The World Travel and Tourism Council (WTTC) today launched an important new report that provides investment recommendations for governments and destinations as they aim to rebuild and grow their travel and tourism sector. .
With the pandemic putting an almost complete halt to international travel, the global travel and tourism industry has suffered more than any other due to severe mobility restrictions.
The sector’s contribution to global GDP fell from nearly US $ 9.2 trillion in 2019 to just US $ 4.7 trillion in 2020, representing a loss of nearly US $ 4.5 trillion. In addition, as the pandemic raged through the heart of the sector, 62 million jobs in the travel and tourism sector were lost while many remain at risk.
The report finds that capital investment fell by nearly a third (29.7%) last year, from US $ 986 billion in 2019 to just US $ 693 billion in 2020 and now, while we are heading for the recovery, investment in travel and tourism has never been more critical.
This paper shows how crucial it is for destinations and governments to attract investment through an effective enabling environment, including incentives such as smart taxation, travel facilitation policies, diversification, integration health and hygiene, effective communication and a skilled and trained workforce.
The report also offers key recommendations for governments and destinations and highlights the segments that could be the most attractive to investors.
According to the report, governments and destinations are expected to invest and attract private sector investment in areas such as physical and digital infrastructure, as well as travel segments such as wellness, medical, MICE, sustainable, adventure. , cultural or targeted – including women, LGBTQI and accessible – tourism.
Julia Simpson, President and CEO of the WTTC, said: “WTTC data has exposed the devastating impact of the pandemic on the travel and tourism industry.
“It is crucial that stakeholders focus on travel facilitation to ensure safe and smooth travel, and diversification of income-generating activities, among other opportunities.
“As this sector moves towards recovery, it is essential to understand the priorities for stimulating public and private investment in order to rebuild the economy and unleash the full potential of the travel and tourism sector.”
The WTTC report shows the importance of investing in the travel and tourism sector as a path to recovery, and how crucial it is to forge a public-private-community partnership (PPCP).
Mark Harms, Bespoke Capital Partners, Managing Partner, said: “Clear and consistent government policy is essential to attract investor interest.
“To accelerate the recovery of international travel and attract investment, governments must work together on an organized and coordinated response. “
Steven Siegel, KSL Capital Partners, Chief Operating Officer, said: “We are delighted to have contributed to this important report, which we hope will help travel and tourism companies attract critical investments after the pandemic.
“Destinations and governments should focus on safety and security, as well as political stability and a well-established rule of law, as we seek these qualities as preconditions for investment. “