The latest FDI Tourism Investment Report 2024, published by the Financial Times in partnership with UN Tourism and Diriyah Gate Company, highlights a robust recovery in global tourism investment. The report underscores the sector’s growth since the pandemic, with a significant emphasis on sustainability and innovation.
Between 2019 and 2023, the tourism industry recorded 1,943 foreign direct investment (FDI) projects, amassing $106.7 billion in capital and creating approximately 259,800 jobs, according to data from fDi Markets. While overall investment levels remain below pre-pandemic peaks, 2023 saw international tourism receipts rise by 3% above 2019’s record high, signalling a positive trajectory.
Regional Trends in Tourism Investment
Europe retained its position as the leading destination for global tourism FDI, accounting for 44.6% of all projects over the period. The region hosted 867 projects, demonstrating resilience despite global economic uncertainty.
Asia-Pacific saw the most dramatic growth, with tourism FDI projects increasing by 59.5% in 2023 compared to the previous year. Capital investment in the region rose by an impressive 125.3%, driven by a steady recovery in international tourist arrivals, which reached 65.4% of pre-pandemic levels.
Latin America and the Caribbean attracted 221 FDI projects, resulting in $20.5 billion in investment and approximately 73,400 new jobs. Having surpassed 2019 levels of international tourist arrivals, the region is seen as an increasingly profitable market for foreign investors.
In the Middle East and Africa, tourism FDI projects totalled 314 between 2019 and 2023, with a notable 16.1% increase from 2022 to 2023. Capital investment in these regions grew by 12.2%, reflecting their appeal as emerging markets for sustainable and innovative tourism ventures.
Sustainability Takes Centre Stage
The report emphasises a growing focus on sustainable tourism investments, with many destinations embracing technology such as artificial intelligence and blockchain to minimise environmental impact and enhance visitor experiences. Sovereign wealth funds are also playing a pivotal role, investing in projects aimed at ensuring long-term profitability and sustainability.
Jacopo Dettoni, Editor-in-Chief of fDi Intelligence, highlighted the importance of adapting to modern challenges. “Climate change and resource management are reshaping tourism. Sustainable investments are essential to meet these demands responsibly,” he said.
UN Tourism Secretary-General Zurab Pololikashvili echoed this sentiment, pointing to the dual challenge of integrating new technologies and advancing sustainability. “More targeted investment will transform tourism, create jobs, and foster inclusive growth,” he noted.
A Call for Quality and Innovation
The report calls for a shift towards quality over quantity in tourism, urging the diversification of destinations and the development of eco-friendly infrastructure. UN Tourism Executive Director Natalia Bayona stressed the importance of focusing on younger generations, who make up over half of the tourism workforce globally. “Strategic investments will support evolving traveller needs, bolster community wellbeing, and safeguard the planet,” she concluded.