In a compelling testament to the resilience of the global tourism industry, investment within the sector is experiencing a notable resurgence, defying the somber depths it plumbed during the dark days of the pandemic. A recent report, jointly curated by the United Nations World Tourism Organisation (UNWTO) and fDi Intelligence, has unveiled the heartening revival of investment in the tourism sphere, riding on the coattails of a steady resurgence in international tourist arrivals.
This comprehensive report, leveraging data from fDi Markets – the proprietary database of greenfield Foreign Direct Investment (FDI) projects maintained by fDi Intelligence – in tandem with international tourism data sourced from UNWTO, casts a discerning spotlight on the evolving investment landscape in the tourism sector. In a meticulously crafted analysis, it meticulously dissects investment statistics, shedding light on regional variations, industry segments, and key players. Notable among the revelations are:
The global tourism cluster witnessed a commendable growth of 23% in both FDI project numbers and job creation rates, soaring from 286 investments in 2021 to a robust 352 in 2022. A corresponding surge was witnessed in job creation, climbing by 23% during the same period to reach an impressive estimated figure of 36,400 jobs generated by tourism FDI in 2022.
In an exploration of destination preferences, Western Europe emerged as the forerunner for tourism FDI projects in 2022. The region welcomed a staggering 143 announced investments, collectively valued at an estimated $2.2 billion. It signalled a promising affirmation of Western Europe’s allure as a coveted destination for investors seeking a piece of the thriving tourism sector.
Meanwhile, the Asia-Pacific region registered a marginal uptick of 2.4% in the number of announced projects, totalling 42 in 2022. This cautious yet positive growth signifies the region’s enduring appeal and its position as a noteworthy contender on the global tourism investment stage.
A closer examination of the industry segments reveals that the hotel and tourism sector constituted a commanding presence, accounting for nearly two-thirds of all projects within the tourism cluster from 2018 to 2022. In a remarkable demonstration of vitality, FDI projects within this segment surged by 25% from 2021 to 2022, highlighting its enduring magnetism for investors.
The resounding revival of investment within the global tourism sector serves as a beacon of hope, a testament to the industry’s remarkable ability to rebound from adversity. With investments flowing in, it is poised to regain its former glory, offering a promising outlook for the future and underscoring its enduring appeal to investors seeking stable and lucrative opportunities in a post-pandemic world.