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COMCEC Tourism Outlook-2018

38

Conclusion

Tourism industry has enjoyed continued expansion and diversification, becoming one of the

most rapidly developing industries in the world. Tourism has evolved into a global phenomenon

– one of the most important economic sectors and social activities of the time.

Tourism continues to be an important economic sector capable of attracting foreign direct

investments and supporting sustainable economic development, the production of fairly

distributed wealth, the creation of employment opportunities and poverty alleviation,

particularly in developing countries and the Least Developed Countries.

According to the UNWTO statistics, 1.322 million international tourists travelled in 2017 with

an average annual increase of over 4% since the year 2000. Tourism sector which already

accounts for 10 percent of World GDP is an important source of employment and foreign

exchange that should be supported by governments around the world as part of the policies for

stimulating economic growth.

From the period 1980 to 2017, international tourism receipts —which are the export value of

tourism, excluding international passenger transport—increased from US$125 billion in 1980

to US$ 1,332 billion in 2017 (UNWTO, 2018a) denoting a solid increase in four decades. In real

terms, this corresponds to an average growth of 4 percent a year, which has almost the same

pace as tourist arrivals.

The sector faces some challenges every year and 2018 is likely to be no different. Three main

factors influenced tourism flows in 2016 and 2017; the exchange rate fluctuations, the decline

in the price of oil and other commodities which increased disposable income in importing

countries, as well as increased global concern about safety and security (UNWTO, 2018a).

However, the growth in tourism sector will continue at a stronger rate than last year, with the

total contribution to GDP expected to increase by 4-5% in 2018. This growth will require OIC

Member Countries to adopt a concerted and coordinated approach to planning and development

within the industry, governments and educational institutions to ensure that they fulfill their

potential in the future.

Considering the modest share of the OIC Member Countries in international tourism market, it

is evident that the inherent potential has not yet been fully realized and manifested itself in

desirable levels. For 2016 OIC received only 10% of tourism receipts and around 15% of

arrivals. OIC Member States need to understand how they can strengthen the position of their

tourism industry in response to current global economic challenges and remain competitive

among emerging destinations, within a sustainable development perspective.

As in the case of OIC tourist arrivals, tourism receipts in the Member Countries are concentrated

in a small number of countries, almost the same countries of the main OIC tourist destinations.

The share of international tourism receipts in the total exports of each member country

indicates that tourism plays a significant role in the economies of member countries and

constitutes an important source of foreign exchange earnings.