SHERIDAN, WYOMING – November 26, 2024 - Despite the challenges faced in recent years, the tourism sector is demonstrating resilience and a renewed focus on sustainability, as revealed in the latest fDi Tourism Investment Report 2024. Released by the Financial Times in collaboration with UN Tourism, the report highlights a growing trend of greenfield investments in tourism, with a particular emphasis on projects that prioritize sustainability and innovation.
Tourism Sector Shows Strong Growth
The report indicates that the tourism sector experienced robust growth in 2023, with international tourism receipts exceeding 2019 levels by 3%. This positive trend signals a strong recovery from the pandemic and renewed confidence in the future of tourism.
Greenfield Investment on the Rise
Between 2019 and 2023, foreign investors announced 1,943 greenfield investment projects in the tourism sector, representing an estimated $106.7 billion in capital investment and the creation of approximately 259,800 jobs. While these figures have not yet fully reached pre-pandemic levels, the upward trajectory points to a promising future for tourism investment.
Regional Highlights and Trends
The report identifies varying levels of recovery across different regions:
- Europe: Maintaining its position as a global leader in tourism FDI, Europe attracted 44.6% of total global investment between 2019 and 2023, showcasing its resilience in a cautious investment climate.
- Asia-Pacific: The region experienced a significant surge in tourism FDI projects, with a 59.5% increase between 2022 and 2023. This growth reflects renewed investor confidence in the region's long-term tourism potential.
- Latin America and the Caribbean: Attracting 221 tourism FDI projects between 2019 and 2023, the region has already surpassed 2019 international tourist arrival levels, demonstrating its strong appeal to investors.
- Middle East and Africa: Recording 314 tourism FDI projects between 2019 and 2023, the region is experiencing a steady increase in investment, with a 16.1% rise in projects between 2022 and 2023.
Sustainability and Innovation Take Center Stage
The report emphasizes a growing focus on sustainable tourism investments. Destinations are increasingly leveraging innovation and technology, including AI and blockchain, to minimize their environmental impact while enhancing visitor experiences. This trend reflects a growing awareness of the importance of responsible tourism and its role in preserving natural and cultural resources.
A Call for Quality Tourism
The fDi Tourism Investment Report 2024 advocates for a shift towards quality tourism, emphasizing the need for diversification, eco-friendly policies, and sustainable infrastructure development. This approach aims to ensure the long-term growth and resilience of the tourism sector while minimizing its environmental footprint.
"The world we live in has changed, and so must our approach to tourism," said Jacopo Dettoni, Editor-in-Chief at fDi Intelligence. "Climate change and resource management are reshaping how and where people travel, which calls for a responsible shift toward sustainable investments."
Investing in the Future of Tourism
UN Tourism Secretary-General Zurab Pololikashvili highlighted the importance of investment in driving the transformation of the tourism sector, stating that "more and better-targeted investment will be key to transforming the tourism sector, creating jobs, and driving inclusive and sustainable growth."
UN Tourism Executive Director Natalia Bayona emphasized the need to invest in people, particularly younger generations, who make up a significant portion of the tourism workforce. "As we move forward, our focus on innovation and strategic investments will adapt to the evolving needs of travellers, support community wellbeing, and ensure the sustainability of the sector and our planet," she added.
A Positive Outlook for Sustainable Tourism
The fDi Tourism Investment Report 2024 paints a positive picture for the future of tourism, highlighting the industry's resilience and its growing commitment to sustainability. By embracing innovation, technology, and responsible practices, the tourism sector is well-positioned to contribute to economic growth while preserving the planet for future generations.