Greenfield investments into the tourism sector continue to rise, with a growing interest in projects related to sustainability and innovation.
The latest fDi Tourism Investment Report 2024 (“Global greenfield investment trends in tourism”), released by the Financial Times in collaboration with UN Tourism and with the support of the Diriyah Gate Company, offers an in-depth look at global greenfield investment trends in tourism, emphasizing recovery from the pandemic and outlining current developments.
According to the report, the tourism sector (international tourist arrivals and receipts) showed strong growth in 2023, with international tourism receipts already +3% up compared with the level of 2019 (a record high for the sector).
More and better-targeted investment will be key to transforming the tourism sector, creating jobs, and driving inclusive and sustainable growth
Foreign investors announced a total of 1,943 FDI projects in the tourism cluster between 2019 and 2023 according to fDi Markets, the greenfield investment monitor of the Financial Times.
These projects garnered an estimated US $106.7bn in capital investment and created an estimated 259,800 jobs. Even though tourism investments have not fully returned to pre-pandemic levels, the future of the sector looks positive.
The report identifies an increasing focus on sustainable tourism investments, as destinations leverage innovation and technology, including AI and blockchain, to reduce environmental impact while enhancing visitor experiences, and the growing involvement and appetite of sovereign wealth funds, as they believe that the long term future of the tourism sector looks positive and profitable.
Jacopo Dettoni, Editor-in-Chief at fDi Intelligence, emphasized the significance of sustainable tourism, noting, “The world we live in has changed, and so must our approach to tourism. Climate change and resource management are reshaping how
and where people travel, which calls for a responsible shift toward sustainable investments.”
UN Tourism Secretary-General Zurab Pololikashvili said: “The rise of new technologies and the need for greater sustainability are constantly impacting the tourism sector, presenting both opportunities and challenges that call for innovative approaches. More and better-targeted investment will be key to transforming the tourism sector, creating jobs, and driving inclusive and sustainable growth.”
Meanwhile, with the latest UN Tourism Data showing that the sector is on track to reach 96% recovery of pre-pandemic numbers by the end of the year, the 122nd Session of the Executive Council looked to the future, with investments and innovation high on the agenda.
The Session welcomed representatives of 47 countries, including 21 Ministers and Vice-Ministers of Tourism, alongside key strategic partners from the private sector, civil society and international finance.
Colombia has chosen to invest in tourism, not in weapons or war, and as the only country to have hosted every major UN Tourism event, including two General Assemblies, it is a testament to the power of tourism as a force for change.
In Cartagena, the Members of the Executive Council advanced plans to build a more inclusive, resilient and forward-looking sector, with a focus on Innovation, Investment and Education.
During the Executive Council, UN Tourism announced the latest additions to its growing Best Tourism Villages network.
In another report, the Middle East played host to the World Forum on Gastronomy Tourism for the first time, with Bahrain welcoming policymakers, industry experts, and renowned chefs to focus on sustainability and community empowerment.
The 9th edition of the UN Tourism World Forum on Gastronomy Tourism (Manama, 18-19 November) was held under the theme of “Gastronomy Tourism: A Driver of Economic Diversification and Inclusion”.
Co-organized by the Basque Culinary Center and hosted by the Ministry of Tourism of Bahrain, the Forum welcomed 500 delegates from 50 countries, marking a milestone in showcasing the region’s unique culinary traditions.
Gastronomy tourism is a powerful tool for economic diversification and community empowerment, especially in regions like the Middle East, where culinary traditions are a unique strength.
The event celebrated the appointment of new UN Ambassadors for Gastronomy Tourism, including 2-Michelin-starred Chef Diego Guerrero (Spain), 1-Michelin-starred Chef Rudolf Štefan (Croatia), and Chef Tala Bashmi (Bahrain).
Sustainability was also at the center of discussion at the forum. Innovation was another of the key focuses.
(Based on UN Tourism press note)
