Tag Archives: travel & tourism

‘T&T could boost Latin America’s economy by USD260bn over the next decade’

The World Travel & Tourism Council (WTTC), in collaboration with VFS Global, revealed that the Latin American (LATAM) Travel & Tourism sector could add nearly USD 260BN to the region’s economy and create nearly eight million new jobs over the next 10 years.

According to the report, ‘Unlocking Opportunities for Travel & Tourism Growth in LATAM’, this potential growth is dependent on three key policies to unlock annualised growth of 3.4%, reaching a contribution of nearly USD 909.2 billon.

The report includes a policy package focused on improving LATAM’s growth based on transport infrastructure, visa facilitation, and tourism marketing.

Travel & Tourism is a powerhouse sector in the region, with a contribution of more than USD 629 billon to the region’s economy in 2023, welcoming 86 million international travellers.

The sector was essential for employment last year, providing livelihoods to more than 24.6 million people, equating to 9% of all the jobs in the region.

Julia Simpson, President & CEO, WTTC, said, “LATAM’s Travel & Tourism sector has witnessed an extraordinary transformation. In the past years, it has grown significantly, contributing immensely to the region’s economy.

“Growth potential for Travel & Tourism in LATAM is significant. It has already seen substantial growth since 2000, and with the right policies it could unlock an additional US$260 billion in the next decade.

“Countries in the region need better transport infrastructure, simplified visa processes, improved protection for biodiversity and nature, and effective marketing campaigns to highlight the wealth of destinations in this vibrant region.”

Zubin Karkaria, Founder and CEO of VFS Global, said, “We are delighted to partner with WTTC to unlock the immense potential that Travel & Tourism offer in LATAM.

“Since establishing our presence in LATAM in 2009, we are now the trusted partner of 18 governments, serving 29 cities across 17 countries in the region. VFS Global, with its expertise in visa services and tourism promotion, is committed to playing a pivotal role in harnessing LATAM’s potential. Our involvement can also assist destinations in upskilling the workforce, a crucial component in the tourism sector.

“This comprehensive report serves as a roadmap for stakeholders, including governments and National Tourism Boards, to formulate strategies that unlock the continent’s economic potential, attract crucial investments, and boost inbound arrivals. The region stands to gain significantly from our experience in simplifying cross border mobility through highly secure, reliable, efficient, and innovative technology solutions.”

This report delves into the historical journey of the Travel & Tourism sector in LATAM. It’s a story of facing challenges head-on, from the Global Financial Crisis in 2008 to the setbacks caused by disease outbreaks and political instability.

Despite all these challenges, the Travel & Tourism sector is on a path to recovery.

According to the global body, 2024 is projected to be a record-breaking year, achieving a GDP contribution of more than US$650 billion, as well as the creation of an additional one million jobs, raising the total to 25.7 million.

Opportunities for LATAM
The report underscores a strategic approach to enhance tourism by integrating investments in infrastructure, improving air connectivity, and simplifying visa procedures.

The report highlights the importance of protecting biodiversity and nature through better water management and the use of low-carbon energy.

These efforts aim to attract more tourists while ensuring environmental sustainability.

Leveraging digital technologies enhances the travel experience and can optimise marketing strategies, supported by data-driven insights. Investing in local people and natural preservation enriches the visitor experience and ensures Travel & Tourism is both sustainable and inclusive.

Finally, ensuring safety measures builds trust and sustains growth in the Travel & Tourism sector. This cohesive strategy aims to strengthen the region’s position as a competitive and appealing destination globally.

These efforts could unlock the potential for environmental preservation, job creation, and economic development in the LATAM Travel & Tourism sector.

NSE launches Nifty India Tourism Index to track T&T stocks

The National Stock Exchange’s subsidiary, NSE Indices Limited, has introduced a new thematic index named the Nifty India Tourism Index, aimed at capturing the performance of travel and tourism-related stocks within the Nifty 500 Index.

This new index underscores the Indian government’s ongoing efforts to bolster tourism, which contributes significantly to the nation’s economy, accounting for approximately $199.6 billion to the GDP.

Mukesh Agarwal, CEO of NSE Indices, highlighted that the Nifty India Tourism Index is part of NSE’s broader strategy to provide innovative indices that align with market trends. He noted, “The launch of the Nifty Tourism Index will enable the creation of products that offer asset managers opportunities to invest in the tourism sector, thereby equipping investors with valuable tools to capitalize on the industry’s growth and resilience.”

The Nifty India Tourism Index, with a base date of April 1, 2005, and a base value of 1000, will undergo semi-annual reconstitution and quarterly rebalancing. Initially, it includes 17 stocks from the Nifty 500, chosen based on their relevance to the travel and tourism theme. These stocks are expected to serve as a benchmark for asset managers and a reference for passive funds, including Exchange Traded Funds (ETFs), index funds, and structured products.

Notably, InterGlobe Aviation (NS:INGL) Ltd., the parent company of IndiGo, holds the highest weight in the index at 20.01%. It is followed closely by Indian Hotels Co. (NS:IHTL), a Tata Group company, with a 19.89% share, and the state-owned Indian Railway Catering And Tourism Corp. at 14.4%. Other significant constituents include GMR Airports Infrastructure Ltd. with a 9.72% share and Jubilant Foodworks (NS:JUBI) Ltd., the operator of Dominos Pizza in India, with an 8.78% share.

This initiative is in line with NSE’s recent endeavors to cater to emerging market trends. Last month, NSE launched India’s first index focused on electric mobility, the Nifty EV and New Age Automotive Index, which tracks companies involved in the electric vehicle ecosystem and new-age automotive technologies. NSE’s portfolio of thematic indices also includes Nifty Commodities, Nifty Energy, Nifty Infrastructure, Nifty India Manufacturing, and Nifty India Defence.

The Nifty India Tourism Index is expected to play a pivotal role in enhancing investment opportunities within the tourism sector, reflecting the sector’s dynamism and potential for growth. It aims to provide a robust framework for investors seeking to leverage the economic contributions and future prospects of India’s travel and tourism industry.

(Source: Investing.com India)

World T&T deals decline 10.9% during Jan-March: GlobalData

Travel and tourism sector witnessed 10.9% year-on-year (YoY) decline in the number of deals (mergers and acquisitions (M&A), private equity (PE) and venture financing) announced globally during January-May 2024.

Despite this downturn, PE deals showed improvement, and European markets showed growth, highlighting new opportunities for strategic investments, according to GlobalData, a data and analytics company.

An analysis of GlobalData’s Deals Database revealed that the total number of deals announced in the travel and tourism sector globally fell from 321 during January-May 2023 to 286 during January-May 2024.

Meanwhile, the number of M&A and venture financing deals declined by 5.7%, and 28.4%, respectively, during January-May 2024 compared to January-May 2023, whereas private equity deals volume showcased 9.1% YoY growth.
Aurojyoti Bose, Lead Analyst at GlobalData, said, “Deal-making sentiments have taken a hit across several sectors, including travel and tourism. The impact was felt in most of the regions and several key markets.”

For instance, deals volume for North America, Asia-Pacific, Middle East and Africa and South and Central America regions recorded YoY decline of 32.3%, 8.2%, 25% and 40%, respectively, during the review period. However, Europe emerged as an exception and showcased a YoY growth of 13.4% in deals volume during January-May 2024.

Meanwhile, several key global markets including the US, China and Australia saw respective deals volume declining by 30.4%, 52.2% and 15.4% during January-May 2024 compared to during January-May 2023. However, some markets such as the UK, India, South Korea and Germany managed to see some improvement in deal activity.

Bose added, “Despite the overall decline in deal activity in the travel and tourism sector, the improvement in markets like Europe, the UK, India, South Korea, and Germany demonstrate the sector’s adaptability and potential for strategic investments. Investors should seize these emerging opportunities to navigate the evolving landscape and drive future growth.”

WTTC, IC Bellagio Partner for ‘Community Conscious Travel’ consumer campaign

The World Travel & Tourism Council (WTTC) together with IC Bellagio and Members of the private Travel & Tourism sector, has launched a new consumer focussed initiative helping travellers understand how they can discover the world sustainably.

WTTC has joined forces with IC Bellagio on the new campaign, ‘Community Conscious Travel’, and aims to raise awareness and drive action amongst consumers and communities to maintain the delicate equilibrium between residents’ quality of life, the traveller experience, and the environmental health of popular destinations.

This call to action highlights the positive impact travellers can have by making informed choices, such as exploring destinations during off-peak times, promoting year-round travel, and considering less-crowded, new, and emerging destinations.

By making these choices, it will help reduce the strain on local infrastructure and contribute to the long-term sustainability of the communities, businesses, and ecosystems, enjoying a steady flow of visitors throughout the year.

WTTC plans to roll out the campaign in full just before the 2024 Summer season, with a strong emphasis on video-based storytelling and spread across the global tourism body’s social media platforms highlighting the enormous benefits that the sector can provide to these destinations and its people.

Italy serves as the first case study for this content-driven initiative, designed to raise awareness and spark conversations about Community Conscious Travel and the positive social impact of responsible tourism.

Travel & Tourism is a powerful force for good. In Italy it contributed nearly €215 billion to the economy and creates nearly three million jobs.

The sector employs more women and young people at entry level than any other. We also offer high skilled roles in AI, finance, engineering, commercial roles. It is important Travel & Tourism pays people fairly and offers great opportunities.
The campaign demonstrates how both local communities and visitors can benefit from the positive social impact of Travel & Tourism, facilitating sustainable growth for all.

This year, the sector is also expected to support nearly 350 million jobs globally, highlighting its significance as an economic powerhouse.
In navigating this growth, it is imperative to emphasise effective management practices to ensure sustainable development and flourishing communities.

Julia Simpson, President & CEO, WTTC, said, “Our Community Conscious Travel campaign shows how consumers can travel the world while making a positive impact and supporting local communities.

“There have always been very popular tourist sights and it is critical for destinations and local governments to work hand in glove with local communities to manage visitors in a way that benefits everyone. In Italy, and many other countries around the world, it is often visitors that help keep authentic arts, culture, and crafts alive.”

Andrea Grisdale, CEO & Founder, IC Bellagio, said, “Across the spectrum of Travel & Tourism, the significance of people cannot be overstated. They are the lifeblood of this vibrant industry, intrinsic to the experience that travel provides and, ultimately, the economic growth it creates.

“At IC Bellagio we believe that Travel & Tourism is all about the people, not the traveller alone but the communities and the individuals that welcome them. We hope this campaign will draw an even bolder line between these parties and highlight the truly positive and mutually beneficial relationship that can exist when we choose to travel in a more responsible way.

“We are hopeful the local stories will encourage global dialogue, motivating others to share solutions that can be put into action as we pair resident quality of life with the opportunity’s tourism presents.”

The World Travel & Tourism Council is committed to fostering partnerships between the private and public sectors, aimed at advancing sustainable travel practices and pioneering innovative solutions for responsible tourism.

This new campaign with IC Bellagio is part of the wider global tourism body’s efforts to ensure a balanced approach to tourism management, following previous reports on Destination Stewardship and handling destinations’ success.

AI Set to Shape the Future of Travel & Tourism: WTTC

Recent studies from the World Travel & Tourism Council (WTTC) and Microsoft underscore the significant impact of Artificial Intelligence (AI) and its influence on the evolution of Travel & Tourism.

The final two reports of a series on Artificial Intelligence from WTTC entitled “Responsible Artificial Intelligence (AI): Overview of AI Risks, Safety & Governance” and “Artificial Intelligence (AI): Global Strategies, Policies & Regulations,” underscore a commitment to a digital future that prioritises safety, ethical considerations, and responsible AI adoption.

Launched during the global tourism body’s participation at the UN General Assembly in New York, these reports mark significant milestones in WTTC’s mission to promote innovation and excellence in customer experiences through the safe and trustworthy integration of AI.

“Responsible Artificial Intelligence (AI)” delves into the potential risks associated with AI deployment and offers strategies for establishing frameworks that promote transparency, accountability, and fairness.

From addressing bias and discrimination to ensuring human oversight of AI systems, this report empowers organisations to harness the power of AI responsibly.

In the fourth and final instalment, “Artificial Intelligence (AI): Global Strategies, Policies & Regulations,” WTTC provides a detailed overview of the AI ecosystem across key countries and international organisations.

It shows how policymakers are navigating the AI landscape and shaping regulations and strategies to foster AI innovation, while ensuring its ethical and responsible use.

Julia Simpson, WTTC President & CEO, said, “In a rapidly evolving landscape, AI emerges as a catalyst for positive change. The insights provided in these reports demonstrate that AI is not just a technological advancement; it is a strategic tool that can personalise customer experiences, drive sustainable improvements, and shape the future of Travel & Tourism.

“AI is already being used across our sector with incredible results. Several major hotel groups including Iberostar are using AI to monitor and reduce food waste, which recently resulted not only in a 27% cost saving but prevented thousands of kilos of unwanted food going to landfill.”

Julie Shainock, Managing Director, Travel, Transport, & Logistics Industry for Microsoft, said, “We are seeing AI being embraced across the entire travel eco-system enhancing the customer experience, the employee experience and also driving more efficiency in operations, but we know we are only at the beginning of the journey.

“We are excited to see what the future holds as AI becomes more widely adopted to automate the more mundane tasks of travel and harness the true spirit of travel, to elevate the human experience.”

According to WTTC, AI has the power to revolutionise how businesses in the Travel & Tourism sector operate, offering immense opportunities for growth and innovation.

Both reports underscore the urgent need for Travel & Tourism businesses to embrace AI as a strategic priority, investing in talent and fostering collaboration between humans and AI.

But despite the sector’s increasing recognition of AI’s potential, challenges such as AI-skilled workforce shortages in the Travel & Tourism sector persist, highlighting the importance of proactive measures to overcome barriers to adoption.

As AI continues to reshape the world, WTTC remains at the forefront, advocating for safe, ethical, and inclusive AI innovation.

Global T&T sector deal activity fell by 14.9% YoY in Q1: GlobalData

Travel and tourism sector witnessed the announcement of 165 deals globally during the first quarter (Q1) of 2024. This represents a year-on-year (YoY) decline of 14.9% compared to the announcement of 194 deals during the same period last year, according to GlobalData, a data and analytics company.

Aurojyoti Bose, Lead Analyst at GlobalData, said, “The decline in North America and Europe, which collectively accounted for around two-thirds of the total number of deals announced globally during Q1 2024, primarily drove the overall decline in deals volume.”

While North America witnessed a decline of 26.2%, Europe experienced 12.3% decline during Q1 2024 compared to Q1 2023.

South and Central America and Middle East and African regions also witnessed decline in deals volume during Q1 2024. Meanwhile, deals volume for the Asia-Pacific region remained mostly flat.

Several key markets across all the regions experienced subdued deal activity. For instance, the US, the UK, China, France and Japan recorded YoY decline in deals volume by 21.7%, 30%, 66.7%, 27.3% and 28.6%, respectively.

An analysis of GlobalData’s Deals Database revealed that the deal volume for mergers and acquisitions (M&A) and venture financing deals declined by 14.2%, and 29.2% during Q1 2024 compared to Q1 2023 whereas the number of private equity deals registered some improvement.