As the global community navigates the aftermath of the pandemic, the tourism sector has shown remarkable resilience. In the first quarter of 2023, international tourist arrivals reached 80% of pre-pandemic levels, surpassing the overall recovery rate of 66% witnessed in 2022. However, urgent, strategic policy action is required to address the critical challenge of inadequate investments in the sector, which is vital for long-term sustainability and innovation.

Despite the positive trends seen over recent months, the tourism sector continues to face economic and geopolitical headwinds. It is imperative to recognise that a robust and sustainable recovery hinges on decisive policy measures that stimulate investments. Investments in tourism not only drive economic growth, but also serve as a catalyst for job creation, innovation, and inclusive development. Globally, foreign direct investments (FDI) has faced several challenges, including rising interest rates, which constrained financing, and geopolitical tensions. These factors have not only impacted the tourism sector, but also other industries around it. We estimate that the Covid pandemic alone has resulted in a loss of $2.6tn in international tourism revenues since 2020. 

To expedite economic recovery and ensure the long-term sustainability of the tourism value chain, concerted policy action is required to attract, promote, and mobilise FDI in the sector. These investments serve as powerful drivers, revitalising destinations and facilitating sustainable and green initiatives. By prioritising investments aligned with the Sustainable Development Goals, as outlined in the Glasgow Declaration on Climate Action in Tourism, policymakers can accelerate the transition towards more environmentally friendly practices. This encompasses initiatives such as the development of green buildings, retrofitting projects, and the adoption of sustainable technologies.

UNWTO calls its member states to unlock the full potential of the tourism sector as a catalyst for positive change,  first by investing in education and supporting innovative talent. To ensure the growth and competitiveness of the tourism sector, significant investments must be made in education and talent by upskilling the professional workforce and implementing vocational and technical programs. Only in this way can we equip young people — of whom only 50% have completed secondary education — with the knowledge and capabilities they need to thrive in the sector. These investments will then pave the way for a skilled workforce that can deliver exceptional growth and drive innovation and, by embracing digital technologies, enhance the competitiveness and resilience of the tourism sector. 

By prioritising investments in talent and innovation, we can unlock new opportunities and ensure the sector remains at the forefront of technological advancements. We also call for greater investment collaboration and partnerships, with strong collaborations and partnerships between governments, international organisations, financial institutions and private sector stakeholders. By leveraging the collective expertise and resources of these entities, we can foster sustainable tourism development. It is crucial to develop investment frameworks and guidelines that will enable our member states to innovate their approach to attract, promote and facilitate investments driving the sector forward. 

This op-ed was first published in the Tourism Investment Report 2023. Click here to download a PDF copy of the report.