UNWTO: Investment Returning to Global Tourism Sector
Investment in the global tourism cluster has started to bounce back from the lows it touched during the pandemic off the back of the steady recovery of international tourist arrivals, according to a newly released report jointly produced by the World Tourism Organization (UNWTO) and fDi Intelligence.
Based on data from fDi Markets, fDi Intelligence’s proprietary database of greenfield FDI (foreign direct investment) projects, the report includes international tourism data from UNWTO.
“Greenfield FDI into the tourism sector is showing signs of life after all but vanishing in the pandemic years,” said Jacopo Dettoni, the editor of fDi Intelligence.
The report provides a broad overview of the ongoing investment cycle in the tourism sector, breaking down investment figures by region, segments and companies.
“With Covid–19 behind us, the sector has no time to waste in addressing the biggest challenge of our times: climate change and the resulting sustainability imperative,” Dettoni said.
Key findings of the report include:
– Both FDI (foreign direct investment) project numbers and job creation rates in the tourism cluster grew by 23 percent from 286 investments in 2021 to 352 in 2022. Job creation in tourism FDI also increased by 23 percent over the same period, to an estimated 36,400 in 2022.
– The leading destination region for tourism FDI projects in 2022 was Western Europe with 143 announced investments at a combined estimated value of $2.2 billion.
– The number of announced projects into the Asia-Pacific region increased marginally by 2.4 percent to 42 projects in 2022.
– The hotel and tourism sector accounted for almost two-thirds of all projects in the tourism cluster between 2018 and 2022. FDI projects increased by 25 percent from 2021 to 2022.
According to the UNWTO-fDi Intelligence tourism investment 2023 report, the North America and Asia-Pacific regions each contribute three companies to the top 10 investors list for tourism foreign direct investment (FDI) between 2018 and 2022. The rest of the top 10 comprises companies from Europe, with Spain-based Melia, UK-based Intercontinental Hotels Group, France-based Accor and UK-based Selina all featuring.
Pololikashvili: Investments must be made in education and talent
According to UNWTO Secretary-General Zurab Pololikashvili, significant investments must be made in education and talent by upskilling the professional workforce and implementing vocational and technical programmes to ensure the growth and competitiveness of the tourism sector.
“Only in this way can we equip young people — of whom only 50 percent have completed secondary education — with the knowledge and capabilities they need to thrive in the sector,” Pololikashvili said.
He adds that the investments will then pave the way for “a skilled workforce that can deliver exceptional growth, drive innovation and, by embracing digital technologies, enhance the competitiveness and resilience of the tourism sector”.