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Digital Platforms and the Future of Tourism

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Tourism is one of the fastest growing and most important economic sectors in the world providing benefits to both host communities and destination areas. In 2017, international tourist arrivals reached a new record high at over 1.3 billion according to the latest UNWTO Tourism Highlights. The sector has now seen uninterrupted growth in arrivals for eight straight years. It also represents 10.4% of GDP and in 2017 the tourism industry supported 313 million jobs or 1 in 10 jobs globally.

Tourism also provides better opportunities for women’s participation in the workforce, women’s entrepreneurship, and women’s leadership than other sectors of the economy.

That is why the World Bank Group continues to be committed to invest funds, knowledge and expertise to support tourism for development.

As a part of the World Bank Growth & Competitiveness Project in the Gambia, a hospitality training center trained 1,235 students and helped increase arrivals by tourists from non-traditional markets by 71% between 2011 and 2015.

In Peru, an IFC Advisory project financed by SECO (Swiss State Secretariat for Economic Affairs – Economic Cooperation and Development) helped streamline procedures for obtaining licenses and permits to start and operate tourism businesses in Cusco. The reforms eliminated 150 unnecessary processes and shaved three years off the business registration process, making it easier for both local and foreign investors to operate in Cusco.

A World Bank Group report on the 20 Reasons Sustainable Tourism Counts for Development explains how sustainable tourism counts not just for travelers, but for tourism destinations and local residents.

The World Bank Group developed the Abraham Path project to bring together fragmented communities along the path in the West Bank through many interventions like training and capacity, which were aimed at generating tourism revenue and jobs, and improving economic opportunities for women. The project has generated 137 jobs, 57% going to women.

Digital technologies and platforms are disrupting the way the tourism sector operates from end to end.   Many low-income economies can potentially benefit from this digital transformation and others are at risk of being left behind if they fail to embrace this moment.

The World Bank Group recently published two reports on the significance of this disruption on tourism and how countries can harness it for the benefit of all. According to the report, Tourism and the Sharing Economy, the annual growth rate for the global P2P accommodation is estimated at 31 percent between 2013 and 2025, six times the growth rate of traditional bed and breakfasts and hostels.

In addition, the second report, The Voice of Travelers, produced in collaboration with TripAdvisor explains how peer reviews and other forms of user-generated content (UGC), facilitated by digital platforms, have become the most important sources of travel information globally—more important than tourism boards and traditional outlets. This joint report is part of an MoU that was signed by the World Bank Group and TripAdvisor to promote the development of the tourism sector that highlights some of the key digital trends impacting the sector to countries and private sector partners.

This year, World Tourism Day is shining a light on “Tourism and the Digital Transformation”— as its theme. The UNWTO is calling on governments and the global community, to “support digital technologies that can transform the way we travel, reduce the ecological burden of tourism and bring the benefits of tourism to all.”

They also can provide new opportunities for women and rural entrepreneurs to improve their market access and financial inclusion. However, many developing destinations have limited knowledge on how to take advantage of digital platforms and mitigate risks. Either constrained by the lack of understanding or knowhow and resources, these economies are not able to leverage digital tools to grow their tourism.

Responding to the global call to promote innovations in tourism through technology, the World Bank Group, will host a day-long event just prior to WTD2018 focusing on Digital Platforms and the Future of Tourism.

Tourism

Africa’s Tourism Leaders Identify Investments as Key to Sustainable Recovery

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The African Members of the World Tourism Organization (UNWTO) have met in Cabo Verde to strengthen their cooperation and advance plans for recovery and sustainable growth.

The 64th meeting of the UNWTO Regional Commission for Africa (CAF) saw 23 countries represented on the island of Sal, with 21 Ministers of Tourism joining five Ambassadors for the high-level event. Opening the Commission meeting, the President of Cabo Verde Jorge Carlos Fonseca offered a warm welcome to UNWTO’s leadership and to all delegates. The President was joined by Cabo Verde’s Minister of Tourism and Transport, Carlos Jorge Duarte Santos, and Prime Minister Dr. Ulisses Correia e Silva in reaffirming support of the highest political level for tourism and recognition of the sector as a driver of recovery and sustainable development.

Chaired by Christine Kaseba Sata, Ambassador of Zambia to Spain and Permanent Representative to UNWTO, delegates addressed the biggest challenges standing in the way of the sector’s safe restart across the continent. Special emphasis was placed on the importance of speeding up vaccine rollouts across the continent, as well as addressing security issues that continue to have an impact on how global travellers perceive Africa as a safe tourism destination. Also on the agenda was the current level of connectivity between destinations, with improved air links the harmonization of travel protocols identified as an effective means for boosting regional tourism.

Tourism’s restart ‘essential’

Secretary-General Zurab Pololikashvili welcomed delegates to the Commission meeting, providing an overview of UNWTO’s work during the ongoing crisis and how this is driven by the stated priorities of its African Member States. He said. “The continent is united in its determination to use the power of tourism to drive development and opportunity for all. And with coordination and targeted investments, African tourism can finally fulfil its unique potential.”

Rebuilding trust in travel

In Cabo Verde, UNWTO Members were brought up-to-date on the development of the International Code for the Protection of Tourists, a landmark code aimed at helping restore confidence in travel. Members were also presented with an overview of the UNWTO General Programme of Work & Budget for the Period 2022-2023. Additionally, signalling a shared determination to keep moving forward even in challenging times, Members also held elections for key positions within UNWTO decision-making bodies ahead of the 24th General Assembly.

Building capacity

Running in parallel with the Commission meeting, UNWTO hosted capacity building workshops on innovation, digital marketing and investment These workshops were held ahead of the second edition of the UNWTO Global Tourism Investment Forum, opened by Prime Minister Dr. Ulisses Correia e Silva and featuring the participation of investors from Spain, Germany, Switzerland and the USA as well as public and private sector leaders from across Africa. Backing up the workshop on marketing, UNWTO also launched its new Brand Africa publication. Produced with key African Tourism Partners, the publication aims at helping destinations use effective branding to diversify and attract visitors.

Also in Cabo Verde, tourism leader celebrated the signing and approval of the UNWTO Declaration on the Future of Mobility and Sustainable Transportation, a commitment aimed at the better understanding of how investments can help make the sector greener while also encouraging greater cooperation between tourism authorities and transport providers. Concluding the Regional Commission meeting, UNWTO signed a Memorandum of Understanding (MoU) with the Government of Cabo Verde. The aim of the MoU is to enhance cooperation between UNWTO and the Ministry of Tourism to strengthen the country’s branding, boost tourism education initiatives, and support research into the socio-economic impact of the sustainable development of tourism across Cabo Verde.

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Tourism

Green Hotel Investments to #RestartTourism

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Destination Capital (DC) has signed a collaborative arrangement with the World Tourism Organization (UNWTO) of the United Nations to support the rejuvenation of the hotel industry. The arrangement supports the relationship DC has with the International Finance Corporation (IFC) to promote investment in green and sustainable tourism accommodation and to stimulate re-employment, particularly in the wake of the COVID-19 pandemic.

The collaboration between UNWTO and Destination Capital is based on DC’s adoption of best practices aimed at reducing carbon emissions and operating hotels in a manner consistent with IFC’s environmental and social criteria. Against this backdrop, DC acquires and repositions freehold hotels of 150-250 rooms in Thailand and across South-East Asia with the aim of implementing sustainable water and energy systems. It also works to promote gender equality at every level of the hospitality sector, another of UNWTO’s core priorities and in line with Sustainable Development Goal number 5.

While governments and destinations around the world are working on vaccination programs to accelerate the restart of the tourism, UNWTO is working with the private sector to encourage employers to play their part in the recovery of local communities through job creation and training programs. UNWTO data shows that international tourism arrivals fell by 1 billion in 2020, with the crisis carrying over into 2021. Worldwide, this has placed as many as 120 million tourism jobs directly at risk. Moreover, Asia and the Pacific has been the worst-affected of all global regions, and young workers and women are among the hardest hit by the downturn in tourism employment.

In line with the 2030 Agenda for Sustainable Development, DC recognizes the hotel industry not only has a responsibility to re-hire and re-train hotel staff. It is also increasingly under pressure to reduce its carbon footprint and mitigate the impact of energy and water consumption as well as food waste and environmental degradation. DC is committed to retrofitting its hotels to be compliant as ‘green hotel’s as per the Excellence in Design for Greater Efficiencies (EDGE) standards established by IFC.

About Destination Capital

Destination Capital is a private equity real estate investment company based in Bangkok Thailand which focuses on acquiring, renovating and repositioning hotel assets such that they are EDGE compliant and follow a rigorous sustainability protocol in order to unlock value for our capital partners. Rigorous asset manage programs are in place to yield higher values upon exit while pursuing a “Triple Bottom Line” strategy: Planet, People, Profit.

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Tourism

Promoting ‘Brand Africa’ to Realize the Continent’s Tourism Potential

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UNWTO’s African Member States will work together to establish a new narrative for tourism across the continent. To better realize tourism’s potential to drive recovery, UNWTO and its Members will also work with the African Union and the private sector to promote the continent to new global audiences through positive, people-centred storytelling and effective branding.

With tourism recognized as an essential pillar of sustainable and inclusive development for the continent, UNWTO welcomed high-level delegates to the first Regional Conference on Strengthening Brand Africa. The conference featured the participation of the political leadership of host country Namibia, alongside public and private sector leaders from across the continent.

UNWTO Secretary-General Zurab Pololikashvili welcomed the common determination to rethink as well as restart tourism. “African destinations must take the lead in celebrating and promoting the continent’s vibrant culture, youthful energy and entrepreneur spirit, and its rich gastronomy”, he said.  

Windhoek Pledge puts people first

On the back of a series of workshops and a Ministerial Think Tank, UNWTO’s African Member States unanimously endorsed the Windhoek Pledge on Advocating Brand Africa. Under the terms of the Windhoek Pledge, Members will engage both public and private sector stakeholders as well as local communities to build a new, inspiring narrative for tourism across the continent. They will identify positive, human-centred stories, and through strengthened partnerships with the media, showcase them to the world, reaching new and diverse tourism source markets.

Over the coming weeks, UNWTO will work with all signatories to create a common roadmap towards establishing Brand Africa. This will include establishing common values and goals and identifying funding needs and opportunities as well as providing branding toolkits for destinations, including guidelines and recommendations and training and capacity building in market intelligence, digital marketing and data management.

Bilateral meetings show support for tourism

Alongside the conference, UNWTO Secretary-General Zurab Pololikashvili, held high-level talks on the restart of tourism with President of Namibia Hage Geingob, as well as with the country’s Deputy Prime Minister Netumbo Nandi-Ndaitwah and with the African Union Commissioner for Trade and Industry Albert Muchanga

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