It has never been more important to embrace and invest in global connectivity. The world has just emerged from years of disruptions threatening the fabric of globalization, and there is much at stake.
The IMF estimates that the COVID-19 pandemic led to a 3.5% contraction in the global economy in 2020 – the sharpest in almost a century. ILO calculations indicate equivalent employment losses of 255 million jobs in the same year. Travel and tourism was hit hardest by the interruption of global value chains, but its fast recovery testifies to the resilience, and potential, of global connectivity.
Once again, people are moving throughout the world. Despite a loss of 2.7 billion international arrivals between 2020-2022, UN Tourism estimates that by the end of 2024, international arrivals will not only reach, but exceed, pre-pandemic volumes. On Trip.com Group platforms, outbound travel numbers have already exceeded pre-pandemic volumes by 20%.
WTTC research shows that, having endured estimated losses of $4.5 trillion and 62 million jobs in 2020 alone, travel and tourism has recovered and is set to reach new heights. Having returned to pre-pandemic levels in 2024, over the next decade, the travel sector is expected to continue to grow, creating over 100 million new jobs and as much as an additional $5 trillion in value annually.
Our journey from temporary isolation to renewed interconnectedness gives cause for optimism but has also highlighted the fragilities of our global ecosystems. As a driving force of global connections, how travel evolves and adapts will have a significant impact on our world’s future. To realize its potential, our path forward must be guided by three key principles:
1. Embrace connectivity, collaboration and openness
By connecting people, businesses and communities, travel is an enabler of economic activity, and is itself an economic powerhouse, accounting for around 10% of global GDP and supporting 1 in 10 jobs worldwide. Travel has an even more important role in reinforcing global connectivity, providing a basis for understanding, respect and collaboration. It can help to shape a future in which everyone has a stake in a more constructive, co-operative and interconnected world.
Countries and regions that prioritize connectivity through travel are realizing this potential to strengthen their economies and their foundation for engagement with the world.
Saudi Arabia has identified tourism as a key pillar to its Vision 2030 plan for economic diversification. Forward-looking investments will see the sector grow to contribute as much as 16% of GDP, and support 1 in 5 jobs in the country by 2034.
Thailand, which derived almost 20% of GDP from tourism prior to the pandemic, is further boosting its economy by making travel accessible to people from more countries and for longer stays. It aims to grow its tourism sector by at least 7.5% next year.
China’s rapidly expanding visa waiver programme is key to developing its inbound travel market, currently worth 0.5% of GDP – a 1% increase could bring in an additional RMB 1.3 trillion ($177.8 billion). These investments are paying dividends.
Trip.com Group data reveals up to triple-digit growth on pre-pandemic traveller volumes for destinations with relaxed visa conditions, such as those implemented by Singapore, Malaysia, the UAE, and Sri Lanka.
2. Adopt a sustainable and impact-oriented mindset
It is essential, including for economic sustainability, that the growth and progress brought by interconnectivity leads to positive, lasting outcomes for people, communities and the environment.
Everyone – whether travellers, providers, destinations or communities – has a stake in securing a more sustainable future for travel. Encouraging progress is being made to decouple growth from emissions, and consumers are increasingly conscientious about their environmental impact, especially when flying, but there is still much work to be done.
Collaboration is essential to realizing sustainable growth. IATA has outlined an industry-wide goal for aviation – which accounts for more than half of the sector’s carbon footprint – of achieving net-zero carbon emissions by 2050. Other parts of the sector are signing onto similar commitments. Since last year, more than 2,600 hotel properties reaching 4 million guests have joined Trip.com Group’s “Low Carbon Hotel Standard”, which will almost halve emissions by 2030.
Apart from minimizing negative impact on the environment, as we embrace the opportunities for economic growth that travel and tourism enables, we must ensure that this growth is sustainable. Popular destinations like Venice, Barcelona and Kyoto have grappled with a range of challenges resulting from increased demand. The industry must work together to address the challenges of over-tourism, by implementing creative solutions, like Kyoto’s “Hands Free” service, which facilitate rich experiences for travellers without straining destinations. Providers can also play a role by leveraging information technology to inform more sustainable travel practices through tools like Trip.com’s itinerary assistant, TripGenie.
3. Prioritize inclusivity in investment and innovation
Communities are the heart of travel, and one of the best ways to ensure a more resilient, sustainable future for the sector is to give them a greater stake.
Inclusive growth is sustainable growth. Developing and promoting lesser-known destinations can help to reduce the pressures of over-tourism, while driving new opportunities. This offers fresh experiences for travellers, opens new frontiers for investors, and by distributing benefits more equitably, provides communities with opportunities for economic and social development.
One example is Trip.com Group’s investments in “Country Retreats” across China, which over the past four years have generated $80 million in value for local economies, created 20,000 jobs, and boosted average annual income by $5,500 per person.
Innovations in digital content can unlock the potential of emerging destinations, especially among younger travellers. A recent report from Skift found that more than half of Millennials and Gen Z travellers relied on social media for planning travel, and this represents an opportunity for lesser-known destinations to engage travellers with their unique offerings. Technologies like AI enable more personalized insights, and can make these destinations more visible, attractive and accessible.
There is much to look forward to as the travel industry chooses to shape a more connected, sustainable and inclusive future.
The author, Jane Sun, is the CEO of Trip.com Group Limited – a leading global travel services company. Ms. Sun has been on several international and Asian Women-Leaders-in-Business power lists.
The views and opinions expressed in this Op-Ed are solely those of the author and do not necessarily reflect the official policy or position of TRENDS.
This Op-Ed was first published by the World Economic Forum.