COMCEC Tourism Outlook-2019
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The sharing economy has shown incremental growth in recent years and is forecast to reach
USD 335 billion by 2025, according to projections. Tourism is one of the sectors that much of
this growth occurred, as the fast paced growth of peer-to-peer and shared usage platforms is
changing the tourism marketplace and giving people new options for where to stay, what to do
and how to get around. Sharing economy platforms have adopted different business models,
some of which closely resemble traditional tourismactivities, while others appeal to users’ sense
of community (OECD, 2016).
This rapid growth of the sharing economy is placing pressure on existing tourism policy
frameworks. This requires a balanced, informed approach, which considers all interests. Tourist
protection, safety and quality assurance frameworks are important factors to translate to the
sharing economy model. Taxing and regulation of sharing economy and impact on residents are
other challenges to be dealt by legislative bodies. Governments should make sure that they
capture the opportunity to stimulate innovation and support the development of tourism, while
addressing the challenges it poses for the traditional tourism sector and the impacts on society
(OECD, 2016).
Governments are recommended to modernize policy and regulatory approaches, re-think policy
incentives, better understand the policy environment and test new approaches, utilize the data,
strengthen data collection and research on the impacts of the sharing economy on tourism and
local communities (OECD, 2016). Increased local planning, management and marketing of
destination and regional leadership and institutionalization in tourism through DMOs at
destination level also emerge as a necessity (Edgell, 2015).
Economic, social and environmental costs and benefits have to be balanced in order to ensure
the long-term sustainable development of tourism. Sustainable tourism development requires
the participation of all relevant stakeholders at the destination level including and engaging
particularly the locals.
International Tourist Arrivals
According to the UNWTO (2019a), international tourist arrivals grew by 5% in 2018, and
reached 1.4 billion tourists. 1.4 billion was the 2020 target and thus realized two years in
advance. Despite occasional shocks, international tourist arrivals have shown virtually
uninterrupted growth – from 277 million in 1980 to 529 million in 1995 and 1.4 billion in 2018
(UNWTO, 2019a). 2018 was the seventh consecutive year of above-average growth (more than
4%) in international tourism following the 2009 global economic crisis. Despite ongoing
geopolitical, economic and environmental challenges in various regions of the world, demand
continued to be strong in most of the destinations.
Tourism flows were influenced by threesome major factors in 2017 and 2018. These were
Fluctuations in exchange rates, trade wars between US and tariffs includingChina, Brexit and US
& China trade conflicts;, decline in interest rates, the price of oil and other commodities which
increased disposable income in importing countries but weakened demand in exporting
countries; and increased global concern about safety and security in some destinations are some
of the major factors affecting tourism flows (UNWTO, 2018a).