Tourism’s Importance for Growth Highlighted in World Economic Outlook Report

Tourism’s Importance for Growth Highlighted in World Economic Outlook Report

Tourism has again been identified as a key driver of economic recovery and growth in a new report by the International Monetary Fund (IMF). With UNWTO data pointing to a return to 95% of pre-pandemic tourist numbers by the end of the year in the best case scenario, the IMF report outlines the positive impact the sector’s rapid recovery will have on certain economies worldwide.

The World Economic Outlook (WEO) Report predicts that the global economy will grow an estimated 3.0% in 2023 and 2.9% in 2024. Although these figures are higher than previous forecasts, they are still below the 3.5% rate of growth recorded in 2022. This indicates the ongoing impacts of the pandemic, Russia’s invasion of Ukraine, and the cost-of-living crisis.

Tourism Key Sector for Growth

The WEO report analyzes economic growth in every global region, highlighting the importance of key sectors such as tourism. Economies with “large travel and tourism sectors” demonstrate strong economic resilience and robust levels of economic activity. Specifically, countries where tourism represents a high percentage of GDP have experienced faster recovery from the impacts of the pandemic compared to economies where tourism is not a significant sector.

As the report Foreword notes: “Strong demand for services has supported service-oriented economies—including important tourism destinations such as France and Spain”.

Looking Ahead

The latest outlook from the IMF aligns with UNWTO’s analysis of the prospects for tourism at the global and regional levels. It is projected that international tourism will reach 80% to 95% of pre-pandemic levels in 2023, pending the release of the November 2023 World Tourism Barometer. The prospects for September-December 2023 indicate continued recovery, driven by pent-up demand and increased air connectivity, particularly in Asia and the Pacific where recovery is still subdued.

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SDGs, Targets, and Indicators in the Article

1. SDG 8: Decent Work and Economic Growth

   • Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.
   • Indicator 8.9.1: Tourism direct GDP as a proportion of total GDP and in growth rate.

2. SDG 12: Responsible Consumption and Production

   • Target 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature.
   • Indicator 12.8.1: Extent to which (i) global citizenship education and (ii) education for sustainable development are mainstreamed in (a) national education policies; (b) curricula; (c) teacher education; and (d) student assessment.

Analysis

The article highlights the importance of tourism for economic recovery and growth, connecting it to the performance of key sectors in different economies. Based on this information, we can identify the following SDGs, targets, and indicators:

1. SDG 8: Decent Work and Economic Growth

The article emphasizes the positive impact of tourism on economic resilience and robust levels of economic activity. It states that economies with “large travel and tourism sectors” have recorded faster recovery from the impacts of the pandemic compared to economies where tourism is not significant. This aligns with SDG 8, which aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

• Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.
• Indicator 8.9.1: Tourism direct GDP as a proportion of total GDP and in growth rate.

The article indirectly addresses Target 8.9 by highlighting the importance of tourism for economic recovery and growth. The rapid recovery of the tourism sector is expected to create jobs and contribute to the local economy. The indicator 8.9.1 can be used to measure progress towards this target by assessing the proportion of tourism direct GDP in total GDP and its growth rate.

2. SDG 12: Responsible Consumption and Production

The article mentions the need for relevant information and awareness for sustainable development and lifestyles in harmony with nature. While not explicitly discussing SDG 12, this reference aligns with the goal’s objective of promoting responsible consumption and production patterns.

• Target 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature.
• Indicator 12.8.1: Extent to which (i) global citizenship education and (ii) education for sustainable development are mainstreamed in (a) national education policies; (b) curricula; (c) teacher education; and (d) student assessment.

The article indirectly addresses Target 12.8 by emphasizing the importance of awareness for sustainable development in the context of tourism. The indicator 12.8.1 can be used to measure progress towards this target by assessing the extent to which global citizenship education and education for sustainable development are integrated into national education policies, curricula, teacher education, and student assessment.

Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: unwto.org

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