importance of tourism and hospitality essay brainly

21 reasons why tourism is important – the importance of tourism

Disclaimer: Some posts on Tourism Teacher may contain affiliate links. If you appreciate this content, you can show your support by making a purchase through these links or by buying me a coffee . Thank you for your support!

Tourism is important, more important than most people realise in fact!

The importance of tourism is demonstrated throughout the world. From the economic advantages that tourism brings to host communities to the enjoyment that tourism brings to the tourists themselves, there is no disputing the value of this industry.

The importance of tourism can be viewed from two perspectives: the tourism industry and the tourist. In this article I will explain how both the industry and the tourist benefit from the tourism industry and why it is so important on a global scale.

What is the importance of tourism?

Enhanced quality of life, ability to broaden way of thinking, educational value, ability to ‘escape’, rest and relaxation, enhanced wellbeing, who are tourism industry stakeholders, foreign exchange earnings, contribution to government revenues, employment generation, contribution to local economies, overall economy boost, preserving local culture, strengthening communities, provision of social services, commercialisation of culture and art, revitalisation of culture and art, preservation of heritage, empowering communities, protecting nature, the importance of tourism: political gains, why tourism is important: to conclude, the importance of tourism: further reading.

When many people think about the tourism industry they visualise only the front-line workers- the Holiday Representative, the Waiter, the Diving Instructor. But in reality, the tourism industry stretches much, much further than this.

As demonstrated in the infographic below, tourism is important in many different ways. The tourism industry is closely interconnected with a number of global industries and sectors ranging from trade to ecological conservation.

Why tourism is important to the tourist

When we discuss the importance of tourism it is often somewhat one-sided, taking into consideration predominantly those working in the industry and their connections.

However, the tourist is just as important, as without them there would be no tourism!

Below are just a few examples of the importance of tourism to the tourist:

Taking a holiday can greatly benefit a person’s quality of life. While different people have very different ideas of what makes a good holiday (there are more than 150 types of tourism after all!), a holiday does have the potential to enhance quality of life.

Travel is known to help broaden a person’s way of thinking. Travel introduces you to new experiences, new cultures and new ways of life.

Many people claim thatchy ‘find themselves’ while travelling.

One reason why tourism is important is education.The importance of tourism can be attributed to the educational value that it provides. Travellers and tourists can learn many things while undertaking a tourist experience, from tasting authentic local dishes to learning about the exotic animals that they may encounter.

Tourism provides the opportunity for escapism. Escapism can be good for the mind. It can help you to relax, which in turn often helps you to be more productive in the workplace and in every day life.

This is another way that the importance of tourism is demonstrated.

Rest and relaxation is very important. Taking time out for yourself helps you to be a happier, healthier person.

Having the opportunity for rest and relaxation in turn helps to enhance wellbeing.

Why tourism is important to stakeholders

There are many reasons why tourism is important to the people involved. There are many people who work either directly or indirectly with the tourism industry and who are therefore described as stakeholders. You can read more about tourism stakeholders and why they are important in this post- Stakeholders in tourism: Who are they and why do they matter?

The benefits of tourism are largely related to said stakeholders in some way or another. Below are some examples of how stakeholders benefit from tourism, organised by economic, social, environmental and political gains; demonstrating the importance of tourism.

The importance of tourism: Economic gains

Perhaps the most cited reason in reference to the importance of tourism is its economic value. Tourism can help economies to bring in money in a number of different ways. Below I have provided some examples of the positive economic impacts of tourism .

The importance of tourism is demonstrated through foreign exchange earnings. 

Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy. How a destination manages their finances differs around the world; some destinations may spend this money on growing their tourism industry further, some may spend this money on public services such as education or healthcare and some destinations suffer extreme corruption so nobody really knows where the money ends up! 

Some currencies are worth more than others and so some countries will target tourists from particular areas. Currencies that are strong are generally the most desirable currencies. This typically includes the British Pound, American, Australian and Singapore Dollar and the Euro . 

Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.

The importance of tourism is also demonstrated through the money that is raised and contributed to government revenues. Tourism can help to raise money that it then invested elsewhere by the Government. There are two main ways that this money is accumulated. 

Direct contributions  are generated by taxes on incomes from tourism employment and tourism businesses and things such as departure taxes. 

According to the World Tourism Organisation , the direct contribution of Travel & Tourism to GDP in 2018 was $2,750.7billion (3.2% of GDP). This is forecast to rise by 3.6% to $2,849.2billion in 2019.

Indirect contributions  come from goods and services supplied to tourists which are not directly related to the tourism industry. 

There is also the income that is generated through  induced contributions . This accounts for money spent by the people who are employed in the tourism industry. This might include costs for housing, food, clothing and leisure Activities amongst others. This will all contribute to an increase in economic activity in the area where tourism is being developed. 

The importance of tourism can be demonstrated through employment generation.

The rapid expansion of international tourism has led to significant employment creation. From hotel managers to theme park operatives to cleaners, tourism creates many employment opportunities. Tourism supports some 7% of the world’s workers. 

There are two types of employment in the tourism industry: direct and indirect. 

Direct employment  includes jobs that are immediately associated with the tourism industry. This might include hotel staff, restaurant staff or taxi drivers, to name a few. 

Indirect employment includes jobs which are not technically based in the tourism industry, but are related to the tourism industry.

It is because of these indirect relationships, that it is very difficult to accurately measure the precise economic value of tourism, and some suggest that the actual economic benefits of tourism may be as high as double that of the recorded figures!

The importance of tourism can be further seen through the contributions to local economies.

All of the money raised, whether through formal or informal means, has the potential to contribute to the local economy. 

If  sustainable tourism  is demonstrated, money will be directed to areas that will benefit the local community most. There may be pro-poor tourism initiatives (tourism which is intended to help the poor) or  volunteer tourism  projects. The government may reinvest money towards public services and money earned by tourism employees will be spent in the local community. This is known as the multiplier effect. 

Tourism boosts the economy exponentially. This is partly because of the aforementioned jobs that tourism creates, but also because of the temporary addition to the consumer population that occurs when someone travels to a new place. Just think: when you travel, you’re spending money. You’re paying to stay in a hotel or hostel in a certain area – then you’re eating in local restaurants, using local public transport, buying souvenirs and ice cream and new flip flops. As a tourist, you are contributing to the global economy every time you book and take a trip.

For some towns, cities and even whole countries, the importance of tourism is greater than for other. In some cases, it is the main source of income. For example, according to the World Travel and Tourism Council, tourism accounts for almost 40% of the Maldives’ total GDP. In comparison, it’s less than 4% in the UK and even lower in the US! In the Seychelles the number is just over 26% while in the British Virgin Islands it is over 35% – so tourism is vastly important in these nations.

The importance of tourism: Social gains

The importance of tourism is not only recognised through economic factors, but there are also many positive social impacts of tourism that play an important part. Below I will outline some of the social gains from tourism.

It is the local culture that the tourists are often coming to visit and this is another way to demonstrate the importance of tourism.

Tourists visit Beijing to learn more about the Chinese Dynasties. Tourists visit Thailand to taste authentic Thai food. Tourists travel to Brazil to go to the Rio Carnival, to mention a few…

Many destinations will make a conserved effort to preserve and protect the local culture. This often contributes to the conservation and  sustainable management  of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts. 

The importance of tourism can also be demonstrated through the strengthening of communities.

Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest.

The jobs created by tourism can also be a great boost for the local community. Aside from the  economic impacts  created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. 

Local people can also increase their influence on tourism development, as well as improve their job and earnings prospects, through tourism-related professional training and development of business and organisational skills.

The importance of tourism is shown through the provision of social services in the host community.

The tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. This often means that many developments in an area as a result of tourism will be available for use by the locals also. 

Local people often gained new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism. 

Tourism can see rise to many commercial business, which can be a positive social impact of tourism. This helps to enhance the community spirit as people tend to have more disposable income as a result. 

These businesses may also promote the local cultures and arts. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. This can help to promote/ preserve local traditions.

Some destinations will encourage local cultures and arts to be revitalised. This may be in the form of museum exhibitions, in the way that restaurants and shops are decorated and in the entertainment on offer, for example. 

This may help promote traditions that may have become distant. 

Another reason for the importance of tourism is the preservation of heritage. Many tourists will visit the destination especially to see its local heritage. It is for this reason that many destinations will make every effort to preserve its heritage. 

This could include putting restrictions in place or limiting tourist numbers, if necessary. This is often an example of careful  tourism planning  and sustainable tourism management. 

Tourism can, if managed well, empower communities. While it is important to consider the authenticity in tourism and take some things with a pinch of salt, know that tourism can empower communities.

Small villages in far off lands are able to profit from selling their handmade goods. This, in turn, puts food on the table. This leads to healthier families and more productivity and a happier population .

The importance of tourism: Environmental gains

Whilst most media coverage involving tourism and the environment tends to be negative, there are some positives that can come from it: demonstrating the importance of tourism once again.

Some people think that tourism is what kills nature. And while this could so easily be true, it is important to note that the tourism industry is and always has been a big voice when it comes to conservation and the protection of animals and nature. Tourism organisations and travel operators often run (and donate to) fundraisers. 

As well as this, visitors to certain areas can take part in activities that aim to sustain the local scenery. It’s something a bit different, too! You and your family can go on a beach clean up walk in Spain or do something similar in the UAE . There are a lot of ways in which tourism actually helps the environment, rather than hindering it!

Lastly, there is something to be said for the political gains that can be achieved through tourism.

The tourism industry can yield promising opportunities for international collaborations, partnerships and agreements, for example within the EU. This can have positive political impacts on the host country as well as the countries who choose to work with them.

Tourism is a remarkably important industry. As you can see, the tourism industry does not stand alone- it is closely interrelated with many other parts of society. Not only do entire countries often rely on the importance of tourism, but so do individual members of host communities and tourists.

If you are studying travel and tourism and are interested in learning more about the importance of tourism, I recommend you take a look at the following texts:

• An Introduction to Tourism : a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
• The Business of Tourism Management : an introduction to key aspects of tourism, and to the practice of managing a tourism business.
• Tourism Management: An Introduction : gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.

Liked this article? Click to share!

UN Tourism | Bringing the world closer

Tourism – an economic and social phenomenon.

share this content

• Share this article on facebook
• Share this article on twitter
• Share this article on linkedin

Why Tourism?

Over the decades, tourism has experienced continued growth and deepening ‎diversification to become one of the fastest growing economic sectors in the world. ‎Modern tourism is closely linked to development and encompasses a growing number ‎of new destinations. These dynamics have turned tourism into a key driver for socio-‎economic progress.‎

Today, the business volume of tourism equals or even surpasses that of oil exports, ‎food products or automobiles. Tourism has become one of the major players in ‎international commerce, and represents at the same time one of the main income ‎sources for many developing countries. This growth goes hand in hand with an ‎increasing diversification and competition among destinations.‎

International tourist arrivals (overnight visitors) grew 4% in January-March 2019 compared to the same period last year, below the 6% average growth of the past two years.

This global spread of tourism in industrialised and developed states has produced ‎economic and employment benefits in many related sectors - from construction to ‎agriculture or telecommunications.‎

The contribution of tourism to economic well-being depends on the quality and the ‎revenues of the tourism offer. UN Tourism assists destinations in their sustainable ‎positioning in ever more complex national and international markets. As the UN agency ‎dedicated to tourism, UN Tourism points out that particularly developing countries stand to ‎benefit from sustainable tourism and acts to help make this a reality.‎

• Brochure Download

Why study hospitality and tourism management?

If you are looking for a career that is both exciting and rewarding, then you should consider studying hospitality and tourism management.

This field offers many opportunities for people who are passionate about travel and meeting new people.

There are many different jobs in the hospitality industry that require a variety of skills, so no matter what your interests are, there is sure to be a position that is perfect for you.

We will discuss some of the reasons why studying hospitality and tourism management is such a great choice.

Hospitality and tourism management is a rewarding field to study for many reasons:

-It offers the opportunity to learn about different cultures: As a hospitality and tourism management student, you will have the opportunity to learn about different cultures and how to best serve guests from all over the world.

-It is perfect for people who love to travel: If you are someone who loves to travel, then this field is perfect for you. You will get to see many different places and meet new people.

-It will teach you how to succeed in a fast-paced and ever-changing industry: This means that there are always new challenges to keep things interesting.

-It is a great choice for people who are looking for a stable career: The hospitality industry is growing all over the world, so there will be plenty of job opportunities available.

-It will teach you invaluable communication and customer service skills : These are skills that you will use in every job, no matter what industry you end up working in. They are also incredibly useful in everyday life, so you will develop as an individual as well as a professional.

-It can lead to a successful career in a variety of settings:

You could find yourself working in a hotel, resort, cruise ship, or even an airline.

Whether you want to work in a five-star hotel or help run a small bed and breakfast, studying a hospitality degree is a great way to prepare for rewarding careers in hospitality and tourism .

Get started with a bachelor degree in hospitality management to kickstart your career.

Hospitality school opens the doors to new industry connections and opportunities while teaching you the skills and knowledge you need to succeed.

What’s the difference between Hospitality and Tourism?

Hospitality and tourism are two closely related industries.

Both involve providing services to guests and travelers.

However, there are some important distinctions between the two.

Hospitality typically refers to the lodging and food service industries, while tourism refers to all activities associated with travel, including sightseeing, shopping, and recreation.

Hospitality businesses, such as hotels and restaurants, provide basic accommodations and meals for travelers.

Tourism businesses, on the other hand, offer a wide range of services designed to enhance the travel experience.

These can include guided tours, transportation services, and entertainment options.

Together, hospitality and tourism form a vital part of the global economy, providing jobs for millions of people around the world.

What can studying tourism lead to?

Tourism is one of the world’s largest industries, and it is on the path to rapid growth again now that the pandemic has subsided.

As a result, there is an increasing demand for qualified tourism professionals.

Studying tourism can lead to a variety of rewarding career opportunities, from working as a travel agent to a hotel management career.

Tourism courses often cover topics such as destination marketing, customer service, and event management . In addition, students often have the opportunity to study abroad, providing them with first-hand experience of different cultures and customs. ( https://www.utahfoodbank.org )

With its global perspective and practical focus, studying tourism can prepare students for a wide range of exciting tourism and hospitality careers .

What can studying hospitality lead to?

Hospitality is a broad field that can lead to a variety of different career paths.

For example, undertaking a hotel management degree can lead to working in a global hotel chain in all corners of the world.

Or, you might work as the manager of a resort.

However, there are also many opportunities for those who want to work in event planning, catering, or even tourism.

The skills that you learn while studying hospitality will give you the ability to deal with customers and clients, as well as plan and organize events.

In addition, you will also learn about the different aspects of running a business, from accounting and marketing to human resources and operations.

As you can see, studying hospitality can lead to a wide range of exciting and rewarding career opportunities.

What is tourism management?

Tourism management is the process of overseeing and coordinating the operations of businesses and organizations that are involved in the tourism industry.

This can include everything from hotel and restaurant management to tour operators and transportation companies.

The goal of tourism management is to ensure that all aspects of the tourism experience run smoothly and efficiently, while also providing a high level of customer satisfaction.

In order to be successful, tourism managers need to have a good understanding of the tourism sector as a whole.

They also need to be able to work effectively with a wide range of people, from hotel staff to government officials.

With proper planning and execution, tourism management can help to make the traveler’s experience more enjoyable and hassle-free.

What should I look for in a university for studying hospitality and tourism management?

When it comes to choosing a university for tourism and hospitality management studies, there are many factors to consider:

• The university’s curriculum: Make sure that the program offers a broad range of subjects so that you can gain a well-rounded education. At Les Roches, we are rated 5-star overall in the QS Stars higher education rating system. So, you can be confident that our curriculum is of the highest quality.
• The campus location: When it comes to hospitality and tourism studies, the location will play a big role in your overall university experience. With us, you’ll get to study at one of our two main campuses in Crans-Montana or Marbella, in exclusive resorts that are renowned worldwide for offering the highest levels of hospitality education.
• The class sizes: Make sure that the program has small class sizes so that you can get the individual attention and support that you need. At Les Roches, our average class size is just 16 students, so you’ll get the best possible learning experience.
• The faculty: Choose a program that has experienced and qualified faculty members who can provide you with the best possible education. Our faculty are all industry professionals with years of experience in the hospitality and tourism industry.
• The recruitment prospects: Once you graduate, you’ll want to be able to find a job in the hospitality and tourism industry. Make sure to choose a program that has a good reputation and offers students great prospects for their careers in hospitality management . We at Les Roches attract over 200 recruiting companies to our campuses each year, so you’re bound to find the perfect job for you.

By taking all of these factors into account, you’ll be sure to find the perfect program for your needs. It will also ensure that you have a well-rounded education and the skills and knowledge you need to pursue a successful career in hospitality and tourism management

Study at a world leading institution with a global reputation and discover incredible career opportunities.

• Industry News

From arranging flights and accommodations to recommending destinations and activities, travel consultants offer valuable expertise and personalized service to meet…

Whether you aspire to become a corporate leader, entrepreneur or industry innovator, obtaining a business degree provides a solid foundation…

A brand is more than just a logo or a product; it’s the essence of what a company stands for…

The global event management industry is a vibrant and evolving sector that attracts a lot of people. This growth is…

Welcome to Les Roches

Privacy overview.

20 Reasons You Should Integrate Tourism into Your Development Agenda

Louise twining-ward, damien shiels.

Senior Private Sector Specialist

Global Product Specialist

Join the Conversation

• Share on mail
• comments added

Why is tourism so important to the economy?

Recently updated on July 31st, 2023 at 04:03 pm

Tourism isn’t just about holidays and new adventures on distant shores. This incredible industry, quite literally, makes the world go round. From supporting local businesses to making up trillions of dollars of the global GDP, the importance of tourism on the economy is simply massive. And with the COVID-19 pandemic crushing the tourism industry this year, the damage has been felt across the world. In celebration of World Tourism Day on 27 September, we take a look at why tourism is so important to the economy and why it’s crucial this industry makes a comeback. 

What is the importance of travel and tourism?

In 2019 alone, the tourism industry contributed 10.3% of the global GDP – that’s US$8.9 trillion! It also provided 330 million jobs, or one in 10 jobs around the world, while over the past five years the tourism industry created one in four new jobs. The sector also experienced a 3.5% growth in 2019, exceeding the global economic growth of 2.5% for the ninth year in a row. 

Those are some impressive stats, painting a stark picture of the importance of tourism to the economy. So what happens when there is no tourism? 

2020 was the year that travel really did stop, with COVID-19 bringing the tourism industry to a devastating halt. By April 2020, at least 7.1 billion people, or 91% of the global population , were living with COVID-19 related travel restrictions.

Six months later, many countries are beginning to emerge from local lockdowns and re-open borders. But the tourism industry has been dealt a heavy blow.

Countless businesses have been forced to close, from local family stores to multinational companies. Millions of people have lost their jobs and livelihoods. However, a loss of jobs and income is just the beginning of the losses the world would face without tourism.

RELATED CONTENT: 6 ways your travels directly impact the lives of others for the better

What are the impacts of tourism?

The advantages of tourism go beyond creating billions of dollars and hundreds of millions of jobs and business opportunities. A booming tourism industry helps to build infrastructure such as roads, parks, hospitals, schools and community areas.

It also helps to preserve heritage sites, natural wonders, and precious cultures, by creating space for people to showcase their cultural traditions and protect sacred areas. Your travels can have a direct positive impact when you stay in locally-owned accommodation, shop in artisan markets, take part in traditional festivals, and tour with local guides. 

The tourism industry also helps to protect the environment and its wildlife, with many tourism businesses offering eco-friendly services and encouraging tourists to respect the lands and communities they visit.

Dozens of natural areas are gaining protection because of their importance to the tourism industry. There are also many inspiring cases of change, such as former poachers turning into safari guides or gamekeepers, as the income from tourists wanting to see wildlife means that protecting the animals is a far more valuable venture. Your trip can have a direct positive impact when you pay entry fees for national parks to ensure ongoing preservation. You should also always make sure you leave only footprints and take only photos from the natural areas you visit.

These positive impacts of the tourism industry are all part of a move towards responsible tourism. It’s all about having a beneficial effect on the communities we visit, protecting our wildlife, and caring for our planet. 

RELATED CONTENT: Travelling in today’s world: Your COVID-19 travel questions and concerns, answered

Why is responsible tourism important?

Without responsible tourism, many communities, cultures, animals and lands will suffer. Since tourism income provides a huge incentive to preserve areas of natural and cultural importance, removing this incentive puts these precious places at a higher risk of extinction. They’re more likely to be destroyed to make way for more profitable, and often harmful, developments such as mass agriculture .

RELATED CONTENT: Never again shall we take for granted how truly interconnected we all are

Responsible tourism also means more tourism businesses are using sustainable practices and promoting eco-friendly and culturally sensitive trips. This leaves less space for unethical businesses using tourism to damage the environment and exploit people and wildlife.

Responsible tourism is the way to go

The good news is, responsible tourism – and its big impact on the economy – is on the rise. As the tourism industry gradually makes a comeback in the wake of COVID-19, we’re likely to see changes in the way we travel. Travel trends like domestic travel, getting out into nature, and small group travel will all become more popular in 2021. 

RELATED CONTENT: From domestic travel to nature getaways, these are the 2021 travel trends we are seeing right now

After experiencing this global crisis together, we’re also feeling more interconnected than ever, and we’re more conscious of our impact on the environment. As a result, we’re more likely to take responsible holidays that celebrate our beautiful planet and connect with real people.

You can travel responsibly with Trafalgar with our JoinTrafalgar initiative, powered by the not-for-profit TreadRight Foundation . It was launched over a decade ago with a mission to use the positive power of travel to make a difference on our trips.

RELATED CONTENT: Now is the time to explore your own country, for you and the economy

How can my next trip help the economy?

So we’ve talked about the advantages of tourism to the economy and millions of people around the world… But how can we help the tourism industry make a comeback?

Since domestic travel will drive the recovery of tourism, the best place to travel first is your own backyard. Take it as a golden opportunity to explore some hidden gems in your own country!

You’ll get to reconnect with your local culture, history and nature, all while helping local businesses closer to home. When you spend money in small businesses like restaurants, hotels, shops and farms, you’re doing your part to support local families, revive the economy and bring travel back.

RELATED CONTENT: Aussies, here’s how your travels can directly boost the local economy

The wonders of local travel

You can embrace domestic travel with Trafalgar’s new ‘Near Not Far’ trips. They’re offering amazing local adventures in countries like the USA , Canada , Australia and New Zealand . 

You can choose from local experiences like visiting a real working sheep farm in southern New Zealand , or staying in a seaside eco-tent on the stunning Rottnest Island. Take part in a special Navajo cookout in Monument Valley , or sleep like royalty in the gorgeous châteaux of Quebec and Ontario.

While we don’t know how long it will take for the economy to recover, we do know that tourism is a crucial part of its revival. So once travel restrictions ease and borders reopen, why not think about taking a trip? It will do wonders for the world. 

What is the importance of tourism to you? Let us know in the comments below…

Want to hear more from us?

Sign up to receive inspiring travel articles, offers & news

" * " indicates required fields

Privacy Overview

Sign up for our emails.

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

Chapter 1. History and Overview

Learning Objectives

• Specify the commonly understood definitions of tourism and tourist
• Classify tourism into distinct industry groups using North American Industry Classification Standards (NAICS)
• Define hospitality  
• Gain knowledge about the origins of the tourism industry
• Provide an overview of the economic, social, and environmental impacts of tourism worldwide
• Understand the history of tourism development in Canada and British Columbia
• Analyze the value of tourism in Canada and British Columbia
• Identify key industry associations and understand their mandates

What Is Tourism?

Before engaging in a study of tourism , let’s have a closer look at what this term means.

Definition of Tourism

There are a number of ways tourism can be defined, and for this reason, the United Nations World Tourism Organization (UNWTO)  embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure ( United Nations World Tourism Organization , 2008).

Using this definition, we can see that tourism is the movement of people for a number of purposes (whether business or pleasure).

Definition of Tourist

Building on the definition of tourism, a commonly accepted description of a  tourist is “someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons” (LinkBC, 2008, p.8). The United Nations World Tourism Organization (1995) helps us break down this definition further by stating tourists can be:

• Domestic (residents of a given country travelling only within that country)
• Inbound (non-residents travelling in a given country)
• Outbound (residents of one country travelling in another country)

The scope of tourism, therefore, is broad and encompasses a number of activities.

Spotlight On: United Nations World Tourism Organization (UNWTO)

UNWTO is the United Nations agency responsible “for the promotion of responsible, sustainable and universally accessible tourism” (UNWTO, 2014b). Its membership includes 156 countries and over 400 affiliates such as private companies and non-governmental organizations. It promotes tourism as a way of developing communities while encouraging ethical behaviour to mitigate negative impacts. For more information, visit the UNWTO website : http://www2.unwto.org/.

NAICS: The North American Industry Classification System

Given the sheer size of the tourism industry, it can be helpful to break it down into broad industry groups using a common classification system. The North American Industry Classification System (NAICS) was jointly created by the Canadian, US, and Mexican governments to ensure common analysis across all three countries (British Columbia Ministry of Jobs, Tourism and Skills Training, 2013a). The tourism-related groupings created using NAICS are (in alphabetical order):

• Accommodation
• Food and beverage services (commonly known as “F & B”)
• Recreation and entertainment
• Transportation
• Travel services

These industry groups are based on the similarity of the “labour processes and inputs” used for each (Government of Canada, 2013). For instance, the types of employees and resources required to run an accommodation business — whether it be a hotel, motel, or even a campground — are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation. The same is true of the other four groupings, and the rest of this text explores these  industry groups, and other aspects of tourism, in more detail. 

The Hospitality Industry

When looking at tourism it’s important to consider the term  hospitality . Some define hospitality as “t he business of helping people to feel welcome and relaxed and to enjoy themselves” (Discover Hospitality, 2015, ¶ 3). Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry. You’ll learn more about accommodations and F & B in Chapter 3 and Chapter 4, respectively. 

Before we seek to understand the five industry groupings in more detail, it’s important to have an overview of the history and impacts of tourism to date.

Global Overview

Origins of tourism.

Travel for leisure purposes has evolved from an experience reserved for very few people into something enjoyed by many. Historically, the ability to travel was reserved for royalty and the upper classes. From ancient Roman times through to the 17th century, young men of high standing were encouraged to travel through Europe on a “grand tour” (Chaney, 2000). Through the Middle Ages, many societies encouraged the practice of religious pilgrimage, as reflected in Chaucer’s Canterbury Tales and other literature.

The word hospitality  predates the use of the word tourism , and first appeared in the 14th century. It is derived from the Latin hospes , which encompasses the words guest, host , and foreigner (Latdict, 2014). The word tourist  appeared in print much later, in 1772 (Griffiths and Griffiths, 1772). William Theobald suggests that the word  tour  comes from Greek and Latin words for circle and turn, and that tourism and tourist  represent the activities of   circling away from home, and then returning (Theobald, 1998).

Tourism Becomes Business

Cox & Kings, the first known travel agency, was founded in 1758 when Richard Cox became official travel agent of the British Royal Armed Forces (Cox & Kings, 2014).  Almost 100 years later, in June 1841, Thomas Cook opened the first leisure travel agency, designed to help Britons improve their lives by seeing the world and participating in the temperance movement. In 1845, he ran his first commercial packaged tour, complete with cost-effective railway tickets and a printed guide (Thomas Cook, 2014).

The continued popularity of rail travel and the emergence of the automobile presented additional milestones in the development of tourism. In fact, a long journey taken by Karl Benz’s wife in 1886 served to kick off interest in auto travel and helped to publicize his budding car company, which would one day become Mercedes Benz (Auer, 2006). We take a closer look at the importance of car travel later this chapter, and of transportation to the tourism industry in Chapter 2.

Fast forward to 1952 with the first commercial air flights from London, England, to Johannesburg, South Africa, and Colombo, Sri Lanka (Flightglobal, 2002) and the dawn of the jet age, which many herald as the start of the modern tourism industry. The 1950s also saw the creation of Club Méditérannée (Gyr, 2010) and similar club holiday destinations, the precursor of today’s all-inclusive resorts.

The decade that followed is considered to have been a significant period in tourism development, as more travel companies came onto the scene, increasing competition for customers and moving toward “mass tourism, introducing new destinations and modes of holidaying” (Gyr, 2010, p. 32).

Industry growth has been interrupted at several key points in history, including World War I, the Great Depression, and World War II. At the start of this century, global events thrust international travel into decline including the September 11, 2001, attack on the World Trade Center in New York City (known as 9/11), the war in Iraq, perceived threat of future terrorist attacks, and health scares including SARS, BSE (bovine spongiform encephalopathy), and West Nile virus (Government of Canada, 2006).

At the same time, the industry began a massive technological shift as increased internet use revolutionized travel services. Through the 2000s, online travel bookings grew exponentially, and by 2014 global leader Expedia had expanded to include brands such as Hotels.com, the Hotwire Group, trivago, and Expedia CruiseShip Centers, earning revenues of over $4.7 million (Expedia Inc., 2013).

A more in-depth exploration of the impact of the online marketplace, and other trends in global tourism, is provided in Chapter 14. But as you can already see, the impacts of the global tourism industry today are impressive and far reaching. Let’s have a closer look at some of these outcomes.

Tourism Impacts

Tourism impacts can be grouped into three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations.

Economic Impacts

According to a UNWTO report, in 2011, “international tourism receipts exceeded US$1 trillion for the first time” (UNWTO, 2012). UNWTO Secretary-General Taleb Rifai stated this excess of $1 trillion was especially important news given the global economic crisis of 2008, as tourism could help rebuild still-struggling economies, because it is a key export and labour intensive (UNWTO, 2012). 

Tourism around the world is now worth over $1 trillion annually, and it’s a growing industry almost everywhere. Regions with the highest growth in terms of tourism dollars earned are the Americas, Europe, Asia and the Pacific, and Africa. Only the Middle East posted negative growth at the time of the report (UNWTO, 2012).

While North and South America are growing the fastest, Europe continues to lead the way in terms of overall percentage of dollars earned (UNWTO, 2012):

• Europe (45%)
• Asia and the Pacific (28%)
• North and South America (19%)
• Middle East (4%)

Global industry growth and high receipts are expected to continue. In its August 2014 expenditure barometer, the UNWTO found worldwide visitation had increased by 22 million people in the first half of the year over the previous year, to reach 517 million visits (UNWTO, 2014a). As well, the UNWTO’s  Tourism 2020 Vision predicts that  international arrivals will reach nearly 1.6 billion by 2020 . Read more about the Tourism 2020 Vision : http://www.e-unwto.org/doi/abs/10.18111/9789284403394

Social Impacts

In addition to the economic benefits of tourism development, positive social impacts include an increase in amenities (e.g., parks, recreation facilities), investment in arts and culture, celebration of First Nations people, and community pride. When developed conscientiously, tourism can, and does, contribute to a positive quality of life for residents.

However, as identified by the United Nations Environment Programme (UNEP, 2003a), negative social impacts of tourism can include:

• Change or loss of indigenous identity and values
• Culture clashes
• Physical causes of social stress (increased demand for resources)
• Ethical issues (such as an increase in sex tourism or the exploitation of child workers)

Some of these issues are explored in further detail in Chapter 12, which examines the development of Aboriginal tourism in British Columbia.

Environmental Impacts

Tourism relies on, and greatly impacts, the natural environment in which it operates. Even though many areas of the world are conserved in the form of parks and protected areas, tourism development can have severe negative impacts. According to UNEP (2003b), these can include:

• Depletion of natural resources (water, forests, etc.)
• Pollution (air pollution, noise, sewage, waste and littering)
• Physical impacts (construction activities, marina development, trampling, loss of biodiversity)

The environmental impacts of tourism can reach outside local areas and have an effect on the global ecosystem. One example is increased air travel, which is a major contributor to climate change. Chapter 10 looks at the environmental impacts of tourism in more detail.

Whether positive or negative, tourism is a force for change around the world, and the industry is transforming at a staggering rate. But before we delve deeper into our understanding of tourism, let’s take a look at the development of the sector in our own backyard.

Canada Overview

Origins of tourism in canada.

Tourism has long been a source of economic development for our country. Some argue that as early as 1534 the explorers of the day, such as Jacques Cartier, were Canada’s first tourists (Dawson, 2004), but most agree the major developments in Canada’s tourism industry followed milestones in the transportation sector: by rail, by car, and eventually, in the skies.

Railway Travel: The Ties That Bind

The dawn of the railway age in Canada came midway through the 19th century. The first railway was launched in 1836 (Library and Archives Canada, n.d.), and by the onset of World War I in 1914, four railways dominated the Canadian landscape: Canadian Pacific Railway (CPR), Canadian Northern Railway (CNOR), the Grand Trunk Railway (GTR), and the Grand Trunk Pacific (GTP). Unfortunately, their rapid expansion soon brought the last three into near bankruptcy (Library and Archives Canada, n.d.).

In 1923, these three rail companies were amalgamated into the Canadian National Railway (CNR), and together with the CPR, these trans-continentals dominated the Canadian travel landscape until other forms of transportation became more popular. In 1978, with declining interest in rail travel, the CPR and CNR were forced to combine their passenger services to form VIA Rail (Library and Archives Canada, n.d.).

The Rise of the Automobile

The rising popularity of car travel was partially to blame for the decline in rail travel, although it took time to develop. When the first cross-country road trip took place in 1912, there were only 16 kilometres of paved road across Canada (MacEachern, 2012). Cars were initially considered a nuisance, and the National Parks Branch banned entry to automobiles, but later slowly began to embrace them. By the 1930s, some parks, such as Cape Breton Highlands National Park, were actually created to provide visitors with scenic drives (MacEachern, 2012).

It would take decades before a coast-to-coast highway was created, with the Trans-Canada Highway officially opening in Revelstoke in 1962. When it was fully completed in 1970, it was the longest national highway in the world, spanning one-fifth of the globe (MacEachern, 2012).

Early Tourism Promotion

As early as 1892, enterprising Canadians like the Brewsters became the country’s first tour operators, leading guests through areas such as Banff National Park (Brewster Travel Canada, 2014). Communities across Canada developed their own marketing strategies as transportation development took hold. For instance, the town of Maisonneuve in Quebec launched a campaign from 1907 to 1915 calling itself “Le Pittsburg du Canada.” And by 1935 Quebec was spending $250,000 promoting tourism, with Ontario, New Brunswick, and Nova Scotia also enjoying established provincial tourism bureaus (Dawson, 2004).

National Airlines

Our national airline, Air Canada, was formed in 1937 as Trans-Canada Air Lines. In many ways, Air Canada was a world leader in passenger aviation, introducing the world’s first computerized reservations system in 1963 ( Globe and Mail , 2014). Through the 1950s and 1960s, reduced airfares saw increased mass travel. Competitors including Canadian Pacific (which became Canadian Airlines in 1987) began to launch international flights during this time to Australia, Japan, and South America ( Canadian Geographic, 2000). By 2000, Air Canada was facing financial peril and forced to restructure. A numbered company, owned in part by Air Canada, purchased 82% of Canadian Airline’s shares, with the result of Air Canada becoming the country’s only national airline ( Canadian Geographic, 2000).

Parks and Protected Areas

A look at the evolution of tourism in Canada would be incomplete without a quick study of our national parks and protected areas. The official conserving of our natural spaces began around the same time as the railway boom, and in 1885 Banff was established as Canada’s first national park. By 1911, the Dominion Forest Reserves and Parks Act created the Dominion Parks Branch, the first of its kind in the world (Shoalts, 2011).

The systemic conservation and celebration of Canada’s parks over the next century would help shape Canada’s identity, both at home and abroad. Through the 1930s, conservation officers and interpreters were hired to enhance visitor experiences. By 1970, the National Park System Plan divided Canada into 39 regions, with the goal of preserving each distinct ecosystem for future generations. In 1987, the country’s first national marine park was established in Ontario, and in the 20 years that followed, 10 new national parks and marine conservation areas were created (Shoalts, 2011).

The role of parks and protected areas in tourism is explored in greater detail in Chapter 5 (recreation) and Chapter 10 (environmental stewardship).

Global Shock and Industry Decline

As with the global industry, Canada’s tourism industry was impacted by world events such as the Great Depression and the World Wars.

More recently, global events such as 9/11, the SARS outbreak, and the war in Iraq took their toll on tourism receipts. Worldwide arrivals to Canada dropped 1% to 694 million in 2003, after three years of stagnant growth. In 2005, spending reached $61.4 billion with domestic travel accounting for 71% (Government of Canada, 2006).

Tourism in Canada Today

In 2011, tourism created $78.8 billion in total economic activity and 603,400 jobs. Tourism accounted for more of Canada’s gross domestic product (GDP) than agriculture, forestry, and fisheries combined (Tourism Industry Association of Canada, 2014).

Spotlight On: The Tourism Industry Association of Canada (TIAC)

Founded in 1930 and based in Ottawa, the Tourism Industry Association of Canada (TIAC) is the national private-sector advocate for the industry. Its goal is to support policies and programs that help the industry grow, while representing over 400 members including airports, concert halls, festivals and events, travel services providers, and businesses of all sizes. For more information, visit the Tourism Industry Association of Canada’s website : http://tiac.travel/About.html

Unfortunately, while overall receipts from tourism appear healthy, and globally the industry is growing, according to a recent report, Canada’s historic reliance on the US market (which traditionally accounts for 75% of our market) is troubling. Because three out of every four international visitors to Canada originates in the United States, the 55% decline in that market since 2000 is being very strongly felt here. Many feel the decline in American visitors to Canada can be attributed to tighter passport and border regulations, the economic downturn (including the 2008 global economic crisis), and a stronger Canadian dollar (TIAC, 2014).

Despite disappointing numbers from the United States, Canada continues to see strong visitation from the United Kingdom, France, Germany, Australia, and China. In 2011, we welcomed 3,180,262 tourists from our top 15 inbound countries (excluding the United States). Canadians travelling domestically accounted for 80% of tourism revenues in the country, and TIAC suggested that a focus on rebounding US visitation would help grow the industry (TIAC, 2014).

Spotlight On: The Canadian Tourism Commission

Housed in Vancouver, Destination Canada , previously the Canadian Tourism Commission (CTC), is responsible for promoting Canada in several foreign markets: Australia, Brazil, China, France, Germany, India, Japan, Mexico, South Korea, the United Kingdom, and the United States. It works with private companies, travel services providers, meeting professionals, and government organizations to help leverage Canada’s tourism brand,  Canada. Keep Exploring . It also conducts research and has a significant image library (Canadian Tourism Commission, 2014). For more information, visit  Destination Canada website : http://en.destinationcanada.com/about-ctc.

As organizations like TIAC work to confront barriers to travel, the Canadian Tourism Commission (CTC) is active abroad, encouraging more visitors to explore our country. In Chapter 8, we’ll delve more into the challenges and triumphs of selling tourism at home and abroad.

The great news for British Columbia is that once in Canada, most international visitors tend to remain in the province they landed in, and BC is one of three provinces that receives the bulk of this traffic (TIAC, 2012). In fact, BC’s tourism industry is one of the healthiest in Canada today. Let’s have a look at how our provincial industry was established and where it stands now.

British Columbia Overview

Origins of tourism in bc.

As with the history of tourism in Canada, it’s often stated that the first tourists to BC were explorers. In 1778, Captain James Cook touched down on Vancouver Island, followed by James Douglas in 1842, a British agent who had been sent to find new headquarters for the Hudson’s Bay Company, ultimately choosing Victoria. Through the 1860s, BC’s gold rush attracted prospectors from around the world, with towns and economies springing up along the trail (PricewaterhouseCoopers, 2009).

Railway Travel: Full Steam Ahead!

The development of BC’s tourism industry began in earnest in the late 1800s when the CPR built accommodation properties along itsnewly completed trans-Canada route, capturing revenues from overnight stays to help alleviate their increasing corporate debt. Following the 1886 construction of small lodges at stops in Field, Rogers Pass, and Fraser Canyon, the CPR opened the Hotel Vancouver in May 1887 (Dawson, 2004).

As opposed to Atlantic Canada, where tourism promotion centred around attracting hunters and fishermen for a temporary infusion of cash, in British Columbia tourism was seen as a way to lure farmers and settlers to stay in the new province. Industry associations began to form quickly: the Tourist Association of Victoria (TAV) in February 1902, and the Vancouver Tourist Association in June of the same year (Dawson, 2004).

Many of the campaigns struck by these and other organizations between 1890 and 1930 centred on the province’s natural assets, as people sought to escape modern convenience and enjoy the environment. A collaborative group called the Pacific Northwest Travel Association (BC, Washington, and Oregon) promoted “The Pacific Northwest: The World’s Greatest Out of Doors,” calling BC “The Switzerland of North America.” Promotions like these seemed to have had an effect: in 1928, over 370,000 tourists visited Victoria, spending over $3.5 million (Dawson, 2004).

The Great Depression and World War II

As the world’s economy was sent into peril during the Great Depression in the 1930s, tourism was seen as an economic solution. A newly renamed Greater Victoria Publicity Bureau touted a “100 for 1” multiplier effect of tourism spending, with visitor revenues accounting for around 13.5% of BC’s income in 1930. By 1935, an organization known as the TTDA (Tourist Trade Development Association of Victoria and Vancouver Island) looked to create a more stable industry through strategies to increase visitors’ length of stay (Dawson, 2004).

In 1937, the provincial Bureau of Industrial and Tourist Development (BITD) was formed through special legislation with a goal of increasing tourist traffic. By 1938, the organization changed its name to the British Columbia Government Travel Bureau (BCGTB) and was granted a budget increase to $105,000. This was soon followed by an expansion of the BC Tourist Council designed to solicit input from across the province. And in 1939, Vancouver welcomed the King and Queen of England and celebrated the opening of the Lions Gate Bridge, activities that reportedly bolstered tourism numbers (Dawson, 2004).

The December 1941 Japanese attack on Pearl Harbor in Hawaii had negative repercussions for tourism on the Pacific Rim and was responsible for an era of decreased visitation to British Columbia, despite attempts by some to market the region as exciting. From 1939 to 1943, US visits to Vancouver (measured at the border) dropped from over 307,000 to approximately 183,600. Just two years later, however, that number jumped to 369,250, the result of campaigns like the 1943 initiative aimed at Americans that marketed BC as “comrades in war” (Dawson, 2004).

Post-War Rebound

We, with all due modesty, cannot help but claim that we are entering British Columbia’s half-century, and cannot help but observe that B.C. also stands for BOOM COUNTRY. – Phil Gagliardi, BC Minister of Highways, 1955 (Dawson, 2004, p.190)

A burst of post-war spending began in 1946, and although short-lived, was supported by steady government investment in marketing throughout the 1950s. As tourism grew in BC, however, so did competition for US dollars from Mexico, the Caribbean, and Europe. The decade that followed saw an emphasis on promoting BC’s history, its “Britishness,” and a commodification of Aboriginal culture. The BCGTB began marketing efforts to extend the travel season, encouraging travel in September, prime fishing season. It also tried to push visitors to specific areas, including the Lower Fraser Valley, the Okanagan-Fraser Canyon Loop, and the Kamloops-Cariboo region (Dawson, 2004).

In 1954, Vancouver hosted the British Empire Games, investing in the construction of Empire Stadium. A few years later, an increased emphasis on events and convention business saw the Greater Vancouver Tourist Association change its name in 1962 to the Greater Vancouver Visitors and Convention Bureau (PricewaterhouseCoopers, 2009).

The ski industry was also on the rise: in 1961, the lodge and chairlift on Tod Mountain (now Sun Peaks) opened, and Whistler followed suit five years later (PricewaterhouseCoopers, 2009). Ski partners became pioneers of collaborative marketing in the province with the foundation of the Ski Marketing Advisory Committee (SMAC) supported by Tod Mountain and Big White, evolving into today’s Canada’s West Ski Area Association (Magnes, 2010). This pioneer spirit was evident across the ski sector: the entire sport of heliskiing was invented by Hans Gosmer of BC’s Canadian Mountain Holidays, and today the province holds 90% of the world’s heliskiing market share (McLeish, 2014).

The concept of collaboration extended throughout the province as innovative funding structures saw the cost of marketing programs shared between government and industry in BC. These programs were distributed through regional channels (originally eight regions in the province), and considered “the most constructive and forward looking plan of its kind in Canada” (Dawson 2004, p.194).

Tourism in BC continued to grow through the 1970s. In 1971, the Hotel Room Tax Act was introduced, allowing for a 5% tax to be collected on room nights with the funds collected to be put toward marketing and development. By 1978, construction had begun on Whistler Village, with Blackcomb Mountain opening two years later (PricewaterhouseCoopers, 2009). Funding programs in the late 1970s and early 1980s such as the Canada BC Tourism Agreement (CBCTA) and Travel Industry Development Subsidiary Agreement (TIDSA) allowed communities to invest in projects that would make them more attractive tourism destinations. In the mountain community of Kimberley, for instance, the following improvements were implemented through a $3.1 million forgivable loan: a new road to the ski resort, a covered tennis court, a mountain lodge, an alpine slide, and nine more holes for the golf course (e-Know, 2011).

Around the same time, the “Super, Natural British Columbia” brand was introduced, and a formal bid was approved for Vancouver to host a fair then known as Transpo 86 (later Expo 86). Tourism in the province was about to truly take off.

Expo 86 and Beyond

By the time the world fair Expo 86 came to a close in October 1986, it had played host to 20,111,578 guests. Infrastructure developments, including rapid rail, airport improvements, a new trade and convention centre at Canada Place (with a cruise ship terminal), and hotel construction, had positioned the city and the province for further growth (PricewaterhouseCooopers, 2009). The construction and opening of the Coquihalla Highway through to 1990 enhanced the travel experience and reduced travel times to vast sections of the province (Magnes, 2010).

Take a Closer Look: The Value of Tourism

Tourism Vancouver Island, with the support of many partners, has created a website that directly addresses the value of tourism in the region. The site looks at the economics of tourism, social benefits of tourism, and a “what’s your role?” feature that helps users understand where they fit in. Explore the Tourism Vancouver Island website : http://valueoftourism.ca/.

By 2000, Vancouver International Airport (YVR) was named number one in the world by the International Air Transport Association’s survey of international passengers. Five years later, the airport welcomed a record 16.4 million passengers (PricewaterhouseCoopers, 2009).

Going for Gold

In 2003, the International Olympic Committee named Vancouver/Whistler as the host city for the 2010 Olympic and Paralympic Winter Games. Infrastructure development followed, including the expansion of the Sea-to-Sky Highway, the creation of Vancouver Convention Centre West, and the construction of the Canada Line, a rapid transport line connecting the airport with the city’s downtown.

As BC prepared to host the Games, its international reputation continued to grow. Vancouver was voted “Best City in the Americas” by Condé Nast Traveller magazine three years in a row. Kelowna was named “Best Canadian Golf City” by Canada’s largest golf magazine, and BC was named the “Best Golf Destination in North America” by the International Association of Golf Tour Operators. Kamloops, known as Canada’s Tournament City, hosted over 100 sports tournaments that same year, and nearby Sun Peaks Resort was named the “Best Family Resort in North America” by the Great Skiing and Snowboarding Guide in 2008 (PricewaterhouseCoopers, 2009).

By the time the Vancouver 2010 Olympic and Paralympic Games took place, over 80 participating countries, 6,000 athletes, and 3 billion viewers put British Columbia on centre stage.

Spotlight On: Destination British Columbia

Destination BC is a Crown corporation founded in November 2012 by the Government of British Columbia. Its mandate includes marketing the province as a tourist destination (at home and around the world), promoting the development and growth of the industry, providing advice and recommendations to the tourism minister on related matters, and enhancing public awareness of tourism and its economic value to British Columbia (Province of British Columbia, 2013b).

Tourism in BC Today

Building on the momentum generated by hosting the 2010 Winter Olympic Games, tourism in BC remains big business. In 2012, the industry generated $13.5 billion in revenue.

The provincial industry is made up of over 18,000 businesses, the majority of which are SMEs (small to medium enterprises), and together they employ approximately 127,300 people (Tourism Industry Association of BC, 2014). It may surprise you to learn that in British Columbia, tourism provides more jobs than high tech, oil and gas, mining, and forestry (Porges, 2014).

Spotlight On: The Tourism Industry Association of BC

Founded in 1993 as the Council of Tourism Associations, today the Tourism Industry Association of BC (TIABC) is a not-for-profit trade association comprising members from private sector tourism businesses, industry associations, and destination marketing organizations (DMOs). Its goal is to ensure the best working environment for a competitive tourism industry. It hosts industry networking events and engages in advocacy efforts as “the voice of the BC tourism industry.” Students are encouraged to join TIABC to take advantage of their connections and receive a discount at numerous industry events. For more information, visit the Tourism Industry Association of BC’s website : http://www.tiabc.ca/student-membership

One of the challenges for BC’s tourism industry, it has long been argued, is fragmentation. Back in September 1933, an article in the Victoria Daily Times argued for more coordination across organizations in order to capitalize on what they saw as Canada’s “largest dividend payer” (Dawson, 2004). Today, more than 80 years later, you will often hear BC tourism professionals say the same thing.

On the other hand, some experts believe that the industry is simply a model of diversity, acknowledging that tourism is a compilation of a multitude of businesses, services, organizations, and communities. They see the ways in which these components are working together toward success, rather than focusing on friction between the groups.

Many communities are placing a renewed focus on educating the general public and other businesses about the value of tourism and the ways in which stakeholders work together. The following case study highlights this in more detail:

Take a Closer Look: Tourism Pays in Richmond, BC

The community of Richmond, BC, brings to life the far-reaching positive economic effects of tourism in action. Watch the short video called “Tourism Pays” to see what we mean!: http://vimeo.com/31624689

Throughout the rest of this textbook, you’ll have a chance to learn more about the history and current outlook for tourism in BC, with in-depth coverage of some of the triumphs and challenges we’ve faced as an industry. You will also learn about the Canadian and global contexts of the tourism industry’s development.

As we’ve seen in this chapter, tourism is a complex set of industries including accommodation, recreation and entertainment, food and beverage services, transportation, and travel services. It encompasses domestic, inbound, and outbound travel for business, leisure, or other purposes. And because of this large scope, tourism development requires participation from all walks of life, including private business, governmental agencies, educational institutions, communities, and citizens.

Recognizing the diverse nature of the industry and the significant contributions tourism makes toward economic and social value for British Columbians is important. There remains a great deal of work to better educate members of the tourism industry, other sectors, and the public about the ways tourism contributes to our province.

Given this opportunity for greater awareness, it is hoped that students like you will help share this information as you learn more about the sector. So let’s begin our exploration in Chapter 2 with a closer look at a critical sector: transportation.

• British Columbia Government Travel Bureau ( BCGTB) : the first recognized provincial government organization responsible for the tourism marketing of British Columbia
• Canadian Pacific Railway (CPR) : a national railway company widely regarded as establishing tourism in Canada and BC in the late 1800s and early 1900s
• Destination BC: the provincial destination marketing organization (DMO) responsible for tourism marketing and development in BC, formerly known as Tourism BC
• Destination Canada: the national government Crown corporation responsible for marketing Canada abroad, formerly known as the Canadian Tourism Commission (CTC)
• Destination marketing organization (DMO):  also known as a destination management organization; includes national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus
• Diversity: a term used by some in the industry to describe the makeup of the industry in a positive way; acknowledging that tourism is a diverse compilation of a multitude of businesses, services, organizations, and communities
• Fragmentation: a phenomenon observed by some industry insiders whereby the tourism industry is unable to work together toward common marketing and lobbying (policy-setting) objectives
• Hospitality:  the accommodations and food and beverage industry groupings
• North American Industry Classification System (NAICS) : a way to group tourism activities based on similarities in business practices, primarily used for statistical analysis
• Tourism:  the business of attracting and serving the needs of people travelling and staying outside their home communities for business and pleasure
• Tourism Industry Association of BC ( TIABC) : a membership-based advocacy group formerly known as the Council of Tourism Associations of BC (COTA)
• Tourism Industry Association of Canada (TIAC): the national industry advocacy group
• Tourist:  someone who travels at least 80 kilometres from his or her home for at least 24 hours, for business or pleasure or other reasons; can be further classified as domestic, inbound, or outbound
• United Nations World Tourism Organization (UNWTO) : UN agency responsible for promoting responsible, sustainable, and universally accessible tourism worldwide
• List the three types of tourist and provide an example of each.
• What is the UNWTO? Visit its website, and name one recent project or study the organization has undertaken.
• List the five industry groups according to the North American Industry Classification System (NAICS). Using your  understanding of tourism as an industry, create your own definition and classification of tourism. What did you add? What did you take out? Why?
• In 2011, how much money was generated by tourism worldwide? What percentage of this money was collected in Europe? Where was the least amount of money collected?
• According to UNEP, what are the four types of negative environmental tourism impact? For each of these, list an example in your own community.
• What major transportation developments gave rise to the tourism industry in Canada?
• Historically, what percentage of international visitors to Canada are from the United States? Why is this an important issue today?
• Name three key events in the history of BC tourism that resonate with you. Why do you find these events of interest?
• Watch the video in the “Take a Closer Look” feature on Richmond. Now think about the value of tourism in your community. How might this be communicated to local residents? List two ways you will contribute to communicating the value of tourism this semester. 
• Choose one article or document from the reference list below and read it in detail. Report back to the class about what you’ve learned.

Case Study: Tourism – Canada’s Surprise Blind Spot

In a 2014 episode of the Voice of Canadian Business , the Canadian Chamber of Commerce’s podcast, host Mary Anne Carter sat down with Greg Klassen, the CTC’s president and CEO, and Michele Saran, executive director of Business Events Canada. Their discussion highlighted the reasons Canada is struggling to remain competitive within the sector, and underscores the role and impact Canada’s tourism industry has on the economy.Listen to the 14-minute podcast on tourism in Canada and answer the following questions: www.chamber.ca/media/pictures-videos/140407-podcast-tourism/

• Why are governments around the world starting to invest in tourism infrastructure? What does this mean for the competitive environment for Canada’s tourism product?
• How do we compare to the United States as a destination for business travel?
• According to Greg, why is the $200 million investment in Brand USA a “double-edged sword” for tourism in Canada? What is beneficial about this? Why does it make things more difficult?
• What is the relationship between tourism and people’s understanding of a country’s image?
• What ranking is Canada’s brand? What other industries are affected by this brand?
• Describe one activity the CTC participates in to sell Canadian tourism product abroad.
• Name two “sectors of excellence” for Canada. Why is the CTC focussing their business events sales strategies on these industries?
• What does the CTC consider to be the benefits of Vancouver hosting the 2014 and 2015 TED conferences?

Brewster Travel Canada. (2014). About Us – Brewster History . Retrieved from http://www.brewster.ca/corporate/about-brewster/brewster-history/

British Columbia Ministry of Jobs, Tourism and Skills Training . (2013a). BC Stats: Industry Classification . Retrieved from http://www.bcstats.gov.bc.ca/StatisticsBySubject/BusinessIndustry/IndustryClassification.aspx

British Columbia Ministry of Jobs, Tourism and Skills Training. (2013b). Bill 3 – 2013: Destination BC Corp Act . Retrieved from https://www.leg.bc.ca/39th5th/1st_read/gov03-1.htm

Canadian Geographic . (2000, September). Flying through time: Canadian aviation history . Retrieved from http://www.canadiangeographic.ca/magazine/so00/aviation_history.asp

Canadian Tourism Commission. (2014). About the CTC. Retrieved from http://en-corporate.canada.travel/about-ctc

Chaney, Edward. (2000). The evolution of the grand tour: Anglo-Italian cultural relations since the Renaissance . Portland OR: Routledge.

Cox & Kings. (2014). About us – History. Retrieved from http://www.coxandkings.co.uk/aboutus-history

Dawson, Michael. (2004). Selling British Columbia: Tourism and consumer culture, 1890-1970 . Vancouver, BC: UBC Press.

Discover Hospitality. (2015). What is hospitality? Retrieved from http://discoverhospitality.com.au/what-is-hospitality/

e-Know. (2011, November). Ogilvie’s past in lock step with last 50 years of Kimberley’s history. Retrieved from www.e-know.ca/news/ogilvie’s-past-in-lock-step-with-last-50-years-of-kimberley’s-history/

Expedia, Inc. (2013). Expedia: Annual report 2013. [PDF] Retrieved from http://files.shareholder.com/downloads/EXPE/3546131959x0x750253/48AF365A-F894-4E9C-8F4A-8AB11FEE8D2A/EXPE_2013_Annual_Report.PDF

Flightglobal. (2002). Sixty years of the jet age. Retrieved from http://www.flightglobal.com/features/jet-age/

Globe and Mail, The. (2014, March 28). Ten things you don’t know about Air Canada. Retrieved from http://www.theglobeandmail.com/life/travel/travel-news/10-things-you-likely-dont-know-about-air-canada/article17725796/?page=all

Government of Canada. (2006). Building a national tourism strategy. [PDF] Retrieved from https://www.ic.gc.ca/eic/site/034.nsf/vwapj/tourism_e.pdf/$FILE/tourism_e.pdf

Government of Canada. (2013, July 5). Appendix E: Tourism industries in the human resource module . Retrieved from http://www.statcan.gc.ca/pub/13-604-m/2013072/appe-anne-eng.htm

Griffiths, Ralph, Griffiths, G. E. (1772). Pennant’s tour in Scotland in 1769. The Monthly Review; or, Literary Journal XLVI : 150 . Retrieved from Google Books . 

Gyr, Ueli. (2010, December 3). The history of tourism: Structures on the path to modernity. European History Online (EHO). Retrieved from http://ieg-ego.eu/en/threads/europe-on-the-road/the-history-of-tourism

Latin definition for hospes, hospitis. (2014).In Latdict – Latin Dictionary and Grammar Resources .  Retrieved from http://www.latin-dictionary.net/definition/22344/hospes-hospitis

Library and Archives Canada. (n.d.). Ties that bind: Essay.   A brief history of railways in Canada.  Retrieved from http://www.collectionscanada.gc.ca/trains/021006-1000-e.html

LinkBC. (2008). Transforming communities through tourism: A handbook for community tourism champions. [PDF] Retrieved from http://linkbc.ca/siteFiles/85/files/TCTT.pdf

MacEachern, A. (2012, August 17). Goin’ down the road: The story of the first cross-Canada car trip. The Globe and Mail . Retrieved from http://www.theglobeandmail.com/news/national/goin-down-the-road-the-story-of-the-first-cross-canada-car-trip/article4487425/

McLeish. (2014, July 23). History of heliskiing in Canada. Retrieved from www.lastfrontierheli.com/news/1607/history-of-heliskiing-in-canada/

Magnes, W. (2010, May 26). The evolution of British Columbia’s tourism regions: 1970-2010 [PDF] . Retrieved from http://linkbc.ca/siteFiles/85/files/LinkBCMagnesPaper2011.pdf

Porges, R. (2014, September). Tell me something I don’t know: Promoting the value of tourism. Tourism Drives the Provincial Economy . Presentation hosted by the Tourism Industry Association of BC, Vancouver, BC.

PricewaterhouseCooopers, LLC. (2009). Opportunity BC 2020: Tourism sector. [PDF] Prepared for the BC Business Council. Retrieved from http://www.bcbc.com/content/558/2020_200910_Mansfield_Tourism.pdf

Shoalts, A. (2011, April). How our national parks evolved: From Grey Owl to Chrétien and beyond, 100 years of Parks Canada.   Canadian Geographic . Retrieved from http://www.canadiangeographic.ca/magazine/apr11/national_parks_evolution.asp

Theobald, William F. (1998).  Global Tourism (2nd ed.). Oxford, England: Butterworth–Heinemann, pp. 6-7.

Thomas Cook Group of Companies. (2014). Thomas Cook history. Retrieved from http://www.thomascook.com/thomas-cook-history/

Tourism Industry Association of BC. (2014). Value of tourism toolkit: Why focus on the value of tourism?  Retrieved from http://www.tiabc.ca/value-of-tourism-toolkit

Tourism Industry Association of Canada. (2014, October 14). Travel industry poised to boost Canadian exports: US market and border efficiencies central to growth potential . Retrieved from http://tiac.travel/cgi/page.cgi/_zine.html/TopStories/Travel_Industry_Poised_to_Boost_Canadian_Exports_US_Market_and_Border_Efficiencies_Central_to_Growth_Potential

Tourism Industry Association of Canada, HLT Advisory. (2012). The Canadian tourism industry: A special report [PDF] . Retrieved from http://www.hlta.ca/reports/The_Canadian_Tourism_Industry_-_A_Special_Report_Web_Optimized_.pdf

United Nations and World Tourism Organization. (1995). Recommendations on tourism statistics. [PDF] Retrieved from http://unstats.un.org/unsd/newsletter/unsd_workshops/tourism/st_esa_stat_ser_M_83.pdf

United Nations Environment Programme. (2003a). Negatives Socio-cultural impacts from tourism . Retrieved from http://www.unep.org/resourceefficiency/Business/SectoralActivities/Tourism/FactsandFiguresaboutTourism/ImpactsofTourism/Socio-CulturalImpacts/NegativeSocio-CulturalImpactsFromTourism/tabid/78781/Default.aspx

United Nations Environment Programme. (2003b). Tourism’s three main impact areas. Retrieved from http://www.unep.org/resourceefficiency/Business/SectoralActivities/Tourism/TheTourismandEnvironmentProgramme/FactsandFiguresaboutTourism/ImpactsofTourism/EnvironmentalImpacts/TourismsThreeMainImpactAreas/tabid/78776/Default.aspx

United Nations World Tourism Organization. (2008). Understanding tourism: Basic glossary . Retrieved from http://media.unwto.org/en/content/understanding-tourism-basic-glossary

United Nations World Tourism Organization. (2012, May 7). International tourism receipts surpass US$ 1 trillion in 2011. Retrieved from http://media.unwto.org/en/press-release/2012-05-07/international-tourism-receipts-surpass-us-1-trillion-2011

United Nations World Tourism Organization. (2014a). UNWTO world tourism barometer, 12 [PDF] (1). Retrieved from http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/unwto_barom14_04_august_excerpt_0.pdf

United Nations World Tourism Organization. (2014b). Who we are. Retrieved from http://www2.unwto.org/content/who-we-are-0

Attributions

Figure 1.1  Selkirk College and Nelson  by LinkBC  is used under a  CC-BY 2.0  license.

Figure 1.2   Capilano University’s Team   by LinkBC  is used under a  CC-BY 2.0  license.

Figure 1.3   Vancouver Island University   by LinkBC  is used under a  CC-BY 2.0  license.

Figure 1.4  Canadian Pacific 4-4-0 A-2-m No 136  by  Peter Broster  is used under a  CC-BY 2.0  license.

Figure 1.5   Vancouver Island University   by LinkBC  is used under a  CC-BY 2.0  license.

Figure 1.6   Switzerland vs. Canada   by s.yume  is used under a  CC-BY 2.0  license.

Figure 1.7   CTC’s Boardroom   by LinkBC  is used under a  CC-BY 2.0  license.

Introduction to Tourism and Hospitality in BC Copyright © 2015 by Capilano University is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

Share This Book

• Hospitality Industry

What is the hospitality industry? All your questions answered

March 28, 2024 •

20 min reading

The hospitality industry is a large subsection within the service industry and is comprised of four main areas : Food & beverage, travel & tourism, lodging, and recreation. As examples, the F&B category includes restaurants, bars, and food trucks; travel & tourism covers different forms of transportation and travel agencies; lodging varies from hotel resorts to hostels; recreation refers to leisure activities such as sports, wellness, and entertainment. While all sectors are interconnected and reliant on each other, many of these hospitality sectors are quickly evolving due to new technologies and changing customer mindsets.

Known for being one of the main industries that is easily impacted by external forces, many questions have recently come up regarding the state of hospitality today. What trends are shaping its future? What makes it still one of the world's fastest-growing industries? How can it remain competitive? How to deal with the post-Covid staff shortages?

Read on to find out the experts' guide on what is happening in this exciting, evolving, and resilient sector.

A brief history of hospitality

How fast is the hospitality industry growing, hospitality industry overview: key statistics, hospitality industry growth: what trends are driving it, what major challenges is the hospitality industry facing, travel and hospitality industry: top trends, what the top ceos are saying about the future of the hospitality and tourism industry, what leaders can do to ensure hospitality businesses remain competitive, the hospitality management careers of tomorrow, future of hospitality: what's on the horizon for hospitality & tourism professionals, how has the hospitality industry evolved since its origins.

Derived from the latin word “hospes”, meaning host (one who provides lodging or entertainment for a guest or visitor), hospitality has its roots in ancient history. The ancient Greeks used the word "xenia" to define the sacred rule of hospitality: the generosity and courtesy shown to those who are far from home or associates of the person bestowing guest-friendship. Away from home, surrounded by strangers and yet feeling welcome.

Although the original concept of hospitality has remained largely unchanged since its origins (meeting travelers’ basic needs such as providing food and accommodation), the idea of building hotels for the sole purpose of hosting guests emerged alongside technological advances and better means of transportation towards the end of the 18th century. Since then, the sector been in constant expansion due to the very concept of hospitality being applicable to any sector that deals with customer service and satisfaction.

Along with the overall economy, the global hospitality industry has enjoyed a spurt of massive growth over the last decade since the end of the financial crisis. According to the World Bank , the global economy has grown at a pace of more than three percent per year up until the global pandemic hit in 2019/20. Due to pent up demand during the beginning of the COVID-19 pandemic there was an acceleration of the global economy in 2021 of 5.5 percent growth, however it is set to decelerate to 4.1 percent in 2022 and 3.2 percent in 2023, arriving back at pre-pandemic levels.

This unprecedented expansion over the last decade has benefited the hospitality and tourism industry by stimulating the world population’s travel activity, adding countless room nights in both leisure and business travel .

1. International arrivals have increased from 900 million to more than 1.3 billion over a span of just ten years.

Not only has this boosted the number of rooms on offer, but has also led to a major contribution of global employment opportunities. Covid-19 had a severe impact and international tourist arrivals according to figures from UNTWO , which after years of steady annual growth saw a staggering -73% drop in arrivals in 2020 and -71% in 2021 due to travel restrictions in response to Covid-19.

All in all 2020 is recognized as the worst year in tourism history with 1 billion fewer international arrivals and US $ 1.1 trillion in international tourism receipts. Around -74% drop according to the latest data from World Tourism Organization (UNWTO) a level of 30 years ago.

However, so far the travel industry has seen an extremely positive bounce back. New data from UNTWO found that, overall, international arrivals reached 80% of pre-pandemic levels; in the first quarter of 2023.

Tourism figures are heading in the right direction as an estimated 235 million tourists traveled internationally in the first three months, more than double the same period of 2022.

2. The World Travel and Tourism Council ( WTTC ) names the hospitality industry’s importance as a main driver in global value creation.

Recent figures published by the WTTC found that in 2022 the Travel & Tourism sector made a contribution of 7.trillion USD to the global economy, 7.6% of the global GDP and 23% below pre-pandemic levels.

3. The hospitality and travel industry accounts for one out of every ten employment opportunities.

Bringing the number of people earning their living in the sector to a remarkable 330 million in 2022.

In 2022, there were 22 million new jobs, representing a 7.9% increase on 2021, and only 11.4% below 2019.

The rise in revenue does not only benefit international companies and hotel owners, but also acts as a major factor in job creation for local populations and destinations. As of the latest data, around 173 million people were employed in the hotel and motel industry before the Covid-19 pandemic hit.

The WTTC forecast that there will be an additional 126 million jobs created between now and 2032.

4. The overall growth in the travel and tourism industry stands at +5.8% Vs. Overall GDP +2.7%.

According to the Hospitality Global Market Report 2023 the global hospitality marketgrew from $4,390.59 billion in 2022 to $4,699.57 billion in 2023 at a compound annual growth rate (CAGR) of 7.0%.

This large growth rate is in part the bounce back from global restrictions on travel. The market is expected to continue growing but at a slower rate due to the global economic situation with a Compound Annual Growth Rate (GAGR) of +5,8% forecasted between 2022 and 2032.

Image source: World Travel & Tourism Council, Travel & Tourism Economic Impact 2022

1. The global economy growth has created positive momentum in the sector by contributing to the overall income per capita.

Since 2009, the global GDP has constantly increased at an average pace of almost two percent per annum, leading to a growing demand for both international and domestic travel spending. Whilst the Covid-19 pandemic led to a shock -2.81% decline in GDP in 2020 according to Statista , 2022 figures and subsequent projections for 2023 show year-on-year growth.

2. Airfares have consistently become more affordable over the last three decades, but will this last?

Thanks to lower fuel prices, carrier competition and the rise of low-cost airlines . While these are not happy news for the airline industry, which is using ancillary fees to increase profit margins, it benefits travelers who can get more from their purchasing power. However the emerging global energy crisis could put a halt to such a trend and airlines could pass on the price hikes to the consumer, which will in turn impact consumer travel behaviour.

3. Corporate travel is yet another contributor to the healthy outlook and is projected to keep growing.

In China and India, the growth of business travel is particularly steep due to the relentless pace of economic expansion in this part of the world.

4. The health and wellness segment has boomed in recent years.

There has never been so much appetite among the public for wellness and the escapism travel can offer from life’s stresses - the pandemic taught us to slow down and not to take our health for granted.

The global consumer health and wellness market is a $1.5 trillion market growing at 5 to 10 percent a year, and, according to a recent McKinsey survey, people around the world are increasingly interested in taking care of themselves and are planning to spend more money on wellness products and services.

5. Hotel operators are seeking to expand their portfolios through targeted acquisitions of smaller regional chains.

Mergers and Acquisitions activity in hospitality has somewhat cooled over the last few years , with operators seeking to expand business in a more controlled way.

1. The threat of climate change

The threat of climate change will adversely impact many major tourist destinations. Threats resulting from climate change, safety and security issues, as well as unprecedented migration streams are tomorrow’s game changers. The main challenges for the hospitality industry are the lack of predictability and the magnitude of such events – and how fast the industry can react and adapt. Hybrid operations might be one of the hospitality 4ndustry’s possible responses to increased risks.

2. Industry consolidation

Corporate consolidation has led to increasing concentration of size and power among the top players. Hotel operators will seek to expand their portfolios through targeted acquisitions of smaller regional chains. While the ultimate goal is to create value through cross-organizational synergies, this development also comes with downsides, as the management of structures with a diverse selection of geographies and a plethora of brands generates more complexity and threatens to increase overall rigidity.

Marriott and Hilton remain the world’s most valuable hospitality brands, valued in 2023 at $53.5B and $37.99B respectively.

3. New competition from tech and digital players

Are major technology firms such as Google or Facebook threatening to replace hotel brands by offering technological solutions and creating novel markets to attract new types of customers? Thanks to their control over all types of data related to customer behavior both off- and online, tech behemoths could oust traditional incumbents into niche markets. Companies that fail to identify their niche are at risk of becoming mere revenue generators for technology companies. Some big enough brands may survive, but their business will get tougher .

4. Skilled talent shortage

As the accommodation and restaurant industry is creating jobs at the fastest rate of any sector in the economy according to the International Labor Organization, fuelling this growth with the right skilled labor is yet another concern for owners. Attracting and retaining younger generations of hospitality professionals will require a lot of flexibility and attention from hoteliers in the future.

5. Energy crisis

The global energy crisis is the perfect storm of multiple factors causing a huge surge in energy demand which the limited global resources are struggling to fulfil. Added to this is Russia’s invasion of Ukraine, one of the main suppliers to Europe. Whilst the world grapples with accelerating the development of green infrastructure, the hospitality industry has an even bigger incentive to make efforts to switch to renewable energy sources where possible, not only as our environmental social responsibility but also to reduce the reliance on particular states which fuels the weaponization of energy.

6. Supply chain issues

Supply chain issues have affected most of the world, although Europe was the hardest hit, according to data from the 2022 State of the Third-Party Logistics Industry Report by Extensiv.

These issues are ongoing and are triggered by undulating demand, price volatility and uncertainty. The hospitality industry is affected on an operational level when bottlenecks cause delays on delivering food & drink, bed linen, housekeeping products and other replenishable goods. Running out of these items means giving customers a disappointing experience and leaving a poor impression that could diminish the business’s reputation.

7. Economic downturn

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 accommodation costs. As a result, tourists are expected to increasingly seek value for money and travel closer to home.

Is there a silver lining? Well, we know that economic downturns make way for innovation and entrepreneurship ! The public needs new solutions for new problems, so now may just be the time to start thinking of your next business venture.

Travelers' expectations have greatly evolved especially now that technology is taking center stage in every area of guest experience. As 2024 progresses, hospitality professionals are gearing up to leverage various innovations and strategies that promise to reshape customer satisfaction and industry standards. Here are hospitality trends 2024 elevating guest satisfaction and driving business growth.

1. Towards sustainable travel

The reasons we desire to travel are many and include experiencing the beautiful things the world has to offer, meeting new people, supporting local culture, etc. In fact, more than 33,000 travelers across 35 countries and territories have been surveyed in Booking.com's Sustainable Travel Report 2023 . 76% of global travelers say they want to travel sustainably over the next 12 months.

Ecotourism is all about intentionally organising travel plans in a way that doesn't harm the environment. Thankfully, sustainability is a major driving force in the hospitality industry, with hotels and restaurants welcoming eco-friendly initiatives to minimize their environmental footprint.

A growing number of hotels are rising to the challenge of running a sustainable business. Beyond plastic usage , general waste production, food waste, usage of local produce, energy and water consumption, and many other factors are to be considered for operators that are serious about their claim. Going one step further, the term sustainability is also often used not only for environmental protection but also corporations’ approach to managing their people and their finances. All across the board, resources of all kinds are being used more efficiently in the hospitality industry and while various strategies are being adopted by hotels, a paradigm shift is becoming more recognizable.

From implementing energy-efficient technologies to sourcing locally produced ingredients, businesses are prioritizing sustainability to appeal to eco-conscious travelers—which is echoed in the next point.

2. Wellness for holistic hospitality

A lot of guests today are looking for experiences that promote physical and mental well-being. Hotels that have embraced wellness travel can now cater to this demand by offering activities like yoga retreats, on-site spa treatments , fitness centers with cutting-edge equipment, and healthy dining options.

Creating a relaxing and stress-free environment through thought-out design elements can contribute to a holistic wellness encounter. Travelers return from their trip feeling refreshed, rejuvenated, and ready to take on their day-to-day life.

The wellness tourism market is projected to reach well over $1,700 billion, in accordance with Precedence Research . Even so, investing in the health niche is beneficial for guests and financially rewarding for businesses.

3. Enhanced experiences with advanced technology

The integration of artificial intelligence and other technologies is reshaping the hospitality industry. AI-powered chatbots are being employed for personalized customer service to provide instant assistance and support to guests throughout their stay. Whether it's answering inquiries, making reservations, or addressing issues, chatbots offer convenience for both guests and staff.

On the other hand, predictive analytics algorithms help with demand forecasting and pricing optimization. AI is gaining traction in the hospitality industry because of its enhanced data analytics of consumer behavior patterns and improved ability to meet client demands. Data-driven personalization enables hotels to tailor offerings and marketing messages to individual guest preferences.

Global Market Estimates predict that between 2021 and 2026, the niche will rise at a compound annual growth rate (CAGR) of approximately 10%. Robots are also making inroads into the hospitality industry in automating housekeeping tasks, food delivery, and concierge services. While robots cannot replace humans entirely, they free up hotel staff to focus on higher-level guest relations and contribute to operational efficiency.

Why contactless technology?

Contactless technology has become essential since the COVID-19 pandemic as a way to offer guests a safer, more convenient experience. These systems allow users to network with devices or complete transactions without physical contact, often achieved through short-range wireless communication, like tapping your phone to pay at a store.

Mobile check-in/out, digital room keys, and touchless payment options are now standard in most, if not all big hotel chains. This trend is expected to persist beyond 2024 as businesses prioritize contactless solutions to not only minimize the spread of germs but also meet a growing consumer preference for minimal physical contact.

Immersive virtual reality experiences

Hotels are using Virtual Reality or VR to offer immersive virtual tours so guests can preview accommodations and amenities before booking. While virtual reality offers the ultimate virtual experience, guest relations managers appreciate accessibility concerns.

For those without VR headsets, 360° videos provide a panoramic view of hotel space with just a phone or computer. Interactive floor plans also let you virtually walk through the hotel for a solid understanding of the layout. This has completely changed the way guests explore and engage with hospitality offerings.

VR-enhanced experiences, such as virtual city tours or immersive dining experiences create memorable moments for guests, too. VR technology will become more accessible in the future; therefore, its adoption in hospitality is a no-brainer.

Make each customer feel special with personalization

The global leader in employee and customer experience, Medallia Research Inc. , reports that 61% of consumers are willing to pay more for hyper-personalized experiences. Guests crave guest-centric services that cater to their every whim. This is not just about remembering names but also using guest data to anticipate preferences and offer tailored services .

Information can include previous booking history, preferred room types, special requests, dietary restrictions, leisure activities, and feedback from past stays. With collated information, hospitality teams can customize everything from room amenities to dining recommendations to boost guest satisfaction and loyalty.

Embracing experiential tourism

If you've been bitten by the travel bug and want something extraordinary, you should definitely consider experiential travel. The idea behind this travel concept is to forge a deeper connection with a given destination than can usually be had from traditional leisure holidays so guests experience it as authentically as possible.

These often involve an element of adventure, whether cultural, culinary, or spiritual; as such, tours mainly focus on less "touristy spots." For instance, after the pandemic, family ski vacations to Japan are preferable compared traditional choices like Aspen or Canada. Add-on experiences such as samurai sword-fighting or temple tours add an extra dimension to the travel experience.

Experiential tourism is now high on nearly every traveler's wish list because trips aren't restricted to international pursuits. This trend presents an opportunity for hotels to partner with local businesses and offer unique experiences like cooking classes, cultural excursions, and outdoor adventures. Such offerings create memorable and enriching guest experiences.

Integrating storytelling marketing

As the name suggests, storytelling marketing is a powerful tool for captivating audiences and creating emotional connections with brands. Hospitality businesses are now crafting authentic narratives to showcase their unique offerings, heritage, and values to resonate with guests on a deeper level. This type of marketing can also set the stage for experiential travel by providing context and inspiration for visitors.

Through captivating narratives, travelers can visualize themselves in the destination, immersing themselves in its culture, history, and natural beauty. Storytelling paints a vivid picture of the travel experience enough to spark curiosity and ignite wanderlust among potential travelers. When utilized properly, hotels and restaurants can differentiate themselves from their competitors and boost brand loyalty.

Technology integration for advanced data security

Data breaches can be devastating. Guests entrust hotels with sensitive personal information and as the hospitality industry becomes increasingly reliant on technology, data security is crucial. Hotels must implement robust cybersecurity measures to protect guest data and maintain trust.

This is where technology integration comes in; from cloud-based property management systems to smart room automation. It can ensure data security by implementing advanced encryption protocols and access controls across all integrated systems, safeguarding guest information from unauthorized access or breaches.

Further, continuous monitoring and regular updates of integrated technology systems can help detect and mitigate potential security threats. Embracing innovative technologies and staying abreast of industry trends can future-proof hotel business operations and boost guests' trust.

Commitment to net positivity

Sustainability is no longer a niche concern; it's an expectation for many travelers. Hotels that prioritize green practices like energy efficiency, water conservation, and local sourcing reduce their environmental footprint besides appealing to eco-conscious guests. The industry is moving beyond simply being sustainable to aiming for net positivity, with regenerative tourism that gives back to the environment.

Management with a vision

None of the discussed hospitality trends 2024 are possible without effective management. Leadership in the hotel industry requires a clear vision for the future, an ability to adapt to changing trends, and a commitment to continuous improvement. Hospitality leaders must invest in their own development and the teams they lead can ensure their businesses remain competitive and thrive in the years to come.

As an industry that depends on a stable environment in order to successfully operate - societal and environmental changes are having a greater impact on hospitality businesses compared to other industries. A recent global survey among CEOs by PwC has shown that heads of hospitality and leisure companies are notably less confident about their companies’ prospects for revenue growth in the near future than their counterparts in other sectors.

With disruptors in the industry, a wave of consolidation, and many external factors impacting their operations, hotel operators must find new ways to overcome these hurdles. Solutions to future challenges that companies are currently coming up with are the result of new thinking among the world’s business leaders and CEOs.

In a crowded field of competitors, hotels must find ways to distinguish themselves and position their property as distinctive destinations for customers , to develop preferences and loyalty in order to drive direct bookings. To do so, hotels must offer more highly personalized experiences that anticipate and go beyond the needs of their target customers – and count on word of mouth and allegiance to not only retain their customer base, but also grow it with more potential customers.

We have been a super good hospitality group for the last 50 years. We are not shying away from it. We are shifting and expanding the hospitality notion to Augmented Hospitality. We are being even more audacious and going one step further by saying: Since people want to be recognized, want to have something extremely personalized, why don't we try going from Augmented Hospitality to a Lifestyle Augmented Hospitality player? Sébastien Bazin, Chairman and CEO of Accor (Source: Accor TV - New Accor Strategy).

Other ways that are often discussed when dealing with the impending changes are the implementation of new technologies, training employees to move away from standard SOPs to become true high-touch experience providers and modernizing the service offering towards individualization and “lifestyle” to create true differentiation.

Fully take advantage of technology and personalization to create experiences

A generational shift towards how travelers are consuming hospitality services is making hotels evolve from being mere suppliers of accommodation to experience providers, leading to a need for outstanding customer relationships across all stages of their customer booking journeys .

Focus on talent acquisition and retention

From targeted recruitment efforts to a meaningful interview process and to the actual hiring and onboarding, organizations that are well-equipped to recruit in the era of millennials think holistically about the overall experience delivered to potential hires .

Embrace sustainability as part of your business model

As a result, a growing number of international hotel companies have developed sustainability and corporate social responsibility strategies . These initiatives can be perceived as the beginning of a paradigm shift toward a more positive and conscious form of hospitality which is highly valued among consumers today.

Reshaping the future of hospitality jobs

Over the past two decades, the hospitality industry has experienced significant growth, with international arrivals doubling from 600 million to over 1.4 billion in 2016 .

In 2023 however, in the wake of the global pandemic and facing increasing economic uncertainty hospitality has shown that it is resilient and a sector that consumers are just not willing forego entirely. Travel and tourism is an integral part of our lives therefore even as the global economy retracts the industry will always bounce back. This ability to withstand difficult times makes it a viable sector to launch a career for anyone with a hospitality mindset and appreciation for top-level service, culture, and leisure experiences.

It's clear that the industry is evolving and adapting all the time, making it a fantastic career opportunity for the problem solvers and innovators of tomorrow. Hospitality Management will provide a career rich in experiences, human connection, personal development and comes with many perks.

Employers across the board are looking for professionals with a combination of both hard and soft skills . In hospitality, developing skills such as cultural awareness, multitasking, customer service and communications is paramount to effectively deliver outstanding customer experiences.

The increasing complexity of the hospitality sector and evolution of its modus operandi - due to the expanded use of technology and data, the evolution of business models with the separation of management from operations or the ever-increasing trend of brands becoming publishers - is leading to the creation of new job profiles , such as asset managers, data scientists or content marketing specialists.

The Covid-19 crisis has underlined the global importance of the travel and tourism industry economically as well as its interconnection with other industries. From small tour operators to multinational hotel chains and major airlines, everyone in the industry has been impacted and continue to reset and recover.

To every negative repercussions of a crisis there is also some positive change that could be foreseen for the future. The World Economic Forum’s recent “Rebuilding Travel and Tourism panel” at the “Sustainable Development Impact Summit” explored the intersection of consumer consciousness, acceleration of technology and destination management and found some solutions that could have the potential to reshape the way we market, manage and plan our travel:

• Travelers are becoming more impact-conscious
• Tourists are looking for experiences in nature
• Digital solutions are improving sustainability
• Long-term progress requires cooperation

The end result is in an industry that will recover as it is an essential part of modern human lives that derive much pleasure and discovery from it. It is simultaneously undergoing huge digital transformation and other shifts to adapt to consumer sentiment, therefore a career in hospitality won't necessarily be a quiet one, but it will be an exciting adventure with a multitude of possible career paths to explore.

Keep reading

Navigating challenges of AI and maximizing value in the service sector

Apr 16, 2024

11 essential hospitality skills for career success (& resume tips)

Apr 15, 2024

Unlocking AI in Hospitality SMEs: Q&A with Ian Millar

Apr 11, 2024

The best step-up for a successful career in hospitality

Our Master's in Hospitality Management is an internationally recognized MSc qualification. You will have a choice of four academic routes:  CSR & Sustainable Transformation, Finance, Real Estate & Consulting,   Food & Beverage Management, or Luxury Experience Management.   These routes enable you to specialize through your studies.

This is a title

This is a text

• Bachelor Degree in Hospitality
• Pre-University Courses
• Master’s Degrees & MBA Programs
• Executive Education
• Online Courses
• Swiss Professional Diplomas
• Culinary Certificates & Courses
• Fees & Scholarships
• Bachelor in Hospitality Admissions
• EHL Campus Lausanne
• EHL Campus (Singapore)
• EHL Campus Passugg
• Host an Event at EHL
• Contact our program advisors
• Join our Open Days
• Meet EHL Representatives Worldwide
• Chat with our students
• Why Study Hospitality?
• Careers in Hospitality
• Awards & Rankings
• EHL Network of Excellence
• Career Development Resources
• EHL Hospitality Business School
• Route de Berne 301 1000   Lausanne 25 Switzerland
• Accreditations & Memberships
• Privacy Policy
• Legal Terms

© 2024 EHL Holding SA, Switzerland. All rights reserved.

Hospitality Industry Impact on Society Essay

Hospitality Industry is one of the fastest-growing sectors in the world. Mainly incorporating—in a blend of services—cafes, restaurants, accommodation, clubs, hotels, bars, etc., this is a high-opportunity job market for the highly mobile and youthful workforce as a chef, cook, kitchen-hand, restaurant, and catering manager, cleaner, or a bar attendant. As an equal opportunity employer, it hires women in an agreeable manner as men (SafeWork SA 2007).

Service-wise generally divided into two major types, Hospitality Industry has entertainment and accommodation. Entertainment includes clubs and bars, restaurants serving fast foods, and nightclubs. Accommodation means public houses, resorts, inns, campgrounds, hotels, hostels, serviced apartments, and motels.

However, in this industry, there are certainly more risks involved than any other field, which accounts for the fourth highest workers compensation claims.

In the workforce, the industry faces some challenges coming in different shapes (United States Department of Labor 2006):

Image: Like other service sectors, this is hard to maintain a high image. Due to low-wage usually at entry-level employment, there is little opportunity for advancement of career.

Recruitment: Employment of youth in this industry for intense work challenges demands new strategies by employers to provide incentives and other benefits.

Retention: High turnover is always a challenging issue for this industry. Retaining skilled employees for a longer duration means devising new plans and strategies as per the economic and social problems of the current period.

Language skills: English sometimes becomes an issue when workers skilled in services are unable to communicate with tourists or guests. In that case, special training programs are planned to increase the communication skills of the employees.

Employability/Soft Skills: Along with the technical knowledge and experience in the field of the Hospitality Industry, service providers need to have a cluster of personality traits, social graces, facility with language, personal habits, friendliness, and optimism to please the customers and make quality performance.

Consistent training models and skills certifications: Not dissimilar to other service sectors, entry-level employees are not trained according to a set model consistently, which every time arises the issue of bringing modification in the training mode and increasing investment in devising skill programs for certification and further training.

In Hospitality Industry, tourism especially is more open to changing cultural and social values, presented in the material form of arts, music, or crafts. However, in this fast-changing world with unprecedented advances in technology and easy communication and transportation, cultural influences on tourist behavior and tourist decision-making are studied in isolation and not in the background of cross-cultural issues (Reisinger 2008, p. 22). For the last two years, this cultural effect on the industry of tourism has become more prominent in an international scenario with changing the style of international behavior and cross-cultural issues.

Also, as compared to other industries, it has a tendency to react more strongly to economic fluctuations (EconomyWatch). According to World Travel and Tourism Council, travel and tourism surpassed other industries like autos, steel, electronics, and agriculture in a high revenue-generating context. Furthermore, as it was mentioned earlier, the industry is highly responsive to social and cultural changes in any part of the world; in the olden days, small boarding houses and other services of hospitality were offered on small scale, which has by the passage of time grown enormously to include offering services on the Internet, in flights and other traveling facilities to accommodate more tourists and to cater to their diverse needs and desires of comfort and traveling and recreational pursuits.

In a study at Cornell’s Center for Hospitality Research, it was found that customers enjoy innovations in new technologies to provide better services (Dixon, Kimes & Verma 2009). Among eleven technologies, they found preferably virtual menus with nutritional information highly agreeable, and then online reservations and pagers to order services. However, researchers found that customers are hesitant in using new technologies for better availability of services. Once after using some innovation in technology in Hospitality Industry, they stick to that and avoid trying new modes, a sort of catch-22 situation for service providers. The study was conducted on 1,737 US residents by getting survey responses from a broad-based national database. Dixon, one of the researchers and a Ph.D. candidate at Cornell’s School of Hotel Administration, said: “Based on our study, we recommend that restaurants encourage customers to try new technologies. But restaurants should avoid forcing technology use and implement new technologies with considerable support and demonstrations. I should note that our respondents were more likely to use pagers and online reservations than the other technologies we tested. On the other hand, they were not supportive of payment technologies involving cell phones or smart cards.”

It was also found that technology users more frequently visited restaurants than others. Furthermore, young people more used technologies than older ones although there was not found significant difference according to gender.

Mark Wynne Smith, the European CEO of Jones Lang LaSalle Hotels, is of the view that the European growth rate for Hospitality Industry will remain slow in the coming years. However, the tourism industry is going to flourish with new visitors from economically growing ‘BRIC’ countries—Brazil, Russia, India, and China (An Uncertain Future – Hotel Management 2007)

Hudson Crossing is a strategic advisory firm in the USA which helps business owners raise travel, tourism, and hospitality assets by providing consultation. Michael W. McCormick, Managing Partner, Hudson Crossing, believes there is a marked drop in the economic turnover of the Hospitality Industry which will continue in the second quarter of this year due to the economic recession observed all over the world (Hospitality Trends 2009). In a report “Q2 2009 Travel Industry Insight” currently issued, McCormick, however, hopes big adjustments are being made and more creative solutions are planned to enhance revenue-generating options for the 3rd and last quarter of the year. He made a few predictions regarding the future of the industry in this year:

The decline in business travel will see another phase of continued persistence till the new budget cycle by the end of the year 2009.

Business owners in the industry will issue loyalty programs and aggressively priced packages for the consumers to attract them.

Online booking fees for traveling will not be charged by booking agencies such as Obitz.com and Travelocity to lure international travelers.

An Uncertain Future – Hotel Management 2007, An Uncertain Future , SPG Media Limited, London, Web.

EconmyWatch, Hopsitality Industry , Stanley St Labs, 2009, Web.

Hospitality Trends 2009, Travel Industry Expectations: The Decline of Business Travel and Other Insights , Hospitality Trends, Web.

Dixon, MJ, Kimes, SE & Verma, R 2009, Customer Preferences for Restaurant Technology Innovations , Hospitality Trends, Web.

Reisinger, Y 2008, International Tourism: Cultures and Behavior, Butterworth-Heinemann, Philadelphia.

SafeWork SA 2007, Hospitality Industry , Government of South Australia, Web.

United States Department of Labor 2006, Innovative Workforce Solutions to Help the Hospitality Industry Address Hiring, Training, and Retention Challenges , US Department of Labor, Washington DC, Web.

• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2021, November 1). Hospitality Industry Impact on Society. https://ivypanda.com/essays/hospitality-industry-impact-on-society/

"Hospitality Industry Impact on Society." IvyPanda , 1 Nov. 2021, ivypanda.com/essays/hospitality-industry-impact-on-society/.

IvyPanda . (2021) 'Hospitality Industry Impact on Society'. 1 November.

IvyPanda . 2021. "Hospitality Industry Impact on Society." November 1, 2021. https://ivypanda.com/essays/hospitality-industry-impact-on-society/.

1. IvyPanda . "Hospitality Industry Impact on Society." November 1, 2021. https://ivypanda.com/essays/hospitality-industry-impact-on-society/.

Bibliography

IvyPanda . "Hospitality Industry Impact on Society." November 1, 2021. https://ivypanda.com/essays/hospitality-industry-impact-on-society/.

• McCormick Company's Global Marketing Strategy
• "The Stepfather" by McCormick
• Vintage Pager for Mohammed bin Jassim House
• John Ruskin on McCormick Tribune Campus Center
• Cornell McBride Sr.'s Biography
• Oligopolies and Monopolistic Competition
• Hudson River Pollution Concerns
• Cornell note taking system
• The Self-Paced Online Learning Platform
• The Hudson’s Bay Company and the Northwest Fur Trade
• Credit Crunch and Its Impact on Hospitality Industry
• Group Sales Importance in Combating Recession
• Managing a Restaurant in the Hospitality Industry
• Hospitality Management: Trends and Issues
• Hospitality Management: Food & Beverage Service

How global tourism can become more sustainable, inclusive and resilient

A sanitary mask lies on the ground at Frankfurt Airport Image:  Reuters/Ralph Orlowski

.chakra .wef-1c7l3mo{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;}.chakra .wef-1c7l3mo:hover,.chakra .wef-1c7l3mo[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-1c7l3mo:focus,.chakra .wef-1c7l3mo[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);} Ahmed Al-Khateeb

.chakra .wef-9dduvl{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-9dduvl{font-size:1.125rem;}} Explore and monitor how .chakra .wef-15eoq1r{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;color:#F7DB5E;}@media screen and (min-width:56.5rem){.chakra .wef-15eoq1r{font-size:1.125rem;}} Travel and Tourism is affecting economies, industries and global issues

.chakra .wef-1nk5u5d{margin-top:16px;margin-bottom:16px;line-height:1.388;color:#2846F8;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-1nk5u5d{font-size:1.125rem;}} Get involved with our crowdsourced digital platform to deliver impact at scale

Stay up to date:, travel and tourism.

• Tourism rose to the forefront of the global agenda in 2020, due to the devastating impact of COVID-19
• Recovery will be driven by technology and innovation – specifically seamless travel solutions, but it will be long, uneven and slow
• Success hinges on international coordination and collaboration across the public and private sectors

Tourism was one of the sectors hit hardest by the global pandemic. 2020 was the worst year on record for international travel due to the global pandemic, with countries taking decisive action to protect their citizens, closing borders and halting international travel.

The result was a 74% decline in international visitor arrivals, equivalent to over $1 trillion revenue losses , and an estimated 62 million fewer jobs . The impact on international air travel has been even more severe with a 90% drop on 2019 , resulting in a potential $1.8 trillion loss. And while the economic impact is dire in itself, nearly 2.9 million lives have been lost in the pandemic.

The path to recovery will be long and slow

Countries now face the challenge of reopening borders to resume travel and commerce, while protecting their populations’ health. At its peak, the World Tourism Organization (UNWTO) reported in April 2020 that every country on earth had implemented some travel restriction , signalling the magnitude of the operation to restart travel.

Have you read?

Tourism industry experts fear long road to recovery, how we can prioritize sustainability in rebuilding tourism, covid-19 could set the global tourism industry back 20 years.

Consequently, the path to recovery will be long and slow. The resurgence of cases following the discovery of new variants towards the end of last year delivered another disappointing blow to the travel industry. Any pickup over the summer months was quashed following a second wave of lockdowns and border closures . Coupled with mixed progress in the roll-out of vaccination programs, I predict that we will not see a significant rebound in international travel until the middle of this year at best.

Others echo my fears. The International Air Transport Association (IATA) forecasts a 50.4% improvement on 2020 air travel demand, which would bring the industry to 50.6% of 2019 levels . However, a more pessimistic outlook based on the persistence of travel restrictions suggests that demand may only pick up by 13% this year, leaving the industry at 38% of 2019 levels. McKinsey & Company similarly predict that tourism expenditure may not return to pre-COVID-19 levels until 2024 .

How to enhance sustainability, inclusivity and resilience

Given its economic might – employing 330 million people, contributing 10% to global GDP before the pandemic, and predicted to create 100 million new jobs – restoring the travel and tourism sector to a position of strength is the utmost priority.

The Great Reset provides an opportunity to rethink how tourism is delivered and to enhance sustainability, inclusivity and resilience. We must also address the challenges – from climate change and “ overtourism ” to capacity constraints – that we faced before the pandemic, while embracing traveller preferences, as we rebuild.

A 2018 study found that global tourism accounted for 8% of global greenhouse gas emissions from 2009 to 2013 ; four times higher than previous estimates. Even more worryingly, this puts progress towards the Paris Agreement at risk – recovery efforts must centre around environmental sustainability.

Furthermore, according to a study on managing overcrowding, the top 20 most popular global destinations were predicted to add more international arrivals than the rest of the world combined by 2020 . While COVID-19 will have disrupted this trend, it is well known that consumers want to travel again, and we must address the issues associated with overcrowding, especially in nascent destinations, like Saudi Arabia.

The Great Reset is a chance to make sure that as we rebuild, we do it better.

Seamless solutions lie at the heart of travel recovery

Tourism has the potential to be an engine of economic recovery provided we work collaboratively to adopt a common approach to a safe and secure reopening process – and conversations on this are already underway.

Through the G20, which Saudi Arabia hosted in 2020, our discussions focused on how to leverage technology and innovation in response to the crisis, as well as how to restore traveller confidence and improve the passenger experience in the future .

At the global level, across the public and private sectors, the World Economic Forum is working with the Commons Project on the CommonPass framework , which will allow individuals to access lab results and vaccination records, and consent to having that information used to validate their COVID status. IATA is trialling the Travel Pass with airlines and governments , which seeks to be a global and standardized solution to validate and authenticate all country regulations regarding COVID-19 travel requirements.

The provision of solutions that minimize person-to-person contact responds to consumer wants, with IATA finding that 85% of travellers would feel safer with touchless processing . Furthermore, 44% said they would share personal data to enable this, up from 30% months prior , showing a growing trend for contactless travel processes.

Such solutions will be critical in coordinating the opening of international borders in a way that is safe, seamless and secure, while giving tourists the confidence to travel again.

Collaboration at the international level is critical

The availability of vaccines will make this easier, and we have commenced our vaccination programme in Saudi Arabia . But we need to ensure processes and protocols are aligned globally, and that we support countries with limited access to vaccinations to eliminate the threat of another resurgence. It is only when businesses and travellers have confidence in the systems that the sector will flourish again.

In an era of unprecedented data and ubiquitous intelligence, it is essential that organizations reimagine how they manage personal data and digital identities. By empowering individuals and offering them ways to control their own data, user-centric digital identities enable trusted physical and digital interactions – from government services or e-payments to health credentials, safe mobility or employment.

The World Economic Forum curates the Platform for Good Digital Identity to advance global digital identity activities that are collaborative and put the user interest at the center.

The Forum convenes public-private digital identity collaborations from travel, health, financial services in a global action and learning network – to understand common challenges and capture solutions useful to support current and future coalitions. Additionally, industry-specific models such as Known Traveller Digital Identity or decentralized identity models show that digital identity solutions respecting the individual are possible.

The approach taken by Saudi Arabia and its partners to establish consensus and build collaborative relationships internationally and between the public and private sectors, should serve as a model to be replicated so that we can maximize the tourism sector’s contribution to the global economic recovery, while ensuring that it becomes a driver of prosperity and social progress again.

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Related topics:

The agenda .chakra .wef-n7bacu{margin-top:16px;margin-bottom:16px;line-height:1.388;font-weight:400;} weekly.

A weekly update of the most important issues driving the global agenda

.chakra .wef-1dtnjt5{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-flex-wrap:wrap;-ms-flex-wrap:wrap;flex-wrap:wrap;} More on Travel and Tourism .chakra .wef-17xejub{-webkit-flex:1;-ms-flex:1;flex:1;justify-self:stretch;-webkit-align-self:stretch;-ms-flex-item-align:stretch;align-self:stretch;} .chakra .wef-nr1rr4{display:-webkit-inline-box;display:-webkit-inline-flex;display:-ms-inline-flexbox;display:inline-flex;white-space:normal;vertical-align:middle;text-transform:uppercase;font-size:0.75rem;border-radius:0.25rem;font-weight:700;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;line-height:1.2;-webkit-letter-spacing:1.25px;-moz-letter-spacing:1.25px;-ms-letter-spacing:1.25px;letter-spacing:1.25px;background:none;padding:0px;color:#B3B3B3;-webkit-box-decoration-break:clone;box-decoration-break:clone;-webkit-box-decoration-break:clone;}@media screen and (min-width:37.5rem){.chakra .wef-nr1rr4{font-size:0.875rem;}}@media screen and (min-width:56.5rem){.chakra .wef-nr1rr4{font-size:1rem;}} See all

How Japan is attracting digital nomads to shape local economies and innovation

Naoko Tochibayashi and Naoko Kutty

March 28, 2024

Turning tourism into development: Mitigating risks and leveraging heritage assets

Abeer Al Akel and Maimunah Mohd Sharif

February 15, 2024

Buses are key to fuelling Indian women's economic success. Here's why

Priya Singh

February 8, 2024

These are the world’s most powerful passports to have in 2024

Thea de Gallier

January 31, 2024

These are the world’s 9 most powerful passports in 2024

South Korea is launching a special visa for K-pop lovers

To read this content please select one of the options below:

Please note you do not have access to teaching notes, impact of information technology on tourism.

The Emerald Handbook of ICT in Tourism and Hospitality

ISBN : 978-1-83982-689-4 , eISBN : 978-1-83982-688-7

Publication date: 30 November 2020

Information technology (IT) has become a strategic weapon on tourism products’ identification, presentation, dissemination and getting a sustainable competitive advantage. Tourism management is the most important candidate for using IT with the need for gathering information in large quantities and diffusion of tourism management. The heterogeneous nature of these businesses means that information-communication Technologies’ uses change from sector to sector and from management to management in the tourism sector. The development of IT has created new application areas for tourism industry managers especially in efficient cooperation and provided tools for real globalization, IT is unexpectedly part of tourism management because of information creation processing and transmission which are important in daily activities. Therefore, both rapid development of tourism demand and tourism supply have become a compulsory partner of IT; and for this reason, IT plays an important role in the tourism marketing, distribution, promotion, and coordination. Due to this importance; the impact of IT on tourism sector is valued to be investigated. This chapter stresses that IT’s uses play an efficient role in choosing the management on behalf of the consumer. Within this context, this chapter composes of the information society; IT development and tourism; the usage of IT on travel, hospitality, tourism sector, its challenges, and advantages. This chapter mostly emphasizes on these subjects that will be examined deeply.

• Information technology
• Future of tourism

Bayram, G.E. (2020), "Impact of Information Technology on Tourism", Hassan, A. and Sharma, A. (Ed.) The Emerald Handbook of ICT in Tourism and Hospitality , Emerald Publishing Limited, Leeds, pp. 243-257. https://doi.org/10.1108/978-1-83982-688-720201015

Emerald Publishing Limited

Copyright © 2021 Emerald Publishing Limited

We’re listening — tell us what you think

Something didn’t work….

Report bugs here

All feedback is valuable

Please share your general feedback

Join us on our journey

Platform update page.

Visit emeraldpublishing.com/platformupdate to discover the latest news and updates

Questions & More Information

Answers to the most commonly asked questions here