World Economic Forum report: Tourism development is crucial to global economic recovery

The 2021 Travel & Tourism Development Index ( TTDI ) is the World Economic Forum’s flagship index for shaping the future of mobility. The key findings of the TTDI relate to the development of the travel and tourism sector, the challenges of recovery and how to build back better. The 2021 edition of the Index highlights the critical need to invest in T&T , the impact of the COVID-19 pandemic and how sector stakeholders can learn from T&T ’s development strategies to build back better. In particular, a more inclusive, sustainable and resilient sector must be created amid current challenges, shifting demand dynamics and future opportunities and risks.

The need for tourism development has never been greater

Tourism’s significant contribution to global economic and social development makes it critical for recovery and long-term growth. In 2019, the sector’s direct, indirect and induced output accounted for about 10% of global GDP. On average, among the economies covered by the TTDI, tourism’s contribution to exports in middle-income economies in 2019 was 70% higher than that in high-income economies. The sector contributed about 10% of global jobs in 2019, employed almost twice as many women as any other sector, and had a large share of youth employment. In addition, small and medium-sized enterprises account for more than 80% of tourism businesses.

Recovery challenges and changing demand dynamics

As tourism activities have been strictly restricted in the past few years, the biggest decline in index performance came from the contraction of related business and investment. As a result, the average scores of air transport infrastructure (-9.4%), tourism (-6.7%) and tourism service infrastructure (-1.5%) have all declined. From mid-2019 to 2021, the average number of short-term rentals per capita fell by about 1/5 . Between 2019 and 2020, the direct contribution of tourism to global GDP fell from 3.2% to 1.6%, and its contribution to global employment fell from 3.8% to 3.1% .

Restore and accelerate international opening

As travel restrictions are lifted, it will be critical to ensure that tourism markets remain open to visitors and investors. Of particular importance is the increasing openness to international tourism. Reduced visa requirements have boosted international tourism, and additional air services agreements have opened the market to more airlines, routes, competition and ultimately better service.

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