The World Tourism Organization (UNWTO) has recently revealed a report that showed statistics related to Foreign Direct Investment (FDI) projects.
Consequently, these projects grew significantly in the tourism cluster by around 23%. In 2021, the registered number of investments was 286 but was recorded to be 352 a year later.
The data further indicated that job creation in the tourism industry was substantially boosted by the FDI.
The figures showed an increase of 23% between 2021 and 2022, with the estimated number of jobs created rising to over 36,000 in the latter year.
The previous year
In 2022, Western Europe was ranked at the top as the leading destination region for different tourism FDI projects.
As a result, more than 140 investments were announced, and they had a combined value of more than $2 billion.
Based on the figures recorded, the Asia-Pacific region indicated a surge in the number of FDI projects that were announced in 2022.
As per the report, the overall number of projects surged by 2.4%, which resulted in 24 projects on average in a year.
Hospitality and tourism
The tourism and hotel sector emerged as the dominant force in the tourism cluster, comprising around two-thirds of all projects that were announced between 2018 and 2022.
Furthermore, FDI projects in the sector registered substantial growth, with an increase of nearly 25% between the years of 2021 and 2022.
On this note, Zurab Polokishavili, the Secretary-General of UNWTO, said that the tourism sector would remain competitive and grow exponentially if consistent investments are made.
In his words, funds should be allocated toward ensuring that the professional workforce is educated and their talent is thoroughly polished.
Consequently, he suggested that technical and vocational programs should be implemented to maximize the potential of the up-and-coming workforce.
He went on to explain that this approach was crucial to helping young people thrive in the tourism sector.
Higher education, according to the Secretary-General, is especially important since 50% of them only have a secondary education certificate.
Revival
According to Jacopo Dettoni, the editor of FDI Intelligence, FDIs in the tourism sector are showing signs of revival after they almost disappeared during the time of the coronavirus pandemic.
He added that since those years are in the past, the tourism sector cannot further delay addressing important challenges that it is currently facing.
The editor explained that one of these issues is climate change, which leads to the need for sustainability.
The executive director of UNWTO, Natalia Bayona, went on to add that the organization that she is a part of places increased focus on education, strategic investments, and innovation.
In her words, these three are the fundamental pillars when it comes to adapting and evolving with the ever-changing market dynamics.
In her words, UNWTO has come up with various initiatives to ensure that the workforce in the tourism sector is up to date with its skills.
These initiatives include running skills development as well as professional workforce programs.
