The World Travel & Tourism Council (WTTC) has released a new report that provides investment recommendations for governments and destinations, as they work to rebuild and grow their travel and tourism sector.
WTTC’s report showcases the importance of investment in the travel and tourism sector as a pathway to recovery, and how crucial it is to forge a public-private-community partnerships (PPCP).
According to the report, governments and destinations should invest and attract investment from the private sector in areas such as physical and digital infrastructure, as well as in travel segments such as wellness, medical, MICE, sustainable, adventure, cultural or targeted – including women, LGBTQI, and accessible – tourism.
“It is essential to understand the priorities to drive public and private investment in order to rebuild the economy and unlock the full potential of the travel and tourism sector,” said WTTC President & CEO Julia Simpson.
The paper demonstrates how crucial it is for both destinations and governments to attract investment through an effective enabling environment, including incentives such as smart taxation, travel facilitation policies, diversification, integration of health and hygiene, effective communication, and a skilled and trained workforce.
The report also offers key recommendations for governments and destinations and highlights those segments which could be most attractive to investors.
The impact of mobility restrictions
As highlighted by the WTTC, with the pandemic bringing international travel to an almost complete halt, the global travel and tourism sector has suffered more than any other due to severe mobility restrictions.
The sector’s contribution to global GDP fell from nearly 9.2 trillion dollars in 2019, to just 4.7 trillion dollars in 2020, representing a loss of almost 4.5 dollars trillion. Furthermore, as the pandemic ripped through the heart of the sector, a shocking 62 million travel and tourism jobs were lost while many still remain at risk.
The WTTC’s report reveals that capital investment dropped by almost one third (29.7 percent) last year, plummeting from 986 billion dollars in 2019, to just 693 billion dollars in 2020.
The report is available here.