With 2023 at an end, the Travel and Tourism (T&T) sector is finally positioned to move past the impact of the pandemic, with international tourist arrivals anticipated to reach levels reminiscent of the pre-pandemic era. However, T&T sector stakeholders and destinations are navigating a complex terrain marked by external challenges such as geopolitical and economic uncertainty, inflation and dangers from the proliferation of extreme weather events like wildfires.

Many of these issues represent broader ongoing and longer-term economic, environmental, societal, geopolitical and technological trends. Within this context, consumers, policy-makers and advocates have expressed growing apprehension about the sector’s record on sustainability and its role in issues such as climate change, overcrowding, and overall impact on local communities.

Against this dynamic backdrop, it becomes imperative for the leaders and visionaries of the T&T industry to not only comprehend the impending trends but also acknowledge the sector’s potential to tackle global challenges. When managed thoughtfully, travel and tourism emerge as potent drivers of resilient and sustainable development, contributing to the collective well-being of our planet.

Why travel and tourism have a role to play in future global prosperity

The recently released World Economic Forum’s Global Risk Report 2024 sheds light on the short- and long-term risks that the world faces. According to the report’s survey results, economic and societal risks, such as inequality, inflation, migration, and economic downturns, take centre stage in the next two years, while environmental concerns, including extreme weather events and biodiversity loss, dominate the global risks for the next decade.

Given that T&T accounts for 7.6% of global GDP and close to 300 million jobs, the sector plays a critical role in addressing societal and economic challenges. The sector’s significance magnifies as it empowers small- and medium-sized enterprises, with over 80% of T&T businesses falling under this category. It also plays a pivotal role in employing women, youth, migrants, and informal workers, thereby contributing significantly to economic opportunities.

T&T is also a major driver of global connectivity at a time when geopolitical tensions and conflict are on the rise, while globalization seems to be slowing. In the coming decade, T&T’s role in mitigating socioeconomic risks will only climb, with the World Travel and Tourism Council forecasting T&T sector GDP to grow at nearly double the rate of the broader global economy in the 10 years to 2033, thereby adding more than 100 million new jobs.

On an environmental level, T&T is a key stakeholder in addressing climate change and protecting the environment. The sector is not only affected by these challenges but also contributes to climate change with around 8% of global anthropogenic greenhouse gas emissions stemming from tourism activities.

Therefore, actions in the sector, especially in hard-to-abate segments like aviation, are important to helping meet global climate change targets. Moreover, many destinations’ dependence on nature-based attractions makes T&T a means to generate economic value for protecting nature.

Unlocking travel and tourism’s potential

To unlock the full potential of T&T as a tool for addressing many of the world’s ongoing and future challenges, sector leaders must prioritize sustainability and resilience in their development strategies. 

The Global Future Council on Sustainable Tourism emphasizes the importance of creating standards and metrics for sustainability, cultivating a well-trained and inclusive workforce, prioritizing and engaging with local communities, aligning visitors with destinations carrying capacity and making appropriate investments in relevant infrastructure. 

Achieving these goals necessitates a high degree of collaboration among sector and non-sector businesses, employees, and government actors at national and local levels, including tourism and environmental agencies, civil society, and international organizations.

In the coming months, the Forum, in collaboration with the University of Surrey, will unveil the latest edition of the Travel and Tourism Development Index (TTDI). This index promises to provide a comprehensive understanding of the factors and policies that enable the sustainable and resilient development of the T&T sector. 

Drawing on the latest data encompassing environmental and social impacts of T&T, labour markets, infrastructure, natural and cultural resources, and demand sustainability, the TTDI offers insights into the challenges ahead, the sector’s readiness for risks and opportunities, and how it can be leveraged to address global issues. The importance of T&T for global prosperity will only grow in the years [ahead], creating new opportunities for shared commitment to a sustainable and inclusive future.

Authored by World Economic Forum research and analysis specialist Maksim Soshkin and University of Surrey senior lecturer in tourism marketing and management Marion Karl.

This article is republished from the World Economic Forum under a Creative Commons licence. Read the original article.

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For many of us, the ready availability of low-cost air travel has become the norm rather than the exception.

Yet aviation is responsible for around 2.5% of global CO2 emissions, with most aircraft powered by jet gasoline. The European Commission predicts that by the middle of the 21st century, demand for flying could increase aviation’s greenhouse gas emissions by upwards of 300% over 2005 levels if no drastic measures are taken to reduce them.

The aviation industry has adopted the goal of reaching net-zero carbon emissions by 2050. In October, the UN’s International Civil Aviation Organization (ICAO) led two weeks of negotiations involving 184 nations to agree on CO2 emissions reduction measures. These include ramping up innovative aircraft technologies, “streamlining” flight operations and the increased production and use of sustainable aviation fuels (SAF).

“States’ adoption of this new long-term goal for decarbonised air transport, following the similar commitments from industry groups, will contribute importantly to the green innovation and implementation momentum which must be accelerated over the coming decades to ultimately achieve emissions-free powered flight,” said the president of the ICAO Council, Salvatore Sciacchitano.

“As we move from commitment to action, it is essential for the industry to be backed by governments with a decarbonisation goal,” said Laia Barbarà, the industry decarbonisation lead for aviation at the World Economic Forum.

“ICAO’s Long Term Aspirational Goal (LTAG) of net zero by mid-century is a great step forward in that direction. The World Economic Forum stands ready to support ICAO, governments and the private sector globally as they work on next steps,” she added.

Making aviation fuel more sustainable

Sustainable Aviation Fuels can reduce emissions by 80% according to the International Air Transport Association (IATA). SAF can be made from several sources ranging from agricultural waste to carbon captured from the air.

It is fully compatible with existing aircraft and fueling infrastructure. However, high production costs and limited supply has slowed its adoption. It is estimated that SAF comprises less than 0.1% of all jet fuel currently used.

IATA estimates that SAF could make up around 65% of the emissions reduction needed by aviation to reach net-zero by 2050. But it says “this will require a massive increase in production in order to meet demand. The largest acceleration is expected in the 2030s as policy support becomes global, SAF becomes competitive with fossil kerosene and credible offsets become scarcer.”

Offsetting emissions from aviation

IATA says the aviation industry won’t be able to completely eliminate emissions at source, and will need to mitigate the rest using a variety of offsetting mechanisms. This is the process where emissions are compensated for by the financing of a reduction in emissions elsewhere.

ICAO adopted the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) in 2016, which has been heralded as the first global market-based measure for any sector. IATA says “CORSIA aims to stabilise international civil aviation net CO2 emissions at 2019 levels, from 2021, using offsetting programs.” It adds, “we envisage that as new technology such as SAF becomes widespread, the need for offsets will diminish”.

Electric and hydrogen can also help reduce aviation emissions

With short-haul flights of fewer than 600 miles accounting for more than 17% of airline emissions, new technologies like electric and hydrogen-powered aircraft are also being developed. It’s been estimated that all flights of fewer than 2,500 miles, which make up more than half of all CO2 emissions from aviation, could be electrified or powered by hydrogen.

European aviation giant Airbus is developing three types of hydrogen-fuelled zero-emission commercial aircraft which it says could enter service from 2035. They are: a turboprop plane carrying up to 100 passengers with a range of more than 1,000 nautical miles; a turbofan design (120-200 passengers) with a range of 2,000-plus nautical miles; and a “blended-wing body” design (up to 200 passengers) which could also fly over 2,000 nautical miles.

However, in order for hydrogen to be a carbon-neutral aviation fuel, it will need to be produced using sustainable methods. The ClimateWorks Foundation says “usage of green hydrogen (that is hydrogen produced using additional renewable energy) must be incentivised to achieve the deep decarbonisation required from the aviation sector”.

Business and government leaders need to align on a meaningful pathway to accelerate aviation’s decarbonisation for more companies to adopt SAF. The Clean Skies for Tomorrow Coalition is a global initiative to facilitate the transition to net-zero flying by 2050 – by accelerating the deployment of sustainable aviation fuel. Co-led by the World Economic Forum, the coalition of more than 100 companies is aiming to power global aviation with 10% SAF by 2030.

Stefan Ellerbeck is a senior writer of formative content for the World Economic Forum.

This article is republished from The World Economic Forum under a Creative Commons licence. Read the original article.

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