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By Bastian Herre, Veronika Samborska and Max Roser

Tourism has massively increased in recent decades. Aviation has opened up travel from domestic to international. Before the COVID-19 pandemic, the number of international visits had more than doubled since 2000.

Tourism can be important for both the travelers and the people in the countries they visit.

For visitors, traveling can increase their understanding of and appreciation for people in other countries and their cultures.

And in many countries, many people rely on tourism for their income. In some, it is one of the largest industries.

But tourism also has externalities: it contributes to global carbon emissions and can encroach on local environments and cultures.

On this page, you can find data and visualizations on the history and current state of tourism across the world.

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Fact sheet: 2022 national travel and tourism strategy, office of public affairs.

The 2022 National Travel and Tourism Strategy was released on June 6, 2022, by U.S. Secretary of Commerce Gina M. Raimondo on behalf of the Tourism Policy Council (TPC). The new strategy focuses the full efforts of the federal government to promote the United States as a premier destination grounded in the breadth and diversity of our communities, and to foster a sector that drives economic growth, creates good jobs, and bolsters conservation and sustainability. Drawing on engagement and capabilities from across the federal government, the strategy aims to support broad-based economic growth in travel and tourism across the United States, its territories, and the District of Columbia.

Key points of the 2022 National Travel and Tourism Strategy

The federal government will work to implement the strategy under the leadership of the TPC and in partnership with the private sector, aiming toward an ambitious five-year goal of increasing American jobs by attracting and welcoming 90 million international visitors, who we estimate will spend $279 billion, annually by 2027.

The new National Travel and Tourism Strategy supports growth and competitiveness for an industry that, prior to the COVID-19 pandemic, generated $1.9 trillion in economic output and supported 9.5 million American jobs. Also, in 2019, nearly 80 million international travelers visited the United States and contributed nearly $240 billion to the U.S. economy, making the United States the global leader in revenue from international travel and tourism. As the top services export for the United States that year, travel and tourism generated a $53.4 billion trade surplus and supported 1 million jobs in the United States.

The strategy follows a four-point approach:

  • Promoting the United States as a Travel Destination Goal : Leverage existing programs and assets to promote the United States to international visitors and broaden marketing efforts to encourage visitation to underserved communities.
  • Facilitating Travel to and Within the United States Goal : Reduce barriers to trade in travel services and make it safer and more efficient for visitors to enter and travel within the United States.
  • Ensuring Diverse, Inclusive, and Accessible Tourism Experiences Goal : Extend the benefits of travel and tourism by supporting the development of diverse tourism products, focusing on under-served communities and populations. Address the financial and workplace needs of travel and tourism businesses, supporting destination communities as they grow their tourism economies. Deliver world-class experiences and customer service at federal lands and waters that showcase the nation’s assets while protecting them for future generations.
  • Fostering Resilient and Sustainable Travel and Tourism Goal : Reduce travel and tourism’s contributions to climate change and build a travel and tourism sector that is resilient to natural disasters, public health threats, and the impacts of climate change. Build a sustainable sector that integrates protecting natural resources, supporting the tourism economy, and ensuring equitable development.

Travel and Tourism Fast Facts

  • The travel and tourism industry supported 9.5 million American jobs through $1.9 trillion of economic activity in 2019. In fact, 1 in every 20 jobs in the United States was either directly or indirectly supported by travel and tourism. These jobs can be found in industries like lodging, food services, arts, entertainment, recreation, transportation, and education.
  • Travel and tourism was the top services export for the United States in 2019, generating a $53.4 billion trade surplus.
  • The travel and tourism industry was one of the U.S. business sectors hardest hit by the COVID-19 pandemic and subsequent health and travel restrictions, with travel exports decreasing nearly 65% from 2019 to 2020. 
  • The decline in travel and tourism contributed heavily to unemployment; leisure and hospitality lost 8.2 million jobs between February and April 2020 alone, accounting for 37% of the decline in overall nonfarm employment during that time. 
  • By 2021, the rollout of vaccines and lifting of international and domestic restrictions allowed travel and tourism to begin its recovery. International arrivals to the United States grew to 22.1 million in 2021, up from 19.2 million in 2020. Spending by international visitors also grew, reaching $81.0 billion, or 34 percent of 2019’s total.

More about the Tourism Policy Council and the 2022 National Travel and Tourism Strategy

Created by Congress and chaired by Secretary Raimondo, the Tourism Policy Council (TPC) is the interagency council charged with coordinating national policies and programs relating to travel and tourism. At the direction of Secretary Raimondo, the TPC created a new five-year strategy to focus U.S. government efforts in support of the travel and tourism sector which has been deeply and disproportionately affected by the COVID-19 pandemic.

Read the full strategy here

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What next for travel and tourism? Here's what the experts say

In many countries, more than 80% of travel and tourism spending actually comes from the domestic market.

In many countries, more than 80% of travel and tourism spending actually comes from the domestic market. Image:  Unsplash/Surface

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tourism growth

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Stay up to date:, travel and tourism.

  • In 2020 alone, the travel and tourism sector lost $4.5 trillion and 62 million jobs globally.
  • But as the world recovers from the impacts of the COVID-19 pandemic, travel and tourism can bounce back as an inclusive, sustainable, and resilient sector.
  • Two experts highlight some of the key transformations in the sector going forward during the World Economic Forum's Our World in Transformation series.

The Travel & Tourism sector was one of the hardest hit by the COVID-19 pandemic, leaving not only companies but also tourism-driven economies severely affected by shutdowns, travel restrictions and the disappearance of international travel.

In 2020 alone, the sector lost $4.5 trillion and 62 million jobs, impacting the living standards and well-being of communities across the globe. Moreover, the halt in international travel gave both leisure and business travellers the chance to consider the impact of their choices on the climate and environment.

Amid shifting demand dynamics and future opportunities and risks, a more inclusive, sustainable and resilient travel and tourism sector can be - and needs to be - built.

The World Economic Forum's Travel & Tourism Development Index 2021 finds that embedding inclusivity, sustainability and resilience into the travel and tourism sector as it recovers, will ensure it can continue to be a driver of global connectivity, peace and economic and social progress.

We spoke to Sandra Carvao , Chief of Market Intelligence and Competitiveness at the United Nations World Tourism Organization (UNWTO), and Liz Ortiguera , CEO of the Pacific Asia Travel Association in Thailand (PATA), and asked them to highlight some of the key areas of risk and opportunity in the sector during an episode of the World Economic Forum's Our World in Transformation series.

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Travel & tourism development index 2021: rebuilding for a sustainable and resilient future, towards resilience and sustainability: travel and tourism development recovery, how can we really achieve sustainability in the travel sector, what are some of the top global trends you're witnessing currently in the travel and tourism sector.

Liz Ortiguera: Given the extended lockdown that we had on travel with the pandemic, vacation for friends and relatives (VFR) is now a high priority for people who haven’t been in touch for a long time thanks to the pandemic. So, people are reconnecting. And that kind of links to the second trend, which is multi-purpose or blended travel. Never before, particularly now that we can connect digitally through Zoom, has the ability to work from anywhere enabled travellers to cover multiple purposes, like visits with friends and multiple business trips. So, we'll find that the duration of travel and the length of stay is longer. And third is the continued high focus on safety and wellness which is top of mind for travellers due to the pandemic. All travel is wellness-related now.

Sandra Carvao: I think there is a bigger concern with sustainability, which is very welcome in our industry. Consumers, particularly the younger generation, are much more aware of the impact they have, not only on the environment but also socially and on the communities they live in. We've also seen an increase in expenditure per trip, so I think people are very eager to go outside, and they're staying longer. And on the other side, I think there are some challenges: we’re seeing a rise in late bookings because restrictions can change at short notice and that’s having an impact on the decisions of travellers. This is putting pressure on the industry in terms of planning and anticipating fluctuations in demand.

Social media surveys have shown that travellers who have immersive experiences are more likely to post about them, which is good for the industry.

What is community-based tourism and why is it important?

Sandra Carvao: One of the positive impacts of the pandemic is that people are looking for local experiences and are spending more time with communities. So, the concept of community-based tourism is obviously one that puts the community at the core of every development, ensuring that it's engaged and empowered and that it benefits. At the UNWTO, we worked with the G20 and the Saudi presidency back in 2020 and produced a framework for tourism development in communities, which states that communities need to be part of the planning and management of tourism activities. We need to go beyond traditional definitions of community to a point where the industry leans on partnerships between the public and private sectors and communities.

Liz Ortiguera: In July 2022, PATA is hosting a destination-marketing forum and one of the key themes is community-based tourism. The purpose is really to put the community and authenticity-in-culture activities at the heart of the travel experience. There are benefits for all stakeholders. One is that travellers can have an authentic experience. They're not in overcrowded, touristic locations and they experience something new and unique within the community. These experiences are designed in partnership with communities who get the benefit of financial inclusion, and if activities are designed properly, the reinforcement of their cultural heritage. Governments also engage in economic development more broadly across countries. Another interesting trend is creative tourism, which means you create an experience for tourists to participate in, like a dance lesson, or a cooking lesson. Social media surveys have shown that travellers who have these kinds of immersive experiences are more likely to post about them online and that's good for the industry.

It is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.

How is technology and innovation helping to leverage cultural resources?

Sandra Carvao: One interesting trend we’re seeing is that more and more people are booking trips directly, so communities need to be supported to digitize their systems. Education and upskilling of communities are important so that they can leverage digital platforms to market themselves. From the tourists’ perspective, it is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.

Liz Ortiguera: People have been living virtually for more than two years. Amazing innovations have emerged, such as virtual reality and augmented reality, and all kinds of applications and tools. But the important thing is the experience. The destination. Real-world experiences need to remain front and centre. Technology tools should be viewed as enablers and not the core experience. And when it comes to staff, technology can really democratize education. There’s an opportunity to mobilize a mobile-first approach for those who are on the frontlines, or out in the field, and can’t easily access computers, but need to get real-time information.

tourism growth

How is the sector dealing with labour shortages and re-employment of the workforce?

Liz Ortiguera: Labour shortages are much more dynamic in North America and in Europe. But it’s having a knock-on effect on Asia. If, for example, their air carriers are limited by staff and they have to cancel flights, which we're very much seeing out of Europe, seating capacity then becomes a limiting factor in the recovery of Asia Pacific. That's the main constraint right now. And compounding that is the rising price of fuel. But people in the Asia Pacific are keen to get reemployed.

Sandra Carvao: Labour shortages are a priority for the sector in countries around the world. Many workers left the sector during the pandemic and the uncertainty that surrounded the measures taken to contain it left many people unsure of whether the sector would recover. It is time to address things like conditions, scheduling, and work/life balance, all things which have been top of mind for workers during the pandemic. As the sector recovers, we need time to bring new hires on board and to train them to take over where those who switched jobs left off.

Are we seeing a growing trend towards domestic tourism?

Sandra Carvao: We’re talking about 9 billion people travelling within their own countries. And in many countries, for example in Germany, more than 80% of the tourism spending actually comes from the domestic market, similarly in countries like Spain and even smaller economies. Whenever it's possible to travel again, domestic markets tend to be more resilient. They kick off first mostly due to perceptions of safety and security issues. As the world economy recovers from the pandemic, there is a good opportunity for nations to rethink their strategy, look at the domestic market in a different way, and leverage different products for domestic tourists.

tourism growth

When it comes to sustainable tourism, how quickly could we mainstream eco-friendly modes of transportation?

Sandra Carvao: Transport is one of the key contributors to energy impacts and tourism. But it's also important that we look at the whole value chain. The UNWTO together with the One Planet Sustainable Tourism Programme just launched the Glasgow Declaration, which includes green commitments from destinations and companies. We’re seeing a strong movement in the airline industry to reduce emissions. But I think, obviously, technological developments will be very important. But it's also very important to look at market shifts. And we can't forget small islands and developing states that rely on long-haul air travel. It’s important to make sure that we invest in making the problem much less impactful.

Liz Ortiguera: 'Travel and tourism' is such a broad encompassing term that it’s not fair to call it an industry: it is actually a sector of many industries. The pandemic taught us how broad the impact of the sector is in terms of sustainability. There's a big movement in terms of destination resilience, which is the foundation for achieving sustainability in the journey to net-zero. We now have standards to mitigate that impact including meetings-and-events (MIE) standards and standards for tour operators. There are multiple areas within our industry where progress is being made. And I'm really encouraged by the fact that there is such a focus not just within the sector but also among consumers.

This interview was first done at the World Economic Forum's studios in Geneva as part of 'Our World in Transformation' - a live interactive event series for our digital members. To watch all the episodes and join future sessions, please subscribe here .

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Tourist arrivals in Thailand—a leading tourist destination—have dropped dramatically. In addition to providing soft financing to tour operators, the country is promoting domestic tourism and long-term stays.  (photo: Preto Perola by Getty Images)

Tourist arrivals in Thailand—a leading tourist destination—have dropped dramatically. In addition to providing soft financing to tour operators, the country is promoting domestic tourism and long-term stays. (photo: Preto Perola by Getty Images)

  • IMF Country Focus

Tourism in a Post-Pandemic World

February 26, 2021

Tourism continues to be one of the sectors hit hardest by the COVID-19 pandemic, particularly for countries in the Asia-Pacific region and Western Hemisphere. Governments in these regions, and elsewhere, have taken measures to ease the economic shock to households and businesses, but longer-term the industry will need to adapt to a post-pandemic “new normal.” 

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If you are hesitant to hop on a plane these days, you are not alone. According to the United Nations World Tourism Organization (UNWTO), tourist arrivals are estimated to have fallen 74 percent in 2020 compared to 2019.

For many developing countries in the Asia-Pacific and Western Hemisphere—small island states in particular—the effects have been severe. Before the pandemic hit, tourism was big business, accounting for more than 10 percent of global GDP. The share was even larger in tourism-dependent countries.

tourism growth

Toward recovery

To recover, vaccines will need to be widely distributed, and policy solutions implemented.

Some governments have been providing financial support, either directly or through soft loans and guarantees to the industry. Thailand allocated $700 million to spur domestic tourism, while Vanuatu offered grants to small and medium-sized enterprises. Countries have also been assisting firms to adapt their business models and retrain staff. In Jamaica, the government gave free online training certification classes to 10,000 tourism workers to help improve their skills.

However, many tourism-dependent economies are hampered by limited fiscal space. New initiatives to reignite the sector could perhaps help. In Costa Rica, for example, national holidays have temporarily been moved to Mondays to boost domestic tourism by extending weekends. Barbados introduced a ‘Welcome Stamp’ visa—a one-year residency permit that allows remote employees to live and work from the country. Similarly, Fiji launched a Blue Lanes initiative that allows yachts to berth in its marinas after meeting strict quarantine and testing requirements.

Post-pandemic, a continuing shift toward ecotourism—a fast-growing industry focused on conservation and local job creation—could give an additional boost to the industry. This is already a key element of Costa Rica’s tourism strategy. Thailand too is trying to shift to niche markets, including adventure travel and health and wellness tours. 

Technology can also play an important role. With social distancing and health and hygiene protocols likely to remain in place for the foreseeable future, touchless service delivery and investments in digital technology could be a bridge to recovery.

Finally, should the reduction in travel be longer lasting, owing to changes in tourist preferences or economic scarring, some tourism-dependent countries may need to embark on a long and difficult journey to diversify their economies. Investing in non‑tourism sectors is a long-term goal but could be aided by strengthening links between tourism and locally produced agriculture, manufacturing, and entertainment. In Jamaica, for instance, an online platform was launched that allows buyers in the hotel industry to directly purchase goods from local farmers. Exports, including services, could also be expanded, using regional agreements to address the constraints imposed by limited economies of scale.   

tourism growth

Solutions will differ from country to country, and the pace and scope of recovery will of course depend on global developments. But there is an important opportunity to be harnessed. Beyond the immediate priority of mitigating the impact of the pandemic, countries will need to create a “new normal” for the tourism industry. Diversifying, shifting to more sustainable tourism models and investing in new technologies could help to shape the recovery.

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The travel and tourism industry by 2030.

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Oscar White is the Founder & CEO of  Beyonk , the experiences booking platform: empowering events, activities & experience providers to thrive

The ever-increasing speed of technological advancements and changing consumer expectations makes it arguably more difficult to forecast the future of the tourism industry than ever before. However, looking at macro-trends, there is a clear direction of travel that could substantially change the industry as we know it. The trends favor the end consumers and organizations that, paraphrasing Darwin, are “most adaptable to change.” They will be more likely to survive and thrive. As an ex-strategy consultant and public speaker on digital and technology trends, and now running venture-backed, travel-tech startup Beyonk , here are my predictions for the state of the industry by 2030.

1. Customers will become empowered through more choice and control.

As the tech giants lead the way in designing products that provide the best customer experience, from Amazon with single-click buying of every sort of product to Uber with quick and simple pickups, our expectations continue to evolve. Customers will want more, in less time and with less effort. Millions of bookings, analyzed by Beyonk, show 65% of consumers book within 48 hours of their events and activities. This will likely shorten as the friction of finding and booking in-destination experiences reduces.

2. Connectivity will become commoditized.

Since 2006, the travel industry has benefited from the General Transit Feed Specification, a standard for how data is accessible across industry stakeholders. While it’s unlikely that the rest of the tourism industry will get a similar standard, connectivity will continue to grow between suppliers, resellers and customers. This is a natural evolution of the tourism industry and will likely continue to make consumers more powerful with their decision-making and as a whole, make it easier to find and book with long-tail providers or book multiple categories at once. A series of application programmable interfaces could give access to a large portion of the supply. Many online travel agents could then access similar supply, making branding, differentiation and customer experience even more important to compete.

3. Personalization will become more important.

With the explosion of available data, services that are able to meaningfully present the relevant data in a constructive way will probably thrive. The more companies can tailor their offering to suit personal preferences, the more they’ll win. From the pre-sales aspect, they’ll be able to target suitable audiences with a compelling offer and lead them into personalized customer journeys — from building itineraries to selecting the room package and flight.

Best Travel Insurance Companies

Best covid-19 travel insurance plans.

The challenge of Apple and Google changing their privacy policies and ability to use third-party cookies has made it more difficult to personalize offers, ads and communications to relevant audiences. Companies are investing more to build up more first-person data such as emails. But they are struggling too, as Apple has introduced masking and obfuscation of email addresses, including in-browser privacy protection, which masks users’ IP addresses. An opportunity for personalization may come through Web 3.0 — where each person could have a single profile that follows you across the internet, that can be shared to allow websites to show you content specific to your profile to give you the best browsing experience and allow you to control the data you share. Those who are able to keep responding to the ever-changing privacy changes, but still build out strong personalization strategies, will build more loyal customer bases, have more efficient spending and reduce the cost of acquiring new customers.

4. Online channels will become seamless with offline channels.

As augmented and virtual reality technology improves, the price point for such devices in this space will drop significantly. AR and VR will become the new way to experience destinations, travel and things to do. For the initial pre-buying process, there will be a more immersive experience, moving closer to a “try before you buy” approach, as witnessed in retail over the last decade, with more brands adopting such features. See my article, “Ecommerce Trends for the Tourism and Travel Industry,” for a more in-depth discussion of this.

It is clear we are moving toward in-destination experiences where you can have an overlay of reviews for each menu item, or have a virtual tour guide giving you tips wherever you are via your wearable device. We, as both consumers and providers, will become more equipped with data to have better experiences. Those organizations that can cater to a more seamless online and offline experience could win big.

While it’s impossible to predict the future, the trends suggest the future of the industry could be grounded in further maturity of timely, relevant data and making it consumable across channels to delight customers.

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Oscar White

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The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis

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Tourism has become the world’s third-largest export industry after fuels and chemicals, and ahead of food and automotive products. From last few years, there has been a great surge in international tourism, culminates to 7% share of World’s total exports in 2016. To this end, the study attempts to examine the relationship between inbound tourism, financial development and economic growth by using the panel data over the period 1995–2015 for five BRICS (Brazil, Russia, India, China and South Africa) countries. The results of panel ARDL cointegration test indicate that tourism, financial development and economic growth are cointegrated in the long run. Further, the Granger causality analysis demonstrates that the causality between inbound tourism and economic growth is bi-directional, thus validates the ‘feedback-hypothesis’ in BRICS countries. The study suggests that BRICS countries should promote favorable tourism policies to push up the economic growth and in turn economic growth will positively contribute to international tourism.

Introduction

World Tourism Day 2015 was celebrated around the theme ‘One Billion Tourists; One Billion Opportunities’ highlighting the transformative potential of one billion tourists. With more than one billion tourists traveling to an international destination every year, tourism has become a leading economic sector, contributing 9.8% of global GDP and represents 7% of the world’s total exports [ 59 ]. According to the World Tourism Organization, the year 2013 saw more than 1.087 billion Foreign Tourist Arrivals and US $1075 billion foreign tourism receipts. The contribution of travel and tourism to gross domestic product (GDP) is expected to reach 10.8% at the end of 2026 [ 61 ]. Representing more than just economic strength, these figures exemplify the vast potential of tourism, to address some of the world´s most pressing challenges, including socio-economic growth and inclusive development.

Developing countries are emerging as the important players, and increasingly aware of their economic potential. Once essentially excluded from the tourism industry, the developing world has now become its major growth area. These countries majorly rely on tourism for their foreign exchange reserves. For the world’s forty poorest countries, tourism is the second-most important source of foreign exchange after oil [ 37 ].

The BRICS (Brazil, Russia, India, China and South Africa) countries have emerged as a potential bloc in the developing countries which caters the major tourists from developed countries. Tourism becomes major focus at BRICS Xiamen Summit 2017 held in China. These countries have robust growth rate, and are focal destinations for global tourists. During 1990 to 2014, these countries stride from 11% of the world’s GDP to almost 30% [ 17 ]. Among BRICS countries, China is ranked as an important destination followed by Brazil, Russia, India and South Africa [ 60 ].

The importance of inbound tourism has grown exponentially, because of its growing contribution to the economic growth in the long run. It enhances economic growth by augmenting the foreign exchange reserves [ 38 ], stimulating investments in new infrastructure, human capital and increases competition [ 9 ], promoting industrial development [ 34 ], creates jobs and hence to increase income [ 34 ], inbound tourism also generates positive externalities [ 1 , 14 ] and finally, as economy grows, one can argue that growth in GDP could lead to further increase in international tourism [ 11 ].

The tourism-led growth hypothesis (TLGH) proposed by Balaguer and Cantavella-Jorda [ 3 ], states that expansion of international tourism activities exerts economic growth, hence offering a theoretical and empirical link between inbound tourism and economic growth. Theoretically, the TLGH was directly derived from the export-led growth hypothesis (ELGH) that postulates that economic growth can be generated not only by increasing the amount of labor and capital within the economy, but also by expanding exports.

The ‘new growth theory,’ developed by Balassa [ 4 ], suggests that export expansion can trigger economic growth, because it promotes specialization and raises factors productivity by increasing competition, creating positive externalities by advancing the dispersal of specialized information and abilities. Exports also enhance economic growth by increasing the level of investment. International tourism is considered as a non-standard type of export, as it indicates a source of receipts and consumption in situ. Given the difficulties in measuring tourism activity, the economic literature tends to focus on primary and manufactured product exports, hence neglecting this economic sector. Analogous to the ELGH, the TLGH analyses the possible temporal relationship between tourism and economic growth, both in the short and long run. The question is whether tourism activity leads to economic growth or, alternatively, economic expansion drives tourism growth, or indeed a bi-directional relationship exists between the two variables.

To further substantiate the nexus, the study will investigate the plausible linkages between economic growth and international tourism while considering the relative importance of financial development in the context of BRICS nations. Financial markets are considered a key factor in producing strong economic growth, because they contribute to economic efficiency by diverting financial funds from unproductive to productive uses. The origin of this role of financial development may is traced back to the seminal work of Schumpeter [ 50 ]. In his study, Schumpeter points out that the banking system is the crucial factor for economic growth due to its role in the allocation of savings, the encouragement of innovation, and the funding of productive investments. Early works, such as Goldsmith [ 18 ], McKinnon [ 39 ] and Shaw [ 51 ] put forward considerable evidence that financial development enhances growth performance of countries. The importance of financial development in BRICS economies is reflected by the establishment of the ‘New Development Bank’ aimed at financing infrastructure and sustainable development projects in these and other developing countries. To the best of the authors’ knowledge, no attempt has been made so far to investigate the long-run relationship Footnote 1 between tourism, financial development and economic growth in case of BRICS countries. Hence, the present study is an attempt to fill the gap in the existing literature.

Review of past studies

From last few decades there has been a surge in the research related to tourism-growth nexus. The importance of growth and development and its determinants has been studied extensively both in developed and developing countries. Extant literature has recognized tourism as an important determinant of economic growth. The importance of tourism has grown exponentially, courtesy to its manifold advantages in form of employment, foreign exchange production household income and government revenues through multiplier effects, improvements in the balance of payments and growth in the number of tourism-promoted government policies [ 21 , 41 , 53 ]. Empirical findings on tourism and economic development have produced mixed finding and sometimes conflicting results despite the common choice of time series techniques as a research methodology. On empirical grounds, four hypotheses have been explored to determine the link between tourism and economic growth [ 12 ]. The first two hypotheses present an account on the unidirectional causality between the two variables, either from tourism to economic growth (Tourism-led economic growth hypothesis-TLGH) or its reserve (economic-driven tourism growth hypothesis-EDTH). The other two hypotheses support the existence of bi-directional hypothesis, (bi-directional causality hypothesis-BC) or that there is no relationship at all (no causality hypothesis-NC), respectively. According to TLEG hypothesis, tourism creates an array of benefits which spillover though multiple routes to promote the economic growth [ 55 ]. In particular, it is believed that tourism (1) increases foreign exchange earnings, which in turn can be used to finance imports [ 38 ], (2) it encourages investment and drives local firms toward greater efficiency due to the increased competition [ 3 , 31 ], (3) it alleviates unemployment, since tourism activities are heavily based on human capital [ 10 ] and (4) it leads to positive economies of scale thus, decreasing production costs for local businesses [ 1 , 14 ]. Other recent studies which find evidence in favor of the TLGH hypothesis include [ 44 , 52 ]. Even though literature is dominated by TLGH, few studies produce a result in support of EDTH [ 40 , 41 , 45 ]. Payne and Mervar [ 45 ] posit that tourism growth of a country is mobilized by the stability of well-designed economic policies, governance structures and investments in both physical and human capital. This positive and vibrant environment creates a series of development activities which proliferate and flourish the tourism. Pertaining to the readily available information, bi-directional causality could also exist between tourism income and economic growth [ 34 , 49 ]. From a policy view, a reciprocal tourism–economic growth relationship implies that government agendas should cater for promoting both areas simultaneously. Finally, there are some studies that do not offer support to any of the aforementioned hypotheses, suggesting that the impact between tourism and economic growth is insignificant [ 25 , 47 , 57 ]. There is a vast literature examining the relationship between tourism and growth as a result, only a selective literature review will be presented here.

Banday and Ismail [ 5 ] used ARDL cointegration model to test the relationship between tourism revenue and economic growth in BRICS countries from the time period of (1995–2013). The study validates the tourism-led growth hypothesis for BRICS countries, which evinces that tourism has positive influence on economic growth.

Savaş et al. [ 54 ] evaluated the tourism-led growth hypothesis in the context of Turkey. The study employed gross domestic product, real exchange rate, real total expenditure and international tourism arrivals to sketch out the causality among variables. The result reveals a unidirectional relationship between tourism and real exchange rate. The findings suggest that tourism is the driving force for economic growth, which in turn helps turkey to culminate its current account deficit.

Dhungel [ 15 ] made an effort to investigate causality between tourism and economic growth, In Nepal for the period of (1974–2012), by using Johansen’s cointegration and Error correction model. The result states that unidirectional causality exists in the long run, while in short run no causality exists between two constructs. The study emphasized that strategies should be devised to attain causality running from tourism to economic growth.

Mallick et al. [ 36 ] analyzed the nexus between economic growth and tourism in 23 Indian states over a period of 14 years (1997–2011). Using panel autoregressive distributed lag model based on three alternative estimators such as mean group estimator, pooled mean group and dynamic fixed effects, Research found that tourism exerts positive influence on economic growth in the long run.

Belloumi [ 8 ] examines the causal relationship between international tourism receipts and economic growth in Tunisia by using annual time series data for the period 1970–2007. The study uses the Johansen’s cointegration methodology to analyze the long-run relationship among the concerned variables. Granger causality based Vector error correction mechanism approach indicates that the revenues generated from tourism have a positive impact on economic growth of Tunisia. Thus, the study supports the hypothesis of tourism-driven economic growth, which is specific to developing countries that base their foreign exchange earnings on the existence of a comparative advantage in certain sectors of the economy.

Tang et al. [ 58 ] explored the dynamic Inter-relationships among tourism, economic growth and energy consumption in India for the period 1971–2012. The study employed Bounds testing approach to cointegration and generalized variance decomposition methods to analyze the relationship. The bounds testing and the Gregory-Hansen test for cointegration with structural breaks consistently reveals that energy consumption, tourism and economic growth in India are cointegrated. The study demonstrated that tourism and economic growth have positive impact on energy consumption, while tourism and economic growth are interrelated; with tourism exert significant influence on economic growth. Consequently, this study validates the tourism-led growth hypothesis in the Indian context.

Kadir and Karim [ 24 ]) examined the causal nexus between tourism and economic growth in Malaysia by applying panel time series approach for the period 1998–2005. By applying Padroni’s panel cointegration test and panel Granger causality test, the result indicated both short and long-run relationship. Further, the panel causality shows unidirectional causality directing from tourism receipts to economic growth. The result provides evidence of the significant contribution of tourism industry to Malaysia’s economic growth, thereby justifying the necessity of public intervention in providing tourism infrastructure and facilities.

Antonakakis et al. [ 2 ] test the linkage between tourism and economic growth in Europe by using a newly introduced spillover index approach. Based on monthly data for 10 European countries over the period 1995–2012, the findings suggested that the tourism–economic growth relationship is not stable over time in terms of both magnitude and direction, indicating that the tourism-led economic growth (TLEG) and the economic-driven tourism growth (EDTG) hypotheses are time-dependent. Thus, the findings of the study suggest that the same country can experience tourism-led economic growth or economic-driven tourism growth at different economic events.

Oh [ 41 ] verifies the contribution of tourism development to economic growth in the Korean economy by applying Engle and Granger two-stage approach and a bivariate Vector Autoregression model. He claimed that economic expansion lures tourists in the short run only, while there is no such long-run stable relationship between international tourism and economic development in Korea.

Empirical studies have pronouncedly focused on the literature that tourism promotes economic growth. To further substantiate the nexus, the study will investigate the plausible linkages between economic growth and international tourism while considering the relative importance of financial development in the context of BRICS nations. The inclusion of financial development in the examination of tourism-growth nexus is a unique feature of this study, which have an influencing role in economic growth as financial development has been theoretically and empirically recognized as source of comparative advantage [ 22 ].

This study employs panel ARDL cointegration approach to verify the existence of long-run association among the variables. Further, study estimated the long-run and short-run coefficients of the ARDL model. Subsequently, Dumitrescu and Hurlin [ 16 ] panel Granger causality test has been employed to check the direction of causality between tourism, financial development and economic growth among BRICS countries.

Database and methodology

Data and variables.

The study is analytical and empirical in nature, which intends to establish the relationship between economic growth and inbound tourism in BRICS countries. For the BRICS countries, limited studies have been conducted depicting the present scenario. Therefore, present study tries to verify the relevance of tourism in economic growth to further enhance the understanding of economic dynamics in BRICS countries. The data used in the study are annual figures for the period stretching from 1995 to 2015, consisting of one endogenous variable (GDP per capita, a proxy for economic growth) and two exogenous variables (international tourism receipts per capita and financial development). The variables employed in the study are based on the economic growth theory, proposed by Balassa [ 4 ], which states that export expansion has a relevant contribution in economic growth. Further, this study incorporates financial development in the model to reduce model misspecification as it is considered to have an influencing role in economic growth both theoretically and empirically [ 22 , 33 ].

The annual data for all the variables have been collected from the World Development Indicators (WDI, 2016) database. The variables used in the study includes gross domestic product per capita (GDP) in constant ($US2010) used as a proxy for economic growth (EG), international tourism receipts per capita (TR) in current US$ as it is widely accepted that the most adequate proxy of inbound tourism in a country is tourism expenditure normally expressed in terms of tourism receipts [ 32 ] and financial development (FD). In line with a recent study on the relationship between financial development and economic growth by Hassan et al. [ 19 ], financial development is surrogated by the ratio of the broad money (M3) to real GDP for all BRICS countries. Here we use the broadest definition of money (M3) as a proportion of GDP– to measure the liquid liabilities of the banking system in the economy. We use M3 as a financial depth indicator, because monetary aggregates, such as M2 or M1, may be a poor proxy in economies with underdeveloped financial systems, because they ‘are more related to the ability of the financial system to provide transaction services than to the ability to channel funds from savers to borrowers’ [ 26 ]. A higher liquidity ratio means higher intensity in the banking system. The assumption here is that the size of the financial sector is positively associated with financial services [ 29 ]. All the variables have been taken into log form.

Unit root test

To verify the long-run relationship between tourism and economic growth through Bounds testing approach, it is necessary to test for stationarity of the variables. The stationarity of all the variables can be assessed by different unit root tests. The study utilizes panel unit root test proposed by Levin et al. [ 35 ] henceforth LLC and Im et al. [ 23 ] henceforth IPS based on traditional augmented Dickey–Fuller (ADF) test. The LLC allows for heterogeneity of the intercepts across members of the panel under the null hypothesis of presence of unit root, while IPS allows for heterogeneity in intercepts as well as in the slope coefficients [ 48 ].

Panel ARDL approach to Cointegration

After checking the stationarity of the variables the study employs panel ARDL technique for Cointegration developed by Pesaran et al. [ 23 ]. Pesaran et al. [ 23 ] have introduced the pooled mean group (PMG) approach in the panel ARDL framework. According to Pesaran et al. [ 23 ], the homogeneity in the long-run relationship can be attributed to several factors such as arbitration condition, common technologies, or the institutional development which was covered by all groups. The panel ARDL bounds test [ 46 ] is more appropriate by comparing other cointegration techniques, because it is flexible regarding unit root properties of variables. This technique is more suitable when variables are integrated at different orders but not I (2). Haug [ 20 ] has argued that panel ARDL approach to cointegration provides better results for small sample data set such as in our case. The ARDL approach to cointegration estimates both long and short-run parameters and can be applied independently of variable order integration (independent of whether repressors are purely I (0), purely I(1) or combination of both. The ARDL bounds test approach used in this study is specified as follows:

where Δ is the first-difference operator, \(\alpha_{0}\) stands for constant, t is time element, \(\omega_{1} , \omega_{2} \;\;{\text{and}}\;\; \omega_{3}\) represent the short-run parameters of the model, \(\emptyset_{1} , \emptyset_{2} ,and \emptyset_{3}\) are long-run coefficients, while \(V_{it}\) is white noise error term and lastly, it represents country at a particular time period. In the ARDL model, the bounds test is applied to determine whether the variables are cointegrated or not.

This test is based on the joint significance of F -statistic and the χ 2 statistic of the Wald test. The null hypothesis of no cointegration among the variables under study is examined by testing the joint significance of the F -statistic of \(\omega_{1} , \omega_{2} ,\omega_{3}\) .

In case series variables are cointegrated, an error correction mechanism (ECM) can be developed as Eq. ( 2 ), to assess the short-run influence of international tourism and financial development on economic growth.

where ECT is the error correction term, and \(\varPhi\) is its coefficient which shows how fast the variables attain long-term equilibrium if there is any deviation in the short run. The error correction term further confirms the existence of a stable long-run relationship among the variables.

Panel granger causality test

To examine the direction of causality Dumitrescu and Hurlin [ 16 ] test is employed. Instead of pooled causality, Dumitrescu and Hurlin [ 16 ] proposed a causality based on the individual Wald statistic of Granger non-causality averaged across the cross section units. Dumitrescu and Hurlin [ 16 ] assert that traditional test allows for homogeneous analysis across all panel sets, thereby neglecting the specific causality across different units.

This approach allows heterogeneity in coefficients across cross section panels. The two statistics Wbar-statistics and Zbar-statistics provides standardized version of the statistics and is easier to compute. Wbar-statistic, takes an average of the test statistics, while the Zbar-statistic shows a standard (asymptotic) normal distribution.

They proposed an average Wald statistic that tests the null hypothesis of no causality in a panel subgroup against an alternative hypothesis of causality in at least one panel. Following equations will be used to check the direction of causality between the variables.

Estimation, results and Discussion

Descriptive statistics.

Table  1 presents descriptive statistics of variables selected for the period 1995–2015. The variable set includes GDP, FD and TR for all BRICS countries. Brazil tops the list with GDP per capita of 4.18, while India lagging behind all BRICS nations. In the recent economic survey by International Monetary Fund (IMF report 2016), India was ranked 126 for its per capita GDP. India’s GDP per capita went up to $7170 against all other BRICS countries which were placed in the above $10,000 bracket. China has the highest tourism receipts in comparison to other BRICS countries. China is a very popular country for foreign tourists, which ranks third after France and USA. In 2014, China invested $136.8 billion into its tourist infrastructure, a figure second only to the United States ($144.3 billion). Tourism, based on direct, indirect, and induced impact, accounted for near 10% in the GDP of China (WTTC report 2017).

Stationarity results

Primarily, we employed LLC and IPS unit root test to assess the integrated properties of the series. The results of IPS and PP tests are presented in Table  2 . Panel unit root test result evinces that FD and TR are stationary at level, while GDP per capita is integrated variable of order 1. The result exemplifies that GDP per capita, Tourism receipts and Financial Development are integrated at 1(0) and 1(1). Consequently, the panel ARDL approach to cointegration can be applied.

Cointegration test results

In view of the above results with a mixture of order integration, the panel ARDL approach to cointegration is the most appropriate technique to investigate whether there exists a long-run relationship among the variables [ 42 ]. Table  3 illustrates that the estimated value of F-statistics, which is higher than the lower and upper limit of the bound value, when InEG is used as a dependent variable. Hence, we reject the null hypothesis of no cointegration \(H_{0 } : \emptyset_{1} = \emptyset_{2} = \emptyset_{3} = 0\) of Eq. ( 1 ). Therefore, the result asserts that international tourism, financial development and economic growth are significantly cointegrated over the period (1995–2015).

Subsequently, the study investigates the long-run and short-run impact of international tourism and financial development on economic growth. Lag length is selected on the principle of minimum Bayesian information criterion (SBC) value, which is 2 in our case. The long-run coefficients of financial development and tourism receipts with respect to economic growth in Table  4 indicate that tourism growth and financial development exerts positive influence on economic growth in the long run. In other words, an increase in volume of tourism receipts per capita and financial depth spurs economic growth and both the coefficients are statistically significant in case of BRICS nations in the long run. The results are interpreted in detail as below:

The elasticity coefficient of economic growth with respect to tourism shows that 1% rise in international tourism receipts per capita would imply an estimated increase of almost 0.31% domestic real income in the long run, all else remaining the same. Thus, the earnings in the form of foreign exchange from international tourism affect growth performance of BRICS nations positively. This finding of our study is in consonance with the empirical results of Kreishan for Jordan [ 30 ], Balaguer and Cantavella-Jordá [ 3 ] for Spain and Ohlan [ 43 ] for India.

Further our finding lend support to the wide applicability of the new growth theory proposed by Balassa which states that export expansion promote growth performance of nations. Thus, validates TLGH coined by Balaguer and Cantavell-Jorda [ 3 ] which states that inbound tourism acts a long-run economic growth factor. The so called tourism-led growth hypothesis suggests that the development of a country’s tourism industry will eventually lead to higher economic growth and, by extension, further economic development via spillovers and other multiplier effects.

Likewise, financial development as expected is found to be positively associated with economic growth. The coefficient of financial development states that 1% improvement in financial development will push up economic growth by 0.22% in the long run, keeping all other variables constant. The empirical results are consistent with the finding of Hassan et al. [ 19 ] for a panel of South Asian countries. Well-regulated and properly functioning financial development enhances domestic production through savings, borrowings & investment activities and boosts economic growth. Further, it promotes economic growth by increasing efficiency [ 7 ]. Levine [ 33 ] believes that financial intermediaries enhance economic efficiency, and ultimately growth, by helping allocation of capital to its best use. Modern growth theory identifies two specific channels through which the financial sector might affect long-run growth; through its impact on capital accumulation and through its impact on the rate of technological progress. The sub-prime crisis which depressed the economic growth worldwide in 2007 further substantiates the growth-financial development nexus.

In the third and final step of the bounds testing procedure, we estimate short-run dynamics of variables by estimating an error correction model associated with long-run estimates. The empirical finding indicates that the coefficient of error correction term (ECT) with one period lag is negative as well as statistically significant. This finding further substantiates the earlier cointegration results between tourism, financial development and economic growth, and indicates the speed of adjustment from the short-run toward long-run equilibrium path. The coefficient of ECT reveals that the short-run divergences in economic growth from long-run equilibrium are adjusted by 43% every year following a short-run shock.

The short-run parameters in Table  5 demonstrates that tourism and financial development acts as an engine of economic growth in the short run as well. The coefficient of both tourism receipts per capita and financial development with one period lag is also found to be progressive and significant in the short run. These results highlight the role of earnings from international tourism and financial stability as an important driving force of economic growth in BRICS nations in the short run as well.

Further, a comparison between short-run and long-run elasticity coefficients evince that long-run responsiveness of economic growth with respect to tourism and financial development is higher than that of short run. It exemplifies that over time higher international tourism receipts and well-regulated financial system in BRICS nations give more boost to economic growth.

Analysis of causality

At this stage, we investigate the causality between tourism, financial development and economic growth presented in Table  6 . The result shows bi-directional causal relationship between tourism and economic growth, thereby validates ‘feedback hypothesis’ and consequently supported both the tourism-led growth hypothesis (TLGH) and its reciprocal, the economic-driven tourism growth hypothesis (EDTH). The bi-directional causality between inbound tourism and GDP, which directs the level of economic activity and tourism growth, mutually influences each other in that a high volume of tourism growth leads to a high level of economic development and reverse also holds true. These results replicate the findings of Banday and Ismail [ 5 ] in the context of BRICS countries, Yazdi et al. [ 27 ] for Iran and Kim et al. [ 28 ] for Taiwan. One of the channels through which tourism spurs economic growth is through the use of receipts earned in the form of foreign currency. Thus, growth in foreign earnings may allow the import of technologically advances goods that will favor economic growth and vice versa. Thus, results demonstrate that international tourism promotes growth and in turn economic expansion is necessary for tourism development in case of BRICS countries. With respect to policy context, this finding suggests that the BRICS nations should focus on economic policies to promote tourism as a potential source of economic growth which in turn will further promote tourism growth.

Similarly, in case of economic growth and financial development, the findings demonstrate the presence of bi-directional causality between two constructs. The findings validate thus both ‘demand following’ and supply leading’ hypothesis. The findings suggests that indeed financial development plays a crucial role in promoting economic activity and thus generating economic growth for these countries and reverse also holds. Our findings are in line with Pradhan [ 48 ] in case of BRICS countries and Hassan et al. [ 19 ] for low and middle-income countries. This suggests that finance development can be used as a policy variable to foster economic growth in the five BRICS countries and vice versa. The study emphasizes that the current economic policies should recognize the finance-growth nexus in BRICS in order to maintain sustainable economic development in the economy. The empirical results in this paper are in line with expectations, confirming that the emerging economies of the BRICS are benefiting from their finance sectors.

Finally, two-sided causal relationship is found between tourism receipts and financial development. That is, tourism might contribute to financial development and, in return, financial development may positively contribute to tourism. This means that financial depth and tourism in BRICS have a reinforcing interaction. The positive impact of tourism on financial development can be attributed to the fact that inflows of foreign exchange via international tourism not only increases income levels but also leads to rise in official reserves of central banks. This in turn enables central banks to adapt expansionary monetary policy. The positive contribution of financial sector to tourism is further characterized by supply leading hypothesis. Further, better financial and market conditions will attract tourism entrepreneurship, because firms will be able to use more capital instead of being forced to use leveraging [ 13 ]. Hence, any shocks in money supply could adversely affect tourism industry in these countries. Song and Lin [ 56 ] found that global financial crisis had a negative impact on both inbound and outbound tourism in Asia. This result is in consistent with Başarir and Çakir [ 6 ] for Turkey and four European countries.

Stability tests

In addition, to test the stability of parameters estimated and any structural break in the model CUSUM and CUSUMSQ tests are employed. Figs.  1 and 2 show blue line does not transcend red lines in both the tests, thus provides strong evidence that our estimated model is fit and valid policy implications can be drawn from the results.

figure 1

Plot of CUSUM

figure 2

Plot of CUSUMQ

Summary and concluding remarks

A rigorous study of the relationship between tourism and economic growth, through the tourism-led growth hypothesis (TLGH) perspective has remained a debatable issue in the economic growth literature. This study aims to empirically investigate the relationship between inbound tourism, financial development and economic growth in BRICS countries by utilizing the panel data over the period 1995–2015. The study employs the panel ARDL approach to cointegration and Dumitrescu-Hurlin panel Granger causality test to detect the direction of causation.

To the best of authors’ knowledge, this is the first study which explored the relationship between economic growth and tourism while considering the relative importance of financial development in the context of BRICS nations. The empirical results of ARDL model posits that in BRICS countries inbound tourism, financial development and economic growth are significantly cointegrated, i.e., variables have stable long-run relationship. This methodology has allowed obtaining elasticities of economic growth with respect to tourism and financial development both in the long run and short run. The result reveals that international tourism growth and financial development positively affects economic growth both in the long run and short run. The coefficient of tourism indicates that with a 1% rise in tourism receipts per capita, GDP per capita of BRICS economies will go up by 0.31% in the long run. This finding lends support to TLGH coined by Balaguer and Cantavell-Jorda [ 3 ] which states that inbound tourism acts a long-run economic growth factor. The so called tourism-led growth hypothesis suggests that the development of a country’s tourism industry will eventually lead to higher economic growth and, by extension, further economic development via spillovers and other multiplier effects.

Likewise, 1% improvement in financial development, on average, will increase economic growth in BRICS countries by 0.22% in the long run. The result seems logical as modern growth theory identifies two channels through which the financial sector might affect long-run growth: first, through its impact on capital accumulation and secondly, through its impact on the rate of technological progress. The sub-prime crisis which hit the economic growth Worldwide in 2007 further substantiates the growth-financial development nexus.

The negative and statistically significant coefficient of lagged error correction term (ECT) further substantiates the long-run equilibrium relationship among variables. The negative coefficient of ECT also shows the speed of adjustment toward long-run equilibrium is 43% per annum if there is any short-run deviation. The estimates of parameters are found to be stable by applying CUSUM and CUSUMQ for the time period under consideration. Therefore, inbound tourism earnings and financial institutions can be used as a channel to increase economic growth in BRICS economies.

Further, Granger causality test result indicates the bi-directional causation in all cases. Hence, the causal relationship between international tourism and economic growth is bi-directional. And, consequently this empirical finding lends support to both the tourism-led growth hypothesis (TLGH) and its reciprocal, the economic-driven tourism growth hypothesis (EDTH). This means that tourism is not only an engine for economic growth, but the economic outcome on itself can play an important role in providing growth potential to tourism sector.

The Granger causality findings provide useful information to governments to examine their economic policy, to adjust priorities regarding economic investment, and boost their economic growth with the given limited resources. Thus, it is suggested that more resources should be allocated to tourism industry and tourism-related industries if the tourism-led growth hypothesis holds true. On the other side, if economic-driven tourism growth is supported then more resources should be diverted to leading industries rather than the travel and tourism sector, and the tourism industry will in turn benefit from the resulting overall economic growth. And, when bi-directional causality is detected, a balanced allocation of economic resources for the travel and tourism sector and other industries is important and necessary. The policy implication is that resource allocation supporting both the tourism and tourism-related industries could benefit both tourism development and economic growth.

To sum up, the major finding of this study lends support to wide applicability of the tourism-led growth hypothesis in case of BRICS countries. Thus, in the Policy context, significant impact of tourism on BRICS economy rationalizes the need of encouraging tourism. Tourism can spur economic prosperity in these countries and for this reason; policymakers should give serious consideration toward encouraging tourism industry or inbound tourism. BRICS countries should focus more on tourism infrastructure, such as, convenient transportation, alluring destinations, suitable tax incentives, viable hostels and proper security arrangements to attract the potential tourists. Most of these countries are devoid of rich facilities and popular tourist incentives, to get promoted as important destination and in the long-run promotes economic growth. Further, they need a staunch support from all sections of authorities, non-government organizations (NGOs), and private and allied industries, in the endeavor to attain sustainable growth in tourism. Both state and non-state actors must recognize this growing industry and its positive implication on economy.

For future research, we suggest that researchers should consider the nonlinear factor in the dynamic relationship of tourism and economic growth in case of BRICS countries. Further one can go for comparative study to examine the TLGH in BRICS countries.

Availability of data and materials

Data used in the study can be provided by the corresponding author on request.

There are no fixed definitions of short, medium and long run and generally in macroeconomics, short run can be viewed as 1 to 2 or 3 years, medium up to 5 years and long run from 5 years to 20 or 25 years.

Abbreviations

autoregressive distributed lag model

Brazil, Russia, India, China and South-Africa

United Nations World Tourism Organization

World Travel & Tourism Council

gross domestic product

world development indicators

tourism-led growth hypothesis

export-led growth hypothesis

economic-driven tourism hypothesis

augmented Dickey–Fuller test

error correction model

error correction term

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Haroon Rasool & Md. Tarique

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Rasool, H., Maqbool, S. & Tarique, M. The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis. Futur Bus J 7 , 1 (2021). https://doi.org/10.1186/s43093-020-00048-3

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DOI : https://doi.org/10.1186/s43093-020-00048-3

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Tourism growth slows following huge gains during Covid

Mar. 11—The huge growth seen in Haywood County tourism since 2018 continued to slow last year, measured by overnight room tax collections.

The room tax collected from overnight tourists grew from $1.5 million to $3 million during the previous five years — with the biggest gains seen during 2020 and 2021.

Growth began to level off in 2022 with an increase of only 6.5%. It plateaued even more in 2023 with an increased of only 3.75%.

Still, tourism has a huge impact on the local economy, from providing jobs to supporting the bottom line of local businesses.

"Visitors are hugely important to our economy," said Corrina Ruffieux, the TDA executive director.

Ruffieux presented an annual report to the TDA board last week assessing the latest numbers.

Visitors to Haywood County spent over $336 million dollars and supported 2,063 jobs in Haywood County last year. This is according to an annual report by N.C. Travel and Tourism that estimates visitor spending as a multiplier based on overnight room tax collections.

In addition to economic impact, visitor spending also supports projects that benefit the quality of life in Haywood County. In 2023, the TDA provided grants for 25 capital projects to the tune of $436,840, elevating the destination experience for both visitors and residents.

Those ranged from greenway and trail projects to Christmas decorations and murals.

"We, from a tourism perspective, invested a fair amount of money back in our community, making it a better place to visit, and a better place to live," Ruffieux said. "Paid for by our visitors."

The Haywood County Tourism Development Authority has launched several new initiatives over the past year — one of which is tracking where tourists come from and what they do while they're here.

The data is harnessed from people's phones by a destination tracking service called Zartico.

"So we know where they come from, and how much they spend," Ruffieux said.

Around 21% of visitors to Haywood County are coming from elsewhere in North Carolina. The next top four states for visitation are Florida, Georgia, South Carolina, and Tennessee. Outdoor recreation was the most popular activity among visitors based on geotracking.

The TDA made gains in social media reach, streamlining its social media from seven channels to four, which in turn doubled engagement. Their overall audience increased by 18%. Interactions on Instagram increased by 95% and 102% increase on Facebook.

"Very, very pleased with those efforts. They weren't easy. But they make a big difference," Ruffieux said.

Additionally, the NC Smokies visitor guide saw a 70% increase in digital views, the digital downloads were 228,878 and 50,000 copies were printed.

To view the annual report go to haywoodtda.com/annual-report .

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Number of Airbnb listings in selected cities in the United States as of February 2024

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Travelers who find sustainable travel important in the U.S. 2022

Share of travelers that think sustainable travel is important in the United States as of February 2022

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Share of travelers that intend to make more sustainable travel decisions in the United States as of March 2022

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Extra cost travelers would be willing to pay to make a trip more carbon friendly in the United States as of March 2022

U.S. consumers who have paid extra for sustainable travel in the past two years 2022

Share of consumers that have paid extra for sustainable travel in the past two years in the United States as of February 2022

U.S. consumers willing to pay extra for a sustainable travel provider 2022

Share of consumers willing to pay extra for a sustainable travel provider in the United States as of February 2022

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  • Tuesday, March 12, 2024
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Hawaii News

Tourism slowdown contributes to lower economic growth in hawaii.

tourism growth

CINDY ELLEN RUSSELL / FEB. 26

This year the state Department of Business, Economic Development and Tourism expects visitor arrivals to reach 9.8 million, which is 5% below the peak 10.3 million out-of-state visitors that came to Hawaii in 2019. Loungers and umbrellas line the beach in Waikiki.

tourism growth

Waikiki Beach Walk was quiet on a Monday morning in February.

tourism growth

A woman waits to cross Royal Hawaiian Avenue at Kalakaua Avenue in Waikiki.

tourism growth

STAR-ADVERTISER

“Our economy is going to grow slowly in 2024, and while it is not a recession, it will be slower than our growth last year and slower than the nation’s economic growth.”

Jimmy Tokioka

Director, state Department of Business, Economic Development and Tourism

Visitor arrivals to Hawaii are not expected to fully recover until 2027, according to the latest economic forecast from the Department of Business, Economic Development and Tourism. Read more

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Visitor arrivals to Hawaii are not expected to fully recover until 2027, according to the latest economic forecast from the Department of Business, Economic Development and Tourism.

The overall theme of DBEDT’s first-quarter 2024 Statistical and Economic Report released Wednesday was continued lower economic growth in Hawaii, including tourism, which has lagged behind the recovery of the state’s overall economy.

In its latest forecast, DBEDT revised slightly upward its economic growth projections for 2024 to 1.5% of real gross domestic product from an earlier forecast of 1.3%. DBEDT’s projections for 2025-2027 remain at about 2% economic growth.

Still, that’s a drop in real GDP growth from the 4% or so that Hawaii has averaged over the past three years. Why does it matter? Put simply, real GDP is an inflation-­adjusted calculation reflecting the value of all the goods and serv­ices produced by an economy in a given year. A decrease in GDP signals that an economy is shrinking.

DBEDT Director Jimmy Tokioka said in a statement, “Our new forecast has three implications: (1) our economy is going to grow slowly in 2024, and while it is not a recession, it will be slower than our growth last year and slower than the nation’s economic growth; (2) it will take longer than expected for our economy to recover to the pre-pandemic level, about seven years for tourism and job recovery; and (3) the impacts of the Maui wildfires may last a few years and the impacts will continue to affect the other counties.”

The economic results reiterate that tourism, which in 2017 comprised at least 17.2% of the statewide economy, plays a major role in how Hawaii’s economy fares.

For instance, Hawaii’s real GDP in the third quarter of 2023, the latest estimate available, recovered to 97.7% of the same period in 2019, according to data from the U.S. Bureau of Economic Analysis. But Hawaii’s tourism sector was the drag with a recovery of about 90% of the 2019 level in the third quarter of 2023 compared to Hawaii’s nontourism sectors, which were fully recovered. The tourism sector includes transportation, retail trade, entertainment and recreation, accommodation, and food service industries

This year DBEDT expects visitor arrivals to Hawaii will reach 9.8 million. That’s less than 5% below the peak 10.3 million out-of-state visitors that came to Hawaii in 2019. Still, given the softening, DBEDT does not expect Hawaii tourism arrivals to fully recover until 2027 with 10.4 million visitors.

DBEDT has forecast that nominal visitor spending, which hasn’t been adjusted for inflation, will reach $21.4 billion this year and will increase to $23.7 billion by 2027. That compares to $20.78 billion in visitor spending in 2023, $19.70 billion in 2022, and $17.72 billion in 2019.

The DBEDT results were released as the Hawaii Tourism Authority and its stakeholders gathered for a virtual spring marketing update from HTA’s global marketing teams.

Mufi Hannemann, Hawaii Tourism Authority board chair, said during the HTA’s spring marketing update, “We have before us some unprecedented challenges, but I’ve always believed that every crisis presents an opportunity. Today it’s all about a tourism update where we will unveil what the proactive plans are for the Hawaii Tourism Authority.”

The pressure is on HTA’s global marketing teams to bolster Hawaii’s economy by stimulating travel demand, while ensuring that tourism’s impact does not outweigh the economic benefits.

“Today is all about learning more about our plans to bring back travel from our base market, the United States; Canada; our international markets, bringing more business here for our convention center,” Hannemann said. “Our pledge from the board to our marketing partners is that we’ll do whatever it takes — whether it’s seeking additional funding, whether it’s supporting their efforts, whether it’s helping with their messaging — to make sure that everyone understands, ‘Now is the time to return to Hawaii.’”

HTA’S newly formed stewardship team is headed by HTA Chief Stewardship Officer Kalanai Ka‘ana‘ana, who said branding and stewardship efforts must stay linked.

“Really when we think about it quite simply (stewardship) is about ‘How do we protect what makes Hawaii so special? How do we make sure that we as an industry can be more sustainable in what we do from an environmental standpoint as well as economic and justice and other (diversity, equity and inclusion) opportunities? And then again, how do we highlight and showcase the best that Hawaii has to offer?’”

Hannemann offered Makaukau (We are Ready) Maui as an example of a campaign that fuses branding with stewardship. Makaukau, which is part of HTA’s strategy to support Maui’s recovery, sends a message to visitors that Maui residents are now ready to welcome them.

“Makaukau Maui was an opportunity to convey a message of hope and of optimism — not only because we want to see economic recovery take place on that very special island with residents saying, in effect, that they want people to come back and experience what has made Maui so special through the years — the spirit of aloha, the warmth, the beauty of Maui. But it’s also an opportunity to give a psychological boost to a community that has been suffering incredibly,” he said. “We want to support the efforts of our Gov. Josh Green, of Maui Mayor Richard Bissen, the state Legislature, the (Maui) County Council — all pulling together in recognizing that this is the industry that is the revenue generator in the state.”

While travel from Hawaii’s core domestic markets continues to decline, recovery is underway for Hawaii’s international markets — albeit not at a level to fully offset the dampening in domestic arrivals.

Tokioka said, “Though it will take time for our economy to recover and grow, we see signs of improvement. The recovery of airlift from Japan and other international destinations is promising, and we saw the passenger count from Japan increase by 84% during the first two months of 2024 compared to the same period a year ago. As we expected, the passenger count from Japan in the first two months of 2024 reached more than 60% of the level from same period in 2019. We are hopeful that this trend will continue for the rest of the year.”

Eric Takahata, managing director for Hawai‘i Tourism Japan, said new campaigns for the market are pivoting away from Malama (take care of Hawaii) core brand messaging of the COVID- 19 and early-post COVID era.

“You’ll see our messaging start to get a little more aggressive and really just concentrating on returning the business as quick as possible,” Takahata said.

He said a campaign called Beautiful Hawaii was launched in October, and another called Yappari Hawai‘i (It’s Got To Be Hawaii) started over the holidays and has continued into the first quarter.

Branding in HTA’s other global markets focused more on the Malama campaign. However, the messaging was more welcoming than during the COVID-era, or in the aftermath of the Aug. 8 Maui wildfires, when government officials and celebrities initially told visitors to stay home.

Jay Talwar, chief marketing officer for Hawai‘i Tourism USA, said, “Our messaging strategy is really two-pronged: It continues to invite visitors to our destination. Show the benefits of a vacation in Hawaii versus other destinations before they’ve made that selection. And, once they have selected to come to Hawaii, share a bit more of the kuleana (responsibility) or education messaging with them pre-arrival.”

Some of the new marketing taglines are: “No filter necessary,” “POV: You’re on your way to Hawaii,” “Fresh Perspectives,” and “Hawaii Cuisine.”

Talwar said the latest social media campaigns, including one interactive creative that replicates the concept of a phone photo library, will come out in March. He added that videos will come out in June as part of the Malama campaign’s next phase.

On the Move: Junior Achievement of Hawaii

Repeal of legislature’s authority over same-sex marriages considered.

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Music tourism as Singapore’s new growth driver

tourism growth

With the trade recovery yet to fully take off, Singapore is busy making music tourism its new growth driver. British rock band Coldplay performed in January, while American pop star Taylor Swift wrapped up her six-night, sold-out concerts two nights ago, on March 9. There are more concerts to come for the rest of 2024.

While the Lion City has traditionally been more a magnet for business travel, these global music events are a boon for Singapore’s travel-related services. A recently implemented scheme where citizens of China can enter Singapore without a visa for a stay of up to 30 days also helps. Indeed, as we enter the Year of the Dragon, the talk of the town among people in Singapore is how many Coldplay and Taylor Swift concerts they have been to, and which concerts they are planning to go to next.

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The Philippine economy in 2024: Stronger for longer?

The Philippines ended 2023 on a high note, being the fastest growing economy across Southeast Asia with a growth rate of 5.6 percent—just shy of the government's target of 6.0 to 7.0 percent. 1 “National accounts,” Philippine Statistics Authority, January 31, 2024; "Philippine economic updates,” Bangko Sentral ng Pilipinas, November 16, 2023. Should projections hold, the Philippines is expected to, once again, show significant growth in 2024, demonstrating its resilience despite various global economic pressures (Exhibit 1). 2 “Economic forecast 2024,” International Monetary Fund, November 1, 2023; McKinsey analysis.

The growth in the Philippine economy in 2023 was driven by a resumption in commercial activities, public infrastructure spending, and growth in digital financial services. Most sectors grew, with transportation and storage (13 percent), construction (9 percent), and financial services (9 percent), performing the best (Exhibit 2). 3 “National accounts,” Philippine Statistics Authority, January 31, 2024. While the country's trade deficit narrowed in 2023, it remains elevated at $52 billion due to slowing global demand and geopolitical uncertainties. 4 “Highlights of the Philippine export and import statistics,” Philippine Statistics Authority, January 28, 2024. Looking ahead to 2024, the current economic forecast for the Philippines projects a GDP growth of between 5 and 6 percent.

Inflation rates are expected to temper between 3.2 and 3.6 percent in 2024 after ending 2023 at 6.0 percent, above the 2.0 to 4.0 percent target range set by the government. 5 “Nomura downgrades Philippine 2024 growth forecast,” Nomura, September 11, 2023; “IMF raises Philippine growth rate forecast,” International Monetary Fund, July 16, 2023.

For the purposes of this article, most of the statistics used for our analysis have come from a common thread of sources. These include the Central Bank of the Philippines (Bangko Sentral ng Pilipinas); the Department of Energy Philippines; the IT and Business Process Association of the Philippines (IBPAP); and the Philippines Statistics Authority.

The state of the Philippine economy across seven major sectors and themes

In the article, we explore the 2024 outlook for seven key sectors and themes, what may affect each of them in the coming year, and what could potentially unlock continued growth.

Financial services

The recovery of the financial services sector appears on track as year-on-year growth rates stabilize. 6 Philippines Statistics Authority, November 2023; McKinsey in partnership with Oxford Economics, November 2023. In 2024, this sector will likely continue to grow, though at a slower pace of about 5 percent.

Financial inclusion and digitalization are contributing to growth in this sector in 2024, even if new challenges emerge. Various factors are expected to impact this sector:

  • Inclusive finance: Bangko Sentral ng Pilipinas continues to invest in financial inclusion initiatives. For example, basic deposit accounts (BDAs) reached $22 million in 2023 and banking penetration improved, with the proportion of adults with formal bank accounts increasing from 29 percent in 2019 to 56 percent in 2021. 7 “Financial inclusion dashboard: First quarter 2023,” Bangko Sentral ng Pilipinas, February 6, 2024.
  • Digital adoption: Digital channels are expected to continue to grow, with data showing that 60 percent of adults who have a mobile phone and internet access have done a digital financial transaction. 8 “Financial inclusion dashboard: First quarter 2023,” Bangko Sentral ng Pilipinas, February 6, 2024. Businesses in this sector, however, will need to remain vigilant in navigating cybersecurity and fraud risks.
  • Unsecured lending growth: Growth in unsecured lending is expected to continue, but at a slower pace than the past two to three years. For example, unsecured retail lending for the banking system alone grew by 27 percent annually from 2020 to 2022. 9 “Loan accounts: As of first quarter 2023,” Bangko Sentral ng Pilipinas, February 6, 2024; "Global banking pools,” McKinsey, November 2023. Businesses in this field are, however, expected to recalibrate their risk profiling models as segments with high nonperforming loans emerge.
  • High interest rates: Key interest rates are expected to decline in the second half of 2024, creating more accommodating borrowing conditions that could boost wholesale and corporate loans.

Supportive frameworks have a pivotal role to play in unlocking growth in this sector to meet the ever-increasing demand from the financially underserved. For example, financial literacy programs and easier-to-access accounts—such as BDAs—are some measures that can help widen market access to financial services. Continued efforts are being made to build an open finance framework that could serve the needs of the unbanked population, as well as a unified credit scoring mechanism to increase the ability of historically under-financed segments, such as small and medium-sized enterprises (SMEs), to access formal credit. 10 “BSP launches credit scoring model,” Bangko Sentral ng Pilipinas, April 26, 2023.

Energy and Power

The outlook for the energy sector seems positive, with the potential to grow by 7 percent in 2024 as the country focuses on renewable energy generation. 11 McKinsey analysis based on input from industry experts. Currently, stakeholders are focused on increasing energy security, particularly on importing liquefied natural gas (LNG) to meet power plants’ requirements as production in one of the country’s main sources of natural gas, the Malampaya gas field, declines. 12 Myrna M. Velasco, “Malampaya gas field prod’n declines steeply in 2021,” Manila Bulletin , July 9, 2022. High global inflation and the fact that the Philippines is a net fuel importer are impacting electricity prices and the build-out of planned renewable energy projects. Recent regulatory moves to remove foreign ownership limits on exploration, development, and utilization of renewable energy resources could possibly accelerate growth in the country’s energy and power sector. 13 “RA 11659,” Department of Energy Philippines, June 8, 2023.

Gas, renewables, and transmission are potential growth drivers for the sector. Upgrading power grids so that they become more flexible and better able to cope with the intermittent electricity supply that comes with renewables will be critical as the sector pivots toward renewable energy. A recent coal moratorium may position natural gas as a transition fuel—this could stimulate exploration and production investments for new, indigenous natural gas fields, gas pipeline infrastructure, and LNG import terminal projects. 14 Philippine energy plan 2020–2040, Department of Energy Philippines, June 10, 2022; Power development plan 2020–2040 , Department of Energy Philippines, 2021. The increasing momentum of green energy auctions could facilitate the development of renewables at scale, as the country targets 35 percent share of renewables by 2030. 15 Power development plan 2020–2040 , 2022.

Growth in the healthcare industry may slow to 2.8 percent in 2024, while pharmaceuticals manufacturing is expected to rebound with 5.2 percent growth in 2024. 16 McKinsey analysis in partnership with Oxford Economics.

Healthcare demand could grow, although the quality of care may be strained as the health worker shortage is projected to increase over the next five years. 17 McKinsey analysis. The supply-and-demand gap in nursing alone is forecast to reach a shortage of approximately 90,000 nurses by 2028. 18 McKinsey analysis. Another compounding factor straining healthcare is the higher than anticipated benefit utilization and rising healthcare costs, which, while helping to meet people's healthcare budgets, may continue to drive down profitability for health insurers.

Meanwhile, pharmaceutical companies are feeling varying effects of people becoming increasingly health conscious. Consumers are using more over the counter (OTC) medication and placing more beneficial value on organic health products, such as vitamins and supplements made from natural ingredients, which could impact demand for prescription drugs. 19 “Consumer health in the Philippines 2023,” Euromonitor, October 2023.

Businesses operating in this field may end up benefiting from universal healthcare policies. If initiatives are implemented that integrate healthcare systems, rationalize copayments, attract and retain talent, and incentivize investments, they could potentially help to strengthen healthcare provision and quality.

Businesses may also need to navigate an increasingly complex landscape of diverse health needs, digitization, and price controls. Digital and data transformations are being seen to facilitate improvements in healthcare delivery and access, with leading digital health apps getting more than one million downloads. 20 Google Play Store, September 27, 2023. Digitization may create an opportunity to develop healthcare ecosystems that unify touchpoints along the patient journey and provide offline-to-online care, as well as potentially realizing cost efficiencies.

Consumer and retail

Growth in the retail and wholesale trade and consumer goods sectors is projected to remain stable in 2024, at 4 percent and 5 percent, respectively.

Inflation, however, continues to put consumers under pressure. While inflation rates may fall—predicted to reach 4 percent in 2024—commodity prices may still remain elevated in the near term, a top concern for Filipinos. 21 “IMF raises Philippine growth forecast,” July 26, 2023; “Nomura downgrades Philippines 2024 growth forecast,” September 11, 2023. In response to challenging economic conditions, 92 percent of consumers have changed their shopping behaviors, and approximately 50 percent indicate that they are switching brands or retail providers in seek of promotions and better prices. 22 “Philippines consumer pulse survey, 2023,” McKinsey, November 2023.

Online shopping has become entrenched in Filipino consumers, as they find that they get access to a wider range of products, can compare prices more easily, and can shop with more convenience. For example, a McKinsey Philippines consumer sentiment survey in 2023 found that 80 percent of respondents, on average, use online and omnichannel to purchase footwear, toys, baby supplies, apparel, and accessories. To capture the opportunity that this shift in Filipino consumer preferences brings and to unlock growth in this sector, retail organizations could turn to omnichannel strategies to seamlessly integrate online and offline channels. Businesses may need to explore investments that increase resilience across the supply chain, alongside researching and developing new products that serve emerging consumer preferences, such as that for natural ingredients and sustainable sources.

Manufacturing

Manufacturing is a key contributor to the Philippine economy, contributing approximately 19 percent of GDP in 2022, employing about 7 percent of the country’s labor force, and growing in line with GDP at approximately 6 percent between 2023 and 2024. 23 McKinsey analysis based on input from industry experts.

Some changes could be seen in 2024 that might affect the sector moving forward. The focus toward building resilient supply chains and increasing self-sufficiency is growing. The Philippines also is likely to benefit from increasing regional trade, as well as the emerging trend of nearshoring or onshoring as countries seek to make their supply chains more resilient. With semiconductors driving approximately 45 percent of Philippine exports, the transfer of knowledge and technology, as well as the development of STEM capabilities, could help attract investments into the sector and increase the relevance of the country as a manufacturing hub. 24 McKinsey analysis based on input from industry experts.

To secure growth, public and private sector support could bolster investments in R&D and upskill the labor force. In addition, strategies to attract investment may be integral to the further development of supply chain infrastructure and manufacturing bases. Government programs to enable digital transformation and R&D, along with a strategic approach to upskilling the labor force, could help boost industry innovation in line with Industry 4.0 demand. 25 Industry 4.0 is also referred to as the Fourth Industrial Revolution. Priority products to which manufacturing industries could pivot include more complex, higher value chain electronic components in the semiconductor segment; generic OTC drugs and nature-based pharmaceuticals in the pharmaceutical sector; and, for green industries, products such as EVs, batteries, solar panels, and biomass production.

Information technology business process outsourcing

The information technology business process outsourcing (IT-BPO) sector is on track to reach its long-term targets, with $38 billion in forecast revenues in 2024. 26 Khriscielle Yalao, “WHF flexibility key to achieving growth targets—IBPAP,” Manila Bulletin , January 23, 2024. Emerging innovations in service delivery and work models are being observed, which could drive further growth in the sector.

The industry continues to outperform headcount and revenue targets, shaping its position as a country leader for employment and services. 27 McKinsey analysis based in input from industry experts. Demand from global companies for offshoring is expected to increase, due to cost containment strategies and preference for Philippine IT-BPO providers. New work setups continue to emerge, ranging from remote-first to office-first, which could translate to potential net benefits. These include a 10 to 30 percent increase in employee retention; a three- to four-hour reduction in commute times; an increase in enabled talent of 350,000; and a potential reduction in greenhouse gas emissions of 1.4 to 1.5 million tons of CO 2 per year. 28 McKinsey analysis based in input from industry experts. It is becoming increasingly more important that the IT-BPO sector adapts to new technologies as businesses begin to harness automation and generative AI (gen AI) to unlock productivity.

Talent and technology are clear areas where growth in this sector can be unlocked. The growing complexity of offshoring requirements necessitates building a proper talent hub to help bridge employee gaps and better match local talent to employers’ needs. Businesses in the industry could explore developing facilities and digital infrastructure to enable industry expansion outside the metros, especially in future “digital cities” nationwide. Introducing new service areas could capture latent demand from existing clients with evolving needs as well as unserved clients. BPO centers could explore the potential of offering higher-value services by cultivating technology-focused capabilities, such as using gen AI to unlock revenue, deliver sales excellence, and reduce general administrative costs.

Sustainability

The Philippines is considered to be the fourth most vulnerable country to climate change in the world as, due to its geographic location, the country has a higher risk of exposure to natural disasters, such as rising sea levels. 29 “The Philippines has been ranked the fourth most vulnerable country to climate change,” Global Climate Risk Index, January 2021. Approximately $3.2 billion, on average, in economic loss could occur annually because of natural disasters over the next five decades, translating to up to 7 to 8 percent of the country’s nominal GDP. 30 “The Philippines has been ranked the fourth most vulnerable country to climate change,” Global Climate Risk Index, January 2021.

The Philippines could capitalize on five green growth opportunities to operate in global value chains and catalyze growth for the nation:

  • Renewable energy: The country could aim to generate 50 percent of its energy from renewables by 2040, building on its high renewable energy potential and the declining cost of producing renewable energy.
  • Solar photovoltaic (PV) manufacturing: More than a twofold increase in annual output from 2023 to 2030 could be achieved, enabled by lower production costs.
  • Battery production: The Philippines could aim for a $1.5 billion domestic market by 2030, capitalizing on its vast nickel reserves (the second largest globally). 31 “MineSpans,” McKinsey, November 2023.
  • Electric mobility: Electric vehicles could account for 15 percent of the country’s vehicle sales by 2030 (from less than 1 percent currently), driven by incentives, local distribution, and charging infrastructure. 32 McKinsey analysis based on input from industry experts.
  • Nature-based solutions: The country’s largely untapped total abatement potential could reach up to 200 to 300 metric tons of CO 2 , enabled by its biodiversity and strong demand.

The Philippine economy: Three scenarios for growth

Having grown faster than other economies in Southeast Asia in 2023 to end the year with 5.6 percent growth, the Philippines can expect a similarly healthy growth outlook for 2024. Based on our analysis, there are three potential scenarios for the country’s growth. 33 McKinsey analysis in partnership with Oxford Economics.

Slower growth: The first scenario projects GDP growth of 4.8 percent if there are challenging conditions—such as declining trade and accelerated inflation—which could keep key policy rates high at about 6.5 percent and dampen private consumption, leading to slower long-term growth.

Soft landing: The second scenario projects GDP growth of 5.2 percent if inflation moderates and global conditions turn out to be largely favorable due to a stable investment environment and regional trade demand.

Accelerated growth: In the third scenario, GDP growth is projected to reach 6.1 percent if inflation slows and public policies accommodate aspects such as loosening key policy rates and offering incentive programs to boost productivity.

Focusing on factors that could unlock growth in its seven critical sectors and themes, while adapting to the macro-economic scenario that plays out, would allow the Philippines to materialize its growth potential in 2024 and take steps towards achieving longer-term, sustainable economic growth.

Jon Canto is a partner in McKinsey’s Manila office, where Frauke Renz is an associate partner, and Vicah Villanueva is a consultant.

The authors wish to thank Charlene Chua, Charlie del Rosario, Ryan delos Reyes, Debadrita Dhara, Evelyn C. Fong, Krzysztof Kwiatkowski, Frances Lee, Aaron Ong, and Liane Tan for their contributions to this article.

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Saudi Tourism CEO: Lionel Messi Ad Campaign Targets Traveler ‘Preconceptions’

Dawit Habtemariam

Dawit Habtemariam , Skift

March 11th, 2024 at 2:58 PM EDT

Saudi Arabia is trying to change the negative perceptions held by some international tourists.

Dawit Habtemariam

In Saudi Arabia’s latest tourism campaign , Argentine soccer star Lionel Messi aims to bust the stereotypes global travelers may have about the kingdom. The campaign emphasizes that Saudi Arabia has a lot to offer and is a welcoming destination, said Fahd Hamidaddin , CEO of the Saudi Tourism Authority .

Saudi has been hyperfocused on cutting its dependence on oil and diversifying its economy. Over the next 10 years, the country plans to invest $1 trillion in its tourism sector and wants to become a global tourist destination.

Hamidaddin spoke with Skift at the ITB Berlin travel trade show last week about growth from European travelers, how the $25 million Messi marketing campaign performed, the kingdom’s dependence on tour operators, and more.

This interview has been edited for clarity and length.

Growth in Tourism to Saudi Arabia

Skift: How much has tourism to Saudi grown over the last few years? How much has it grown from Europe?

Hamidaddin: In the grand scheme of things, Saudi is simply growing in all markets, all its new destinations. And we’re not starting from scratch. Saudi Arabia receives a lot of inbound travelers for religious travel to Mecca and Medina, so we’re starting on a high base. We have a lot of inbound for business travel. We have a lot of inbound for visits, friends and family.

With a very high base, going at the highest speed of growth five years in a row, that’s definitely a good testament.

We had set a target of a hundred million visits by 2030. Thankfully, we exceeded that a lot earlier. Now we have a new target, 150 million by 2030 . [ Saudi Arabia’s tourism minister has previously said that would break down as 80 million domestic travelers and 70 million from international destinations.

From Europe, we grew by 67% last year. [Saudi welcomed over 1 million European travelers, officials told Skift. About 775,000 visitors came for leisure.]

Last year, we launched around 20 routes [by air]. This year we’re launching an additional 10 routes to Europe.

Our destinations are opening one resort after the other on a weekly basis. There’s a new opening every week in different cities in Saudi. So we are very bullish when it comes to investment.

And we can’t be but bullish in generating demand, meaning, if you’re doing all the supply and you’re investing $800 billion in creating, offering and developing destinations, you want to make sure you equally invest in demand.

The Lionel Messi Campaign

Skift: Saudi Arabia recently launched a “Go Beyond What You Think” tourism campaign featuring Lionel Messi. What struck me was how explicit the campaign was. Messi literally kicked the ball at some criticisms I’ve heard about Saudi Arabia.

Hamidaddin: It’s true. Mark Twain said travel is fatal for prejudice, and that was the starting point. And we talked to UN tourism, and they launched the Tourism Opens Minds campaign. We wanted to collaborate and do the same. 

This is a conversation that the world needs. It’s not just Saudi. Prejudice and preconceptions are available about so many destinations. Promoting new destinations immediately comes with certain perceptions. 

Saudi launched this campaign and audiences liked it. While the finer results have not been measured, the initial readings tell us that this has performed better than all the campaigns that we formed. We’ve launched nearly 10. People watched that campaign to the end. The view-to-completion rate was 40% higher than the best other campaign that we did.

There will be new campaigns and new stars, new stars because every day we get a new star moving into Saudi. Messi did not move, but others did. Let’s hear from the insiders that actually made it.

Skift: How does the Lionel Messi ad fit into your overall marketing strategy?

Hamidaddin: We need to make sure that people are aware, excited about our offering, and comforted about what the reality is about Saudi.

All those preconceptions that people may have had, such as that maybe women wouldn’t feel safe being alone. We can respond by noting, for example, InsureMyTrip’s index, which comes out of India, rated the safety of destinations for all their travelers and trade partners. They included Saudi in their index last year, and we scored in one of our cities, the safest city for women, for women alone after midnight. 

We’ve been telling the world that this is the home of the Arabian Wonders, from UNESCO heritage sites to civilizations that have passed through this land. 

We’re also building a lot of activations and events like no other place in the world. Last year, we had 11,000 events executed.

We are launching our prime offering on the Red Sea. “Sun and sea” is one of the biggest attraction magnets for Europe, and Saudi is going big on that now, but it’s no longer talk. It’s a reality. Red Sea Global launched the St. Regis Resort, the Six Senses Resort, and another Ritz-Carlton is opening. Next year, we’re expecting eight more resorts. Sindalah in NEOM is launching its first island. It’s going to be second to none. 

tourism growth

How to Attract U.S. Travelers

Skift: What do you think will have the biggest draw on travel from the U.S.?

Hamidaddin: The longer the distance, the more segmented you need to be.

People usually fly long distances for sun and sea, especially romantic getaways or cultural exploration. Arabia has a lot of mystique.

Disney is a machine that has been talking about Aladdin and the land of Arabia, and this land is here. Lawrence Arabia came as a movie. And so Arabia does land with a positive intrigue and mystic appeal to the American segments.

And we’ve been seeing interest, especially amongst luxury travelers and cultural travelers. With our sun and sea offering expanding, I will see “sun and sea” becoming probably one of our biggest drivers of travel from the U.S.

The Importance of Travel Partners

Skift: What are you doing to bring in international tour operators?

Hamidaddin: We could not have grown without our travel partners. Usually, new destinations rely heavily on travel partners because, until a destination is very well known and people recommend it to one another, people won’t necessarily just book and jump. They need their tours to be pre-planned and arranged with travel agencies and groups.

We develop itineraries, and most of our business in new developing markets like Europe, America, and Asia are happening through our partners.

Our partners have different segments. Some are individual travelers, and some are group travelers.  This year for the first time,  we launched our transportation map, which takes connectivity to the next level. It’s air connectivity, it’s ground transport for groups and individuals. And we are introducing our solutions and our partners on transportation for our travel agents around the world because there is high demand now for groups.

For example, we just partnered with a company called Shift Transit . Shift, has an asset pool of vehicles that they provide all the destination management companies [DMCs] in terms of buses, minivans, small vehicles, four-by-fours, you name it, just to supply the DMCs that don’t have these assets at any point in time to cater for their travelers, be it individuals, families, or groups.

Sports and Music as Growth Drivers

Skift: Shed some color on your festival and event calendar.

Hamidaddin: We’re looking at sports as a socioeconomic engine from opportunities to wealth to a sector that would become an engine of growth for the country. Everything is coming from a massive strategic direction to unlock the opportunities and the jobs and the careers and definitely the economic stimulation.

Sports are expected to contribute 1.5% to our total GDP. And so it’s serious, especially in a country that has always been dependent on oil. 1.5% is significant. Now, with that comes a development of clubs hosting international events, and we’ve put a bid for the World Cup, and fingers crossed, we’ll win it.

We had the Formula One Grand Prix. Two months ago, we launched with Rafael Nadal the Nadal Tennis Academy to drive aspiration to this sector. We’ve been hosting a lot of boxing. Matches never done anywhere in the world are now taking place in Saudi. NEOM is now developing our ski destination and has already been granted the right to host the Asian Winter Games in ’29. 

So for golf, we had the LIV Golf and the partnership with the PGA tour. That aggressive commitment that we have put to passion players in the space of golf tells you that this is not random. 

We are very proud of our original music and folklore dance, and we are investing heavily in reviving that. We’re hosting international concerts and music associations and institutes to come and perform. Today in ITB, we brought the first Saudi women female dance groups.

We pair Saudi orchestras with other international orchestras, or we simply invite international DJs and we mix them with local talents on the rise. The largest EDM music festival, the MDLBeast , similar to TomorrowLand . 

SoundStorm is the largest EDM festival that happens in the world when it comes to numbers. Last year we had 630,000 attendees. It’s a city, and it’s a festival that runs for three days in a row.

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Economy added robust 275,000 jobs in February, report shows. But a slowdown looms.

tourism growth

Corrections & Clarifications: An earlier version of this story misstated the month in which job gains were revised from 353,000 to 229,000. The January numbers were restated.

U.S. employers added a robust 275,000 jobs in February as hiring stayed strong despite high interest rates , persistent inflation and uncertainty about the economic outlook in a presidential election year.

But payroll gains for December and January were revised down by an outsized 167,000, portraying a much weaker picture of the recent labor market. January's booming 353,000 employment gains were downgraded significantly to 229,000, though that's still a sturdy total.

And the unemployment rate rose from 3.7% to 3.9%, the highest since January 2022, the Labor Department said Friday.

Economists had estimated that 200,000 jobs were added in February, according to a Bloomberg survey.

For some forecasters, steady downward revisions to the payroll totals since early last year add to evidence that 2024 will bring a sharp slowdown in job growth.

"The current trend in payrolls is steady, but a clear downturn is coming," says Ian Shepherdson, chief economist of Pantheon Macroeconomics.

Are wages catching up to inflation?

Average hourly pay rose 5 cents to $34.57, pushing down the yearly increase from 4.4% to 4.3%.  

In January, cold and snowy weather in the Northeast and Midwest reduced the number of hours many employees worked and so artificially bumped up their hourly pay, economists say. Those effects largely reversed last month.

Since hitting a recent peak of 5.9% in March 2022, average annual wage growth has slowed as labor shortages have eased, but it’s still above the 3.5% pace Federal Reserve officials say would align with their 2% inflation goal.

The good news: Since spring last year, pay increases have outpaced inflation, giving consumers more purchasing power.

Will the Fed lower interest rates in 2024?

Economists said the report doesn’t change expectations that the Fed will probably start cutting interest rates in June, with the booming February job gains offset by the downgrades for previous months.

More significantly, yearly pay increases, which feed into inflation, dipped, giving the Fed some assurance that price increases should continue to slow. Fed Chair Jerome Powell told Congress this week that the central bank won’t begin trimming rates until it’s confident that inflation is moving sustainably toward the Fed’s 2% goal.

“The employment report does not change the view that the (Fed) will be patient in (cutting) rates,” says Nationwide economist Kathy Bostjancic. She said a rate cut will likely be on the table for May, but officials will probably wait at least until June before acting.

U.S. stocks added to their record levels on Friday after the mixed report appeared to bolster the case for easier interest rates later in the year.

The S&P 500 was 0.5% higher in morning trading and on track for its 17th winning week in the last 19. The Dow Jones Industrial Average was up 160 points, or 0.4%, as of 10 a.m. Eastern time, and the Nasdaq composite was 0.8% higher

What field is hiring the most right now?

Last month, health care led the job gains with 67,000. Leisure and hospitality, which includes restaurants and bars, added 58,000; government, 52,000; construction, 23,000;  transportation and warehousing, 20,000; and retail, 19,000.

But manufacturing shed 4,000 jobs and professional and business services added just 9,000.

What is the labor force participation rate?

In February, the labor force − which includes people working and job hunting − increased by 150,000, though the share of all adults in that group held steady at 62.5%, down from a recent high of 62.8% and 63.3% before the pandemic. The Fed would like to see that participation rate rise further to curb inflation, but leading economists believe it probably has topped out now that most Americans sidelined by COVID have returned to the work force and millions of baby boomers are retiring.

What is current job growth?

Job gains have been remarkably healthy in recent months, buoyed by companies’ reluctance to lay off workers after two years of pandemic-related labor shortages . But job openings and hires have steadily declined now that a post-COVID wave of catch-up hiring and consumer spending has run its course.

Even after Friday's substantial revisions, payroll gains approached 300,000 in December and remained vibrant in January. But the December figure was likely boosted by unseasonably warm weather and the January tally was magnified by low layoff totals after the holidays, economists said. In other words, employers hired fewer seasonal workers, resulting in fewer cuts in January.

Many businesses are still hesitant to let employees go after enduring severe labor crunches over the past couple of years. But that probably will mean softer hiring in the months ahead, Nomura wrote in a research note.

More broadly, job gains have slowed just gradually despite the Federal Reserve’s sharp interest rate hikes to fight high inflation, averaging 251,000 last year, down from 377,000 in 2022.

Will the job market get better in 2024?

Economists expect a sharper pullback in hiring this year. The delayed effects of the rate increases are expected to curb household and business spending. Pandemic-related savings are running dry. And low- and middle-income Americans burdened by record credit card debt and historically high delinquencies are likely to rein in purchases.

Although yearly inflation has fallen from a 40-year high of 9.1% in 2022 to about 3%, it’s still above the Fed’s 2% target. That's straining households. Meanwhile, the sizzling labor market that followed the pandemic has simmered down: Companies have grown more cautious about bringing on workers, and more Americans have returned to the labor force, joining a wave of immigrants.

In January, employers posted 8.9 million job ads, down slightly from the previous month and a peak of 12 million in March 2022. The number of new hires slipped to 5.7 million, below the pre-COVID level. And just 3.4 million workers quit jobs, the fewest since January 2021 and a sign that many don’t have another position lined up or are less confident they can find one.

Though the job market is cooling, the picture varies by industry and occupation, says Rajesh Namboothiry, senior vice president of staffing firm Manpower North America.

Companies are bringing on fewer employees in warehousing, finance, office support and administration and stepping up the hiring of technicians, engineers, scientists and factory automation specialists, Namboothiry says.

Are more layoffs coming in 2024?

Layoffs are poised to increase. Company notices of plant closures and mass layoffs are becoming more common, says Shepherdson of Pantheon Macroeconomics. He expects job gains to slow to 50,000 to 100,000 a month by spring and summer, nudging the unemployment rate higher.

The upshot: More workers are competing for fewer jobs and finding themselves up against hundreds of other applicants for each vacancy. The crunch is forcing job seekers to send out more applications to land a position, LinkedIn said in a recent report.

Contributing: The Associated Press

UN Tourism | Bringing the world closer

International Tourism to End 2023 Close to 90% of Pre-Pandemic Levels

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International Tourism to End 2023 Close to 90% of Pre-Pandemic Levels

  • All Regions
  • 30 Nov 2023

International tourism is on track to recover almost 90% of pre-pandemic levels by the end of this year. According to the latest data from the World Tourism Organization (UNWTO), an estimated 975 million tourists travelled internationally between January and September 2023, an increase of 38% on the same months of 2022.

The newest UNWTO World Tourism Barometer also shows:

  • World destinations welcomed 22% more international tourists in the third quarter of 2023 compared to the same period last year, reflecting a strong Northern Hemisphere summer season.
  • International tourist arrivals hit 91% of pre-pandemic levels in the third quarter, reaching 92% in July, the best month so far since the start of pandemic.
  • Overall, tourism recovered 87% of pre-pandemic levels in January-September 2023 . That puts the sector on course to recover almost 90% by the end of the year.
  • International tourism receipts could reach USD 1.4 trillion in 2023 , about 93% of the USD 1.5 trillion earned by destinations in 2019.

The latest UNWTO data shows that international tourism has almost completely recovered from the unprecedented crisis of COVID-19 with many destinations reaching or even exceeding pre-pandemic arrivals and receipts

UNWTO Secretary-General Zurab Pololikashvili said: "The latest UNWTO data shows that international tourism has almost completely recovered from the unprecedented crisis of COVID-19 with many destinations reaching or even exceeding pre-pandemic arrivals and receipts. This is critical for destinations, businesses, and communities where the sector is a major lifeline. "

The Middle East, Europe and Africa lead recovery

  • The Middle East continues to lead the recovery by regions in relative terms, with arrivals 20% above pre-pandemic levels in the nine months through September 2023. The Middle East remains the only world region to surpass 2019 levels this period. Visa facilitation measures, the development of new destinations, investments in new tourism-related projects and the hosting of large events, help underpin this remarkable performance.
  • Europe , the world's largest destination region, welcomed 550 million international tourists over the period, 56% of the global total. That represents 94% of pre-pandemic levels. The rebound was supported by robust intra-regional demand as well as strong demand from the United States.
  • Africa recovered 92% of pre-pandemic visitors this nine-month period,  and arrivals in the Americas reached 88% of 2019 numbers this period, as the region benefitted from strong US demand, in particular to Caribbean destinations.
  • Asia and the Pacific reached 62% of pre-pandemic levels this period due to slower reopening to international travel. However, performance among subregions is mixed, with South Asia recovering 95% of pre-pandemic levels but North-East Asia only about 50%.

International tourist arrivals (% change vs. 2019)

The World Tourism Barometer includes more focused data on regions, as well as sub-regions and individual destinations.

Tourism spending strong

Strong demand for outbound travel was reported by several large source markets this period, with many exceeding 2019 levels. Germany and the United States spent 13% and 11% more respectively on outbound travel than in the same nine months of 2019, while Italy spent 16% more through August.

The sustained recovery is also reflected in the performance of industry indicators. Drawing on data from IATA (the International Air Transport Association) and STR, the UNWTO Tourism Recovery Tracker details a strong recovery in air passenger numbers and tourist accommodation occupancy levels.

Against this backdrop, international tourism is well on track to fully recover pre-pandemic levels in 2024 despite economic challenges such as high inflation and weaker global output, as well as important geopolitical tensions and conflicts.

Related links

  • Download the News Release on PDF
  • World Tourism Barometer | Volume 21 • Issue 4 • November 2023 | EXCERPT
  • World Tourism Barometer (PPT version)
  • UNWTO Tourism Recovery Tracker
  • UNWTO World Tourism Barometer
  • UNWTO Tourism Data Dashboard

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The Conservatives have embraced Britain’s decline

If the party wanted to win the next election, it would be cutting taxes to pursue growth. It has instead chosen defeat

Chancellor of the Exchequer Jeremy Hunt with Prime Minister Rishi Sunak

The Budget represented a last chance for the Conservative Party, which I used to support as a donor, to shift the dial ahead of the next general election. Sadly, we can now see that strategic vision about where we are going as a country is entirely lacking.

With the tax burden heading for a 70-year high, what we saw from the Chancellor was mere tinkering. People are not stupid and they can tell that while he may be giving a bit with one hand, he’s taking away more with the other. The tax cuts are more than cancelled out by the stealth tax raid.

GDP per capita will fall yet again this year. The ridiculous Office for Budget Responsibility forecasts that growth will pick up to 1.7 per cent by 2028, but that’s simply not good enough. We have had these levels of anaemic growth in this country now for years. For at least the past two decades, we’ve been following a failed Treasury orthodoxy that prevents any radical thinking. We need to do something dramatic to change things.

The economy faces a number of headwinds. One of these is monetary policy, which is tight as we seek to bring inflation down. But now inflation looks like returning to 2 per cent soon, it’s time for the Bank of England to start lowering rates.

The tax burden is another headwind. Millions of people are being dragged into higher rates of tax thanks to the decisions this Government had made. In the 2022 leadership content he lost to Liz Truss, Rishi Sunak pledged to reduce the basic income tax rate from 20p to 16p in the pound. This, it seems, is a long forgotten promise.

Corporation tax, which George Osborne rightly sought to slash at every Budget, has been hiked back up from 19p to 25p in the pound. And in the Budget we heard nothing about business rates, nothing that will seriously encourage investment and nothing for pensioners. The Prime Minister and the Chancellor also ignored the pleas of over 500 leading businesses representing the retail, hospitality, tourism and arts sectors, and refused to scrap the tourist tax , an issue I have been campaigning on. The case for reintroducing tax-free shopping in the UK is clear and overwhelming. As things stand, every country in the EU offers sales tax rebates to tourists while we don’t. The UK’s tourist economy has one hand tied behind its back.

Independent economic analysis shows that scrapping the tourist tax would more than pay for itself because of the tourist spending that would be stimulated in hotels, restaurants, tourist attractions, taxis and the like, with an £11 billion boost to GDP. It would also seize a Brexit opportunity, as we could offer savings to a new market of 500 million EU consumers thanks to our place outside the bloc.

Instead of cutting the tax burden, however, one of the Chancellor’s big announcements was stolen wholesale from the Labour Party – the abolition of non-dom status . The Conservatives previously attacked this policy on the basis that it attracted entrepreneurs who create jobs and tax revenue. Now they have U-turned simply to put Labour on the spot, and offered no compensating policies. Already, I know of several wealthy entrepreneurs who have left the UK, disillusioned about the state of the country. Abolishing non-dom status will only mean more to follow.

In all, the approach being taken by today’s Government is clearly alienating traditional Conservative voters , and the effect is going to be to hand the country to a Labour government eager to introduce new burdens on business.

A Conservative Party serious about winning the next election would be seizing Brexit freedoms and deregulating, reforming the welfare state to get people into work, increasing housebuilding, sorting out business rates and offering serious tax incentives for entrepreneurs.

Sadly, it is instead embracing declinism – and will reap the inevitable electoral result.  

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IMAGES

  1. 6 Key Travel Industry Growth Statistics

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  2. Growth in Worldwide Tourism

    tourism growth

  3. Growth of Tourism

    tourism growth

  4. Tourism industry statistics for 2020 and beyond

    tourism growth

  5. Tourism Market Research: Trends 2023 in the UK

    tourism growth

  6. PPT

    tourism growth

COMMENTS

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    Tourism has massively increased in recent decades. Aviation has opened up travel from domestic to international. Before the COVID-19 pandemic, the number of international visits had more than doubled since 2000. Tourism can be important for both the travelers and the people in the countries they visit. For visitors, traveling can increase their ...

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  10. FACT SHEET: 2022 National Travel and Tourism Strategy

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  11. What next for travel and tourism? Here's what the experts say

    In 2020 alone, the travel and tourism sector lost $4.5 trillion and 62 million jobs globally. But as the world recovers from the impacts of the COVID-19 pandemic, travel and tourism can bounce back as an inclusive, sustainable, and resilient sector. Two experts highlight some of the key transformations in the sector going forward during the ...

  12. Travel & Tourism

    The Travel & Tourism market worldwide is projected to grow by 3.47% (2024-2028) resulting in a market volume of US$1,063.00bn in 2028.

  13. Tourism in a Post-Pandemic World

    Tourism continues to be one of the sectors hit hardest by the COVID-19 pandemic, particularly for countries in the Asia-Pacific region and Western Hemisphere. Governments in these regions, and elsewhere, have taken measures to ease the economic shock to households and businesses, but longer-term the industry will need to adapt to a post-pandemic "new normal."

  14. Tourism Statistics

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  15. The Travel And Tourism Industry By 2030

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  16. Tourism and economic growth: Multi-country evidence from mixed

    Tourism is one of the most visible and fastest growing facets of globalisation that has undergone remarkable growth over the last 50 years (Scott et al., 2019).Instead of shipping goods across space, tourism involves the export of non-tradable local amenities, such as beaches, mountains or cultural amenities, and local services, such as hotels, restaurants and local transport, by temporarily ...

  17. Tourism Enjoys Strong Start to 2022 while Facing New Uncertainties

    International tourism continued its recovery in January 2022, with a much better performance compared to the weak start to 2021. However, the Russian invasion of Ukraine adds pressure to existing economic uncertainties, coupled with many Covid-related travel restrictions still in place. ... (+89%) and Africa (+51%) also saw growth in January ...

  18. The relationship between tourism and economic growth among BRICS

    Tourism has become the world's third-largest export industry after fuels and chemicals, and ahead of food and automotive products. From last few years, there has been a great surge in international tourism, culminates to 7% share of World's total exports in 2016. To this end, the study attempts to examine the relationship between inbound tourism, financial development and economic growth ...

  19. PDF Tourism Growth, Development and Impacts

    SOCIAL CHANGE AND THE GROWTH OF TOURISM 7 One of the continuing problems caused by a lack of clear definition of tour-ism is that tourism studies are often poles apart in philosophical approach, methodological orientation or intent of the investigation (Fennell, 1999). Nevertheless, if there is no complete agreement on the definition of tourism, it

  20. Tourism growth slows following huge gains during Covid

    Mar. 11—The huge growth seen in Haywood County tourism since 2018 continued to slow last year, measured by overnight room tax collections. The room tax collected from overnight tourists grew from $1.5 million to $3 million during the previous five years — with the biggest gains seen during 2020 and 2021. Growth began to level off in 2022 with an increase of only 6.5%.

  21. Travel and tourism in the U.S.

    Thanks to this influx of visitors and a boost in U.S. travel spending, the travel and tourism industry contributed over two trillion U.S. dollars to the country's GDP in 2022. Domestic leisure ...

  22. Tourism holding back state's growth

    This year the state Department of Business, Economic Development and Tourism expects visitor arrivals to reach 9.8 million, which is 5% below the peak 10.3 million out-of-state visitors that came ...

  23. Music tourism as Singapore's new growth driver

    Mar 11, 2024, 06:27 AM. With the trade recovery yet to fully take off, Singapore is busy making music tourism its new growth driver. British rock band Coldplay performed in January, while American ...

  24. The Philippine economy in 2024

    The Philippines ended 2023 on a high note, being the fastest growing economy across Southeast Asia with a growth rate of 5.6 percent—just shy of the government's target of 6.0 to 7.0 percent. 1 "National accounts," Philippine Statistics Authority, January 31, 2024; "Philippine economic updates," Bangko Sentral ng Pilipinas, November 16, 2023. ...

  25. 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 ...

  26. Saudi Tourism CEO: Lionel Messi Ad Targets Traveler 'Prejudices'

    With a very high base, going at the highest speed of growth five years in a row, that's definitely a good testament. We had set a target of a hundred million visits by 2030. Thankfully, we ...

  27. February jobs report: Employers added 275K jobs; unemployment at 3.9%

    Since hitting a recent peak of 5.9% in March 2022, average annual wage growth has slowed as labor shortages have eased, but it's still above the 3.5% pace Federal Reserve officials say would ...

  28. International Tourism to End 2023 Close to 90% of Pre-Pandemic ...

    All Regions. 30 Nov 2023. International tourism is on track to recover almost 90% of pre-pandemic levels by the end of this year. According to the latest data from the World Tourism Organization (UNWTO), an estimated 975 million tourists travelled internationally between January and September 2023, an increase of 38% on the same months of 2022.

  29. The Conservatives have embraced Britain's decline

    The Prime Minister and the Chancellor also ignored the pleas of over 500 leading businesses representing the retail, hospitality, tourism and arts sectors, and refused to scrap the tourist tax, an ...