Investment in the global tourism has started to bounce back from the pandemic following the steady recovery of international tourist arrivals, according to a new report.
The joint study by the UNWTO and data firm fDi Intelligence found western Europe to be the leading destination for foreign direct investment (FDI) with 143 deals worth a combined $2.2 billion last year.
The number announced into the Asia-Pacific region increased marginally by 2.4% to 42 projects year-on-year in 2022.
The hotel and tourism sector accounted for almost two-thirds of all projects in the sector between 2018 and 2022. FDI projects increased by 25% from 2021 to 2022.
Job creation in tourism FDI increased by 23% over the same period, to an estimated 36,400 last year.
North America and Asia-Pacific each contribute three companies to the top ten investors list for tourism FDI between 2018 and 2022.
The rest of the top ten comprises companies from Europe, with Melia, Intercontinental Hotels Group, Accor and UK-based Selina all featuring.
Jacopo Dettoni, editor of fDi Intelligence, said: “Greenfield FDI into the tourism sector is showing signs of life after all but vanishing in the pandemic years.
“With Covid–19 behind us, the sector has no time to waste in addressing the biggest challenge of our times: climate change and the resulting sustainability imperative.”
UNWTO secretary-general Zurab Pololikashvili said: ”To ensure the growth and competitiveness of the sector, significant investments must be made in education and talent by upskilling the professional workforce and implementing vocational and technical programmes.
“Only in this way can we equip young people – of whom only 50% have completed secondary education – with the knowledge and capabilities they need to thrive in the sector.
“These investments will then pave the way for a skilled workforce that can deliver exceptional growth, drive innovation and, by embracing digital technologies, enhance the competitiveness and resilience of the tourism sector.”
Executive director Natalia Bayona added: ”As the sector steers its course towards recovery and growth, UNWTO now, more than ever, prioritises innovation, education and strategic investments as the pillars for recalibrating and adapting to these ever-evolving market dynamics.
“Spearheading a series of initiatives, we equip the professional workforce with new skills through upskilling and vocational workforce programmes, creating quality job opportunities, and raising average wages across the entire tourism value chain.”