Sustainable Tourism for Development. This is a unique opportunity to devote a year to activities that promote the transformational power of tourism to help us reach a better future. This important cele...

Emerging Issues for Small Island Developing States

The 2012 UNEP Foresight Process on Emerging Global Environmental Issues primarily identified emerging environmental issues and possible solutions on a global scale and perspective. In 2013, UNEP carried out a similar exercise to identify priority emerging environmental issues that are of concern to ...

Transforming our World: The 2030 Agenda for Sustainable Development

This Agenda is a plan of action for people, planet and prosperity. It also seeks to strengthen universal peace in larger freedom, We recognize that eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for su...

15 Years of the UNWTO World Tourism Network on Child Protection: A Compilation of Good Practices

Although it is widely recognized that tourism is not the cause of child exploitation, it can aggravate the problem when parts of its infrastructure, such as transport networks and accommodation facilities, are exploited by child abusers for nefarious ends. Additionally, many other factors that contr...

Towards Measuring the Economic Value of Wildlife Watching Tourism in Africa

Set against the backdrop of the ongoing poaching crisis driven by a dramatic increase in the illicit trade in wildlife products, this briefing paper intends to support the ongoing efforts of African governments and the broader international community in the fight against poaching. Specifically, this...

Status and Trends of Caribbean Coral Reefs: 1970-2012

Previous Caribbean assessments lumped data together into a single database regardless of geographic location, reef environment, depth, oceanographic conditions, etc. Data from shallow lagoons and back reef environments were combined with data from deep fore-reef environments and atolls. Geographic c...

Natural Resources Forum: Special Issue Tourism

The journal considers papers on all topics relevant to sustainable development. In addition, it dedicates series, issues and special sections to specific themes that are relevant to the current discussions of the United Nations Commission on Sustainable Development (CSD)....

Thailand: Supporting Sustainable Development in Thailand: A Geographic Clusters Approach

Market forces and government policies, including the Tenth National Development Plan (2007-2012), are moving Thailand toward a more geographically specialized economy. There is a growing consensus that Thailand’s comparative and competitive advantages lie in amenity services that have high reliance...

Road Map on Building a Green Economy for Sustainable Development in Carriacou and Petite Martinique, Grenada

This publication is the product of an international study led by the Division for Sustainable Development (DSD) of the United Nations Department of Economic and Social Affairs (UNDESA) in cooperation with the Ministry of Carriacou and Petite Martinique Affairs and the Ministry of Environment, Foreig...

Natural Resources Forum, a United Nations Sustainable Development Journal (NRF)

  Natural Resources Forum, a United Nations Sustainable Development Journal, seeks to address gaps in current knowledge and stimulate relevant policy discussions, leading to the implementation of the sustainable development agenda and the achievement of the Sustainable...

UN Ocean Conference 2025

Our Ocean, Our Future, Our Responsibility “The ocean is fundamental to life on our planet and to our future. The ocean is an important source of the planet’s biodiversity and plays a vital role in the climate system and water cycle. The ocean provides a range of ecosystem services, supplies us with

UN Ocean Conference 2022

The UN Ocean Conference 2022, co-hosted by the Governments of Kenya and Portugal, came at a critical time as the world was strengthening its efforts to mobilize, create and drive solutions to realize the 17 Sustainable Development Goals by 2030.

58th Session of the Commission for Social Development – CSocD58

22nd general assembly of the united nations world tourism organization, world tourism day 2017 official celebration.

This year’s World Tourism Day, held on 27 September, will be focused on Sustainable Tourism – a Tool for Development. Celebrated in line with the 2017 International Year of Sustainable Tourism for Development, the Day will be dedicated to exploring the contribution of tourism to the Sustainable Deve

World Tourism Day 2016 Official Celebration

Accessible Tourism for all is about the creation of environments that can cater for the needs of all of us, whether we are traveling or staying at home. May that be due to a disability, even temporary, families with small children, or the ageing population, at some point in our lives, sooner or late

4th Global Summit on City Tourism

The World Tourism Organisation (UNWTO) and the Regional Council for Tourism of Marrakesh with support of the Government of Morroco are organizing the 4th Global Summit on City Tourism in Marrakesh, Morroco (9-10 December 2015). International experts in city tourism, representatives of city DMOs, of

2nd Euro-Asian Mountain Resorts Conference

The World Tourism Organisation (UNWTO) and Ulsan Metropolitan City with support of the Government of the Republic of Korea are organizing the 2nd Euro-Asian Mountain Resorts Conference, in Ulsan, Republic of Korea (14 - 16 October 2015). Under the title “Paving the Way for a Bright Future for Mounta

21st General Assembly of the United Nations World Tourism Organization

Unwto regional conference enhancing brand africa - fostering tourism development.

Tourism is one of the Africa’s most promising sectors in terms of development, and represents a major opportunity to foster inclusive development, increase the region’s participation in the global economy and generate revenues for investment in other activities, including environmental preservation.

• January 2017 International Year of Tourism In the context of the universal 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs), the International Year aims to support a change in policies, business practices and consumer behavior towards a more sustainable tourism sector that can contribute to the SDGs.
• January 2015 Targets 8.9, 12 b,14.7 The 2030 Agenda for Sustainable Development commits Member States, through Sustainable Development Goal Target 8.9 to “devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products”. The importance of sustainable tourism, as a driver for jobs creation and the promotion of local culture and products, is also highlighted in Sustainable Development Goal target 12.b. Tourism is also identified as one of the tools to “increase [by 2030] the economic benefits to Small Island developing States and least developed countries”, through Sustainable Development Goals Target 14.7.
• January 2012 Future We Want (Para 130-131) Sustainable tourism is defined as a significant contributor “to the three dimensions of sustainable development” thanks to its close linkages to other sectors and its ability to create decent jobs and generate trade opportunities. Therefore, Member States recognize “the need to support sustainable tourism activities and relevant capacity-building that promote environmental awareness, conserve and protect the environment, respect wildlife, flora, biodiversity, ecosystems and cultural diversity, and improve the welfare and livelihoods of local communities” as well as to “encourage the promotion of investment in sustainable tourism, including eco-tourism and cultural tourism, which may include creating small and medium sized enterprises and facilitating access to finance, including through microcredit initiatives for the poor, indigenous peoples and local communities in areas with high eco-tourism potential”.
• January 2009 Roadmap for Recovery UNWTO announced in March 2009 the elaboration of a Roadmap for Recovery to be finalized by UNWTO’s General Assembly, based on seven action points. The Roadmap includes a set of 15 recommendations based on three interlocking action areas: resilience, stimulus, green economy aimed at supporting the tourism sector and the global economy.
• January 2008 Global Sustainable Tourism Criteria The Global Sustainable Tourism Criteria represent the minimum requirements any tourism business should observe in order to ensure preservation and respect of the natural and cultural resources and make sure at the same time that tourism potential as tool for poverty alleviation is enforced. The Criteria are 41 and distributed into four different categories: 1) sustainability management, 2) social and economic 3) cultural 4) environmental.
• January 2003 WTO becomes a UN specialized body By Resolution 453 (XV), the Assembly agreed on the transformation of the WTO into a United Nations specialized body. Such transformation was later ratified by the United Nations General Assembly with the adoption of Resolution A/RES/58/232.
• January 2003 1st Int. Conf. on Climate Change and Tourism The conference was organized in order to gather tourism authorities, organizations, businesses and scientists to discuss on the impact that climate change can have on the tourist sector. The event took place from 9 till 11 April 2003 in Djerba, Tunisia.
• January 2002 World Ecotourism Summit Held in May 2002, in Quebec City, Canada, the Summit represented the most important event in the framework of the International Year of Ecosystem. The Summit identified as main themes: ecotourism policy and planning, regulation of ecotourism, product development, marketing and promotion of ecotourism and monitoring costs and benefits of ecotourism.
• January 1985 Tourism Bill of Rights and Tourist Code At the World Tourism Organization Sixth Assembly held in Sofia in 1985, the Tourism Bill of Rights and Tourist Code were adopted, setting out the rights and duties of tourists and host populations and formulating policies and action for implementation by states and the tourist industry.
• January 1982 Acapulco Document Adopted in 1982, the Acapulco Document acknowledges the new dimension and role of tourism as a positive instrument towards the improvement of the quality of life for all peoples, as well as a significant force for peace and international understanding. The Acapulco Document also urges Member States to elaborate their policies, plans and programmes on tourism, in accordance with their national priorities and within the framework of the programme of work of the World Tourism Organization.

5 Charts That Show Why the Travel Industry Is the World’s Fastest Growing Sector

Rafat Ali, Skift

June 8th, 2015 at 6:30 AM EDT

Travel and tourism is the second-fastest growing sector globally, with 3.9 percent per annum over the next ten years. Now the challenge is to get the right kind of talent to build for that growth.

The global travel and tourism sector employs more people than automotive manufacturing, mining, and financial services combined globally, according to new research from the World Travel & Tourism Council (WTTC).

We’ve extracted five charts from its Benchmarking Report 2015, which compares travel and tourism to eight other sectors that are considered to have similar breadth and global presence, across 26 countries. Here they are, below:

At nearly $2.4 trillion in 2014, travel and tourism’s direct industry gross domestic product (GDP) represents nearly 3.1% of global GDP and is larger than the chemicals manufacturing and automotive manufacturing sectors.

With 105 million people directly employed in 2014, travel and tourism directly employs:

• 7 times more than automotive manufacturing
• 5 times more than the global chemicals industry
• 4 times more than the global banking industry
• 4 times more than the global mining industry
• Almost 2 times more than the global financial services industry.

Travel and tourism directly sustains more jobs than the automotive and chemicals manufacturing industries combined across every region of the world. In Asia, there are more than eight times as many travel and tourism jobs as auto manufacturing jobs and nearly five times as many chemicals manufacturing jobs.

The Oxford Economics global industry model projects travel and tourism direct industry GDP to grow 3.9 percent per annum (compound annual growth) over the next decade. This is greater growth than forecast for every sector studied in this research except for retail.

More than half of all service exports are generated by travel and tourism in Spain, Malaysia, the UAE, South Africa, Peru, Mexico, Thailand, Turkey, and Jamaica.

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Tags: tourism , wttc

Photo credit: Travel and tourism, benchmarked against major global industries. World Travel & Tourism Council

The Ever Growing Transformation Of The Travel Industry

• Last updated May 09, 2024
• Difficulty Advanced

• Category Travel

The travel industry has undergone an impressive transformation in recent years, with advancements in technology and changing consumer preferences leading to an ever-growing evolution. From the rise of online booking platforms to the increasing popularity of alternative accommodations, such as Airbnb, the way we travel and experience new destinations is constantly evolving. This transformation has not only revolutionized the way we plan and book our trips but has also created new opportunities for businesses and travelers alike. In this article, we will explore the various ways in which the travel industry has transformed and how these changes have shaped the way we explore the world.

What You'll Learn

Technological advancements in the travel industry, changing traveler preferences and expectations, impact of globalization on the travel industry, environmental sustainability and the travel industry.

Technological advancements have revolutionized the travel industry in recent years. From booking flights to exploring new destinations, technology has made the travel experience faster, easier, and more convenient. In this blog post, we will look at some of the latest technological advancements in the travel industry and how they are changing the way we travel.

One of the most significant technological advancements in the travel industry is online booking. Gone are the days when you had to visit a travel agency or call an airline to make a reservation. With the advent of online booking platforms, travelers can now book flights, hotels, and other travel services at the touch of a button. These platforms not only save time but also offer competitive prices and a wide range of options.

Another technological advancement that has transformed the travel industry is mobile applications. Travelers can now access information about their destination, check-in for flights, and even book hotels and activities using their smartphones. Mobile apps like Airbnb, TripAdvisor, and Uber have made it easier than ever to find accommodation, plan itineraries, and navigate unfamiliar cities. These apps also provide real-time updates and recommendations based on user reviews, making travel more personalized and customized.

Technology has also revolutionized the way we explore new destinations. Virtual reality (VR) and augmented reality (AR) have made it possible to experience a destination virtually before even setting foot there. Travelers can now take virtual tours of landmarks, museums, and attractions, helping them make informed decisions about what to see and do during their trip. Additionally, AR apps can provide interactive experiences and information about points of interest in real-time, enhancing the overall travel experience.

Furthermore, advancements in communication technology have made it easier for travelers to stay connected while on the go. With the rise of smartphones and affordable international data plans, travelers can now stay connected with family, friends, and work colleagues throughout their trip. Additionally, Wi-Fi hotspots are becoming more prevalent, allowing travelers to access the internet and use various apps even when they are not connected to a cellular network. This connectivity has made it easier to share travel experiences through social media and stay updated with real-time information.

Lastly, technology has greatly improved the safety and security of travelers. Biometric technology, such as facial recognition and fingerprint scanning, is being increasingly used at airports and border control to streamline the check-in process and enhance security. Travelers can now pass through immigration and board their flights quickly and efficiently, reducing wait times and improving the overall travel experience. Additionally, GPS tracking and emergency alert systems have made it easier for travelers to navigate and stay safe in unfamiliar surroundings.

In conclusion, technology has transformed the travel industry in numerous ways. Online booking platforms, mobile applications, virtual reality, communication technology, and biometric systems are just a few examples of how technology has made the travel experience faster, easier, and more convenient. As technology continues to advance, we can expect further improvements in the travel industry, making travel more accessible and enjoyable for everyone.

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The travel industry is constantly evolving, as travelers' preferences and expectations continue to change. With advancements in technology, shifts in demographics, and the rise of social media influence, the way people travel is no longer the same as it used to be. Travelers now have new priorities, and the industry needs to adapt to meet their needs.

One of the most significant changes in traveler preferences is the desire for personalized experiences. Today's travelers are no longer satisfied with the cookie-cutter package tours of the past. They want unique, tailor-made experiences that cater to their specific interests and preferences. Travel companies are now offering personalized itineraries and custom experiences to meet this demand. They have realized that one size does not fit all and that travelers want to feel like their trip has been personally curated just for them.

Another major change in the travel industry is the shift towards sustainable and responsible tourism. Travelers are becoming more aware of the impact their travels can have on the environment and local communities. They now seek out eco-friendly accommodations, support local businesses, and participate in sustainable activities. Travel companies are responding to this trend by offering eco-friendly tours, partnering with local communities, and implementing sustainable practices in their operations.

The rise of social media has also had a significant impact on traveler preferences. With the ability to share their travel experiences instantly, travelers now want to visit photogenic destinations and have Instagram-worthy moments. They are often influenced by what they see on social media and choose destinations that are considered trendy and visually appealing. This has led to a growth in demand for unique and off-the-beaten-path destinations, as travelers seek to avoid crowded tourist hotspots.

Technology has also changed the way people travel. With the rise of smartphones and travel apps, travelers now have instant access to information and services. They can book accommodations, find local attractions, and even navigate through unfamiliar cities with just a few taps on their screens. This has led to a shift towards a more independent style of travel, with travelers choosing to plan their own itineraries and have more control over their experiences.

Furthermore, with the ongoing pandemic, the travel industry has witnessed a change in traveler expectations regarding safety and hygiene. Travelers now prioritize destinations and accommodations that adhere to strict health and safety protocols. This has led to a rise in demand for contactless experiences, such as mobile check-ins and QR code menus. Travel companies have had to adapt quickly to these changing expectations by implementing enhanced cleaning measures, flexible booking policies, and transparent communication about safety protocols.

In conclusion, the ever-growing changes in traveler preferences and expectations have significantly impacted the travel industry. Personalized experiences, sustainable tourism, social media influence, technological advancements, and safety protocols have all become essential factors for travelers when planning their trips. It is crucial for travel companies to keep up with these changes and adapt their offerings to meet the evolving needs of travelers. By doing so, they can stay competitive and provide the unforgettable experiences that today's travelers are seeking.

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With the rise of globalization, the travel industry has experienced significant changes. The increasing interconnectedness, technological advancements, and changing consumer preferences are all contributing factors to these changes. In this blog post, we will explore the impact of globalization on the travel industry and how it has shaped the way we travel.

• Access to Information: Globalization has made it easier than ever for travelers to research and plan their trips. With the internet, people can easily access information about destinations, accommodations, and activities. They can read reviews, compare prices, and make informed decisions about their travel plans. This easy access to information has empowered travelers and has given rise to a more independent and self-reliant generation of travelers.
• Affordable Travel: Globalization has also led to increased affordability in the travel industry. Low-cost carriers, budget accommodations, and online travel agencies have made travel more accessible to a wider range of people. People from different income brackets can now afford to explore new destinations and experience different cultures. This has democratized travel and has provided opportunities for people to broaden their horizons.
• Cultural Exchange: Globalization has brought people from different cultures and backgrounds closer together. This has led to increased cultural exchange in the travel industry. Travelers now have the opportunity to immerse themselves in new cultures, interact with locals, and gain a deeper understanding of different ways of life. This cultural exchange has not only enriched individual travel experiences but has also fostered a greater sense of global understanding and tolerance.
• Technological Advancements: Globalization has fueled rapid technological advancements in the travel industry. From online booking platforms to virtual reality tours, technology has transformed the way we plan, book, and experience travel. Travelers can now easily book flights, accommodations, and activities online, saving time and eliminating the need for middlemen. Technological innovations like mobile apps and travel gadgets have also made traveling more convenient and efficient.
• Sustainable Tourism: Globalization has also brought attention to the importance of sustainable tourism. As people travel more, the environmental and social impacts of tourism become more apparent. Travelers now seek out eco-friendly accommodations, engage in responsible tourism practices, and support local businesses. The travel industry has responded by embracing sustainable practices and offering options that minimize negative impacts on the environment and local communities.

In conclusion, globalization has had a profound impact on the travel industry. It has made travel more accessible, affordable, and convenient. It has fostered cultural exchange and understanding, and has brought attention to the importance of sustainable tourism. As the world continues to become more connected, the travel industry will continue to evolve and adapt to the ever-growing changes brought about by globalization.

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The travel industry is a major contributor to carbon emissions and other environmental issues. However, with a growing concern for sustainability, many players in the industry are starting to take steps to reduce their environmental impact. By implementing environmentally friendly practices, the travel industry can work towards a more sustainable future.

One of the main issues with the travel industry is the high carbon emissions associated with travel. Whether it's by plane, car, or cruise ship, transportation is a significant source of carbon emissions. To address this, many travel companies are starting to invest in more fuel-efficient vehicles and technology. For example, some airlines are using newer aircraft models that are designed to be more fuel-efficient and emit fewer greenhouse gases. Similarly, some car rental companies are offering electric or hybrid vehicles as an alternative to traditional gas-powered cars.

In addition to transportation, hotels and accommodations also play a role in the environmental impact of the travel industry. Many hotels are now implementing energy-saving measures such as LED lighting, low-flow toilets and showers, and smart thermostats. Some hotels are even going a step further and using renewable energy sources, such as solar panels or wind turbines, to power their facilities.

Another area of focus for the travel industry is reducing waste and promoting recycling. Many hotels and resorts are implementing recycling programs to encourage guests to dispose of their waste responsibly. Some hotels are even finding innovative ways to repurpose waste, such as using recycled materials for building materials or furniture. Additionally, some travel companies are encouraging guests to bring their own reusable water bottles and toiletries to reduce the use of single-use plastics.

Furthermore, the protection of natural resources and wildlife is also a critical aspect of sustainability in the travel industry. Many tour operators are now offering eco-friendly tours and activities that have minimal impact on the environment. For example, instead of traditional wildlife tours that may disturb natural habitats, some operators are offering opportunities to observe wildlife from a distance or participate in conservation efforts. Additionally, many travel companies are partnering with local communities to support local economies and protect cultural heritage.

It's important for consumers to support these environmentally friendly practices in the travel industry. When booking travel accommodations and activities, look for eco-certifications or environmental policies on the company's website. Consider choosing accommodations that have implemented sustainable practices and tour operators that prioritize environmental responsibility. Additionally, when traveling, be mindful of your own environmental impact by reducing waste and conserving energy.

In conclusion, the travel industry has a significant impact on the environment, but there are steps being taken towards a more sustainable future. By investing in fuel-efficient transportation, implementing energy-saving measures in accommodations, promoting recycling, and protecting natural resources, the travel industry can reduce its carbon footprint and work towards environmental sustainability. Consumers also play a crucial role by supporting environmentally responsible businesses and being mindful of their own environmental impact. Together, we can create a more sustainable travel industry for future generations to enjoy.

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Frequently asked questions.

Technology is revolutionizing the travel industry by making it easier for travelers to plan and book trips. Online travel agencies, travel apps, and virtual reality are all examples of technological advancements that have changed the way we travel.

Some of the latest trends in the travel industry include sustainable travel, experiential travel, and personalized experiences. Travelers are now seeking more authentic and unique experiences, and they are also becoming more conscious about the impact of their travel on the environment.

Social media has greatly influenced the travel industry by providing a platform for travelers to share their experiences, discover new destinations, and connect with other travelers. It has also become a powerful marketing tool for travel brands to promote their services and engage with their audience.

The COVID-19 pandemic has had a profound impact on the travel industry, leading to widespread travel restrictions, flight cancellations, and a significant decrease in tourism. Many travel businesses have suffered financial losses, while others have had to adapt their services to meet the new health and safety requirements. The industry is slowly recovering as vaccination efforts progress and travel restrictions ease.

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Tourism on Track for Full Recovery as New Data Shows Strong Start to 2023

• All Regions

International tourism is well on its way to returning to pre-pandemic levels, with twice as many people travelling during the first quarter of 2023 than in the same period of 2022.

New Data from UNWTO: What We've Learned

The second UNWTO World Tourism Barometer of the year shows that the sector's swift recovery has continued into 2023. It shows that:

• Overall, international arrivals reached 80% of pre-pandemic levels in the first quarter of 2023
• An estimated 235 million tourists travelled internationally in the first three months, more than double the same period of 2022.
• Tourism has continued to show its resilience. Revised data for 2022 shows over 960 million tourists travelling internationally last year, meaning two-thirds (66%) of pre-pandemic numbers were recovered.

Recovery by Region in Q1 2023:

• The Middle East saw the strongest performance as the only region exceeding 2019 arrivals (+15%) and the first to recover pre-pandemic numbers in a full quarter.
• Europe reached 90% of pre-pandemic levels, driven by strong intra-regional demand.
• Africa reached 88% and the Americas about 85% of 2019 levels
• Asia and the Pacific accelerated its recovery with  54% of pre-pandemic levels, but this upward trend is set to accelerate now that most destinations, particularly China , have re-opened.

In many places, we are close to or even above pre-pandemic levels of arrivals

The UNWTO data also analyses recovery by sub-region and by destination: Southern Mediterranean Europe and North Africa have also recovered pre-pandemic levels in Q1 2023, while Western Europe, Northern Europe, Central America and the Caribbean all came close to reaching those levels.

What it Means:

UNWTO Secretary-General Zurab Pololikashvili says: "The start of the year has shown again tourism's unique ability to bounce back. In many places, we are close to or even above pre-pandemic levels of arrivals. However, we must remain alert to challenges ranging from geopolitical insecurity, staffing shortages, and the potential impact of the cost-of-living crisis on tourism, and we must ensure tourism's return delivers on its responsibilities as a solution to the climate emergency and as a driver of inclusive development."

International tourism receipts grew back to hit the USD1 trillion mark in 2022, growing 50% in real terms compared to 2021, driven by the important rebound in international travel. International visitor spending reached 64% of pre-pandemic levels (-36% compared to 2019, measured in real terms). By regions, Europe enjoyed the best results in 2022 with nearly USD 550 billion in tourism receipts (EUR 520 billion), or 87% of pre-pandemic levels. Africa recovered 75% of its pre-pandemic receipts, the Middle East 70% and the Americas 68%. Due to prolonged border shutdowns, Asian destinations earned about 28%.

International tourism receipts: Percentage of 2019 levels recovered in 2022(%) *

International tourist arrivals: percentage of 2019 levels recovered in q1 2023 (%)*, looking ahead: what's in store.

The Q1 2023 results are in line with UNWTO's forward-looking scenarios for the year which project international arrivals to recover 80% to 95% of pre-pandemic levels. UNWTO's Panel of Experts expressed their confidence in a strong peak season (May-August) in the Northern Hemisphere, reflected in the latest UNWTO Confidence Index which indicates performance for the period is on track to be even better than 2022.

However, tourism's recovery also faces some challenges .  According to the UNWTO Panel of Experts, the economic situation remains the main factor weighing on the effective recovery of international tourism in 2023, with high inflation and rising oil prices translating into higher transport and accommodations costs.  As a result, tourists are expected to increasingly seek value for money and travel closer to home. Uncertainty derived from the Russian aggression against Ukraine and other mounting geopolitical tensions, also continue to represent downside risks.

International Tourist Arrivals, World and Regions

Related links.

• Download the News Release in PDF
• UNWTO World Tourism Barometer - EXCERPT Volume 21 • Issue 2 • May 2023
• World Tourism Barometer (PPT version)
• The UNWTO Tourism Data Dashboard
• UNWTO World Tourism Barometer

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Related content, international tourism to reach pre-pandemic levels in 2024, international tourism to end 2023 close to 90% of pre-p..., tourism’s importance for growth highlighted in world ec..., international tourism swiftly overcoming pandemic downturn.

TripBloggers Central

Why is Tourism the Fastest Growing Industry? Exploring the Factors Behind its Rapid Growth

In today’s interconnected world, tourism has emerged as the fastest growing industry, captivating the imaginations of millions and driving economic growth across the globe. Embarking on a journey of exploration, individuals have become increasingly inclined to traverse borders, seeking new experiences, cultural enrichment, and unforgettable memories. But why exactly has tourism skyrocketed, outpacing other sectors with astonishing rapidity? This captivating industry owes its unrivaled growth to a myriad of factors. Technological advancements, such as affordable air travel and seamless online bookings, have transformed the way we plan and embark on our adventures. Moreover, a burgeoning global middle class, fueled by rising incomes, has unlocked a vast market of eager travelers, eager to explore pristine beaches, historical marvels, and vibrant cities. Let’s delve deeper into the fascinating world of tourism, uncovering the untold stories and enchanting allure that lie beneath its rapid growth.

The Rise of Tourism: An Overview

Tourism, as a concept, refers to the act of traveling to different destinations for leisure, business, or other purposes. It has evolved significantly over the years, becoming one of the fastest-growing industries globally. Understanding the factors behind its rapid growth requires examining its historical perspective and current statistics.

Understanding the concept of tourism

Tourism encompasses a wide range of activities, including sightseeing, visiting cultural sites, engaging in recreational activities, and experiencing different cuisines and lifestyles. It involves both domestic and international travel and has become an integral part of the modern lifestyle. The desire for new experiences and the urge to explore unfamiliar territories are the driving forces behind tourism’s rise.

Historical perspective on the growth of the tourism industry

The growth of the tourism industry can be traced back to various historical factors. One significant catalyst was the Industrial Revolution, which brought about advancements in transportation and communication. The development of railways, steamships, and later, the airline industry, made travel more accessible and affordable for a larger segment of the population. Additionally, the rise of the middle class and increasing disposable income further fueled the demand for tourism.

Furthermore, the advent of mass media, including newspapers, magazines, and later, television and the internet, played a crucial role in promoting tourism. Through enticing travel advertisements and captivating stories, people were inspired to explore new destinations and cultures. This increased exposure to different parts of the world contributed to the growth of the tourism industry.

Current statistics showcasing the rapid growth of the tourism sector

In recent years, the tourism industry has experienced exponential growth, making it the fastest-growing industry worldwide. According to the World Tourism Organization (UNWTO), international tourist arrivals reached a staggering 1.5 billion in 2019, representing a 4% increase compared to the previous year. This growth can be attributed to various factors, including increased affordability, improved transportation infrastructure, and the rise of the sharing economy.

Moreover, emerging economies and developing countries have become significant contributors to the tourism industry’s rapid expansion . These destinations offer unique cultural experiences, natural attractions, and lower costs, attracting a considerable number of tourists. Additionally, advancements in technology, such as online travel booking platforms and mobile applications, have made it easier for travelers to plan and organize their trips, further boosting the growth of the industry .

In conclusion, the rise of tourism as the fastest-growing industry can be attributed to a combination of historical factors and current trends. The desire for new experiences, advancements in transportation and communication, and the influence of mass media have all played significant roles in shaping the industry. Coupled with current statistics showcasing its rapid growth, tourism continues to thrive as a major contributor to global economic development.

Economic Factors Driving Tourism Growth

Globalization and increased disposable income.

Globalization and increased disposable income have played a significant role in driving the rapid growth of the tourism industry. As the world becomes more interconnected, individuals have greater access to information and resources, making it easier than ever to travel to different destinations. This increased connectivity has not only expanded travel opportunities but has also fueled the desire for unique and immersive experiences.

Exploring how globalization has opened up new travel opportunities

Globalization has erased geographical boundaries, making it possible for travelers to explore destinations that were once considered inaccessible. Improved infrastructure, transportation networks, and advancements in technology have made it easier and more affordable to travel to remote corners of the world. The rise of low-cost airlines, online travel agencies, and sharing economy platforms have made it convenient for travelers to book flights, accommodations, and experiences, further fueling the growth of tourism.

Rise in disposable income leading to increased spending on travel and tourism

The growth in disposable income has also played a pivotal role in the rapid expansion of the tourism industry. As economies thrive and income levels rise, individuals have more money available for discretionary spending, and travel has become a top priority for many. With increased financial stability, people are willing to invest in experiences that enrich their lives and create lasting memories. This has led to a surge in demand for travel and tourism services, driving the growth of the industry .

Impact of rising middle-class population on tourism growth

One of the key factors contributing to the rapid growth of the tourism industry is the expansion of the global middle class. As more people enter the middle-income bracket, they have the means to travel and explore new destinations. The rising middle-class population, particularly in emerging economies such as China and India, has significantly contributed to the growth of international tourism. These individuals are seeking new experiences, cultural immersion, and adventure, driving the demand for travel and tourism services.

In conclusion, globalization and increased disposable income have been instrumental in fueling the growth of the tourism industry. The ease of travel, availability of travel resources, and rising middle-class population have all contributed to the rapid expansion of the industry. As individuals continue to prioritize travel and seek unique experiences, the tourism sector is poised to maintain its position as the fastest-growing industry.

Job Creation and Economic Development

Tourism plays a significant role in job creation, both directly and indirectly, making it a key driver of economic development in many destinations. The industry provides employment opportunities across various sectors, including accommodation, food and beverage, transportation, entertainment, and retail.

Direct Employment Opportunities

Direct employment in the tourism industry includes jobs such as hotel staff, tour guides, cruise ship crew members, restaurant staff, and airline employees. These positions offer a wide range of job opportunities for individuals with diverse skill sets, from entry-level positions to managerial roles. In many developing countries, tourism often serves as a significant source of employment, particularly in areas where alternative job prospects may be limited.

Indirect Employment Opportunities

In addition to direct employment, tourism also generates indirect job opportunities through its linkages with other sectors of the economy. For instance, the increased demand for accommodation in a tourist destination leads to the growth of the construction industry, creating jobs for architects, engineers, construction workers, and suppliers of building materials. Likewise, the need for transportation services to cater to tourists’ travel needs results in employment opportunities for taxi drivers, bus operators, and car rental agencies.

Economic Development Impact

The economic benefits derived from tourism extend beyond job creation. Tourism contributes to the overall economic development of a destination by stimulating various sectors and generating revenue. The influx of tourists leads to increased spending on goods and services, thereby boosting local businesses and contributing to the growth of the economy.

Case Studies

Several case studies highlight the positive economic impacts of tourism. For instance, the Maldives, a popular tourist destination known for its pristine beaches and luxury resorts, has experienced remarkable economic growth due to tourism. According to the World Travel and Tourism Council (WTTC), the direct contribution of travel and tourism to the country’s GDP in 2019 was 27.9%. Tourism has played a crucial role in the development of infrastructure, creation of employment opportunities, and overall economic prosperity of the Maldives.

Another example is Bali, Indonesia, which has seen tremendous economic growth driven by tourism. The island’s unique culture, picturesque landscapes, and affordable vacation options have attracted millions of tourists each year. Tourism has significantly contributed to job creation in Bali, particularly in the hospitality and service sectors . The revenue generated from tourism has also been invested in infrastructure development, improving the overall living standards of the local population.

In conclusion, job creation and economic development are crucial factors driving the rapid growth of the tourism industry. The industry provides direct and indirect employment opportunities across various sectors, stimulating economic growth in destinations worldwide. Case studies such as the Maldives and Bali demonstrate how tourism can contribute to job creation, infrastructure development, and overall economic prosperity.

Technological Advancements and Changing Travel Behavior

Internet and access to information.

The rapid growth of the tourism industry can be attributed, in large part, to the advancements in technology and the changing travel behavior of individuals. The widespread availability of the internet has revolutionized the way people plan and book their trips, making it easier than ever before to access information about different destinations and make informed decisions.

Role of the internet in revolutionizing the way people plan and book their trips

The internet has become an indispensable tool for travelers, providing them with a wealth of information at their fingertips. Travelers can now search for flights, accommodations, and attractions from the comfort of their own homes, eliminating the need for traditional travel agents. Online travel agencies (OTAs) have emerged as popular platforms that allow users to compare prices and make bookings directly, providing convenience and cost savings.

Access to information leading to increased awareness and desire to explore new destinations

With the internet, travelers now have access to a vast amount of information about different destinations, including cultural attractions, natural wonders, and local customs. This increased awareness has sparked a desire to explore new places and experience different cultures. Travelers can read reviews, watch videos, and browse through photos shared by other travelers, which helps them make more informed decisions about where to go and what to do.

Emergence of online travel agencies and travel review platforms

The rise of online travel agencies and travel review platforms has also contributed to the rapid growth of the tourism industry. These platforms enable travelers to not only book their trips but also read and leave reviews about their experiences. This peer-to-peer sharing of information has created a community of travelers who rely on each other’s recommendations and feedback to make travel decisions. The transparency and accessibility provided by these platforms have fostered trust among travelers, further fueling the growth of the industry .

In conclusion, the internet and access to information have played a crucial role in the rapid growth of the tourism industry. The ease of planning and booking trips, along with the increased awareness and desire to explore new destinations, has been made possible by advancements in technology. The emergence of online travel agencies and travel review platforms has further facilitated the growth of the industry by providing convenient and reliable platforms for travelers to make informed decisions.

Social Media and Influencer Marketing

In recent years, social media has revolutionized the way people connect and share information. With the rise of platforms such as Instagram, Facebook, and YouTube, individuals now have the ability to showcase their travel experiences to a global audience. This has had a profound impact on the tourism industry, as social media has become a powerful tool for shaping travel trends and influencing destination choices.

One of the key drivers behind the rapid growth of tourism is the influence of social media platforms on travelers’ decision-making process. Travelers today are increasingly relying on social media to seek inspiration, gather information, and make informed decisions about their travel plans. They are drawn to visually appealing content that captures the essence of a destination and offers a glimpse into the experiences they can expect to have.

In addition to the role of social media platforms, influencer marketing has emerged as a significant factor in promoting destinations and attracting tourists. Influencers, who are individuals with a large following on social media, have the ability to sway the opinions and behaviors of their followers. By partnering with influencers, tourism organizations can effectively reach a wider audience and tap into their credibility and influence.

Influencers often collaborate with tourism boards, hotels, and travel brands to create compelling content that showcases destinations and experiences. They are able to provide an authentic and personalized perspective on travel, which resonates with their followers. This form of marketing has proven to be highly effective, as it taps into the trust and loyalty that influencers have built with their audience.

Moreover, user-generated content has become a driving force behind travel decisions. Travelers now rely heavily on reviews, recommendations, and experiences shared by fellow travelers on social media platforms. They value the authenticity and real-life experiences captured in user-generated content, as it provides them with a more realistic and unbiased view of a destination.

In conclusion, social media and influencer marketing have played a significant role in the rapid growth of the tourism industry. These platforms have empowered travelers to seek inspiration, gather information, and make informed decisions about their travel plans. By leveraging the power of social media and collaborating with influencers, tourism organizations have been able to promote destinations effectively and attract a larger number of tourists. Additionally, user-generated content has become a key driver in travel decisions, as it offers a more authentic and unbiased perspective on destinations and experiences.

Cultural Exchange and Experiential Travel

Desire for authentic experiences.

In recent years, there has been a notable shift in the preferences of tourists, with a growing desire for authentic experiences. This shift can be attributed to several factors, including a move away from passive tourism towards experiential travel. Travelers no longer want to just visit a destination and tick off the popular tourist attractions; they want to immerse themselves in the local culture and traditions.

One of the key drivers behind this desire for authenticity is the growing interest in connecting with local communities and understanding their way of life. Travelers are seeking meaningful interactions and opportunities to engage with locals, whether it be through participating in traditional rituals, learning local crafts, or simply sharing a meal with a local family. This desire for genuine connections has fueled the rapid growth of community-based tourism initiatives and homestays, where tourists can experience the everyday life of a destination from a local’s perspective.

Moreover, the rise of social media and the influence of travel bloggers and influencers have also played a significant role in shaping this trend. Travelers are increasingly exposed to the experiences and stories of others, which has sparked a desire to create their own unique and authentic travel experiences . They seek out lesser-known destinations, hidden gems, and off-the-beaten-path experiences that can provide them with a deeper understanding of a place and its people.

In response to this demand for authenticity, the tourism industry has witnessed the emergence of niche tourism experiences catering to specific interests and hobbies. Whether it is culinary tours, eco-tourism, adventure travel, or wellness retreats, travelers now have a plethora of options to choose from based on their personal preferences. These niche experiences not only offer a more immersive and authentic travel experience but also contribute to the sustainability and preservation of local cultures and environments.

In conclusion, the desire for authentic experiences has been a significant factor behind the rapid growth of the tourism industry. Travelers today are seeking meaningful connections, cultural exchanges, and opportunities to engage with local communities. As a result, the industry has responded with a wide range of niche tourism experiences that cater to specific interests and hobbies, allowing travelers to create their own unique and authentic travel experiences.

Sustainable Tourism Practices

Sustainable tourism practices are playing a crucial role in the rapid growth of the tourism industry. Increasingly, travelers are becoming aware of the environmental and social impacts of their choices and are seeking out sustainable travel options. This shift in consumer behavior has prompted the industry to respond with innovative practices that prioritize the preservation of natural and cultural heritage, as well as the empowerment of local communities.

Increasing awareness and demand for sustainable travel options

One of the key factors driving the growth of sustainable tourism is the increasing awareness and demand among travelers for environmentally friendly and socially responsible travel options . With greater access to information through the internet and social media, tourists are now more informed about the impact their travel decisions can have on the destinations they visit. They are actively seeking out accommodations, tours, and activities that align with their values of sustainability and conservation.

Role of responsible tourism in preserving natural and cultural heritage

Sustainable tourism practices are crucial in preserving the natural and cultural heritage of destinations. By implementing strategies that minimize environmental degradation and protect cultural sites, the tourism industry can ensure the long-term preservation of these assets. This not only benefits the local communities by maintaining their cultural identity and economic opportunities but also attracts more tourists who are interested in experiencing authentic and untouched destinations.

Importance of community involvement and empowerment in sustainable tourism

Another significant aspect of sustainable tourism is the involvement and empowerment of local communities. Engaging the local population in tourism activities and decision-making processes allows for a more equitable distribution of benefits and ensures that the community’s interests are taken into account. This can include initiatives such as community-based tourism, where local residents play an active role in providing accommodation, guiding tours, and showcasing their cultural heritage. By involving communities in the tourism industry, sustainable practices can contribute to poverty alleviation and create opportunities for economic growth.

In conclusion, sustainable tourism practices are a driving force behind the rapid growth of the tourism industry. Increasing awareness and demand for sustainable travel options, the role of responsible tourism in preserving natural and cultural heritage, and the importance of community involvement and empowerment are all contributing factors. As travelers become more conscious of their impact, the industry must continue to prioritize sustainability to maintain its growth trajectory.

Government Initiatives and Policy Support

Tourism as a key sector for economic growth.

Tourism has emerged as a key sector for economic growth, with governments worldwide recognizing its potential in driving economic development. The unique characteristics of the tourism industry, such as its ability to generate foreign exchange earnings, create employment opportunities, and stimulate regional development, have positioned it as a priority area for government support and investment. As a result, governments have implemented various policies and initiatives to promote tourism and harness its economic benefits.

Recognition of tourism as a major economic driver by governments worldwide

Governments across the globe have come to realize the significant economic impact that tourism can have on their countries. Tourism has the potential to contribute to GDP growth, increase revenue generation, and create new jobs. As a result, governments have started recognizing tourism as a major economic driver and have included it in their national development strategies. This recognition has led to the prioritization of tourism-related initiatives and the allocation of resources to support its growth.

Implementing policies and incentives to attract tourism investments

Governments have been proactive in implementing policies and incentives to attract tourism investments. These policies aim to create a favorable business environment for tourism operators, encourage private sector participation, and attract both domestic and international investments . Governments often provide tax incentives, subsidies, and grants to tourism businesses, making it financially advantageous for entrepreneurs to invest in the sector. By offering such incentives, governments seek to stimulate tourism development, enhance infrastructure, and improve the overall visitor experience.

Collaboration between public and private sectors for tourism development

To effectively develop the tourism industry, governments have recognized the need for collaboration between the public and private sectors. Public-private partnerships (PPPs) have become a popular approach to leverage the expertise and resources of both sectors. Governments work closely with private companies, tourism associations, and industry stakeholders to develop tourism strategies, create marketing campaigns, and improve infrastructure. This collaboration ensures that the industry benefits from the knowledge and experience of both sectors, leading to sustainable tourism growth.

In conclusion, tourism’s rapid growth can be attributed to the recognition of its potential as a key sector for economic growth by governments worldwide. These governments have implemented policies and incentives to attract tourism investments and foster collaboration between the public and private sectors. By prioritizing tourism development, governments aim to harness the economic benefits that the industry brings, including increased GDP, job creation, and regional development.

Infrastructure Development and Accessibility

One of the key factors driving the rapid growth of the tourism industry is the significant investment in infrastructure development and improved accessibility. Governments around the world have recognized the potential economic benefits of tourism and have actively pursued initiatives to enhance their countries’ appeal as tourist destinations.

Investment in infrastructure projects to improve connectivity and accessibility

Governments are allocating substantial funds towards infrastructure projects that aim to improve connectivity and accessibility to popular tourist destinations. These projects include the expansion and modernization of airports, the construction of new highways and roads, and the development of efficient public transportation systems. By enhancing the ease of travel and reducing travel time, these infrastructure developments attract more tourists and encourage them to explore different regions within a country.

Upgrading transportation networks and facilities to cater to increasing tourist arrivals

As the number of tourists continues to rise, governments are realizing the importance of upgrading their transportation networks and facilities. This involves improving the capacity and efficiency of airports, ports, train stations, and bus terminals. Upgraded facilities provide a more seamless travel experience for tourists, ensuring their comfort and convenience throughout their journey. Moreover, the expansion of transportation networks enables tourists to reach remote and previously inaccessible locations, thereby diversifying the tourist attractions and spreading the economic benefits of tourism across different regions.

Examples of successful infrastructure development initiatives in popular tourist destinations

Several countries have witnessed significant growth in their tourism industry due to successful infrastructure development initiatives. For instance, the government of Thailand invested in upgrading airports, expanding their capacity, and building new ones in popular tourist destinations like Phuket and Chiang Mai. This has led to a substantial increase in tourist arrivals and contributed to the overall growth of Thailand’s tourism sector.

Similarly, the United Arab Emirates (UAE) has made substantial investments in developing its aviation infrastructure, transforming Dubai into a major international hub. The construction of state-of-the-art airports and the expansion of airline networks have attracted millions of tourists, making the UAE one of the top tourist destinations in the world.

In conclusion, infrastructure development and improved accessibility play a crucial role in the rapid growth of the tourism industry. Governments’ initiatives to invest in infrastructure projects and upgrade transportation networks have significantly contributed to attracting more tourists and stimulating economic growth. As countries continue to recognize the importance of tourism as a key driver of their economies, it is expected that further investments will be made to sustain the industry’s growth in the future.

FAQs: Why is Tourism the Fastest Growing Industry? Exploring the Factors Behind its Rapid Growth

What factors contribute to the rapid growth of the tourism industry.

There are several factors that contribute to the rapid growth of the tourism industry. Firstly, increased affordability and accessibility of travel have made it easier for people to explore different destinations. The development of budget airlines, discounted travel packages, and online booking platforms have made travel more affordable for a larger portion of the population. Additionally, improved transportation infrastructure, such as the expansion of airports and the construction of high-speed rail networks, has made traveling faster and more convenient. Secondly, globalization has played a significant role in the growth of tourism. The ease of communication, thanks to technology advancements like the internet and social media, has made it easier for people to learn about different cultures and destinations. This increased awareness, coupled with a desire for unique experiences and cultural immersion, has driven the demand for travel experiences. Another key factor is the rise of the middle class in many countries. As incomes have increased, more people have disposable income to spend on leisure activities, including travel. The growing middle class in emerging economies, such as China and India, has fueled the demand for tourism both domestically and internationally. Furthermore, governments and tourism bodies have recognized the economic benefits that tourism brings. Many countries have invested in promoting tourism, improving infrastructure, and easing visa restrictions to attract visitors. This proactive approach has resulted in increased tourist arrivals and expenditure, thereby accelerating the growth of the tourism industry.

How does the tourism industry contribute to economic growth?

The tourism industry plays a significant role in driving economic growth in many countries. Firstly, it creates employment opportunities across various sectors, including hospitality, transportation, entertainment, and retail. The influx of tourists leads to job creation, not only in direct tourism-related industries but also in supporting industries such as construction and manufacturing. Moreover, tourism generates foreign exchange earnings as visitors spend on accommodation, food, transportation, souvenirs, and other travel-related expenses. These expenditures directly contribute to the revenue of local businesses, thereby boosting the local economy. Additionally, the tourism industry often attracts investment in infrastructure development, such as the construction of hotels, resorts, and tourist attractions. This investment further stimulates economic growth and supports local businesses. Tourism also has a multiplier effect on the economy as it stimulates spending in other sectors. For example, increased tourism in a particular area may lead to the growth of restaurants, shops, and entertainment venues to cater to the needs of visitors. This, in turn, enhances the overall economy and can lead to the revitalization of local communities and the preservation of cultural heritage.

Are there any challenges associated with the rapid growth of the tourism industry?

While the rapid growth of the tourism industry brings numerous benefits, it also presents some challenges. One significant challenge is the strain it can place on the environment and natural resources. Increased tourist arrivals can lead to environmental degradation, such as pollution, overconsumption of water, and damage to fragile ecosystems. It is crucial for destinations to implement sustainable tourism practices to minimize these negative impacts and ensure the long-term viability of the industry. Another challenge is the potential for overtourism in popular destinations. When the number of tourists exceeds the carrying capacity of a destination, it can result in overcrowding, increased prices, and a decline in the quality of the visitor experience. This phenomenon can strain local resources, disrupt the daily lives of residents, and lead to cultural and environmental degradation. Furthermore, the tourism industry needs to address issues related to socio-cultural impacts, including cultural commodification, displacement of local communities, and erosion of traditional values. Sustainable tourism practices should prioritize the empowerment and involvement of local communities, respect local cultures, and support the preservation of heritage. In conclusion, the rapid growth of the tourism industry can be attributed to various factors such as increased affordability and accessibility, globalization, rising middle-class incomes, and proactive government policies. While tourism contributes significantly to economic growth, it also poses challenges such as environmental degradation, overtourism, and socio-cultural impacts. Implementing sustainable practices and responsible tourism management is crucial to ensure the continued growth and sustainability of the industry.

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Unlocking the Transformative Power of Wellness Retreats: A Comprehensive Guide

Exploring the pros and cons of solo and couple travel: a comprehensive guide, navigating the ethics of voluntourism: a comprehensive guide.

What’s the Fastest Growing Sector of the Travel Industry?

We rarely write such short-form articles but this question seems to pop up very often through the countless demo calls we host every month.

So, we decided to do the necessary research and answer this question in a few words, for those of you seeking answers on “ what the fastest growing sector of the travel industry is? ”. 

It’s the global luxury travel market. As shown by a thorough study from ADROIT market research , the luxury travel market is projected to become the world’s fastest growing travel sector. It is expected to grow by 7.4% between 2019 and 2025, reaching 354.7 USD billion in value by the first months of 2026. 

The main drivers of this rise include people’s ever-increasing interest for unique, exotic holidays and expanding disposable incomes.  

The traveling industry is growing as the average income of the global population is increasing and new consumers, hungry for travel experiences are emerging in various parts of the world. New middle classes seek the substantive aspect of luxury journeys and already established mature markets seek new luxuries.  

As the world becomes a safer place, people have access to more locations to visit, which translates into a huge expansion of available touristic products and services.  

Of course, the COVID-19 pandemic hit the tourism industry hard . Revenue and overall visitors, dropped  considerably  through 2020 and 2021. But that’s partly irrelevant. Travel is rooted deep inside us and we know that people will never stop wanting to explore the world and enjoy activities while they do. It’s only a matter of time until it returns to its former state. 

With the return of travel being imminent, you don’t want to be looking for a life vest when these activity bookings start rolling back in. Software solutions have become an integral part of the fight against COVID-19, as they help fortify your business and protect your guests.  

Offer an easy, fast and most importantly contactless activity booking environment to your guests and wipe away their stress. 

Schedule a free demo with our team now and learn how our software can enhance all aspects of your travel business.

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Why Is Tourism an Industry?

By Robert Palmer

Tourism is an industry that has become increasingly important in recent years. It plays a crucial role in the global economy and has become one of the fastest-growing industries worldwide. In this article, we will explore why tourism is an industry and why it is so important.

What is Tourism?

Tourism can be defined as the act of traveling to a different location for leisure or business purposes. It involves visiting new places, experiencing new cultures, and engaging in activities that are not available at home. Tourism can take many forms, including domestic and international travel, adventure tourism, eco-tourism, cultural tourism, and more.

Why is Tourism an Industry?

Tourism is an industry because it involves the production and consumption of goods and services that are bought and sold on the market. The tourism industry includes many different sectors, such as transportation, accommodation, food and beverage services, recreation activities, and more.

One of the reasons why tourism has become such an important industry is its ability to create jobs. The tourism sector employs millions of people worldwide, from hotel staff to tour guides to restaurant workers. It also generates revenue for many businesses that support the tourism industry.

Another reason why tourism is considered an industry is its impact on local economies. When tourists visit a destination, they often spend money on things like hotels, food, attractions, souvenirs, transportation services – all of which generate revenue for local businesses.

The Importance of Tourism

Tourism plays a vital role in the global economy. According to the World Travel & Tourism Council (WTTC), travel and tourism generated 10.4% of global GDP in 2019 – that’s $8.9 trillion! This figure is expected to rise even further by 2029.

Tourism also helps to promote cultural exchange between countries by allowing travelers to experience different cultures firsthand. This can help to break down stereotypes and increase understanding between different communities.

Furthermore, tourism can be a catalyst for development. It can help to create infrastructure, such as airports, roads, and public transportation systems, that benefit both tourists and locals alike. It can also provide opportunities for small businesses to grow and thrive.

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A Plan to Remake the Middle East

While talks for a cease-fire between israel and hamas continue, another set of negotiations is happening behind the scenes..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

From New York Times, I’m Michael Barbaro. This is The Daily.

[MUSIC CONTINUES]

Today, if and when Israel and Hamas reach a deal for a ceasefire fire, the United States will immediately turn to a different set of negotiations over a grand diplomatic bargain that it believes could rebuild Gaza and remake the Middle East. My colleague Michael Crowley has been reporting on that plan and explains why those involved in it believe they have so little time left to get it done.

It’s Wednesday, May 8.

Michael, I want to start with what feels like a pretty dizzying set of developments in this conflict over the past few days. Just walk us through them?

Well, over the weekend, there was an intense round of negotiations in an effort, backed by the United States, to reach a ceasefire in the Gaza war.

The latest ceasefire proposal would reportedly see as many as 33 Israeli hostages released in exchange for potentially hundreds of Palestinian prisoners.

US officials were very eager to get this deal.

Pressure for a ceasefire has been building ahead of a threatened Israeli assault on Rafah.

Because Israel has been threatening a military offensive in the Southern Palestinian city of Rafah, where a huge number of people are crowded.

Fleeing the violence to the North. And now they’re packed into Rafah. Exposed and vulnerable, they need to be protected.

And the US says it would be a humanitarian catastrophe on top of the emergency that’s already underway.

Breaking news this hour — very important breaking news. An official Hamas source has told The BBC that it does accept a proposal for a ceasefire deal in Gaza.

And for a few hours on Monday, it looked like there might have been a major breakthrough when Hamas put out a statement saying that it had accepted a negotiating proposal.

Israeli Prime Minister Benjamin Netanyahu says the ceasefire proposal does not meet his country’s requirements. But Netanyahu says he will send a delegation of mediators to continue those talks. Now, the terms —

But those hopes were dashed pretty quickly when the Israelis took a look at what Hamas was saying and said that it was not a proposal that they had agreed to. It had been modified.

And overnight —

Israeli troops stormed into Rafah. Video showing tanks crashing over a sign at the entrance of the city.

— the Israelis launched a partial invasion of Rafah.

It says Hamas used the area to launch a deadly attack on Israeli troops over the weekend.

And they have now secured a border crossing at the Southern end of Gaza and are conducting targeted strikes. This is not yet the full scale invasion that President Biden has adamantly warned Israel against undertaking, but it is an escalation by Israel.

So while all that drama might suggest that these talks are in big trouble, these talks are very much still alive and ongoing and there is still a possibility of a ceasefire deal.

And the reason that’s so important is not just to stop the fighting in Gaza and relieve the suffering there, but a ceasefire also opens the door to a grand diplomatic bargain, one that involves Israel and its Arab neighbors and the Palestinians, and would have very far-reaching implications.

And what is that grand bargain. Describe what you’re talking about?

Well, it’s incredibly ambitious. It would reshape Israel’s relationship with its Arab neighbors, principally Saudi Arabia. But it’s important to understand that this is a vision that has actually been around since well before October 7. This was a diplomatic project that President Biden had been investing in and negotiating actually in a very real and tangible way long before the Hamas attacks and the Gaza war.

And President Biden was looking to build on something that President Trump had done, which was a series of agreements that the Trump administration struck in which Israel and some of its Arab neighbors agreed to have normal diplomatic relations for the first time.

Right, they’re called the Abraham Accords.

That’s right. And, you know, Biden doesn’t like a lot of things, most things that Trump did. But he actually likes this, because the idea is that they contribute to stability and economic integration in the Middle East, the US likes Israel having friends and likes having a tight-knit alliance against Iran.

President Biden agrees with the Saudis and with the Israelis, that Iran is really the top threat to everybody here. So, how can you build on this? How can you expand it? Well, the next and biggest step would be normalizing relations between Israel and Saudi Arabia.

And the Saudis have made clear that they want to do this and that they’re ready to do this. They weren’t ready to do it in the Trump years. But Mohammed bin Salman, the Crown Prince of Saudi Arabia, has made clear he wants to do it now.

So this kind of triangular deal began to take shape before October 7, in which the US, Israel, and Saudi Arabia would enter this three way agreement in which everyone would get something that they wanted.

And just walk through what each side gets in this pre-October 7th version of these negotiations?

So for Israel, you get normalized ties with its most important Arab neighbor and really the country that sets the tone for the whole Muslim world, which is Saudi Arabia of course. It makes Israel feel safer and more secure. Again, it helps to build this alliance against Iran, which Israel considers its greatest threat, and it comes with benefits like economic ties and travel and tourism. And Prime Minister Benjamin Netanyahu has been very open, at least before October 7th, that this was his highest diplomatic and foreign policy priority.

For the Saudis, the rationale is similar when it comes to Israel. They think that it will bring stability. They like having a more explicitly close ally against Iran. There are economic and cultural benefits. Saudi Arabia is opening itself up in general, encouraging more tourism.

But I think that what’s most important to the Crown Prince, Mohammed bin Salman, is what he can get from the United States. And what he has been asking for are a couple of essential things. One is a security agreement whose details have always been a little bit vague, but I think essentially come down to reliable arms supplies from the United States that are not going to be cut off or paused on a whim, as he felt happened when President Biden stopped arms deliveries in 2021 because of how Saudi was conducting its war in Yemen. The Saudis were furious about that.

Saudi Arabia also wants to start a domestic nuclear power program. They are planning for a very long-term future, possibly a post-oil future. And they need help getting a nuclear program off the ground.

And they want that from the US?

And they want that from the US.

Now, those are big asks from the us. But from the perspective of President Biden, there are some really enticing things about this possible agreement. One is that it will hopefully produce more stability in the region. Again, the US likes having a tight-knit alliance against Iran.

The US also wants to have a strong relationship with Saudi Arabia. You know, despite the anger at Mohammed bin Salman over the murder of the Saudi dissident Jamal Khashoggi, the Biden administration recognizes that given the Saudis control over global oil production and their strategic importance in the Middle East, they need to have a good relationship with them. And the administration has been worried about the influence of China in the region and with the Saudis in particular.

So this is an opportunity for the US to draw the Saudis closer. Whatever our moral qualms might be about bin Salman and the Saudi government, this is an opportunity to bring the Saudis closer, which is something the Biden administration sees as a strategic benefit.

All three of these countries — big, disparate countries that normally don’t see eye-to-eye, this was a win-win-win on a military, economic, and strategic front.

That’s right. But there was one important actor in the region that did not see itself as winning, and that was the Palestinians.

[MUSIC PLAYING]

First, it’s important to understand that the Palestinians have always expected that the Arab countries in the Middle East would insist that Israel recognize a Palestinian state before those countries were willing to essentially make total peace and have normal relations with Israel.

So when the Abraham Accords happened in the Trump administration, the Palestinians felt like they’d been thrown under the bus because the Abraham Accords gave them virtually nothing. But the Palestinians did still hold out hope that Saudi Arabia would be their savior. And for years, Saudi Arabia has said that Israel must give the Palestinians a state if there’s going to be a normal relationship between Israel and Saudi Arabia.

Now the Palestinians see the Saudis in discussions with the US and Israel about a normalization agreement, and there appears to be very little on offer for the Palestinians. And they are feeling like they’re going to be left out in the cold here.

Right. And in the minds of the Palestinians, having already been essentially sold out by all their other Arab neighbors, the prospect that Saudi Arabia, of all countries, the most important Muslim Arab country in the region, would sell them out, had to be extremely painful.

It was a nightmare scenario for them. And in the minds of many analysts and US officials, this was a factor, one of many, in Hamas’s decision to stage the October 7th attacks.

Hamas, like other Palestinian leaders, was seeing the prospect that the Middle East was moving on and essentially, in their view, giving up on the Palestinian cause, and that Israel would be able to have friendly, normal relations with Arab countries around the region, and that it could continue with hardline policies toward the Palestinians and a refusal, as Prime Minister Benjamin Netanyahu has said publicly, to accept a Palestinian state.

Right. So Michael, once Hamas carries out the October 7th attacks in an effort to destroy a status quo that it thinks is leaving them less and less relevant, more and more hopeless, including potentially this prospect that Saudi Arabia is going to normalize relations with Israel, what happens to these pre-October 7th negotiations between the US, Saudi Arabia, and Israel?

Well, I think there was a snap assumption that these talks were dead and buried. That they couldn’t possibly survive a cataclysm like this.

But then something surprising happened. It became clear that all the parties were still determined to pull-off the normalization.

And most surprisingly of all, perhaps, was the continued eagerness of Saudi Arabia, which publicly was professing outrage over the Israeli response to the Hamas attacks, but privately was still very much engaged in these conversations and trying to move them forward.

And in fact, what has happened is that the scope of this effort has grown substantially. October 7th didn’t kill these talks. It actually made them bigger, more complicated, and some people would argue, more important than ever.

We’ll be right back.

Michael, walk us through what exactly happens to these three-way negotiations after October 7th that ends up making them, as you just said, more complicated and more important than ever?

Well, it’s more important than ever because of the incredible need in Gaza. And it’s going to take a deal like this and the approval of Saudi Arabia to unlock the kind of massive reconstruction project required to essentially rebuild Gaza from the rubble. Saudi Arabia and its Arab friends are also going to be instrumental in figuring out how Gaza is governed, and they might even provide troops to help secure it. None of those things are going to happen without a deal like this.

Fascinating.

But this is all much more complicated now because the price for a deal like this has gone up.

And by price, you mean?

What Israel would have to give up. [MUSIC PLAYING]

From Saudi Arabia’s perspective, you have an Arab population that is furious at Israel. It now feels like a really hard time to do a normalization deal with the Israelis. It was never going to be easy, but this is about as bad a time to do it as there has been in a generation at least. And I think that President Biden and the people around him understand that the status quo between Israel and the Palestinians is intolerable and it is going to lead to chaos and violence indefinitely.

So now you have two of the three parties to this agreement, the Saudis and the Americans, basically asking a new price after October 7th, and saying to the Israelis, if we’re going to do this deal, it has to not only do something for the Palestinians, it has to do something really big. You have to commit to the creation of a Palestinian state. Now, I’ll be specific and say that what you hear the Secretary of State, Antony Blinken, say is that the agreement has to include an irreversible time-bound path to a Palestinian state.

We don’t know exactly what that looks like, but it’s some kind of a firm commitment, the likes of which the world and certainly the Israelis have not made before.

Something that was very much not present in the pre-October 7th vision of this negotiation. So much so that, as we just talked about, the Palestinians were left feeling completely out in the cold and furious at it.

That’s right. There was no sign that people were thinking that ambitiously about the Palestinians in this deal before October 7th. And the Palestinians certainly felt like they weren’t going to get much out of it. And that has completely changed now.

So, Michael, once this big new dimension after October 7th, which is the insistence by Saudi Arabia and the US that there be a Palestinian state or a path to a Palestinian state, what is the reaction specifically from Israel, which is, of course, the third major party to this entire conversation?

Well, Israel, or at least its political leadership, hates it. You know, this is just an extremely tough sell in Israel. It would have been a tough sell before October 7th. It’s even harder now.

Prime Minister Benjamin Netanyahu is completely unrepentantly open in saying that there’s not going to be a Palestinian state on his watch. He won’t accept it. He says that it’s a strategic risk to his country. He says that it would, in effect, reward Hamas.

His argument is that terrorism has forced a conversation about statehood onto the table that wasn’t there before October 7th. Sure, it’s always in the background. It’s a perennial issue in global affairs, but it was not something certainly that the US and Israel’s Arab neighbors were actively pushing. Netanyahu also has — you know, he governs with the support of very right-wing members of a political coalition that he has cobbled together. And that coalition is quite likely to fall apart if he does embrace a Palestinian state or a path to a Palestinian state.

Now, he might be able to cobble together some sort of alternative, but it creates a political crisis for him.

And finally, you know, I think in any conversation about Israel, it’s worth bearing in mind something you hear from senior US officials these days, which is that although there is often finger pointing at Netanyahu and a desire to blame Netanyahu as this obstructionist who won’t agree to deals, what they say is Netanyahu is largely reflecting his population and the political establishment of his country, not just the right-wingers in his coalition who are clearly extremist.

But actually the prevailing views of the Israeli public. And the Israeli public and their political leaders across the spectrum right now with few exceptions, are not interested in talking about a Palestinian state when there are still dozens and dozens of Israeli hostages in tunnels beneath Gaza.

So it very much looks like this giant agreement that once seemed doable before October 7th might be more important to everyone involved than ever, given that it’s a plan for rebuilding Gaza and potentially preventing future October 7th’s from happening, but because of this higher price that Israel would have to pay, which is the acceptance of a Palestinian state, it seems from everything you’re saying, that this is more and more out of reach than ever before and hard to imagine happening in the immediate future. So if the people negotiating it are being honest, Michael, are they ready to acknowledge that it doesn’t look like this is going to happen?

Well, not quite yet. As time goes by, they certainly say it’s getting harder and harder, but they’re still trying, and they still think there’s a chance. But both the Saudis and the Biden administration understand that there’s very little time left to do this.

Well, what do you mean there’s very little time left? It would seem like time might benefit this negotiation in that it might give Israel distance from October 7th to think potentially differently about a Palestinian state?

Potentially. But Saudi Arabia wants to get this deal done in the Biden administration because Mohammed bin Salman has concluded this has to be done under a Democratic president.

Because Democrats in Congress are going to be very reluctant to approve a security agreement between the United States and Saudi Arabia.

It’s important to understand that if there is a security agreement, that’s something Congress is going to have to approve. And you’re just not going to get enough Democrats in Congress to support a deal with Saudi Arabia, who a lot of Democrats don’t like to begin with, because they see them as human rights abusers.

But if a Democratic president is asking them to do it, they’re much more likely to go along.

Right. So Saudi Arabia fears that if Biden loses and Trump is president, that those same Democrats would balk at this deal in a way that they wouldn’t if it were being negotiated under President Biden?

Exactly. Now, from President Biden’s perspective, politically, think about a president who’s running for re-election, who is presiding right now over chaos in the Middle East, who doesn’t seem to have good answers for the Israeli-Palestinian question, this is an opportunity for President Biden to deliver what could be at least what he would present as a diplomatic masterstroke that does multiple things at once, including creating a new pathway for Israel and the Palestinians to coexist, to break through the logjam, even as he is also improving Israel’s relations with Saudi Arabia.

So Biden and the Crown Prince hope that they can somehow persuade Bibi Netanyahu that in spite of all the reasons that he thinks this is a terrible idea, that this is a bet worth taking on Israel’s and the region’s long-term security and future?

That’s right. Now, no one has explained very clearly exactly how this is going to work, and it’s probably going to require artful diplomacy, possibly even a scenario where the Israelis would agree to something that maybe means one thing to them and means something else to other people. But Biden officials refuse to say that it’s hopeless and they refuse to essentially take Netanyahu’s preliminary no’s for an answer. And they still see some way that they can thread this incredibly narrow needle.

Michael, I’m curious about a constituency that we haven’t been talking about because they’re not at the table in these discussions that we are talking about here. And that would be Hamas. How does Hamas feel about the prospect of such a deal like this ever taking shape. Do they see it as any kind of a victory and vindication for what they did on October 7th?

So it’s hard to know exactly what Hamas’s leadership is thinking. I think they can feel two things. I think they can feel on the one hand, that they have established themselves as the champions of the Palestinian people who struck a blow against Israel and against a diplomatic process that was potentially going to leave the Palestinians out in the cold.

At the same time, Hamas has no interest in the kind of two-state solution that the US is trying to promote. They think Israel should be destroyed. They think the Palestinian state should cover the entire geography of what is now Israel, and they want to lead a state like that. And that’s not something that the US, Saudi Arabia, or anyone else is going to tolerate.

So what Hamas wants is to fight, to be the leader of the Palestinian people, and to destroy Israel. And they’re not interested in any sort of a peace process or statehood process.

It seems very clear from everything you’ve said here that neither Israel nor Hamas is ready to have the conversation about a grand bargain diplomatic program. And I wonder if that inevitably has any bearing on the ceasefire negotiations that are going on right now between the two of them that are supposed to bring this conflict to some sort of an end, even if it’s just temporary?

Because if, as you said, Michael, a ceasefire opens the door to this larger diplomatic solution, and these two players don’t necessarily want that larger diplomatic solution, doesn’t that inevitably impact their enthusiasm for even reaching a ceasefire?

Well, it certainly doesn’t help. You know, this is such a hellish problem. And of course, you first have the question of whether Israel and Hamas can make a deal on these immediate issues, including the hostages, Palestinian prisoners, and what the Israeli military is going to do, how long a ceasefire might last.

But on top of that, you have these much bigger diplomatic questions that are looming over them. And it’s not clear that either side is ready to turn and face those bigger questions.

So while for the Biden administration and for Saudi Arabia, this is a way out of this crisis, these larger diplomatic solutions, it’s not clear that it’s a conversation that the two parties that are actually at war here are prepared to start having.

Well, Michael, thank you very much. We appreciate it.

On Tuesday afternoon, under intense pressure from the US, delegations from Israel and Hamas arrived in Cairo to resume negotiations over a potential ceasefire. But in a statement, Israel’s Prime Minister Benjamin Netanyahu made clear that even with the talks underway, his government would, quote, “continue to wage war against Hamas.”

Here’s what else you need to know today. In a dramatic day of testimony, Stormy Daniels offered explicit details about an alleged sexual encounter with Donald Trump that ultimately led to the hush money payment at the center of his trial. Daniels testified that Trump answered the door in pajamas, that he told her not to worry that he was married, and that he did not use a condom when they had sex.

That prompted lawyers for Trump to seek a mistrial based on what they called prejudicial testimony. But the judge in the case rejected that request. And,

We’ve seen a ferocious surge of anti-Semitism in America and around the world.

In a speech on Tuesday honoring victims of the Holocaust, President Biden condemned what he said was the alarming rise of anti-Semitism in the United States after the October 7th attacks on Israel. And he expressed worry that too many Americans were already forgetting the horrors of that attack.

The Jewish community, I want you to know I see your fear, your hurt, and your pain. Let me reassure you, as your president, you’re not alone. You belong. You always have and you always will.

Today’s episode was produced by Nina Feldman, Clare Toeniskoetter, and Rikki Novetsky. It was edited by Liz O. Baylen, contains original music by Marion Lozano, Elisheba Ittoop, and Dan Powell, and was engineered by Alyssa Moxley. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for The Daily. I’m Michael Barbaro. See you tomorrow.

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• May 3, 2024   •   25:33 The Protesters and the President
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Hosted by Michael Barbaro

Featuring Michael Crowley

Produced by Nina Feldman ,  Clare Toeniskoetter and Rikki Novetsky

Edited by Liz O. Baylen

Original music by Marion Lozano ,  Elisheba Ittoop and Dan Powell

Engineered by Alyssa Moxley

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If and when Israel and Hamas reach a deal for a cease-fire, the United States will immediately turn to a different set of negotiations over a grand diplomatic bargain that it believes could rebuild Gaza and remake the Middle East.

Michael Crowley, who covers the State Department and U.S. foreign policy for The Times, explains why those involved in this plan believe they have so little time left to get it done.

On today’s episode

Michael Crowley , a reporter covering the State Department and U.S. foreign policy for The New York Times.

Background reading :

Talks on a cease-fire in the Gaza war are once again at an uncertain stage .

Here’s how the push for a deal between Israel and Saudi Arabia looked before Oct. 7 .

From early in the war, President Biden has said that a lasting resolution requires a “real” Palestinian state .

Here’s what Israeli officials are discussing about postwar Gaza.

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The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Michael Crowley covers the State Department and U.S. foreign policy for The Times. He has reported from nearly three dozen countries and often travels with the secretary of state. More about Michael Crowley

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