How can you attract tomorrow’s tourists? The answer to that question matters, because the worldwide tourism industry is enormous. The travel and tourism industry accounts for almost 10% of global GDP and is responsible for one in 11 jobs.

The answer matters even more when we look ahead to the future, as the relevance of travel and tourism is only going to increase. With a projected annual growth rate of 4% globally, the travel and tourism industry could become even more important for some countries. It will also grow faster than many other industries, including financial services, transport and manufacturing.
But as so often, there is no such thing as a free lunch. Some countries will have a harder time than others growing their tourism industry. There are many reasons for this. Take, for example, security; it is the primary concern of many travellers, which makes current geopolitical tensions, the rise of terrorism and the spread of Ebola extremely worrying for the travel and tourism industry – especially those in affected countries.

Yet through our Travel & Tourism Competitiveness Report 2015, we found that the industry as a whole has shown significant global resilience, despite slow economic growth in advanced economies and geopolitical concerns. It continues to grow and adapt – hence the theme of the report, “Growing Through Shocks”. And thus many countries should be able to attract more tourists tomorrow than they are today.

But who is prepared better than the rest? These are this year’s most competitive countries in terms of their travel and tourism industries:
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These countries have done a tremendous job in facilitating travelling to their territories, promoting their natural and cultural heritage, and making one’s stay there enjoyable.

What to do if you’re not in the top spot? 

By analysing what works in today’s travel and tourism industry, and what doesn’t, interesting lessons emerge:

Today’s challenges can be tomorrow’s growth opportunities: technological, socio-economic and cultural forces are driving people to travel internationally more than ever before. And when they choose their destination, travellers tend to only avoid disaster or crisis hit countries for a short time. Consider for instance how the Spanish tourism industry bounced back post-economic crisis or how Thailand’s tourism industry is yet again a top destination following civil unrest. That should show how today’s challenges are tomorrow’s opportunities, for many countries.

You can win tomorrow’s consumer by mobile and “emerging market consumers”:  from the increasing purchasing power in emerging and developing countries, demographic shifts and growing importance of the mobile and online sphere, the industry must adapt to stay on top of its game.  Indeed, research shows that a family trip is the second-highest priority for the booming middle classes, after buying a car. And today, China is the largest market in terms of international tourism expenditure. In China for instance, mobile travel sales accounted for 40% of the business of the most important online travel agencies, namely Ctrip and eLong.

 Tourists actually like the underdog: developing the travel and tourism industry provides growth opportunities for all countries, regardless of their wealth, and offers job opportunities at all skill levels.  Indeed, middle income countries now receive more international visitors than high income countries.  The industry is also a driver of jobs and tends to employ more women and young people than most other industries. It also creates many opportunities for SMEs. And all five continents are represented in the top 50 countries, from the UAE in the Middle East, over South Africa, Seychelles and Mauritius in Africa, and Singapore in Asia, to Brazil and Mexico in Latin America.
Cooperation is the new competition: while people may believe that the travel and tourism industry “works on its own”, this is not the case. In effect, it is an extremely complex industry and requires inter-ministerial coordination and often international and public-private partnerships. It also requires inter-nation coordination and inter-agency coordination. Consider the collaboration needed for visa-free Schengen to be implemented. Similar efforts are being undertaken by the Pacific Alliance, ASEAN and ECOWAS among others.

 The Travel & Tourism Competitiveness Report 2015 is available here.
Author: Roberto Crotti, quantitative economist, Global Competitiveness and Risk, World Economic Forum. Tiffany Misrahi, Community Manager, Mobility Industries, World Economic Forum.
Image: A Northwest Airlines airplane departs Sky Harbor International Airport in Phoenix, November 25, 2009. REUTERS/Joshua Lott



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5 innovations transforming the travel industry

The 21st century consumer is very different from previous generations. We are tech savvy and not only do we expect service quality, we want an experience to go with it. Given our unlimited access to information, we know what the gold standard is, and more importantly, we are open to sharing our experiences on social media and review platforms.

travel
Although the travel industry is booming, with over 1.1 billion international global travelers in 2014, I haven’t met one person who has not complained about an experience they have had while traveling. So how can the industry make the experience more pain-free? There are obviously factors that are beyond the control of the industry, such as the weather, but like most other industries, there is room for innovation.

While many people are aware of some of the interesting innovations that are changing the way we experience travel, many are still under the radar:
  • To share or not to share: The most obvious change in the last few years in hospitality is the sharing economy. The face of this movement is Airbnb, which is now valued at $25 billion, but there are many other companies that are playing the game, such as Couchsurfing, Feastly, Knok, Vayable or even Wimdu. While there are some regulatory issues around this new consumer model, it is providing accommodation to travelers who may not otherwise be able to afford it.
  • Keep track of your bag: My biggest concern when I travel is losing my suitcase, and being left stranded for a business meeting whilst in sweatpants. But new innovations are changing this. Why, if we have smartphones, can’t we have smart suitcases? Well now we can. Different players are looking at different solutions. While airports like Las Vegas’ McCarran Terminal 3 are starting to attach a radio frequency identification chip to suitcases to ensure they don’t get lost, Bluesmart has created a carry on suitcase which can be controlled and tracked using an app on your phone.
  • Let’s stay connected: We live in a hyperconnected world, where in-flight Wi-Fi was bound to happen – and it did. Although a number of airlines offer internet to passengers, it is not a perfect science and it is most definitely not free. But we have a choice which we didn’t have a few years ago. Airlines are also adding power outlets so that passengers can charge their devices throughout their flights and not arrive at their destination with a “dead” phone.
  • Do it yourself: Today, I barely talk to anyone when I go through the airport. With the available technology, I am able to book my flight online, have my boarding pass on my phone, check in with machines, go through automated clearance gates and even validate my boarding pass to board the plane. These innovations have made navigating airports much more efficient – if you are tech savvy. Still, given that security is front of our minds, gate and security agents are present to make sure travelers can have a seamless experience.
  • Guiding your experience: Guidebooks like Lonely Planet used to be the traveler’s bible – but have now become irrelevant in a world of websites and crowdsourcing sites which provide us with advice and reviews on hotels, tours and restaurants. Traditional online Travel Agencies like Expedia and Priceline have provided alternatives. But new players are on the market too: Peek puts a tour guide in your phone, while HotelTonight is a last minute hotel booking tool. Other players are also thinking differently about the issue, such as AnyRoad, which helps us connect to incredible guides and avoid travel agencies.
While these innovations are now the new norm, ten years ago, they would have been unheard of. As we look forward into the next decade, what innovations might continue to transform the way we travel?