Issue Brief

Takeaways from G20 Issue Note on Tourism

Introduction

As the world becomes increasingly globalized and interlinked through digital platforms and improved air and rail connectivity, more global citizens have taken up an interest in travelling and exploring the world. Tourism is a vital component of G20 economies with G20 members accounting for approximately 69 percent of international tourists and 71 percent of global tourism exports as of 2023. Thus, tourism has become a focus sector for several G20 economies, given its strong potential to generate employment and enhance economic growth.

G20 and B20 Action on Tourism

The G20 has historically addressed and supported the tourism sector across its members. During the 2022 G20 Indonesia Presidency, the “Bali Guidelines for Strengthening Communities and Micro-Small-Medium-Enterprises (MSMEs) as Tourism Transformation Agents: A People-Centred Recovery” was launched, which contained recommendations from G20 Tourism Ministers. Subsequently, in 2023 “Goa Roadmap for Tourism as a Vehicle for Achieving the Sustainable Development Goals (SDGs)” was published during India’s G20 Presidency. It identifies areas where governments and stakeholders in the tourism industry can work together to promote the global tourism industry. Additionally, India’s B20 Presidency emphasized the importance of promoting seamless cross border payments for promoting international tourism. Most recently, during the 2024 G20 Brazil Presidency, a document highlighting and analyzing cumulative initiatives undertaken by G20 countries on tourism was prepared to promote sustainable development, inclusive growth, and multilateral cooperation to deal with the complexity of global tourism.

Building upon the initiatives by the past three G20 presidencies, the G20 South Africa Task Force on Tourism has outlined four key priority areas.

Priority Areas

Priority Area #1: People-centred Artificial Intelligence (AI) and Innovation to enhance Travel and Tourism Start-Ups and MSMEs

The G20 Task Force on Tourism highlights the profound impact that digital transformation and related technologies like AI are having on industries such as tourism. The Task Force highlights that digital and emerging technologies improve the ease of travel and could help elevate the competitiveness of Medium, Small, and Micro enterprises (MSME) operating in the tourism sector, which was also mentioned in the 2022 G20 Bali Guidelines.

The Task Force notes that the tourism industry must prioritise bridging the digital divide, strengthening tourism linkages with other sectors, and spurring value-added products. The Task Force on Tourism aims to develop an action plan to leverage emerging technologies such as artificial intelligence (AI) to better optimize visitor flows, mitigate environmental damage, preserve cultural heritage, and foster community engagement.

Priority Area #2: Tourism Financing and Investment to enhance Equality and promote Sustainable Development

Given the important role that tourism plays in economies, particularly in the developing world, financing opportunities need to be encouraged and diversified to support the growth of the global tourism industry.

The G20 South Africa Task Force on Tourism notes recommendations put forth in the G20 Rome Guidelines for the Future of Tourism on Investment and Infrastructure on cultivating internal and external sources of investment for tourism products. The Task Force also acknowledges the recommendations for funding put forth in the G20 Presidency Report on “Funding Lines and Priority Areas for Investment in Tourism” on four key priority areas, namely climate resilience and nature-positive tourism; social development; the development of new tourism products in local communities; and the development of shared tourism infrastructure. The Task Force also highlights four critical dimensions as priority areas for global tourism development including governance, economic, sociocultural, and environmental, as outlined in the United Nations Conference on Trade and Development (UNCTAD) - UN Tourism’s “Guiding Principles for Sustainable Investment in Tourism”.

Building upon these previous multilateral initiatives, the G20 Task Force on Tourism intends to host a seminar that brings together experts from development finance institutions, multilateral banking organizations, and G20 member states to enhance partnerships for tourism financing and promote sustainable tourism for economic growth.

Priority #3: Air Connectivity for Seamless Travel

Air connectivity is a foundational component of the tourism industry as it serves as the most convenient form of transport for individuals to travel between destinations. The G20 Task Force on Tourism notes that air connectivity is critical for a nation’s greater integration into the global economy, as it facilitates the movement of goods and services, people, ideas, knowledge, and investment. Therefore, the G20 Task Force emphasizes the importance of increased direct air connectivity among G20 members to facilitate greater intra-G20 tourism as well as commercial activity.

To better coordinate and plan enhanced tourism cooperation between G20 members, the G20 Task Force intends to publish a report on air connectivity for seamless travel that will collate inputs from stakeholders and partners across the G20 members to support the sustainable growth of global aviation and key initiatives such as the Single African Air Transport Market (SAATM). The G20 Task Force notes that seamless travel serves as the backbone of the global tourism industry and would promote solidarity amongst individuals in line with the overall vision of the G20 South Africa Presidency.

Priority #4: Enhanced Resilience for Inclusive, Sustainable Tourism Development

Given the shared challenge of climate change, global industries, including tourism, must integrate sustainability initiatives to reduce the adverse environmental impacts of tourism. Particularly, the global tourism industry must become more resilient in the face of extreme weather events and shocks such as the COVID-19 pandemic to ensure consistent functioning of the sector.

The G20 Task Force on Tourism notes the initiatives of the One Planet Sustainable Tourism Program led by UN Tourism that encourages adaptation to climate change and mitigation of emissions, plastic pollution elimination, and food waste reduction.

Given this backdrop, the G20 South Africa Task Force on Tourism aims to formulate an action plan to promote enhanced resilience for inclusive, sustainable tourism development. This action plan would build upon the Tourism Working Group 2024 Summary of Deliverables to increase the preparedness of the G20 Tourism sector against shocks like the COVID-19 pandemic as well as future potential risks including climate change, biodiversity loss, and pollution.

Conclusion

The G20 Issue Note on Tourism highlights the importance of the tourism industry to the economies of G20 nations and the role that the industry plays in facilitating global cultural understanding and connectivity. Therefore, the G20 Task Force on Tourism intends to improve air connectivity amongst G20 member nations, increase sustainability and resilience of the industry against future climate events, garner greater developmental and financial assistance for the sector, and encourage the adoption of emerging technologies to improve efficiency.

Read the full Issue Note here