Tourism and Green Investment: Shaping a Sustainable Future

World Tourism Day is celebrated every year on the 27th of September to spread awareness and also to call the international community, multinational financial institutions, governments, the private sector, and development partners to come forward to unite and work for the betterment of the tourism industry. This year’s theme of World Tourism Day is “Tourism and Green Investments”, as the United Nations World Tourism Organization (@UNWTO) has recognized investments (traditional and non-traditional) as a priority for the recovery and future development of the tourism industry.

The COVID-19 pandemic has disrupted the tourism sector a lot and given us the opportunity to reimagine and reshape the way of tourism investments. This redefining will also help us to align this sector with the objectives of #Agenda2030 and #SDGs. So, this year's #TourismDay theme's primary focus is on investments in People, Planet, and prosperity.

UNWTO reported that around 50% of the young population cannot work in the tourism industry due to the non-availability of resources such as proper academic training and opportunities. However, the industry's future is showing high demand for millions of hospitality workers, either trained or graduated from hospitality schools. The #UNWTO report indicates that the sector is showing a remarkable recovery from the worst global crisis (COVID-19), and global tourist arrivals have reached 84% of the pre-pandemic levels. So, to build a competitive workforce to fulfill future demand, the first part of the theme is to design investments to empower the youth through vocational training and education. This training and quality education in the tourism and hospitality sector will help the youth build their careers and brighter futures. It will also accelerate the performance of SDG 4, which is about Quality Education.

The tourism industry is also known as one of the leading employers globally, as the data showed that one in ten people were employed in this sector in 2019. The pandemic affected it, but now the sector is rebounding, and according to the World Travel & Tourism Council (WTTC), the global tourism contribution to the world GDP will reach $9.5 trillion. If we look only at the development of the Middle East, so far in 2022 and 2023, 204 new hotels with 47,849 rooms were opened, and 116 new hotels with 29,085 rooms are to be opened in the year 2024, which shows high demand for the labor force in the hospitality industry.  At the national level in Pakistan, approximately 70 new hotels will be opened in the next seven years. To meet the industry's evolving demands, diverse education and training programs beyond the conventional focus on hotel management are imperative.

Pakistan needs to prioritize cultivating a trained and capable human resource to connect the potential of this development. The education sector must design and implement targeted skill development programs for the youth, enabling them to meet the industry's evolving demands. To meet this requirement, a comprehensive framework of diverse courses across various institutions is essential to prepare the youth for these opportunities adequately.

World Tourism Day 2023 also highlights the crucial role of the tourism industry in addressing the climate emergency as according to Global Risk Report 2023, it is one of the most critical challenges of the next decade. A current report shows a strong recovery of tourism in every part of the world. Still, the need to build a resilient and sustainable sector has also increased due to the extreme weather events that the industry has witnessed in recent months. So, Investments in green initiatives and innovation are at the front of driving this transformation as this industry is affected the most by environmental challenges such as heatwaves (Europe), wildfires (Canada, Greece, Hawaii), floods (Pakistan, India, Greece), extreme rainfall (Norway, Hong Kong), drought, etc. Therefore, green transformation is vital for the planet's well-being and the tourism sector's competitiveness and resilience, aligning with global sustainability goals.

A significant part of traditional tourism investments covers hotel investment as it increased 131% year-over-year, totaling US$ 66.8 billion in 2021. Looking forward, the potential for investment in reducing emissions and creating green and climate-resilient buildings is $24.7 trillion by 2030, in which restaurants, resorts, and hotels account for $1.5 trillion. For accelerating green transition and sustainability in the tourism industry, it is critical to re-evaluate the current investment agendas and create global and regional partnerships and innovative financial initiatives. These actions will support the global commitment to reduce emissions and achieve Net Zero as early as possible, ensuring a sustainable future for tourism.

The theme of the 2023 Tourism Day also highlights the influence of innovation and entrepreneurship in the tourism industry.  Innovation and digitalization can not only upskill the tourism workforce but also empower them, especially the youth and women, and in turn help in creating an equitable society. Therefore, investments in innovation and entrepreneurship are paramount to unlock the full potential of this sector.

Tourism workforce data shows that 54% of employed people are women. So, supporting female entrepreneurs and providing equal opportunities by investing in policies that promote women's economic participation and equal pay are of vital importance in this industry.

Female entrepreneurship, a burgeoning force globally, has the potential to fuel economic growth and reduce poverty. However, with the 2030 Agenda's targets drawing closer, the untapped potential of women-led businesses must be harnessed.

In conclusion, investments in innovation, digitalization, and their far-reaching impacts can fortify global and regional projects and accelerate tourism's recovery. By supporting Micro, Small, and Medium-sized Enterprises (MSMEs), mitigating systemic economic impacts, sustaining employment, and fostering future growth, these investments shape the prosperous future of tourism in a post-pandemic world. World Tourism Day 2023 is a pivotal moment to reaffirm our commitment to these principles and work collectively towards a sustainable and thriving tourism industry.