Analysis of Central Florida’s Tourism Sector and Sustainable Development Goals

Economic Performance and Contribution to SDG 8

A 2024 study by Visit Orlando reports significant economic activity in Central Florida’s tourism sector, aligning with targets for economic growth under Sustainable Development Goal 8 (Decent Work and Economic Growth). The findings indicate a robust contribution to the regional economy.

• Economic Impact: The industry generated a record $94.5 billion.
• Visitor Volume: The region hosted 75.3 million visitors.
• Job Creation: The sector supports 468,000 jobs, constituting 37% of the area’s total employment.

Challenges to Decent Work and Inclusive Growth (SDG 8 & SDG 1)

Despite strong economic indicators, there are significant challenges related to the “decent work” component of SDG 8 and the overarching goal of SDG 1 (No Poverty). Reports from industry workers suggest that economic gains are not being distributed equitably, with wages failing to keep pace with the rising cost of living.

1. Wage Stagnation: Tourism workers report that their compensation does not reflect the industry’s record-breaking revenue or the increased cost of living in the region.
2. Nominal Wage Growth: While total wages and benefits paid reached $28 billion, this represents only a 2.5% year-over-year increase, raising questions about its sufficiency for individual workers.
3. Historical Context: Current wages, such as the estimated $16 to $25 per hour for Disney employees, are contrasted with the escalating cost of living, impacting the financial security of the workforce.

Socio-Economic Disparities and SDG 10

The disparity between the sector’s overall economic impact and the financial reality for its employees highlights a critical issue related to SDG 10 (Reduced Inequalities). Worker testimonies suggest a concentration of wealth at the executive level, while frontline workers struggle.

• Perceived Inequality: A statement from a worker noted, “People at the top make all the money and the people at the bottom… they take what they can get,” reflecting a sentiment of significant economic disparity.
• Contrasting Perspectives: The industry leadership’s view that increased visitor numbers improve the “quality of life we all have” is challenged by the experiences of workers who form the foundation of the sector.

Regional Employment and Sustainable Communities (SDG 11)

The tourism industry’s employment is geographically concentrated, directly impacting the sustainability and inclusivity of local communities as outlined in SDG 11 (Sustainable Cities and Communities). The economic well-being of a large segment of the population in these counties is dependent on the sector’s wage and employment practices.

• Orlando County: 42% of industry jobs
• Osceola County: 35% of industry jobs
• Seminole County: 12% of industry jobs

Conclusion: Reconciling Economic Growth with Sustainable Development

Central Florida’s tourism industry demonstrates successful economic growth, a key component of SDG 8. However, to achieve truly sustainable development, this growth must be inclusive. The current model presents a conflict with the core principles of decent work (SDG 8), poverty reduction (SDG 1), and reduced inequalities (SDG 10). Addressing the wage and compensation structure for the 468,000 workers is critical for aligning the region’s primary economic driver with the Sustainable Development Goals.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth: The article focuses heavily on the economic aspects of the tourism industry, including its record-breaking $94.5 billion economic impact, the creation of 468,000 jobs, and the total wages paid. It also addresses the quality of these jobs by highlighting concerns about wage levels, which relates directly to the “decent work” component of this goal.
• SDG 10: Reduced Inequalities: The article explicitly discusses the disparity between the industry’s massive economic growth and the wages of its workers. The quote from Mark Bishop, “People at the top make all the money and the people at the bottom, you know, they take what they can get,” and the concern that wages have not kept pace with the rising cost of living, directly point to the issue of income inequality within the region.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 8: Decent Work and Economic Growth
   • Target 8.5: “By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.” The article’s mention of the industry supporting 468,000 jobs relates to “full and productive employment.” The discussion on whether current wages constitute “decent work” and provide “equitable compensation” is central to this target.
   • Target 8.9: “By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.” The article’s entire subject is the tourism industry in Central Florida, its economic contributions, and its role as a major employer, which are key components of sustainable tourism addressed by this target.
2. Under SDG 10: Reduced Inequalities
   • Target 10.1: “By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average.” The article raises a critical challenge to this target by stating that workers’ wages have “not kept pace with the rising cost of living,” suggesting that the income growth for those at the bottom is insufficient.
   • Target 10.4: “Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.” The article’s conclusion about the need to balance “economic gains with equitable compensation” implies a call for wage policies that would help achieve the greater equality sought by this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• For Target 8.5: The article provides data that can be used for Indicator 8.5.1 (Average hourly earnings of employees). It states that “Today’s Disney employees earn roughly $16 to $25 an hour,” which is a direct measure of hourly wages.
• For Target 8.9: The article provides figures relevant to Indicator 8.9.1 (Tourism direct GDP as a proportion of total GDP). The “$94.5 billion economic impact” is a measure of the tourism industry’s contribution to the local economy. The statement that the industry supports “37% of all employment across the area” is also a key metric for this target.
• For Target 10.1: The article provides a data point related to Indicator 10.1.1 (Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population). It mentions that “Wages and benefits paid in 2024 totaled $28 billion, reflecting a 2.5% increase year-over-year.” This overall wage growth figure can be compared against inflation and the income growth of top earners to assess progress toward reducing inequality.

SDGs, Targets, and Indicators Summary

Source: clickorlando.com