The OECD has produced its latest study on the tourism sector. Below is a summary of this study. The full study is available via the link at the end of this article.
Overview
Strong recovery from crises:
Tourism has recovered significantly to post-COVID-19 levels, supporting economic growth and prosperity. However, this recovery has been uneven and faces a number of challenges, such as geopolitical tensions, rising costs of living and the consequences of climate change.
The contribution of tourism to GDP in OECD countries reached 3.9% in 2022, which is slightly lower than in 2019 (4.4%). However, the recovery is progressing at different rates in different regions and sectors.
Emerging challenges:
Geopolitical tensions, inflation, extreme weather conditions, oil prices, supply chain issues, social change and labour shortages continue to challenge the tourism sector. These issues require forward-looking policy measures to ensure the future resilience and sustainability of the sector.
The priority of policies
Moving towards sustainable tourism models:
In the wake of the epidemic, many countries have updated their previous tourism strategies or developed new ones with a strong focus on sustainability (including mitigation and adaptation to environmental change), resilience, green and digital transition. Governments are increasingly aware of the need to balance economic recovery with sustainable practices.
Countries aim to diversify tourism offer, attract new target groups and expand tourism activities beyond the high season to spread the economic benefits more evenly and reduce the negative effects of over-tourism in the high season.
Investment in infrastructure and technology
Significant investment is needed to minimise the environmental impact of tourism and adapt to climate change. This includes the construction of the transport and other infrastructure needed to develop sustainable tourism.
Tourism strategies are increasingly focused on fast tracking new technological developments to manage tourism and overcrowding in peak season in a more efficient and sustainable way.
A number of improvements are needed to spread the tourist flows to a destination over time and space.
Labour and skills shortages
Impact of the pandemic:
The COVID-19 epidemic has increased existing labour shortages in the tourism sector. Many workers left the sector in search of other opportunities, and there were significant disruptions in the education and migration channels that traditionally provided labour for tourism. In 2022, employment in the food service and accommodation sector was 9% lower than before the pandemic.
Attracting and retaining workers:
The tourism sector is in direct competition with other sectors for labour, especially in a tight labour market with low unemployment rates. This makes it difficult for tourism businesses to attract and retain skilled workers.
The need for flexible working conditions, which has become more important during the pandemic, poses additional challenges for tourism jobs, which often require personal presence and on-site working.
Focus on sustainable development
Managing environmental and social impacts:
Developing sustainable tourism is a key priority. This includes reassessing the cost/benefit situation of tourism so that the sector supports economic development without harming local communities or ecosystems.
Integration of national and regional strategies:
Sustainable tourism practices are increasingly being integrated into broader national and regional development strategies. This integration helps to align tourism objectives with other policy areas such as environment and transport.
The full study is available here.