The 19th Century American author Mark Twain once said: “Travel is fatal to prejudice, bigotry, and narrow-mindedness, and many of our people need it sorely on these accounts. Broad, wholesome, charitable views of men and things cannot be acquired by vegetating in one little corner of the earth all one’s lifetime.”
I have travelled enough to comprehend Twain’s words. The experience of seeing and living among new people and environments nurtures an appreciation of various cultures and histories. This explains why tourism has a unique ability to promote understanding between and among populations.
Tourism has also been vital for economic prosperity. Globally, it contributes about 10% of gross domestic product (GDP), 7% of exports and accounts for one in every 10 jobs. Prior to the pandemic, tourism was among the fastest-growing sectors in the world. Over 20 countries generated more than one-tenth of their national incomes from this source.
International tourism receipts reached $1.4 trillion last year, just shy of the $1.5 trillion in earnings in 2019. Despite emerging economic uncertainties and geopolitical turbulence, international tourist arrivals and the sector’s contribution to global GDP are expected to return to pre-pandemic levels this year.
The Middle East was the first region to achieve a full recovery, with foreign arrivals 22% above the pre-pandemic level. International tourist trips to Europe, the world's most visited region, exceeded 2019 levels in the first quarter of 2024. Countries like the United States, Spain, Japan and France have been among the top destinations since the end of the COVID era.
A pullback by Chinese travelers has delayed a full rebound for the sector.
By contrast, the tourism recovery in the Asia-Pacific region has trailed other parts of the world. A pullback by Chinese travelers in the post-pandemic era has delayed a full recovery of the global travel sector. Chinese nationals took just over 100 million trips abroad last year, compared to 170 million visits in 2019. They spent 24% less last year than in 2019. By contrast, spending by Americans was up 14%, according to United Nations tourism data. Lower numbers of visits and spending by China’s households have erased $129 billion from global tourism.
Damaged household balance sheets have relegated Chinese citizens to traveling domestically or close to home. Geopolitical tensions have also played a part, with visa application processes becoming increasingly complex for Chinese travelers. Inflation in travel-related services and a weaker renminbi have also likely discouraged international trips.
Though a rebound in travel is delivering sizeable economic gains, it has left some cities grappling with the effects of over-tourism. Many top destinations have fallen out of love with visitors, as they place pressure on essential services and housing at the expense of locals. To express discontent, a Japanese town blocked off a view of Mount Fuji, while Barcelona residents protested by spraying water on tourists. Venice’s city council introduced a €5 entry fee for visitors into the city, and Hawaiians are concerned about tourists snarling traffic and depleting their fresh water.
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These developments illustrate the complexities that trophy destinations face in balancing their economic needs with quality of life. The last thing we need to see is a force for global peace turning into another source of dissonance between and among populations.
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