According to an analysis by the Mastercard Economics Institute, travelers are also seeking opportunities to extend their stays, prioritizing longer leisure trips. In the first 12 months, from March 2019 to February 2020, the average length of stay for a trip was approximately four days. As of March 2024, the average length of stay for leisure travel is approaching five days, translating into economic boosts for destinations and host communities.
Addressing tourism challenges
But while the overall outlook for travellers looks bright, not all destinations are. Some tourist spots and lesser-known locations are facing increasing challenges around operating conditions. The World Economic Forum's Travel & Tourism Development Index (TTDI) 2024 highlights continuing constraints facing the global travel and tourism sector, including a lack of investment in a skilled and resilient workforce and issues around the management of cultural and natural resources, as destinations grapple with growing tourist numbers and mounting environmental concerns.
The report offers recommendations to travel and tourism decision makers on how the industry can play a more active role in addressing societal challenges, including socio-economic prosperity, peace and cultural exchange. With the travel and tourism industry responsible for around one-tenth of the world's gross domestic product and employment, public and private sectors need to work together to ensure that future tourism development is first and foremost inclusive and sustainable.
Supporting the foundations of travel and tourism
As the TTDI 2024 points out, one area where the sector's potential in driving socio-economic prosperity can be particularly impactful is in the economic empowerment of micro, small and medium enterprises (MSMEs). According to the World Travel and Tourism Council, more than 80% of travel and tourism businesses fall into this category.
Policies and investments that foster the adoption of digital solutions and improve access to credit while strengthening digital skills development can provide a major boost to tourism-focused small and medium-sized enterprises.
In Costa Rica, the Costa Rican Tourism Association, a member of Mastercard's Tourism Innovation Hub, is driving an approach to ensure increased tourism translates into better opportunities for small businesses. Last year, the association launched Tico Treasures, a platform that helps connect tourists with Costa Rica's Craft with Identity program, a group of 17 artisan collectives across the country. The platform allows visitors to discover local Costa Rican products, learn about artisan communities, and purchase goods to ship back to their home country — all in one experience.
The program is an example of a public-private collaboration that includes support from the Costa Rican Press Agency, Bank of Costa Rica, and the Costa Rican Tourism Board, and has multiple objectives: to provide more authentic experiences for tourists, to increase access to the digital economy for Costa Ricans, and to contribute to the resilience of small and medium-sized enterprises.
Protecting the future environment
Novel approaches to solving destination sustainability challenges are also underway. As a global non-governmental organization, the Travel Foundation's primary role is to accelerate sustainable solutions and foster innovative public-private collaborations in the growing tourism industry. One notable example is Scotland, where national tourism organization VisitScotland has partnered with global tour operator Travel Corporation to help destinations decarbonize their supply chains. The two organizations are sharing insights, data and expertise to support local businesses, develop new ideas to reduce carbon emissions and identify barriers to the green transition.
Learnings from this project and others led by the Travel Foundation will be shared and leveraged at national and global levels to influence future policy, investment and product development decisions. By combining public sector resources and capabilities with the technical expertise of the private sector, travel and tourism decision makers can enact policies and programs that balance tourism growth and environmental protection, providing a nuanced approach suited to unique destinations.
“Now is a critical time for the tourism industry to capitalize on a strong travel and tourism recovery, drive socio-economic prosperity and advance a more inclusive future for our beloved destinations. By accelerating collaboration between governments, destination management organizations and technology companies, we can ensure that destinations, the communities that support them and the environments they live in are at the heart of all future tourism development.”
This article was previously published by the World Economic Forum.
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