TOURISM

INTRODUCTION

The G20 economies represent around 85% of the global gross domestic product (GDP), over 75% of the global trade, and about two-thirds of the world population. In 2022, the G20 welcomed 74% of all international tourists and accounted for 73% of tourism exports worldwide. In 2019, before the COVID-19 pandemic, Tourism Direct GDP reached 3.7% of the G20 economies (https://www.unwto.org/tourism-g20-economies).

Tourism is recognised for its immense potential and its significant contribution to the economy. It plays a critical role in the global economy. Tourism is one of the vital economic sectors contributing significantly to socio-economic development, but it remains vulnerable to natural and manmade hazards. For many countries, the tourism economy is growing faster than most other economic sectors. With its extensive value chain and labour absorption capacity, it is acknowledged as a tool for inclusive economic development, playing a significant role in responding to socioeconomic challenges.

PRIORITIES

PRIORITY 1: PEOPLE-CENTRED ARTIFICIAL INTELLIGENCE (AI) AND INNOVATION TO ENHANCE TRAVEL AND TOURISM START-UPS AND MSMES

Deliverable 1: Action plan to enhance travel and tourism start-ups and MSMEs through AI and innovation

AI and emerging technologies emerge as catalysts for change, offering unprecedented opportunities to reimagine the tourism landscape. The integration of AI represents a paradigm shift in how we understand and manage tourism destinations. From optimising visitor flows and mitigating environmental impacts to preserving cultural heritage and fostering community engagement, AI is key to unlocking new frontiers of sustainable tourism.

(https://www.unwto.org/events/wtm-ministers-summit-ai-for-good-in-tourism)

Small, Medium-sized Enterprises (SMEs) make up to 80% of all tourism businesses. In May 2022, UN Tourism launched a Digital Futures Programme designed to accelerate the adoption of new technology among tourism enterprises. The UN World Tourism Organisation (WTO) Digital Futures Programme for SMEs seeks to accelerate the economic recovery of the tourism sector by supporting SMEs in unleashing digital technologies to create jobs and enhance future resilience in the linkages of the tourism value chain post-COVID-19. The UNWTO Digital Futures Programme for SMEs has the ambition to reach out to at least one million SMEs and to increase their competitiveness across six key digital dimensions: connectivity, business growth, e-commerce, big data and analytics, and payments and security, by providing online training that uptakes the use of digital technologies and tools. (https://www.unwto.org/events/launching-event-of-the-unwto-digital-futures-programme).

By gathering case studies and examples of innovative AI and digital transformation enhancing people-centred and sustainable tourism, the Working Group will develop an action plan for G20 member states to support travel and tourism start-ups and MSMEs through promoting people-centred AI and innovation.

PRIORITY 2:   TOURISM FINANCING AND INVESTMENT TO ENHANCE EQUALITY AND PROMOTE SUSTAINABLE DEVELOPMENT

Deliverable 2: Seminar for enhanced partnerships for tourism financing and investment for sustainable development

Government intervention and support are critical to the viability of tourism projects, and the fact that the ability of the tourism sector to stimulate production in other areas of the economy strengthens the case for government-funded/capitalised equity funds. The G20 economies should seek to offset the set-up costs of large infrastructure projects by subsidising critical infrastructure to ease the burden on investors and attract more investments. Equity funding and demand/supply statistics are major challenges hindering the development of the tourism sector. In order to fill the equity funding gap, the government, in collaboration with multilateral financial institutions, should create equity funding projects as instruments to close the gap.

Action 4 on sustainable development and financing for the development of the Pact for the Future/Declaration for 2024 The UN Summit for the Future affirms commitment to closing the financing gap facing developing countries to prevent a lasting sustainable development divide, widening inequality between and among countries and a further erosion of trust in international relations and the multilateral system. (https://www.un.org/sites/un2.un.org/files/sotf-pact-for-the-future-rev.3.pdf). The UN Summit for the Future is a high-level event that brings world leaders together to forge a new international consensus on delivering a better present and safeguarding the future. The summit was deemed necessary since the world is not on track to meet the goals already set, nor is the world effectively rising to new challenges or opportunities. (https://www.un.org/en/summit-of-the-future/)

A G20 Tourism Financing and Investment seminar will leverage the report by Brazil’s 2024 Presidency to the G20 finance track on the need to increase financing of tourism development projects and tourism investment through multilateral development banks, as well as on the importance of strengthening the activities of multilateral organisations with a positive impact on the tourism sector. The seminar will also address the four priority areas identified by the abovementioned report: climate resilience and nature-positive tourism, social development, new tourism products in local communities, and the development of shared tourism infrastructure.

The seminar would bring together experts from G20 member states, multilateral banking organisations, and development finance institutions, as well as other experts from the public and private sectors, to deliberate on implementable strategies and approaches to investment in the tourism sector. It will be held at the G20 Tourism Ministers Meeting in September 2025.

This conversation between ministers, development finance institutions, and private sector bodies will create new partnerships that recognise the importance and potential of sustainable tourism for promoting economic growth, overcoming inequality and addressing poverty, in line with the 2025 G20 theme of Solidarity, Equality, Sustainability

PRIORITY 3:  AIR CONNECTIVITY FOR SEAMLESS TRAVEL

Deliverable 3: G20 Tourism report on air connectivity for seamless travel

Direct flights are essential for boosting arrivals and positively impacting tourism growth. Therefore, it is important for the G20 members to establish more direct connections and recover those that were lost.

All stakeholders and partners must work together to maximise the benefits of air transport and support the sustainable growth of aviation by connecting more people and places, more often.

The report will form the basis of a concrete action plan for fostering partnerships between the tourism and transport sectors to ensure seamless travel for the advancement of flagship projects for G20 member states, such as the Single African Air Transport Market (SAATM). Seamless travel is the backbone for tourism to promote solidarity among peoples, equality of opportunity, and sustainable development, in line with the 2025 G20 theme.

PRIORITY 4:  ENHANCED RESILIENCE FOR INCLUSIVE, SUSTAINABLE TOURISM DEVELOPMENT

Deliverable 4:   Action plan for enhanced resilience for inclusive, sustainable tourism development

The G20 member states should encourage a new growth trajectory for inclusive tourism growth. Sustainable and resilient tourism revival is critical, not only for the jobs and businesses that it supports but for its interconnectedness and ability to be a catalyst for broader economic growth. Thus, it is essential to consider preparedness for future disasters that may affect the tourism sector.

The Tourism Working Group 2024 Summary of Deliverables recognises that while significant progress has been made, particularly since the pandemic, in implementing policies to promote sustainable, inclusive, and resilient tourism, there are still critical issues in the sector in which multilateral cooperation through the G20 is needed. Holistic and collaborative approaches among governments, the private sector, local communities, and international organisations are essential for promoting sustainable, responsible, and resilient tourism aligned with the Sustainable Development Goals (SDG).

It is proposed that the Working Group develop an action plan on enhanced resilience for inclusive, sustainable tourism development that will focus on the preparedness of the G20 tourism sector to survive future shocks and disasters.